El Mercado de Ingredientes Naturales para Cosmeticos en La UE

CBI MARKET SURVEY:
THE MARKET FOR NATURAL INGREDIENTS FOR COSMETICS IN THE EU
CBI MARKET SURVEY
THE MARKET FOR NATURAL

INGREDIENTS FOR COSMETICS
IN THE EU
Publication date: October, 2008
Contents
REPORT SUMMARY ..................................................................................................... 2
INTRODUCTION .......................................................................................................... 4
1
INDUSTRIAL DEMAND ........................................................................................... 5
PRODUCTION ...................................................................................................... 24
TRADE CHANNELS FOR MARKET ENTRY............................................................... 30
TRADE: IMPORTS AND EXPORTS ......................................................................... 35
PRICE DEVELOPMENTS........................................................................................ 46
MARKET ACCESS REQUIREMENTS ....................................................................... 48
OPPORTUNITY OR THREAT ? ............................................................................... 51
APPENDICES
APPENDIX A PRODUCT CHARACTERISTICS ............................................................. 52
APPENDIX B INTRODUCTION TO THE EU MARKET .................................................. 55
APPENDIX C
LIST OF DEVELOPING COUNTRIES ..................................................... 56
This survey was compiled for CBI by ProFound

in collaboration with Andrew Jones and Klaus Drbeck
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer
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Report summary
This market survey provides exporters of natural ingredients for cosmetics with a wide range
of facts, figures and information pertinent to the European Union (EU) market. It discusses
vegetable oils, fats and waxes, essential oils and oleoresins, vegetable saps and extracts, raw
plant material and natural colorants.
Industrial demand
The EU cosmetics market is the biggest cosmetics market in the world. Major markets are
Italy, Germany, the UK and France, showing a limited growth in consumption. With an average
growth of 3.8% annually between 2005 and 2007, European markets performed somewhat
better than in 2003-2004. Especially East European markets, as well as Finland and Denmark,
grew fast. Greece, Portugal and Belgium showed least growth. According to Colipa, the
European Cosmetics, Toiletries and Perfumery Association, the EU27 market amounted to
67.8 billion in 2007.
The natural cosmetics market is relatively small, but is growing faster than the overall market.
Natural cosmetics continued to benefit from growing health concerns, a sense of well-being
and looking good, as well as the influence of media attention. The market is also propelled by
increasing product availability as more companies, including (discount) retailers and
conventional cosmetics players, are entering the market. The EU natural cosmetics markets
has grown around 20% annually in the last couple of years and is expected to have exceeded
1 billion in 2007, with a share of 2.0% of the total cosmetics market. The fastest growing
markets are Germany and France. Italy and Germany are the largest markets. Germanspeaking and Nordic countries have a high per-capita spending on natural and organic
cosmetics while the UK market is developing fast, with a specific focus on products with
organic and Fair-Trade ingredients. Fair-Trade is also of importance in France. The market for
cosmeceuticals has been growing strongly and it is expected to be worth around 3.6 billion in
Europe by 2009. Germany is its largest EU market.
The EU is the worlds largest producer of cosmetic products. Production is increasing and
consolidating. Many companies also produce pharmaceuticals, chemicals and food, thereby
blurring the differences between these segments. The EU also has a large number of smaller
(multi)national and local, often niche, players. The natural and organic cosmetics sector is
highly fragmented. There are many companies, especially in the UK, Germany, France,
Switzerland and Italy. Due to market growth, private investors, large cosmetic companies,
organic food companies and (organic) retailers are all entering the market, pushing the natural
market into mainstream channels. Due to increased demand, and in some cases also scale of
production, this will lead to mounting pressure on suppliers. This is already seen in mergers
and acquisition between ingredients suppliers.
The global demand for ingredients for cosmetics and toiletries amounts to 6.7 billion in 2007,
of which a third concerns natural ingredients. Considering the size of the EUs cosmetic
industry, it uses a large share of this. The demand for natural ingredients is increasing through
the growth of the natural cosmetics market and the increasing use of natural ingredients in
conventional cosmetics. Moreover, EU demand stems both from ingredients for further
processing and for the direct use in cosmetics. Within this overall picture, there is an
increasing use of new, active natural ingredients with functional benefits, organic ingredients,
exotic, African and Amazon ingredients and ingredients (saps and extracts, essential oils and
vegetable oils) based on (exotic) fruits. The global market for active ingredients used in
personal care products is estimated at 450 million in 2003 and at 650 million in 2009. The
most important markets for natural cosmetic ingredients are Germany, France, the United
Kingdom, Italy and Spain.
Production
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Many of the natural ingredients used in the cosmetic industry come from developing countries,
then are further processed in the EU and re-exported. EU production plays a limited role for
essential oils and natural colorants, except for certain products such as lavender and
bergamot. However, its processing sector is large. The EU position in plant extracts and raw
plant material is much more prominent. Wild collection remains the main source of medicinal
and aromatic plants in the EU. The main EU seaweed and algea producers are France, the
United Kingdom, Ireland and Norway. EU production of vegetable oils and fats accounts for 9%
of global production, but products of importance for developing countries, such as coconut,
sesame seed and peanut oil are hardly produced in the EU. However, the EU does produce
cocoa butter.
Trade structure
Two major trade channels exist for natural ingredients, one for finished materials and one for
crude raw materials. Raw plant materials are largely unprocessed, whereas the other four
products covered in this survey are already processed. Still, in many cases second-step
processing will take place in the European Union. Large countries, with important domestic
markets, such as India, China and increasingly Mexico, Malaysia and Brazil, are able to supply
sufficiently processed ingredients, sometimes directly to cosmetics companies, while many
smaller countries are not.
The most important trade channels for most developing country producers will be agents,
importers, wholesalers and brokers, either with or without processing facilities. Although some
industrial users have their own purchasing department, traders and brokers still fulfil important
functions, since they are well informed about the EU market. The most important trend is the
increased focus on traceability.
It is important to keep in mind that, throughout the various trade channels and across the
different product groups, different prices and margins apply. They depend on whether the
product is organic or not, whether it is a new product or not, the level of processing, if there is
a market price and the development therein, its availability etc.
EU trade and the role of developing countries
Imports by product group show a positive picture. Imports of vegetable oils, fats and waxes
increased by 7.7% annually between 2003 and 2007, essential oils by 4.7% annually,
vegetable saps and extracts by 5.6% annually, raw plant material by 4.7% and colouring
matter by 4.1%. The role of developing countries is prominent for vegetable oils, fats and
waxes, essential oils and raw plant material, but still substantial for vegetable saps and
extracts and colouring matter. Imports from developing countries are increasing more than
overall imports for all five product groups.
Relating to import value, the products of which developing countries export the most are
coconut oil, cocoa butter, medicinal and aromatic plants and essential oils. Relating to the
share which developing countries hold in natural ingredients for cosmetics products, the most
important products are peanut oil, coconut oil, waxes, orange oil, lemon oil, other essential oils
and gums and resins. The leading suppliers are China, India, Turkey, Indonesia, Malaysia and
Morocco. However, the share of developing countries decreased for several products between
2000 and 2004. Decreases were especially significant for resinoids, other citrus oils and
geranium, jasmine and vetiver oil.
Opportunities for exporters
Firstly, please note that, in this product group, there can be opportunities both for established
and new natural ingredients. Developing country producers of the former must compete on
quality, price and reliability. For the latter, developing country producers should focus on
innovative companies in the EU. For established ingredients EU buyers require technical data
on safety, functionality and use, as well as (sustainable) supply chain data. Products of interest
include functional (active) ingredients, organically certified ingredients and exotic (i.e. fruit,
flowers) ingredients.
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Introduction
This CBI market survey profiles the market for natural ingredients for cosmetics in the EU. The
emphasis of this survey lies on those products, which are of importance to developing country
suppliers. The role of, and opportunities for, developing countries are highlighted.
The survey discusses the following product groups:
Vegetable (and animal) derived oils, fats and waxes
Essential oils and oleoresins
Vegetable saps and extracts
Raw plant material
Colouring matter of vegetable or animal origin
It is important to note, however, that most of the ingredients are not only traded to the
cosmetic industry, but also find their way to the food and pharmaceutical industries. Partly due
to this reason, data regarding the use of natural ingredients for cosmetics are scattered and
very difficult to obtain. Moreover, companies are hesitant to share data.
For detailed information on the selected product groups, please consult appendix A. More
information about the EU can be found in appendix B.
CBI market surveys covering the market in specific EU member states, specific
product(group)s or documents on market access requirements can be downloaded from the
CBI website. For information on how to make optimal use of the CBI market surveys and other
CBI market information, please consult From survey to success - export guidelines. All
information can be downloaded from http://www.cbi.eu/marketinfo/ . Go to Search CBI
database and select your market sector and the EU. Several of the ingredients discussed in
this survey are also discussed in other CBI market surveys, such as those on Vegetable Fats
and Oils, the survey on Natural Colorants, Thickeners and Essential Oils, and the survey on
Natural Ingredients for Pharmaceuticals.
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Industrial demand
1.1
Industrial demand
There is a general lack of information on the industrial demand for natural ingredients as well
as for general ingredient needs of the cosmetics industry. Therefore, this chapter on industrial
demand will first discuss consumption of final products (conventional and natural cosmetics,
cosmeceuticals), followed by a discussion on production of these final products. Specific
information on the organic cosmetics market is also given. This discussion provides indicators
for industrial demand for natural ingredients for cosmetics, which will thereafter be discussed.
Next to this and as far as available, information is included on the market for the different
product groups which are discussed in this survey, or for organically certified ingredients. A
part of the industrial demand for natural ingredients also stems from the EU processing sector.
EU production of ingredients is discussed in the following chapter.
The market for cosmetic products
Different product groups can be distinguished within cosmetics. The important ones are:
Beauty and personal care product manufacturers
Hair care product manufacturers
Perfume and fragrance product manufacturers
Cosmeceuticals, defined as products which contain one or more bioactive ingredient.
Toiletries are also included in many data. Being closely related to the pure cosmetics products
described above, often made by the same manufacturers, and also containing many of the
same ingredients, toiletries is an important market to consider.
Table 1.1 EU27 market volume for cosmetics, 2005-2007 at retail sales prices (RSP),
in billion , average annual change in % and market share
Country
2005
2006
2007
Germany
France
United Kingdom
Italy
Spain
Netherlands
Poland
Belgium/Luxembourg
Sweden
Greece
Austria
Portugal
Denmark
Romania
Czech Republic
Finland
Hungary
Ireland
Slovakia
Bulgaria
Lithuania
Slovenia
Latvia
Estonia
EU (ex. Malta/Cyprus)
Source: Colipa, 2008
11,453
10,050
9,382
8,607
7,113
2,358
2,015
1,701
1,490
1,314
1,248
1,100
860
647
699
697
636
546
336
176
161
157
93
76
62,912
11,898
10,440
9,471
8,793
7,443
2,437
2,149
1,720
1,552
1,344
1,291
1,105
945
768
759
758
618
567
359
189
181
159
98
85
65,128
12,328
10,680
9,863
8,996
7,872
2,578
2,296
1,754
1,631
1,358
1,358
1,109
1,009
909
819
797
686
584
429
215
201
164
104
92
67,823
Average annual
increase
3.7%
3.1%
2.5%
2.2%
5.2%
4.6%
6.7%
1.5%
4.6%
1.7%
4.3%
0.4%
8.3%
18.5%
8.2%
6.9%
3.9%
3.4%
13.0%
10.5%
11.7%
2.2%
5.7%
10.0%
3.8%
market
share 2007
18.2%
15.7%
14.5%
13.3%
11.6%
3.8%
3.4%
2.6%
2.4%
2.0%
2.0%
1.6%
1.5%
1.3%
1.2%
1.2%
1.0%
0.9%
0.6%
0.3%
0.3%
0.2%
0.2%
0.1%
100.0%
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According to Colipa, the European Cosmetics, Toiletries and Perfumery Association, the EU-27
market amounted in 2007 to almost 68 billion at retail sales price level. Between 2005 and
2007 the EU cosmetics market showed an average annual increase of 3.8% since 2005
(Colipa, 2008). This was due to the strong economic recovery in many EU countries, a faster
pace of life and an aging population. This trend is expected to ensure further growth of the
sales of cosmetics products for the coming years. It will especially be the case for the East
European member countries which already show large increases.
In 2007, the five largest national markets Germany, France, the United Kingdom, Italy and
Spain accounted for 71% of the market in the EU. It is therefore not surprising that the
trends in these countries determine, for a large part, the trends in the EU as a whole (Colipa,
2007).
Figure 1.1
EU per capita consumption of cosmetics, 2005-2007 in

