HS Code:
Eugenol and isoeugenol (HS Code: 290950) are phenolic compounds primarily derived from essential oils such as clove oil, nutmeg, and cinnamon. Eugenol is widely used in the fragrance, flavor, and pharmaceutical industries due to its aromatic properties and antiseptic qualities. Isoeugenol, a structural isomer of eugenol, is often used in perfumery and as a precursor in the synthesis of vanillin. These compounds are significant in global trade due to their applications in consumer goods and industrial processes.
Total Trade Volume
USD 120 million
Data from 2022
Source
UN Comtrade Database and ITC Trade Map
Average Rate
5.2%
Highest Rate
10% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements such as EU-India FTA)
Rising demand for natural ingredients
Increased demand for eugenol in natural flavor and fragrance industries has boosted trade volumes, especially from tropical countries like Indonesia and India.
2021-2022
Shift towards synthetic alternatives
Development of synthetic eugenol and isoeugenol in developed markets like the US and Germany has slightly reduced reliance on natural extracts, affecting export volumes from producing countries.
2020-2022
Growth in pharmaceutical applications
Eugenol's antiseptic and analgesic properties have led to higher demand in dental and medical products, driving imports in markets like the US and EU.
2019-2022
Indonesia, the largest exporter of eugenol, has invested in expanding clove oil extraction facilities to meet growing global demand.
March 2023
This is expected to solidify Indonesia's position as the market leader, potentially increasing trade volume by 10-15% in the next two years.
The European Union introduced stricter purity and sustainability standards for imported essential oil derivatives, including eugenol and isoeugenol.
January 2023
Exporters from developing countries may face higher compliance costs, potentially reducing trade volumes to the EU in the short term.
A new bilateral agreement between the US and China includes reduced tariffs on chemical compounds like eugenol, fostering greater trade.
October 2022
This agreement is likely to increase Chinese exports to the US, potentially shifting market dynamics for other exporters.