This blog will provide you with all the information you need to start your own essential oil production venture in Kenya. We’ll explore the production process, market potential, and government incentives that make this business idea a great opportunity.

Production Process and Capacity

Essential oil extraction involves harnessing the power of various oil-bearing plants and grasses like Eucalyptus, cinnamon ginger, and lemons. The volatile nature of essential oils allows them to be extracted through steam distillation, preserving their purity and potency. The extraction process typically takes between 3 to 18 hours, depending on the plant species. For instance, eucalyptus leaves can yield approximately 80kgs of oil per hectare. However, oil yield may vary depending on the plant or material used.

General Costs (Overheads)

To start your essential oil production, you’ll need an estimated fixed capital of US$28,700, along with operating costs of US$288,803. The production costs are based on a daily capacity of 600 litres of essential oil, assuming 312 working days per year. Depreciation is calculated over a 4-year period, with assets written off at 25% per year. Direct costs include materials, supplies, and other expenses directly related to production. The valuation currency used is United States Dollars.

Market Analysis

The demand for essential oils in pharmaceutical and perfume manufacturing, as well as other industrial sectors, makes this business idea highly promising in Kenya. The country’s thriving industrial development provides a healthy market environment for essential oil producers. Moreover, the potential for exporting essential oils to highly industrialized countries opens up lucrative opportunities for growth and expansion.

Conclusion

Starting an essential oil production business in Kenya can be a profitable venture, given the country’s industrial development and export potential. By following the production process, understanding the market analysis, and leveraging government incentives, entrepreneurs can tap into this lucrative market. Begin your journey toward success in the essential oil industry today