Denmark
159
Sweden
165
Spain
164
France
161
Austria
152
United Kingdom
157
Belgium/Luxembourg
156
Netherlands
145
Italy
147
Finland
133
Germany
139
Ireland
132
Greece
2006
118
EUROPEAN UNION
2005
106
Portugal
2007
104
Slovenia
78
Czech Republic
68
Slovakia
62
Estonia
56
Hungary
63
Poland
53
Lithuania
47
Latvia
40
Romania
30
Bulgaria
23
0
50
100
150
200
As shown in figure 1.1, per capita consumption of cosmetics changed between 2005 and 2007.
France used to be the leading country, followed by Sweden and Spain. After 2006 Denmark
reached the highest per capita consumption of cosmetics in the EU with 185 per person,
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followed by Sweden, Spain, France and the United Kingdom. The sustained growth in Spain is
due to rising incomes and a population very keen on the use of cosmetics, especially
fragrances.
As seen in Table 1.2, skin care is the leading product group within retail sales of cosmetics,
followed by toiletries, hair care, fragrances and perfumes and decorative cosmetics. In terms
of growth, however, decorative cosmetics developed best, with gains of 6.7% annually,
reaching 8.1 billion in the EU (Colipa, 2007). Skin care products showed the second largest
increase with a rise of 5.1% compared to the previous year amounting to 17.4 billion.
Fragrances and perfumes rose by 4.8% annually to 10.3 billion in 2007 (Colipa, 2007).
Toiletries, despite being vulnerable to discounting, achieved an annual growth of 4%, to 16.2
billion. The hair care market witnessed the lowest growth, resulting in an average annual
growth of 1.5% to 15.8 billion.
Table 1.2
EU market share cosmetics product groups, 2007, million, share of total

sales (%), at retail sales prices (RSP)
Fragrances
perfumes
Country
%
million
Germany
1,659 14
France
1,808 17
UK
1,206 12
Italy
1,121 13
Spain
1,799 23
Netherlands
418 16
Poland
403 18
Belg./Lux.
329 19
Sweden
169 10
Greece
149 11
Austria
146 11
Portugal
191 17
Denmark
166 16
Romania
210 23
Czech Republic
113 14
Finland
37
5
Hungary
80 12
Ireland
88 15
Slovakia
69 16
Bulgaria
24 11
Lithuania
40 20
Slovenia
19 12
Latvia
15 15
Estonia
11 12
EU*
10,269 15
* Excluding Malta and Cyprus
Decorative
Skin care
Hair care
toiletries
Total
cosmetics
Value
% million
million
million
million
million
1,247 10
2,975 24
2,978 24
3,468 28 12,328
1,138 11
3,450 32
2,411 23
1,873 18 10,680
1,627 17
2,103 21
2,229 23
2,698 27
9,863
1,150 13
2,508 28
1,941 22
2,276 25
8,996
650
8
2,109 27
1,749 22
1,566 20
7,872
316 12
588 23
574 22
682 27
2,578
270 12
482 21
495 22
646 28
2,296
206 12
423 24
499 28
297 17
1,754
335 21
348 21
394 24
385 24
1,631
155 11
394 29
435 32
225 17
1,358
216 16
308 23
329 24
351 26
1,350
64
6
281 25
329 30
243 22
1,109
127 13
203 20
324 32
191 19
1,009
119 13
214 24
134 15
233 26
909
122 15
180 22
198 24
207 25
819
126 16
217 27
262 33
155 19
797
62
9
163 24
138 20
244 36
686
90 16
116 20
118 20
172 29
584
62 14
119 28
74 17
105 25
429
25 12
49 23
42 20
75 35
215
26 13
47 24
45 23
43 21
201
21 13
46 28
36 22
42 26
164
16 15
27 26
23 22
23 22
104
10 11
33 36
19 21
19 20
92
8,178 12 17,381 26 15,778 23 16,215 24 67,823
The market for natural and organic cosmetic products

