Anise Oil

Demand remains low, keeping prices stable. No major changes expected in the near term.

Anise oil is derived from two different botanical sources, both rich in anethole which is the key compound responsible for its sweet, spicy character reminiscent of fennel and licorice. Widely used across the flavor, fragrance, oral care, and pharmaceutical sectors, the oil’s origin can significantly influence its availability and cost. 

The more widely available and cost-effective material is produced from the fruit, seeds, and leaves of Illicium verum, commonly known as star anise. This evergreen tree is native to Southeast Asia, with major production centered in China and Vietnam. Notably, star anise played a critical role between 2000 and 2010 as the starting material for Tamiflu™ which is an antiviral drug that was developed during global outbreaks of influenza. With Tamiflu now produced by a different process, pressure on star anise supply has eased, and the market has returned to a more balanced state. 

The second, less common and typically more expensive variety is extracted from Pimpinella anisum, a flowering plant related to parsley and cultivated mainly in the Mediterranean region. Its seeds are used both as a culinary spice and are steam distilled to produce essential oil.  

Global supply is currently stable. 

Prices increasing.