HS Code:
Terpineols (HS Code: 2906.19) are a category of cyclic alcohols derived from terpenes, commonly used in the fragrance, flavor, and pharmaceutical industries. They are key ingredients in perfumes, soaps, cosmetics, and as intermediates in the synthesis of other chemicals. Terpineols are often extracted from natural sources like pine oil or produced synthetically, with alpha-terpineol being the most commercially significant isomer. Global trade in terpineols is driven by demand in personal care and industrial applications, with significant production tied to countries rich in natural resources or advanced chemical manufacturing capabilities.
Total Trade Volume
Approximately $150 million USD
Data from 2022
Source
United Nations Comtrade Database, ITC Trade Map
$45 million USD
30% of total trade of total trade
Increasing
$30 million USD
20% of total trade of total trade
Increasing
$25 million USD
17% of total trade of total trade
Stable
$15 million USD
10% of total trade of total trade
Increasing
$10 million USD
7% of total trade of total trade
Stable
Average Rate
5.5% ad valorem
Highest Rate
12% (imposed by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements such as EU-India FTA or USMCA)
Rising demand for natural and sustainable ingredients
Increased preference for naturally derived terpineols over synthetic variants, boosting trade from countries with abundant natural resources like Brazil and India.
2021-2023
Growth in personal care and cosmetics industry
Higher consumption of terpineols in fragrances and skincare products, driving export growth from major producers like China and the US.
2020-2022
Technological advancements in synthetic production
Lower production costs for synthetic terpineols, enhancing competitiveness of countries with advanced chemical industries such as Germany.
2019-2023
The European Union's Green Deal has introduced stricter environmental regulations on chemical imports, including terpineols, requiring exporters to meet sustainability criteria.
January 2023
Potential increase in compliance costs for exporters to the EU, possibly shifting trade flows to less regulated markets.
India announced incentives for chemical exports, including terpineols, under the Production Linked Incentive (PLI) scheme to boost manufacturing and global competitiveness.
March 2022
Expected to increase Indiaโs share in the global terpineols market, challenging dominant players like China.
Ongoing geopolitical tensions and trade disputes have disrupted supply chains for raw materials used in terpineol production, particularly affecting pine oil supplies from Russia.
Mid-2022
Increased production costs and trade volatility, prompting buyers to diversify sourcing to more stable regions like South America.