Jamaica is moving to organise a viable essential oils industry, which holds vast earning potential for the country.

The global market for essential oils was estimated at US$18.6 billion in 2020 and is expected to expand at a growth rate of about 7.4 per cent in terms of revenue up to 2028.

As a precursor to this development, the Jamaica Business Development Corporation (JBDC) is establishing an essential oils incubator that will provide manufacturing capacity for clients.

In addition, the incubator will further position Jamaica to tap into the lucrative global industry, which is part of the overall project to establish an organised and viable essential oils industry locally. The move has been endorsed by Dr Norman Dunn, state minister in the Ministry of Industry and Commerce.

Dr Dunn has committed his support towards the expansion of manufacturing essential oils for export, and pledged the Government’s commitment to help the essential oils industry grow and thrive.

“I look forward to the essential oils incubator project as it builds capacity for processors and provides training in supply change management and business development,” the junior minister disclosed.

He declared his excitement about this initiative during his address at the JBDC’s online business dialogue forum on the essential oils industry on Monday.

Lands needed for edible oils raw material

With an abundance of raw materials and natural ingredients like castor beans, lemongrass, among others, Jamaica is well poised to manufacture quality products that are suitable for hair, skin and body care, for both the local and export markets.

Dr Dunn highlighted the need for increased collaboration between the Rural Agricultural Development Authority (RADA) and other key agencies for the provision of lands for the planting of crops to supply raw material for the essential oils market.

These include tumeric, ginger, lemongrass, and moringa, Dr Dunn explained that farmers should also look to increase or diversify production to meet industry demand. The manager for the Incubator and Resource Centre at the JBDC, David Harrison, advised that the essential oils incubator project will provide manufacturing capacity for the processing of oils from locally viable plant stock while increasing the value chain.

According to him, “The incubator is going to be somewhat of a hub that should stimulate entrepreneurship in the sector. It will provide for rural development, import substitution through the use of local raw materials, export promotion by using strong brands of genuine Jamaican essential oils, and demonstrate that this is a sustainable activity in the production of essential oils, so that it can be replicated.”

Harrison said that the incubator, which should be operational by next month, will provide shared space for use by clients, who can bring in their own raw materials and produce for manufacturing

“It is currently under construction… major production equipment is actually in-house. So, in April, we should be in business,” he noted.

The business forum was held under the theme ‘Developing the manufacturing sector – towards an oil-rich Jamaica’.