Most of the product groups mentioned above also have a natural equivalent, with important
ones being bath products, aromatherapy bath products, bath milks and oils, herbal baths,
shower and bath gels and soaps. Formulations for products like shampoo are less often
natural. However, natural ingredients have also found their way into colour cosmetics. The
natural segment is extremely difficult to characterise, as the approach by companies differs
considerably. An appropriate regulatory framework does not exist. According to CosmeticDesign, some cosmetic producers take advantage of this, launching natural cosmetics which
contain minimal quantities of natural ingredients. This unclear situation for consumers can
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hamper the growth of the sector. For these reasons, in late 2007 Natrue, an association of
large organic and natural cosmetic producers was formed. Companies involved in the creation
of NaTrue include Weleda, Dr Hauschka, Santeverde, Primavera and Logona (Cosmetic-Design,
2008). The mission of Natrue is to design the minimum standards for an EU recognised
definition of the terms "natural cosmetics" and "bio/organic cosmetics", which would allow the
use of an internationally-recognised labelling system. Without such a framework, there still
exists a large range between companies including a tiny amount of botanical ingredients in
their products primarily for marketing benefits, and those aiming to use 100% natural
ingredients in their products. These companies operate under corporate policies prioritising
naturalness and, sometimes, wider environmental and social concerns.
Although the "natural" market is still relatively small, it is growing much faster than the overall
cosmetics industry. Consumer interest in natural products and safety is increasing across the
board, boosting sales of natural cosmetics, and increasing the use of natural ingredients in
conventional products. The number of small and large companies entering the market of
natural products is on the rise and, during the last few years, there has been an increasing
entry into this arena by the large mainstream manufacturers, retailers and organic food
companies, as well as investments by financial firms. Especially thanks to the market entry of
retailers and conventional manufacturers, natural cosmetic products are becoming more widely
available and encompass a larger variety of products. Widening availability and strengthening
consumer demand are the drivers of market growth, making the market more mainstream.
Globally, less than 2% of cosmetics sales is natural and organic (Kline, 2008). Between 2006
and 2007, the market grew by about 15%, compared to 5% for the overall market. However,
according to Euromonitor, around 16% of cosmetic products worldwide now makes natural
claims, these being products which can still have a far-ranging natural content (Euromonitor,
2008). The EU and the US are the most advanced markets. Organic Monitor found that the EU
natural cosmetics market has grown around 20% annually in the last few years and is
expected to considerably exceed 1 billion in 2007. The average share of natural cosmetics in
the EU is 2% in total sales. Skin-care is the main natural market segment, accounting for half
of total sales and, in this segment, the market share is substantially higher.
The fastest growing markets are Germany and France, while Italy and Germany have the
largest markets, accounting for almost 70% of EU sales. Germany by itself accounts for almost
half. The German market is well established and will continue to grow, even as discount
retailers enter the market with their private labels. In 2007, natural cosmetics accounted for
4% of cosmetics sales in Germany and this is set to rise to 10% by 2012 (Cosmetics-design
2007). Natural cosmetics also have a high market share in other German-speaking countries
like Austria and Switzerland. Nordic countries also have a high per-capita spending on natural
and organic cosmetics, but these markets remain relatively small. The market is developing
fast in the United Kingdom, although organic cosmetics is especially of importance here. The
UK is among the countries with most natural product launches (Colipa, 2007). Interesting to
note is that an increasing proportion of natural cosmetic products is now also organic. Of the
15,000 natural cosmetic products launched worldwide in 2007, Mintel estimates that around
two thirds is also organically certified, or at least contains a large proportion of organic
ingredients (Mintel, 2008). The principal ingredient categories are super fruits (pomegranate),
dairy, tea, berries (cranberry, sea buckthorn, arctic cloudberry), Amazonian ingredients (acai,
guarana) and sweets (chocolate, liquorice, almond).
The market for cosmeceuticals and nutricosmetics
Since cosmeceuticals are an important trend and opening for natural ingredients, they are
described separately. Cosmeceuticals are typical cosmetic-pharmaceutical hybrids intended to
enhance both health and beauty. They are cosmetic products intended to produce lasting
effects. However, no medical claims can be made, otherwise the product would need to fall
under pharmaceutical legislation. The drive to develop cosmeceuticals is often the strongest
among companies which operate simultaneously in both cosmetics and the pharmaceutical
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field and for whom research, development and marketing crossovers can be most effectively
harnessed.
Some are naturally-derived and some are synthetic, with herbals gaining increasing popularity.
Typically, cosmeceutical ingredients such as vitamins, minerals and plant/animal extracts are
highly processed and not dissimilar to pharmaceutical ingredients. This borderline status
complicates product introduction.
Still, the cosmeceutical market is continuing to grow because of new raw materials, better
insight into skin physiology, and changing consumer demand. The market for cosmeceuticals,
defined as products which contain at least one bioactive ingredient, is growing. Future growth
is expected to be less profound, although the entry of cosmetic multinationals in the market
could fuel future growth (Cosmeticsdesign 2007). In the EU, sales are expected to amount to
3.6 billion in 2009, 5.5% more than in 2005. Germany is by far the largest market in the EU.
In comparison, the US market is expected to reach 3 billion by 2009 (Cosmeticsdesign
2006). According to Phytopharm, a product development company, both are small compared
to the Japanese market (Phytopharm 2005).
The majority of cosmeceuticals has targeted skin care, with special emphasis on the subcategory of sun care and anti-aging products (Euromonitor, 2008). The next biggest category
is hair care at 15%, mainly focusing on sun protection and hair loss. A document providing
information and examples of herbs used in different cosmeceutical products is available at
http://www.in-cosmetics.com/files/incos05_Phytopharm.pdf.
EU production of (natural) cosmetics
The EU is the worlds largest producer of cosmetic products, with the USA and Japan following
at a distance. Production of cosmetics also continues to increase, by 1.4% annually between
2002 and 2006, amounting to 22.7 billion. The cosmetics industry has many companies but,
as is the case worldwide, the industry is continuously consolidating. According to Kline, a
research company, the top 10 companies accounted for 44.6% of global personal care sales in
2004. This rose to 47.1% in 2006 (Kline, 2007), both through mergers and acquisitions, as
well as through organic growth. Because of the increased size of cosmetics players, the
pressure on their ingredient suppliers increases.
The main EU producers are multinational companies such as LOreal (France), Unilever (The
Netherlands/UK), Beiersdorf (Germany), LVMH (France), Chanel (France) and Henkel
(Germany). Many of them operate across a wide spectrum, being involved in sectors such as
pharmaceuticals, chemicals, food and household products. EU companies are also profiting
from strong growth in Asia, as EU brands enjoy wide recognition (Cosmetics Design 2007).
Table 1.3
Production of cosmetic products in the EU, in million*
Total EU
France
Germany
Italy
UK
Spain
Poland
Belgium
The Netherlands
Greece
Finland
Bulgaria
Czech Republic
Portugal
Slovenia
Percentage
2002
2003
2004
2005
2006 change
21,194 21,923 21,852 21,198 22,718
1.4%
9,530
9,730
9,691
9,537 10,269
1.5%
3,598
4,022
4,089
3,713
3,905
1.7%
2,338
2,405
2,385
2,768
3,021
5.3%
3,116
2,721
2,633
1,795
1,989
-8.6%
1,509
1,641
1,703
1,763
1,854
4.2%
412
545
423
764
803
14.3%
167
155
182
185
211
4.8%
100
102
177
183
136
6.3%
23
145
148
154
131
41.4%
87
93
103
100
98
2.5%
50
62
57
56
55
2.0%
40
46
53
5
53
5.7%
30
49
43
44
45
8.7%
16
32
32
32
35
17.5%
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Percentage
2002
2003
2004
2005
2006 change
Denmark
21
22
30
28
29
6.0%
Hungary
39
42
45
31
22
-10.7%
Austria
17
22
7
6
20
3.5%
Romania
29
20
17 n.a.
19
-7.5%
Sweden
60
13
23
20
10
-29.5%
Slovakia
11
55
11
11
7
-9.0%
Source: Eurostat 2008
*For Lithuania, Estonia, Latvia, Ireland, Luxembourg, Malta, Cyprus no production was recorded, or the
figures were highly erratic and small. Therefore, these have been disregarded.
Some cosmetics manufacturers are moving part of their production facilities to East European
countries, due both to the lower costs of production in those countries and the burgeoning
market in those countries, but also to Asian countries (Cossma 2007). Production of cosmetics
in Ireland has ceased altogether, while production in the UK, with a strong position of private
labels on the market, sees a rapid decrease as well. Production in Sweden is now also
negligible. In contrast, among the major producers Poland is seeing a strong increase.
Table 1.3 The worlds top-20 beauty companies in 2004, ranked by revenues from
beauty products only, in million
Company
Revenues
Company
in million
L'Oreal Group (France)
14,200
Limited Brands (USA)
Procter & Gamble (USA)*
13,250
LVMH (France)
Unilever PLC (Neth./UK)
7,495
Chanel (France)
Shiseido Co. Ltd. (Japan)
4,728
Henkel KGAA (Germany)
The Estee Lauder Inc. (USA)
4,655
Colgate Palmolive (USA)
Avon Products Inc. (USA)
4,181
Coty Inc. (USA)
Beiersdorf AG (Germany)
3,459
Yves Rocher (France)
Johnson & Johnson (USA)
3,216
Mary Kay Inc. (USA)
Alberto-Culver Co. (USA)
2,515
Kanebo Cosmetics Inc. (Japan)
Kao Corp. (Japan)
2,418
Kose Corp. (Japan)
Source: WWD Beauty 100 (2005)
* Procter & Gamble took the lead after the acquisition of Gilette in March 2007.
Revenues
in million
2,412
2,153
2,140
2,094
1,769
1,688
1,530
1,528
1,412
1,237
Not only has the size of operations in the cosmetics market increased, major companies are
increasingly entering the natural cosmetics, and organic cosmetics, market. Examples include
the purchase of the Body Shop by LOreal in 2006 and its purchase of Laboratoire Sanoflore in
2007. LOreal plans to make Sanoflore into a mega organic brand, following in the footsteps of
Aveda (Organic Monitor, 2007). Except for these multinationals, the EU has a large number of
smaller (multi)national and local players. These companies often have a strong position in
particular markets and also include organic and natural cosmetics producers. The largest
natural cosmetics player is Weleda (http://www.weleda.com/) from Switzerland, but smaller
national players such as Dr. Hauschka, Germanys largest organic cosmetics seller, are also of
importance. Organic Monitor expects that the main companies on the EU market will be Dr.
Hauschka, Aveda, Sanoflore and Weleda. However, the sector is highly fragmented, with over
400 European companies involved in producing natural cosmetics. Most companies come from
the UK, Germany, France, Switzerland and Italy. These are, consequently, also countries with
a high natural ingredients demand (Organic Consumers Association 2007).
Following increasing consumption of natural cosmetics, a surge of investment activities is
taking place. Private investors are looking to invest in natural and organic cosmetic companies,
due to the higher margins and growth (Organic Monitor 2008). Furthermore, (organic)
retailers, such as Tesco with its BNatural brand, and Boots and its Botanics Organic, as well as
organic food producers are entering the market and setting up production (Cosmetics Design
Europe 2008). France is seeing large investments in natural cosmetics R&D and production
(Cosmetics Design Europe 2007) but also the UK market is targeted by international players
such as Hain Celestials, a large US organic player. Next to this, inward investment by
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conventional cosmetics companies, setting up organic and natural ranges, is also increasingly
taking place. Examples include LOccitane and Yves Rocher. This is increasing the size and the
number of natural cosmetics players. Existing natural and organic companies are also growing
fast. According to the German magazine DW-world, German firms seem to be especially well
positioned to take advantage of EU market growth, due to their more stringent adherence to
natural principles (DW-world 2007). Increased demand, and in some cases also scale of
production, leads to mounting pressure on suppliers. This is already seen in the increasing size
of ingredients suppliers, where mergers and acquisition are becoming more common.
Industrial demand for natural ingredients for cosmetics
The description of the EU cosmetics, natural cosmetics and cosmeceutical consumption and
production above is insightful in demonstrating growth and, therefore, opportunities for natural
ingredients. According to industry sources, the developments in the natural cosmetics sector
are much less swift than for natural foods. Consumers are much more worried about products
they actually eat, than those they apply to their skin or hair.
Where available, information will also be given on specific product groups. By far the largest
product group considered here is vegetable oils, fats and waxes, but their use in cosmetics
compared to overall usage is limited. The latter is actually the case for other product groups as
well. Please note that a large part of demand for natural ingredients from developing countries
stems from processors in the European Union. These companies can be competitors to
developing country producers (for certain raw materials and for further processed ingredients),
but also act as buyers of products stemming from natural ingredients (semi-processed or raw
materials). EU production is discussed in the following chapter and in the surveys covering the
different EU countries.
According to Kline, the international market for cosmetic and toiletry ingredients amounted to
6.7 billion in 2007, of which around a third comprise natural ingredients (Kline, 2008). The
EUs cosmetics industry uses huge amounts of ingredients. However, the use per product
group in cosmetics can be quite small, and especially small compared to the total use of that
product. The total market size for natural ingredients in the EU is unknown. The European and
American market for active natural ingredients used in personal care products was estimated
at 400 million in 2006 (Cossma 2007). Phytopharm estimates that this market could reach
650 million in 2009.
As discussed above, the demand for natural ingredients is increasing through growth of the
natural cosmetics market, as well as through the increasing use of natural ingredients in
conventional cosmetics. This is further demonstrated in Chapter 4, which shows growth in
imports for all five product groups between 2003 and 2007. Of importance is the increasing
production of cosmetics for the EU market manufactured in Asian countries, especially for the
UK market. Up till this point, the development is limited to some private label brands, such as
Tesco. In the long term, if the manufacture of finished cosmetics shifts further to countries
outside Western Europe, then one can expect the demand for ingredients to increase in those
countries. This may also result in changes in the location of extraction companies.
The demand for organic ingredients is increasing for the product groups discussed below.
There is a shortage of organic ingredients for some product groups, as the demand in the EU is
growing fast. Moreover, achieving fully organic, and even natural, formulations is made
difficult by this general shortage, as well as through a shortage of natural substitutes for
certain vital properties such as controllers of rancidity, emulsifiers, stabilisers etc. Great
interest exists for such products. Organic standards currently allow a small percentage of nonorganic material. This allowance is usually largely taken by the stabilisers, preservatives etc.
For example, the Soil Association standards states that A product may be labelled as organic
in the product description where no less than 95% of the constituent ingredients (excluding
water) are organically produced.
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Kline distinguishes several important ingredient groups in cosmetics, relating to their

