Pine oil prices in India exhibited modest increases during August 2025, with higher demand linked to monsoon season purchases and interruptions in global supply adding additional pressure to prices. Deterrents to domestic supply such as import pricing and low inventories, and robust consumer sectors using both hygiene, pharmaceutical and nutraceutical products has contributed to the demand and the price of pine oil and pine oil products, indicating that we may be firmly anchored in this market in the months ahead.
Pine oil prices in India recorded a slight rise in the month of August 2025, building on the pace set in July. The continued growth was ascribed to steady demand across major downstream sectors and continuing supply issues. Aside from the usual market fundamentals, conditions in the market remained firm owing to seasonal consumption and pre-buying.
The disinfectant and institutional hygiene sector continued to lead to the demand for pine oil as the wet season brought about requirements for enhanced sanitation protocols. Bulk ordering by hospitals, municipalities, and contracting services continued as hygiene needs for cleaning occurred, providing additional momentum. The paints and coatings sector also had a steady offtake as dedicated infrastructure as well as the automotive related volume continued. The rest of the sector, including pharmaceuticals, personal care, and fragrance markets, also provided steady consumption support, ensuring that some demand remain supportive to pine oil pricing.
A strong theme during August was demand from the nutraceuticals sector. INNOBIO announced the launch of LocVita®, a vegan vitamin D3 derived from upcycled pine oil. Unsurprisingly, the launch attracted interest from some Indian wellness brands. In a vegetarian and vegan society, this represents an innovation and potential high-value channel for pine oil derivatives. Early-stage discussions suggest that domestic players are feeling optimistic about possible future growth in applications across functional nutrition also contributing an additional layer of demand diversification.
Near the supply side of the equation, India did experience slightly higher production costs, with firm global prices for pine oil. Poor yields in China and Brazil meant that overseas supply was restricted, and price increases subsequently impacted import cost in India. Domestically, the country is relatively still dependent on imported grades. The reliance on high purity grades means the health of imported prices and availability was uncertain in terms of freight rate increases and vessel congestion, which delayed shipments and landed costs even further. Additionally, domestic production via resin tapping in Himachal Pradesh (HP) and Uttarakhand remained unchanged and was not sufficient to compensate for the shortfall in imports.
Logistical issues added to the supply strain; in several instances, inland distribution experienced delays, and while much of this was due to heavy monsoon rains, these factors left many manufacturers and distributors understandably conservative in their procurement approach, opting instead to buy ahead, or as a means of hedging against continuing rising costs. This method of buying contributed to a constrained pine oil inventory position, plus higher purchasing costs were becoming the norm.
Looking forward, industry insight suggests that pine oil demand will remain strong through September, especially in the disinfectants and hygiene areas. Import delays and rising freight costs continue to put upward pressure on prices. The pharmaceuticals segment has performed well, in part discussion ADA improvements in substantial medical growth (chronic therapies of cardiac and antidiabetes) that will continue to pull on pine oil derivatives.
With different demand outlets and limited supply of availability, pine oil prices are expected to remain firm.
