For decades, India has been the world's leading producer of Natural Menthol Crystals and Natural Dementholised Mint Oil (DMO), both of which are manufactured from Mentha Oil.

During the manufacturing process, Menthol Crystals are extracted from Mentha Oil by Distillation and Crystalization , and the remaining oil is known as Dementholised Mint Oil (DMO).

Since both products are obtained from the same raw material, any change in Mentha crop production directly impacts the availability and pricing of both Natural Menthol Crystals and Dementholised Mint Oil (DMO).

However, the industry is now at a critical turning point. Over the past five years, continuous pressure from low-priced synthetic Menthol has significantly changed the market, affecting farmers, manufacturers, and the long-term sustainability of Natural Menthol and Dementholised Mint Oil (DMO) production.

 

Decline in Mentha Crop Production

Over the past several years Indian farmers have earned little or no profit from cultivating Mentha. As a result, many farmers have gradually shifted to other crops that provide attractive returns.

This has led to a dramatic reduction in Mentha cultivation. Annual production, which once stood at approximately 35,000–40,000 metric tons, has now fallen to just 16,000–18,000 metric tons—a decline of more than 50%.

Without sustainable returns for farmers, it is impossible to maintain a healthy supply chain for Natural Menthol .

The primary reason behind this decline has been the widespread availability of synthetic Menthol at significantly lower prices.

Many industries that were technically able to replace Natural Menthol with synthetic alternatives have already made the switch. Consequently, synthetic Menthol today accounts for approximately 60–65% of the global Menthol market.

This transition reduced demand for Natural Menthol over the past several years and created large inventories of unsold Mentha Oil, which temporarily kept the prices of both Natural Menthol Crystals and Dementholised Mint Oil (DMO) relatively stable.

 

Natural Menthol Continues to Be Irreplaceable

Despite the growth of synthetic Menthol, a substantial segment of the market continues to rely exclusively on Natural Menthol.

Approximately 35–40% of users require Natural Menthol because they market their products as natural and value the unique characteristics that synthetic alternatives cannot fully replicate.

Natural Menthol continues to be preferred because:

• It is derived entirely from natural plant sources.
• It aligns with the growing consumer preference for natural ingredients.
• Many manufacturers consider it a healthier and more authentic ingredient.
• It provides a richer, more pleasant aroma that enhances the overall quality and sensory profile of the finished product.

For premium pharmaceutical, food, confectionery, oral care, and personal care applications, Natural Menthol remains the preferred choice.

Why Cost Must Increase

For many years, the prices of Natural Menthol Crystals and Dementholised Mint Oil (DMO) remained relatively stable, with fluctuations generally limited to 5–7%.

However, these rates were fair only because the industry was supported by a large carry-forward inventory of Mentha Oil produced during years when crop production exceeded 35,000–40,000 metric tons.

As buyers increasingly shifted toward synthetic Menthol, a significant portion of this inventory remained unsold. Over the past five years, these accumulated stocks have gradually been consumed.

Today, the situation has fundamentally changed:

• The historical surplus inventories have been largely exhausted.
• Annual crop production has fallen by more than half.
• Farmer participation continues to decline due to poor profitability.
• Fresh supply is no longer sufficient to support historical pricing levels.

Under these circumstances, the previous price structure is no longer considerable.

Pricing Is Essential for the Future

If the Natural Menthol industry is to survive, farmers must receive fair returns for their crops.

Without improved pricing:

• More farmers will abandon Mentha cultivation.
• Crop production will continue to decline.
• Supply shortages will become increasingly common.
• Natural Menthol will become more difficult to source for industries that genuinely require it.

An increase in the prices of Natural Menthol Crystals and Dementholised Mint Oil (DMO) is therefore not simply a market adjustment—it is essential for preserving the entire value chain, from farmers to manufacturers and ultimately to end users.

Sustainable pricing today is the only way to ensure a stable supply of high-quality Natural Menthol Crystals and Dementholised Mint Oil (DMO) for the future.