application. The percentage of these groups which is natural is differs widely. The highest
natural content is found in solvents, emolients, actives and humectants, the lowest in
emulsifiers, fragrances and anti-microbials. Three ingredient groups are dicussed in more
detail below.
Hair fixative polymers: Up to now, only modified natural ingredients (of corn starch and
xanthan gum) are used as hair fixatives. These account for around 1% of this ingredient
category. Problems with natural ingredients include their flexibility, flakiness, waterproofability, odour, and ease of processing.
Surfactants: There are no surfactants directly derived from natural sources in commercial
use. The only more widely used natural-based surfacent (Alkyl polyglucosides, based on
corn starch) accounts for around 5 to 10% of total surfactants used.
Emollients: These key ingredients in creams, lotions etc, are the ingredient group with the
highest natural content. Combined, vegetable oils and butters, as well as partially nature
derived esters account for 55% of the emollient market.
Vegetable oils, fats and waxes
Strong demand for several vegetable oils has developed in recent years. This is mainly due to
the large demand for vegetable oils as a biological energy source. This development has also
influenced the demand for the oils and fats considered in this study. It is, however, important
to note that many oils considered in this survey (such as coconut oil, peanut oil, and cocoa
butter) are mostly used in the food industry and only a small part is used in the cosmetics
industry. Typical for the oils which are traded in huge volumes (coconut and palm) is that they
are further processed into emollients and other ingredients, which form an important part of
most modern cosmetic formulations.
Table 1.4 EU consumption of vegetable oils and fats, 2002-2006, in 1,000 tonnes
2002
2004
2006**
Groundnut oil*
141
95
130
Castor oil
115
110
109
Palm kernel oil
611
693
639
Palm oil
2,792
3,419
4,399
Other
8,309
9,989
14,529
Total oils
11,968
14,306
19,806
Source: Fediol, 2006
*The use of groundnut oil in cosmetics is decreasing due to its allergic properties.
** Note that the data for 2006 is based on the EU27, while 2002 and 2004 are based on the EU25
(without Bulgaria and Romania).
Fediol, the EU Oil and Protein Meal Industry Federation (http://www.fediol.be), reports on
several oils relevant to developing countries. Castor oil and groundnut oil consumption
decreased. The main consumer countries of groundnut oil are Italy (33% of total
consumption), France (24%) and Germany (15%). The main consumers of castor oil are
France (35% of EU consumption) and Germany (30%). Palm kernel oils and palm oil showed
an above average growth. The largest consumers of palm kernel oil are Germany (45%), The
Netherlands (13%) and the UK (9%). The main consumers of palm oil are Germany (17%) The
Netherlands (16%), the UK (15%), Italy (10%) and Belgium (9%). In addition, EU countries
consumed huge quantities of rape, linseed, soy and sunflower seed oils, which are also largely
produced in the EU. Some of these oils can also be used in cosmetics and, as such, substitute
oils from developing countries. The EU is a large consumer of cocoa butter, which is partly
produced in the EU itself (from imported cocoa beans, mainly in The Netherlands and
Germany), and partly imported directly from developing countries.
The products discussed above are traded in bulk but, next to this, a large range of fats and oils
is imported in much smaller quantities, including shea butter, illipe butter, but also less known
varieties. Shea butter and argan oil are mentioned often as interesting products (Cossma
2007, industry sources). Some EU buyers are also looking for more novel products. Recent
examples of ingredient launches include peach kernel oil and pomegranate seed oil, both
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focused on the skin care market and the burgeoning anti-aging products market (Cosmetics
Design 2007).
Organically certified vegetable oils are strongly increasing in importance and a broader range
of organic vegetable oils is available on the market, such as argan oil. According to industry
sources, although organic production and consumption are more in line with each other than
for other product groups, the demand for organic specialty oils is such that premiums are very
large, for example for pomegranate seed oil and sea buckthorn oil. Availability for the latter is
improving.
The cosmetics market uses only small quantities of beeswax and other waxes, as their
products are purchased and produced in lower quantities (e.g. lipstick). The pharmaceutical
and cosmetics markets only use 7-15% of the beeswax on the market. The main market in the
EU for beeswax is Germany. China dominates beeswax supplies. Other important suppliers are
Argentina and Germany. China gained the strong position in the beeswax market by offering
low prices and a steady supply. Opportunities for other countries are limited and new suppliers
need be able to offer products at a low price. Margins for beeswax are very low although, due
to lower yields in the last year, the market situation in the EU has slightly improved.
The two other major natural waxes are carnaubawax and candelillawax. Carnaubawax is
sourced solely in Brasil, while Candelillawax is only sourced in Mexico, both because the source
species only grows in certain regions. Examples of other natural waxes are rice bran wax,
applewax and jojobawax. The problem with these specialty waxes is that they do not offer
significant advantages in comparison to beeswax or other major waxes, while their production
is much more expensive. The only interesting applications for these waxes are those
applications for which the exclusivity of the ingredient offers promotion opportunities.
Therefore, there are some opportunities for these products in cosmetics. However, those often
have a short life as they are trend-sensitive. This results in temporary peaks in demand for
specialty waxes (e.g. applewax). The irregular demand for these products is often an
insufficient basis for profitable business for importers and their suppliers.
A rare and valuable type of beeswax is organic beeswax. It is estimated that the global
production of organic beeswax ranges around 10 tonnes annually. Prices for organic beeswax
are twice as high as prices for normal beeswax.
With respect essential oils, increasing price pressure is making it more challenging for
fragrance suppliers, as their clients (large cosmetic and food companies) are increasingly
consolidating. These pressures are also driving consolidation among fragrance houses. This will
probably reduce the customer base for ingredient suppliers to the fragrance industry (Public
Ledger, January 2006). Furthermore producers of natural essential oils have to compete with
generally lower priced and more consistent (no natural variation) chemical substitutes, which
take a much larger share of the market. Demand for natural fragrances comes predominately
from natural cosmetics producers. The EU essential oil market has organised supply through
the EFEO business association http://www.efeo-org.org/index2.htm.
The essential oils market worldwide amounted to approximately 45 thousand tonnes in 2004
and continues to grow. As one of the main users, the cosmetic industry has an increasing
interest in many different, often very specific, essential oils, many of them of tropical origin.
The demand situation is therefore difficult to characterise. For some oils, demand on the world
market greatly outstrips supply, such as patchouli, citronella and sandalwood oil. Many others
are produced in the EU itself, making it more difficult to enter the EU market. For example,
Italy is an important producer of bergamot oil, and EU supply and demand are largely in
balance. Rosewood oil and rosemary oil also enjoy a favourable market situation.
The still increasing popularity of fruit-based ingredients in cosmetics could contribute to an
increase in the demand for fruit-based essential oils. However, several more established fruit
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oils, such as grapefruit oil, have witnessed a sharp fall in demand. According to industry
sources, citrus oils such as lime and lemon are in short supply on the EU market, due to
weather conditions. Furthermore, flower extracts, such as rose oil remain important. Orchid
oils are especially gaining popularity, being used by French premium brands (Cosmetics design
2007). The supply of lavender oil is low, due to drought and high temperatures in France
during recent years. Some cooperatives are now completely sold out (WTC, 2007). US
production areas of mint oil are decreasing, supporting prices in the EU, and offering
opportunities to developing country producers, especially in India.
Large shortages can exist for organically certified oils, resulting in high price premiums. A
shortage for many oils exists on the EU market, an example being organically certified tea tree
oil.
Gums and resins traditionally have more functional benefits in a cosmetic product (i.e.
thickening, stabilising) rather than cosmetic benefits. The future of several natural gums and
resins is constricted due to supply problems, as well as severe competition from synthetics.
Natural thickeners which act as competitors for gums are modified starches, carrageenan,
pectins (also stabiliser), agar-agar and alginates (algae-derived thickeners). The leading
suppliers of most of these hydrocolloids are large food manufacturers in western countries.
However, a large part of raw material production takes place in developing countries.
Natural gums such as gum ghatti, gum tragacanth and gum karaya are, little by little,
disappearing from trade. They are being substituted by guar gum, locust bean gum or xanthan
gum. Furthermore, the number of traders handling gums and resins in the importing countries
has declined considerably in the past 10 to 20 years. Buyers now have a fairly wide choice of
exporters from which to choose. However, due to the continuing trend for natural ingredients
in cosmetics, there is always the possibility of a resurgence of interest in some of the more
traditional gums and resins which are still, for example, approved for use in foods to be
used again in some cosmetics, especially considering the exotic origins and potential benefits
to small producers in developing countries.
The USA and the EU are the largest markets, each accounting for a little less than one-third of
the global market. Important EU markets for gums are Germany, France, UK, The Netherlands
and Italy. In general, world demand for guar gum is stable.
The Network for Gums And Resins in Africa (NGARA) estimated global demand for resins at
around 2,500 tonnes in 2006 (NGARA, 2006). This demand is stable. The cosmetics industry is
also a small but important market for many (oleo)resins. Especially the essential oils contained
in many resins are highly valued by the cosmetics industry for the production of perfumes.
However, importers have indicated that the use of resins in perfumes is declining.
Vegetable saps and extracts are used in the cosmetics, the pharmaceutical and the food
sector. Unfortunately, figures on total demand for this product group is not available and it is
also quite difficult to isolate the demand of the cosmetics industry.
In general, EU - and especially German - companies play a vital role in the trade and
processing of vegetable saps and extracts. It used to be problematic to supply EU buyers with
ready-to-use saps and extracts. Although they are still mostly further processed in the EU, by
isolating active ingredients, or making them suit other buyer requirements necessitating
complicated processing steps, several developing countries, for example China and India, are
making inroads in this market. In case of sufficient access to financial and human resources,
processing saps and extracts according to buyer standards is possible in other countries as
well. Especially countries with a growing domestic ingredients market such as Malaysia, Brazil
and Mexico have potential to do so. Next to this, however, EU processors also buy raw
materials, which could be either raw plant material, or semi-processed products, in developing
countries. The raw materials are then further isolated in the EU. As can be seen in Chapter 4,
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imports of saps and extracts are increasing, especially from developing countries. The most
important EU consumers are Germany, with its large number of extraction and processing
companies active in the saps and extracts trade, France, the UK, Italy and Denmark. The
dominant position of China and India as suppliers also becomes apparent.
Extracts of fruits, already important, are increasingly in demand. Especially tropical extracts
such as acai, cupuacu, baobab, and (in the future) guarana are of interest. Saps and extracts
with properties countering anti-aging and having moisturising properties are particularly in
high demand, as well as those countering inflammation or acting as exfoliates (Cosmetic
Design 2007). Extracts with high anti-oxidant values, or which act as natural sun screens, as
well as those replacing synthetic ingredients to make products completely natural are in
demand.
It should be noted that aqueous or oil-based extracts are used in relatively low amounts in
cosmetics, depending on their efficacy or other technical considerations. Of course if the
extract is used in the high volume products such as shampoo, shower and bath gel type
products, then the total volumes can be more attractive to suppliers.
Raw plant material
A large part of the demand for raw plant material is sourced within the EU, especially since the
accession of Romania and Bulgaria, both being important producers of raw plant material.
However, a vast array of species cannot be sourced in the EU, mostly due to climatic reasons.
Wild-collected products enjoy continued popularity with US buyers above cultivated natural
products, while in the EU the reverse seems the case.
There is no data available on the demand for raw plant material in the EU, furthermore, little
information is available on a product level. In Chapter 4 it becomes apparent that the imports
by EU countries of raw plant material are increasing considerably, and that imports from
developing countries are also increasing. Germany, with its large extraction industry, is the
largest market for raw plant materials, but France and the UK are also of importance.
Interviews with EU importers and processors also reveal an increasing demand for raw plant
materials. Moreover, the demand for organic raw plant material is increasing fast.
The use of seaweed and algae, and marine extracts in general, is increasing in the EU.
However, cosmetics companies mostly use powdered or extracted seaweed and algae, such as
alginates. These are often processed in the EU, largely based on local production. As such,
France is the main country demanding seaweed and algae but the demand is largely filled from
domestic sources. The market for algae derivates (alginates, agar, carrageenan oil of algae) is
largely dominated by three main EU companies. An important producer is Lessonia
(http://www.lessonia.com), in France, which focuses on the spa market. Industry sources
indicate that the market for seaweed and algae in the EU is not very big. Only a small part is
used in cosmetics. Food is a far more important application area.
Natural colorants
The market for colorants is specialised and extremely closed. Obtaining information from EU
companies is difficult. The market for established natural colours is growing faster than the
total colour market. However, the percentage used in cosmetics is limited, with the food
market accounting for the bulk.
The most important driver is undoubtedly the consumers desire to use natural, rather than
chemical, colorants. This drives research to improve stability of natural colorants. Making
colorants stable in acidic formulations in which they would normally fade, or making them
more resistant to higher temperatures, are examples of this kind of research. Although they
are still more expensive than synthetic colorants, the improvement in price-performance ratio
has also added to the increased use of natural colorants.
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The natural colorants industry is grouped in established and EU registered colours, and new
colours. New colours cannot be used unless they appear on positive lists established by the EU.
They are very difficult to introduce, due to high costs of providing safety data exceeding the
perceived benefits. Natural colours used to a considerable amount in the EU are indigo,
cochineal, carmine, annatto, curcuma/turmeric, marigold and henna.
1.2
Market segmentation
Processing industries and end-users

