There has recently been an increase in lavender plantations in Turkey. More people are interested in lavender farming for essential oil production and rural tourism, and it brings many questions regarding production and marketing. Turkey is traditionally a medical and aromatic plant and essential oil producing country but has a corner in the world market only for rose oil, jasmine oil and oregano oil. Current interest in lavender production in the country has exposed a need to understand and analyse the world lavender oil markets. However, there is an information shortage and no regular dataset for world lavender oil production and trade. This study aims to consolidate information, data and expertise in order to understand and conduct a qualitative analysis of dynamics of lavender oil prices and actors in the world markets. In Turkey, almost all lavender production is from Lavandula intermedia (lavandin), as is the majority of world lavender production. Although the quantity of essential oil of lavandin traded is five times more than L. angustifolia (true lavender) oil, the most qualified and sought after lavender oil is produced from L. angustifolia. The largest lavender oil suppliers in the world are Bulgaria, France and China, and there are also many other countries which have recently increased their production. World lavender oil supply has tended to increase based on increases in plantation in Bulgaria, but quantity and quality depend on weather conditions. Demand for lavender oil, as the main driver for price determination, does not vary a lot from one year to another. However, it is expected that increases in consumer awareness towards healthier products associated with natural and organic ingredients may create an additional demand. The question is whether Turkey can become a player in the world lavender oil market. Low production costs, high profit rate and its role in rural development make lavender production attractive, but small farm sizes and a complex value chain make lavender oil production far from being economic for farmers working alone and force them to stay at the beginning of the value chain. However, as there will always be a place in the market for quality lavender oil, Turkey should focus on quality and organization of lavender value chain in order to be competitive in the world market.