Experts and Administration officials (Mapa, Junta de Castilla_La Mancha, Junta de Castilla y León, and government of the Region of Murcia) discuss the crisis and opportunities in the sector
The market for essential oils extracted from lavender has suffered a drastic drop in market prices for years, averaging almost 70%. The drought has affected no less than 30% of the cultivated area.
The area destined for essential oils reached 9,200 hectares, most of which corresponds to lavandin, which is a more productive hybrid of lavender and spike lavender.
The essential oil price crisis, the drought, the lack of support from the Administrations and the probable use of synthetic products endanger the essential oil sector. Specifically, lavender is doomed to its possible disappearance.
For four years now, the market for essential oils extracted naturally from lavender flowers and their hybrid species (lavandins) has been paralyzed by a drastic drop in market prices, averaging almost 70%. As a result, no significant commercial operations are carried out, which even puts the farms at risk. On the other hand, the Spanish hygiene, cosmetics and perfumery industry (destination of distilled essential oils) is reaching record growth levels in recent years.
The development of lavender crops in recent years in Spain has been an interesting alternative due to its high added value. However, the drought of recent years and the market crisis have put the sector on the verge of non-survival. The Administration has excluded the sector from drought aid plans, without taking into account the mortality of plants that has affected no less than 30% of the cultivated area.
Aromatic, spice and medicinal crops in Spain occupied an area of 21,240 hectares in 2024, with lavender and lavandin accounting for 9,451 ha. The area destined for essential oils reached 9,200 hectares, most of which corresponds to lavandin, which is a more productive hybrid of lavender and spike lavender.
By communities, Castilla La Mancha occupies the first place in cultivated area of aromatic and medicinal plants with 4,730 hectares (51.6% of the total), followed by: Castilla y León with 1869 hectares (20.4%) and Region of Murcia with 1,499 hectares (16.3%). Lavandin cultivation is the majority in all of them. In 2024, Spain ranked eighth in the world in exports of essential oils in total, and seventh in oils excluding citrus fruits.