The market for natural ingredients can be segmented at different levels. Firstly, the market for
natural cosmetic ingredients is divided into a segment for the processing industry and one for
end-product manufacturers. In the processing industry, herbal extraction houses, milling
operations, essential oil distillers, farms with processing facilities, oils and fats processors and
wholesale distributors with value-adding capabilities, are all of importance. As to the endindustry, for which the level of processing and the buyer requirements are higher and tougher,
natural ingredients are used in conventional cosmetics, natural cosmetics and cosmeceuticals.
The level of processing required between the two segments is very different. For example,
most cosmetics companies prefer to use refined vegetable oils in their products, not unrefined
oils. Although this is often done using chemicals, EU companies still refer to it as natural, or
nature-derived. Moreover, there are methods of refining oils that meet the approval of organic
certification bodies. This is related to concerns over the risk of susceptible consumers
developing an allergic reaction to proteins from the oilseeds which may remain in the oil, even
after filtration, and also to producing a standardised quality with little or no variation in colour
or odour. Some vegetable oils, notably groundnut oil, are known to trigger allergic reactions.
The additional benefit of refining is that the end-product is standardised to certain analytical
parameters, whereas unrefined oils naturally vary in their composition. Nevertheless, there is a
small market for genuine oil, within natural or organically certified cosmetics, which is
increasingly being explored.
Furthermore, there is also a market for organically certified ingredients for cosmetics. A large
number of organic traders and processors is active in the EU, but conventional players are also
increasingly active on this market, thereby somewhat blurring the traditional segmentation
between the conventional and the organic ingredients sector.
Types of ingredients
Moreover, although not actual market segmentation, the products considered are widely
different and segmentation of the market exists on that level, too. There are buyers who are
only interested in one type of ingredient, while others are active in the whole range of
ingredients. Examples of the first are specialist traders and processors, for example companies
in the German vegetable oil sector, mostly clustered in Hamburg, or traders of cocoa-based
semi-processed products in The Netherlands and Germany. Examples of the latter are
companies specialised in offering a range of extracted ingredients, for example essential oils
and vegetable saps and extracts, to cosmetic industries. Organics traders are also usually
active in a broad range of product groups.
1.3
Trends
Trends in cosmetics
Before turning to the natural cosmetics market and its trends, some noteworthy general
cosmetics trends are:
Increasing penetration of private labels: in 2006, average penetration for private labels ran
at 23% in the EU, with the UK the highest at 35% and Italy having the lowest rate, at 13%.
Emergence of Megabrands: leading global manufacturers will be, and are already, investing
considerably more in order to develop a handful of key brands in several sectors.
Male grooming is a booming market, as is cosmetics focused on teenagers. Other focus areas
are sun-less tanning, sun protection, anti-aging, hair products which are colour- and texturespecific and colour-life extension.
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Trading up to higher-priced, value-added products (up-scaling of mass brands as well as the

