The Orange Terpene market remains considerably firmer than both the Orange Oil and folded oil markets. Demand is healthy in Europe and many parts of Asia, although North America is somewhat softer. Supply continues to be constrained by reduced folded oil production; with less oil being folded, fewer terpenes are generated as a co-product, helping support prices despite generally subdued citrus demand. 

In many cases, terpene values have reached parity with, and at times exceeded, those of Orange Oil. This has created what some describe as a “tail wagging the dog” scenario, where orange is being folded primarily to recover terpenes rather than to produce folded oil. With terpene prices remaining strong, the economics can still work even when demand for the folded oil itself is limited. 

These dynamics are also influencing the folded oil market, as the value of the recovered terpene fraction has become an increasingly important component of overall processing economics.