continuing increase in mass marketing of premium brands). In particular many mass
segment brands are moving towards premiumisation.
Trends in natural cosmetics
The natural cosmetics market is enhanced by greater per capita expenditure, combined with a
growing awareness of personal well-being and an interest in unknown products and new
ingredients.
It is expected that increasingly higher standards for cosmetic products and cosmetic
ingredients will be established. The sector will increasingly be regulated. According to the
European Commission, a new Cosmetic Directive should be in place by 2010.
Notwithstanding a sector that is already concerned about ensuring the highest product
safety through regulation and industry self regulation, consumers are interested in product
safety, protection against chemical ingredients, and products which have not been tested
on animals.
Fair-Trade products are also increasingly important, often in combination with natural, or
organic labels. Although there is currently no agreed standard for Fair-Trade product
labelling, certified ingredients are available. For certain products certification like Fairwild,
ingredients could be of interest. Furthermore, standards such as EcoCert are increasingly
moving towards towards higher social certification standards. Especially France and the UK
have large fair-trade markets.
Product innovation and niche marketing is highlighting new needs. While, on the one
hand, natural ingredients markets are fuelled by consumer demand, on the other hand,
value-added naturals help boost sales for cosmetic companies and form a major product
innovation drive. This boosts the demand for ingredients in most cosmetic sectors,
especially functional ingredients.
In general, the availability of natural and organic products is increasing fast in most
markets, as mass retailers and cosmetics giants are entering the market and the natural
market is becoming mainstream. Discounters are also entering the market. Private labels
are boosting total sales, but do have a negative pressure on margins.
Related to this, a substantial group of consumers is veering away from products which
superficially enhance beauty, but have no biological effect, to so-called therapeutic
products containing natural ingredients with functional benefits. However, these
cosmeceuticals cannot be sold with medical claims.
Contrasting with the above is an additional trend of a return to basics. A substantial group
of consumers is interested in products with (local) traditional, recognizable and clearly
described ingredients. This is related to a demand for ethnic cosmetics.
The key sectors for natural cosmetics for the coming years are skin care and baby care, where
high prices are less of a deterrent and natural ingredients can be incorporated in relatively
higher percentages in the formulations. However, sectors with limited availability of natural
products, such as nail care and decorative cosmetics, are also seeing more natural product
launches, with products based on vitamins and minerals (Mintel, 2008). Although this
increases the demand for natural ingredients, at the same time this does not present many
opportunities for most suppliers in developing countries. Drivers are:
Baby care
Naturals are considered inherently safer for babies, also due to marketing campaigns. Baby
care products are made with especially high quality and pure ingredients.
Mildness is of the utmost importance.
Bath/shower
Previously undeveloped, natural product offerings are increasing fast, mainly using old
favourites such as aloe, shea butter and green tea extract, which were already used in hair
care and skin care, relying on consumer familiarity with these products.
Increasingly, food ingredients appear in these products.
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Hair care
Penetration of products which contain natural ingredients in hair care is quite high, but the
actual use in each product is quite limited. Natural hair care products with a high natural
content are far fewer in number, due to the technical characteristics of the products
More recently, botanicals and herbal ingredients are increasingly being used, focusing on
their functional benefits (Cossma 2007). More chemical subgroups within the hair market,
such as hair straightheners and fixatives, are now also seeing use of natural ingredients
(Cosmetics Design 2007).
Skin care
Already accounting for the highest percentage of natural products, the portion of natural
ingredients in formulations in this sector is mounting steadily. Regarding the increasingly
important anti-aging products, there is much competition with non-natural science-based
products. Other interesting categories are moisturisers and skin lightening agents.
Source: Presentations In-Cosmetics 2006, 2007, 2008 of Euromonitor, Kline, Organic Monitor,
Soil Association, AIAB, BDIH, consultant information.
Trends in natural cosmeceuticals
There are several rapidly growing areas within the natural cosmeceutical category, of which a
few are listed below. Some general trends are the increasing use of botanical ingredients with
anti-oxidant properties in (sun) skin care products, such as green tea and sea buckthorn and
the use of natural UV filters. In the case of sun care products, manufacturers are ultimately
required to substantiate the sun protection factors claims on products, so any natural
ingredients used need to comply with the legal requirements.
Besides anti-agers, other key sectors for cosmeceuticals are firming/anti-cellulite products,
skin whiteners, sun protection and hair care (including anti-pollution, sun protection and hair
loss treatments). Next to these, traditional formulae of historical significance (e.g. Ayurveda)
are increasingly important segments of the cosmeceuticals market. These cosmeceuticals can
target ethnic populations in the EU as well as groups with ethnic interests. Partly because of
these developments, herbals are gaining increasing popularity in the cosmeceuticals industry.
Companies are increasingly searching for plants with therapeutic properties to bring to the
market, such as those with effective free radical-scavenging attributes.
Please note also that, although EU producers are searching for new products and ingredients, it
often seems difficult for producers in developing countries to sell new ingredients on the EU
market, due to of a lack of suitable technical and safety documentation, and reliable supply
chains. Other EU legislation such as REACH also increases the amount of technical information
required for ingredients which fall within its scope to be sold in the EU market. Partnerships
with EU companies are often necessary for product development and to attain compliance with
EU requirements. REACH is already in force with the pre-registration phase but its impact on
exporters cannot yet be fully evaluated. Ingredients which are exempt from registration will
not be affected by REACH. Other ingredients which are not exempt from REACH will need to be
accompanied by the applicable documentation describing under which conditions the ingredient
is safe for use.
Trends in natural ingredients
The above reveals two trends of relevance for natural ingredients. There is much demand for
new products, because the safety of chemical compounds is questioned by certain groups of
consumers which have been picked up by the media, while innovative, functional products are
in demand. Considering the stringency of European Cosmetics regulation, these concerns
should be seen in a perspective of groups of consumers who in general prefer natural above
chemical ingredients. On the other hand, there is also a demand for older natural ingredients.
This is also related to the trend towards ethnic cosmetics, making use of more traditional
ingredients (such as African or Asian formulations). In conclusion, there is a wide range of
choice for the consumer: innovative, traditional and modern. Natural ingredients can, to a
certain extent, be used in all of these categories.
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Regarding specific products, the above sections mention several products which could be of
interest, or properties which are sought by EU companies. Across the cosmetics market, an
increasing use is being made of food ingredients, such as cocoa, chocolate, rice and a huge
range of fruits. The importance of (exotic) fruits also continuous to increase, even though
these are already a mainstay in the market. This includes fruit seed oils (i.e. vegetable oils)
such as pomegranate seed oil, peach kernel oil , grape seed, papaya seed, blueberry seed,
mango kernel etc, essential oils (extracted from the peel, such as lime and orange oil), and
extracts of fruit pulp (which are included under the product group vegetable saps and
extracts).
However, these developments are difficult to quantify, and it is not known how significant
demand is/will be. For a graphic representation of this, please refer to Figure 1.2, which shows
the relationship between the volumes demanded on the EU market (which are highest for
natural ingredients and still very limited for ethical certified materials), the degree to which the
trend is established on the EU market for cosmetic ingredients, and the total amount of
documentation need (which is lowest for natural ingredients, and highest for ethical
ingredients, due to increasing need for ethical audit information in addition to conventional
technical documentation).
Figure 1.2
Trends within the natural ingredients market
Source: Adapted from Andrew Jones, 2007
Organic and certified ingredients

Natural products are not necessarily organic. However, a clear trend exists for natural products
to move more into the direction of organic production. This is driving a rapidly increasing
demand for organic ingredients. The marketing of ingredients as organic may also be
interesting, in the case that producers can only supply smaller quantities of natural
ingredients. Smaller quantities can be more easily marketed in the organic market than in the
regular market, where large quantities are typically required by traders. However due to the
interest shown by larger companies, demand could be outstripping supply. Especially several
vegetable oils and fats, such as coconut and palm oil, are commodities traded in large
volumes, making it very difficult for small producing countries to enter the market. Natural
ingredients collected from the wild are also increasingly (organically) certified - also because
organic certification offers the buyer more evidence of traceability and more attention to the
sustainability of the source.
Another development, besides organic certification, is certification based on criteria and
principles of the Forest Stewardship Council. Social certification for cosmetics is also
increasingly popular. Fair Trade certified products are also increasingly important, often in
combination with natural, or organic labels. The UK and French markets are two of the fastest
growing consumer markets. There are currently a number of Fair Trade certified ingredients
available that can be used in the formulation of cosmetics and the Fair Trade Foundation (UK)
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and Fair Trade Labelling Organisations International (FLO) are now developing a policy to
enable the Fair Trade certification of cosmetics.
Exotic, African and Amazon ingredients
Furthermore, an important trend is the increasing use of exotic ingredients, especially those
which have an interesting history of use in the country of origin. This can be of specific interest
for producers in developing countries, which can offer products that cannot be found anywhere
else, and are unfamiliar on the EU market. Recent examples from the Amazon include acai and
cupuacu. Furthermore, extracts from guarana, both seed extracts and saps and extracts made
from the fruit, are increasingly used in the cosmetics industry (Cosmetics Design 2007).
According to Mintel, environmental and socially sustainable production of these ingredients is
of importance to many consumers, as they are often derived from forests which are (in the
eyes of EU consumers) threatened (Mintel, 2007). According to Phytotrade, a non-profit trade
organisation, African ingredients are also of interest (Phytotrade 2007). Please note, however,
that these ingredients are dependent on trends in new product introductions which are
changing swiftly: products that are of interest now maybe not be of interest in a couple of
years. Many ingredients never break through in the market. This implies that exporters need
to be fastmoving to capitalise on such opportunities.
Fractions and highly processed ingredients
Regarding essential oils, there is a trend to use fractionates instead of the oils themselves.
Essential oils generally contain many substances. If the substance required for the product
exceeds 70% to 80% of the contents of the oil, then the oil itself will generally be used.
Otherwise, users want the fraction (natural aromatic chemicals) which gives the particular
smell, for example: citral from Litsea cubeba, or vetiver acetate from vetiver oil. The perfume
and flavour industry is mostly involved in the extraction of high-value essential oils or in
extraction where specific technology is required. These products are difficult for many
developing country suppliers to produce. The same partially also holds for the production of
saps and extracts, where cosmetic industries demand highly processed products. This is
making production of products suitable for cosmetic companies increasingly hard for
developing country producers. Instead, these supply raw materials or semi-processed products
to EU ingredients producers. However, the industry has often invested in extraction of plants in
the production areas, by establishing agreements with local partners.
1.4
Opportunities and threats
Please note that, in this product group, there can be opportunities both for new and
established natural ingredients. A number of products which could offer opportunities is
provided in this Chapter. Developing country producers must compete on quality, price and
reliability for established ingredients. Regarding new ingredients, developing country producers
should focus on innovating companies in the EU and must be able to cope with the potential
risk that new ingredient introductions will fail. EU companies will require technical data on
safety, functionality and use, as well as traceability and (sustainable) supply chain data.
+ In general, the demand for natural ingredients is increasing steadily and will continue to do
so. This is offering opportunities to producers in developing countries who offer products
meeting EU quality and legislative requirements.
+ An important opportunity lies in supplying the EU market with organically certified
ingredients. Opportunities exist especially for ingredients with properties which allow
products to be made fully organic. For example, organic emulsifiers, natural ways of
controlling rancidity etc. are of interest. As a lead to finding information on which
ingredient categories are of interest, the Soil Association has published details of the
modifications to raw materials which can be carried out whilst still retaining organic status.
They also publish details of the chemical modifications which are prohibited for organic
status. However, volumes are low in most formulations.
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+ Another opportunity lies in exotic ingredients. When an interesting story of traditional use
can be provided, such products are especially appealing to considerable groups of EU
consumers, and are sought after by buyers.
+ Furthermore, functional ingredients are also sought by EU buyers. In the above texts,
several functionalities of specific interest, such as those countering aging of the skin were
discussed.
- Regarding the search for new ingredients, issues of bio-piracy are also become relevant.
As Western companies patent new formulations and ingredients, this search for ingredients
with exciting properties may impinge upon traditional knowledge of local biodiversity. The
Biotrade Initiative offers more information on this (http://www.biotrade.org/).
+ As will be further explained in Chapter 3, because traceability and quality assurance are
continuously increasing in importance, a well documented system of tracing and tracking
and having quality assurance systems such as Good Agricultural and Collection Practices
(GACP), Good Manufacturing Practice (GMP), Hazard Analysis Critical Control Points
(HACCP) and International Standard Organisation (ISO) systems in place, provide a
competitive advantage.
- These and other EU market requirements pose a threat to many DC producers, due to the
high quality demands set in the EU.
- Standardised and/or highly processed ingredients demanded by cosmetic companies fall
outside the (technological and financial) reach of companies in some developing countries.
However, here opportunities exist for supplying raw materials, or semi-processed products
to processors, or for the creation of partnerships.
- The implementation of REACH http://ec.europa.eu/enterprise/reach/index_en.htm impacts
on natural ingredients which are classified as dangerous under EU regulations, thereby
reducing the opportunities on the EU market especially for new products which lack
adequate technical data. This poses difficulties for smaller producers.
- Another opportunity is that, with the continued increase of natural ingredient use, the
supply of certain materials, and especially organic products, is falling short. This is
particularly pressing in relation to certain wild-collected raw materials. The shortage of
organic supply is of course an interesting opportunity for companies in developing countries
which are able to supply these products to EU companies.
Product specific opportunities and threats are provided below.
Vegetable & animal oils, fats and waxes
+ The market for commodities like palm oil and coconut oil and cocoa butter is very
competitive and large scale. The market for palm oil and coconut oil has also been
developing favourably due to the bio fuel trend. However, opportunities will remain
severely restricted for smaller producers. Virgin coconut oil could be offered on the market,
instead of standard coconut oil, provided that the customer is carefully targeted.
+ Specialised vegetable oils and fats continue to be a more interesting niche market for
producers in developing countries. They command higher prices, competition is less intense
and smaller volumes are required.
+ The market situation for cocoa butter in the EU is favourable and, at the time of writing,
prices are very high. Although mostly related to increasing demand from food industries,
cocoa is increasingly used in the cosmeticS sector. Although most of the cocoa butter is
made in the EU itself, several EU buyers are looking for additional sources. There are Fair
Trade certified suppliers of cocoa butter outside the EU.
+/- Opportunities could also exist for illipe butter, shea butter, castor oil and sweet almond oil
and other tree seed oils. However, for the latter three products, exporters should note a
number of significant restrictions. Regarding castor oil, unless the product traded is of a
pharmaceutical grade, there are no opportunities, due to the allergic properties. Allergies
from nut products remain a concern and cosmetics manufacturers are especially concerned
that downstream processing adequately removes the protein material which can provoke
an allergy attack in susceptible individuals. Sweet almond oil could be of interest, although
the US is a major supplier and competition with US producers will be fierce. The two main
species of shea butter are Vitellaria paradox (also known as Butyrospermum parkii) and
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Vitellaria nilotica. The latter has a superior quality but, so far, has seen low demand in the
EU. US buyers are more interested.
+ New vegetable oils are of interest, especially if they have a history of safe use in foods or
can otherwise be shown to be safe for use in cosmetics.
Essential oils
+ The cosmetics industry is interested in many different, often very specific, essential oils,
many of them of tropical origin.
+ In general, opportunities exist for species which are sensitive to environmental factors and
cannot be grown in the EU, wild collection of plants if it is competitive with EUcultivation/wild collection, and crops for which the cultivation is more profitable in
developing countries.
+ The still increasing popularity of fruit ingredients in cosmetics could contribute to an
increase in the demand for fruit-based essential oils.
+ Another long-term opportunity is to establish alternatives to existing sources. An example
of this is the successful establishment of tea tree plantations outside Australia. The
approach has risks, such as acceptance of the producer profile and sufficient funding.
- REACH not only increases the barriers for existing essential oils that which adequate safety
data but also greatly increases barriers to the introduction of new essential oils if safety in
use does not meet EU standards. Partnerships and cost sharing with EU companies could
be considered as a way to introduce new essential oils. Ultimately, exporters need to be
able to draw on sufficient technical and financial resources to introduce new oils. It should
also be borne in mind that new essential oils for cosmetics primarily compete on
fragrance not medicinal property. However, certain properties of essential oils, such as
anti-bacterial, might result in a dual purpose of fragrance combined with reduced levels of
an authorised preservative in favour of a natural alternative. Next to this, with the existing
wide range of essential oils, the opportunity lies in finding a new natural fragrances or
alternatives to synthetics, Furthermore the challenge is then to ensure sustainable volumes
of the essential oil.
-
The market for many essential oils is highly competitive and only a few countries play a
dominant role for specific essential oils. Entering the market for these main essential oils,
such as citrus and mint, will be difficult. Markets for more exotic essential oils are not very
big.
Vegetable saps and extracts and raw plant material

- Especially regarding saps and extracts, highly processed saps and extracts demanded by
the cosmetic industry could fall outside the (technological and financial) reach of many
companies in developing countries, at least initially.
+ Opportunities for these companies exist for supplying semi-processed saps to EU
processors.
+ Supplying EU extractors with raw materials is also an opportunity.
+ Properties such as anti-microbial are of interest, as well as hardy plants growing in difficult
or extreme climates.
+ There are also opportunities to promote a resurgence of interest in traditional saps and
extracts, which are still approved for use in cosmetics, but have become less popular in
recent years. This may be more successful if the story of collection and processing is
particularly interesting or if it benefits marginalised producers.
+/- Demand for marine-based ingredients is strong, with products based on algae and seaweed
in great demand. However, there is a limited number of companies with a strong position
already active on the EU market.
Natural colorants
+ In general the market for existing natural colorants is increasing in the EU, and could offer
opportunities to producers in developing countries.
- Few opportunities exist for new colours not yet on the EU-positive list, even though there is
industry interest in stable natural colours. Introducing new colorants is costly, requiring
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elaborate safety data. Like essential oils, this may require partnerships with EU companies
which can invest in the safety documentation, in exchange for access to the raw material
1.5
Useful sources
Interesting trade press providing market information are the following:

COSSMA: http://www.cossma.com
EUROCOSMETICS: http://www.eurocosmetics-magazine.com
World Directory Cosmetics Industry: http://www.teknoscienze.com
Cosmetics Business: http://www.cosmeticsbusiness.com
C&T - Cosmetic & Toiletries: http://www.cosmeticsandtoiletries.com
Journal of Essential Oil Research: http://www.allured.com
Interesting on-line data bases providing useful information on developments in the cosmetics
and the cosmetics ingredients markets are:
Cosmetic News: http://www.cosmeticnews.com
Cosmetics Design Europe: http://www.cosmeticsdesign.com
Beauty online: http://www.beauty-on-line.com
Also of interest are further market research organizations, which provide reports on a large
number of industries. Examples are:
Mintel: http://www.mintel.com/
Euromonitor: http://www.euromonitor.com
Datamonitor: http://www.datamonitor.com
Organizations offering information sources or which can be contacted to obtain information
are:
USDA-FAS: http://www.fas.usda.gov/ (GAIN Reports)
Personal Care Products Council: http://www.personalcarecouncil.org/
FOSFA - Federation of Oils, Seeds & Fats Associations: http://www.fosfa.org
IFEAT - International Federation of Essential Oils and Aroma Trades: http://www.ifeat.org
Colipa - The European Cosmetic Toiletry and Perfumery Association: has annual reports on
the cosmetics industry in Europe http://www.colipa.com
IKW - German Cosmetics, Toiletry, Perfumery and Detergent Association: has annual
reports on the cosmetics industry in Germany http://www.ikw.org
BDIH - Bundesverband Deutscher Industrie und Handelsunternehmen fr Arzneimittel,
Reformwaren und Krperpflegemittel: http://www.bdih.de
Aromatherapy Trade Council: http://www.a-t-c.org.uk
ITC The International Trade Centre: its document Overview of World Production and
Marketing of Organic Wild Products http://www.intracen.org
The European Union: offers information on cosmetics through its Enterprise and Industry
portal at http://ec.europa.eu/enterprise/cosmetics/index_en.htm\
Forum Essenzia: is a specific forum on essential oils and their application in
aromatherapy http://www.forum-essenzia.org/
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Production
2.1
Size of production
Although production by European countries of some natural ingredients is reported, these data
must be interpreted and used with caution. Many of the natural ingredients used in the
ingredients processing industry come from developing countries, then are further processed
and re-exported. For example, Germany is listed as a leading EU producer of coconut oil,
although, of course, this production concerns processing of raw materials.
According to Fediol, the EU production of vegetable oils and fats (excluding olive oil) amounted
to 11.4 million tonnes in 2006. Between 2004 and 2006, EU production of vegetable oils, fats
and waxes increased on average by 9.1% per year. However, this production is for more than
half composed of rape oil and linseed oil, which are not used in cosmetics. Other very large
product groups are soy oil (2.5 million tonnes) and sunflower oil (2.2 million tonnes), which
can be used as replacement for products from developing countries. Fediol reports only
marginal production of groundnut oil, palm kernel and palm oil. Germany is also an important
producer of beeswax. Almost all organic beeswax is sourced in that country.
Earlier production data on vegetable oils and essential oils of the Food and Agriculture
Organisation (FAO) gave much higher quantities of production (in fact, processing of
developing country products). However, no new data have been published since 2004.
According to FAO, global production of essential oils is estimated to have been 28.2 million
tonnes in 2003. According to them EU production only accounts for 300 thousand tonnes but
this appears to be an underestimation (FAO 2004). Although not recorded by FAOSTAT, the EU
remains a traditional production area for essential oils. However, developing countries are
increasingly commanding a dominant position in the global production, now accounting for
85%, especially for raw essential oils. The competition with EU countries, however, remains
very strong for further processed essential oils (fractions), many of which are based on raw
materials from developing countries. EU countries also remain competitive for high-yielding
species which allow for mechanisation.
On a global scale, the 18 most important species represent nearly 75% of the total production
value. The concentration in terms of tonnage is even higher, as there is a trade in small
volumes of products with high unit values (e.g. rose, jasmine, and vetiver).
Major EU producers are the Mediterranean countries like France, Portugal, Spain, Italy and
Greece. Lavender and peppermint are among the most widely cultivated. France is by far the
leading producer of lavender oil, having approximately 400 producers, while the East European
countries are increasing their production of lavender. There is thus limited need for the EU to
import lavender oil from outside the EU. Italy is the leading producer and supplier of lemon oil.
It accounts for a large part of intra-EU imports of lemon oil (Eurostat, 2005). Furthermore, it
has an important position for bergamot oil (Cossma 2007). Some other oils where the EU plays
a role are Damask Rose oil (Bulgaria accounted for 35% of world production in 2004), Caraway
(where The Netherlands and Poland play a significant role), sage (Central Europe, Southern
Europe the UK and Bulgaria have significant production), thyme oil (Southern Europe) and
lemon balm oil (Ienica 2004). The production of orange and lime oils in the EU is significant as
well. However, the demand for these oils is much higher and is largely met by imports, mainly
from Brazil. Vetiver oil is produced in Reunin, an overseas region of France in the Indian
Ocean, which is officially part of the EU.
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The EU is a leading producer of plant extracts. Germany has a very large medicinal and
aromatic plant extraction industry and the largest percentage of raw plant material. Strong
historical ties with its former colonies have made the United Kingdom a major R&D centre in
the field of tropical commodities and extracts. France and Italy also have substantial extraction
industries. Big extract producers such as Finzelberg, Spreewald, General Extract Products and
Gehrlicher are located in Germany, and Cosmetochem in Switzerland. Another leading
producer is Indena in Italy. Other producers are spread across Western Europe and several
interesting companies are mentioned in most of the individual country surveys. Poland and, to
a lesser extent, the Czech Republic and other accession countries are growing in importance in
the field of plant extract production. These countries also function as a subcontracting location
for German and other EU companies, also for the supply of raw plant material.
Raw plant material
Medicinal and aromatic plants (MAP)
The EUs place in global trade and production in medicinal and aromatic plant material is of
global importance. Germany, Bulgaria and Albania are listed among the 12 leading countries of
export. Balkan countries play an especially important role. According to the South and East
European Development Centre (SEED), the varied climate and geography enables a vast array
of temperate plants to be grown, such as Sage, Chamomile, Peppermint, Linden flowers,
Gentian root and Mallow root (SEED, 2005). Many companies in Eastern Europe have a
competitive advantage over their competitors in developing countries, being near to the EU in
location and legislative frameworks. Moreover, they still have access to relatively low-cost
labour. However, as state regulation of collection decreased, the sustainability and
conservation of (wild-collected) species have been negatively affected. Only Bulgaria still has a
well-controlled MAP trade, although systems are improving in other countries as well (Ienica,
2005).
Medicinal and aromatic plant material is obtained both from plants growing in the wild and
from cultivation. Worldwide about 70% of the species used is collected in the wild. Wild
collection is also of importance in the EU, since cultivation is not feasible for many species.
According to the World Wildlife Fund (WWF), up to 90% of medicinal and aromatic plants
traded in Europe is collected in the wild, although this also includes imports. Species from
Eastern Europe are more commonly wild-harvested than those coming from the west (WWF,
2004). Wild-collection remains particularly prominent in Albania, the Czech Republic, Romania,
Bulgaria, Poland, Turkey, Hungary and Spain. The number cultivated commercially is limited,
but expanding.
Traffic, The Wildlife Trade Monitoring Network (http://www.traffic.org), found that the
species wild-collected in the largest quantities in the region are as follows: sage in Albania and
Bosnia-Herzegovina, juniper in Bosnia-Herzegovina, dog-rose in Bulgaria, nettle in Croatia,
Field Shave-grass (Equisetum arvense) in Croatia, as well as bilberry and raspberry in
Romania. Species like Yellow Gentian (Gentiana lutea) and Mountain Tea (Sideritis raeseri)
have become threatened almost throughout their range in the Balkans (Traffic, 2005).
According to ITC, 26,000 hectares of wild-collection areas are organically certified in the EU,
yielding a production of 32,600 tonnes. Worldwide, 9% of the production quantity is
constituted by medicinal and aromatic plants, while this group constitutes 36% of the
production area. When these numbers are used for the EU, it would mean that around 9,360
hectares in the EU are certified, with a production of 2,930 tonnes (ITC, 20061).
In 2004, the European Herb Growers Association (EHGA Europam) collected data on the
production of 150 cultivated herbs in the EU, among its 21,000 member growers/collectors. It
found a total area of at least 100,000 hectares, of which at least 5% is organically cultivated.
Table 5.1 shows the distribution of the total area across the EU. Since data does not
incorporate all countries and producers, the actual area should be considerably higher. When
only plants used in cosmetics (63 species) are included, the total area is 55,682 hectares, of
1
See ITCs Overview of World Production and Marketing of Organic Wild Products
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which 2,038 is organic, with 10,721 growers. It is unknown what percentage of production is
used in cosmetics, as these plants are also used in the food and pharmaceutical industry.
Table 2.1 Total herbal crops cultivated in selected EU countries, in hectares
Total area
Organic
area
24,388
1,094
249
30
Austria
Belgium*
Bulgaria*
9,543
Growers
8,515 Ireland*
4 Italy
The
n.a.
Netherlands
101 Portugal*
n.a. Romania*
n.a. Slovakia
904 Spain*
3,989 Sweden*
n.a. United Kingdom
Total area Organic Growers

area
7
0
n.a.
1,713
783
6,212
2,884
116
1,130
Denmark*
164
83
38
0
5
Finland
10,569
0
9,968
0
n.a.
France
35,559
0
623
70
68
Germany
10,351
925
716
0
0
Greece
3,382
1,720
26
26
19
Hungary
1,325
0
9,679
4
175
Source: EHGA Europam (2005/2003)
* As no new data is available for 2005, data from 2003 is used. As data from two different years is used
no total has been included.
The top 10 cosmetics crops (out of 63) cover 91% of the total cosmetics area. These and the
other major species are shown in table 2.3. The area under cultivation in Western Europe is
only increasing slowly, as cultivation in East European countries is usually cheaper and
therefore often preferred.
Table 2.3 Top herbal crops with cosmetics use cultivated in the EU, in hectares
Scientific
name
Common
name
Total
cosmetics
used herbs
Lavendula
Lavender
spp,
Cucurbita
Squash
pepo
Linum
Flaxseed
usitatissimum
total
area
growers
52,620
9,505
21,410
86
15,100
5,000
4,544
1,584
Borago
officinalis
Chamomilla
recutita
Coriandrum
sativum
Salvia sclarea
Borage
2,719
31
German
chamomile
Coriander
1,809
110
1,324
26
Clary sage
1,045
20
Mentha
piperita
Ocimum
basilicum
Citrus
bergamia
Origanum
marjorana
Cannabis
sativa
Ribes nigrum
Peppermint
967
153
Basil
834
1,505
Bergamot
560
750
Marjoram
558
25
Hemp
450
203
Blackcurrant
446
12
Maidenhair
tree
Spearmint
430
424
Gingko biloba
Mentha
spicata
Organic
area
Scientific
name
1,544 Salvia
officinalis
Common
name
total
area
growers
Organic
area
Sage
289
156
58
Mint
271
32
20
300 Allium sativum Garlic
263
295
636 Chamaemelum English

nobile
(Roman)
Chamomile
2 Melissa
Lemon balm
officinalis
258 Hippophae
Sea Buckthorn
rhamnoides
55 Hypericum
St Johns Wort
perforatum
7 Oenothera
Evening
biennis
primrose
40 Sambucus
Common elder
nigra
20 Rosmarinus
Rosemary
officinalis
40 Levisticum
Lovage
officinalis
20 Cynara
Globe artichoke
scolymus
49 Anisum
Aniseed
vulgare
9 Angelica
Angelica
archangelica
0 Glycyrrhiza
Liquorice
glabra
0 Rosa sp
Rose hips
241
234
134
74
206
50
20
197
68
27
192
172
42
31
158
99
17
116
43
18
92
83
15
69
75
75
71
58
10
108 Mentha spp
Source: EHGA Europam (2005)

Please note that this table only includes data from 2005 (in which information was not provided for
several of the countries of table 2.2 where information from 2003 has been included). Moreover, as table
2.2 concerns all herbal crops and 2.3 only those with cosmetic uses, these tables cannot be compared.
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Seaweed & other algae

In Asian countries, above all China, Japan, Korea and the Philippines, seaweed is farmed, while
in Europe it is collected from natural deposits found in Ireland, Portugal, Spain, France and
Norway. Surialink provides figures for commercial seaweed production. However, the
information comes from different years for different countries and should therefore be used
with caution (http://www.surialink.com/GIS/stats_prod.asp). France is the main EU producer,
supplying 28% (616 thousand tonnes) of total seaweed produced worldwide. The main
processing facilities for seaweed and algae are also located in France and/or the UK. The UK
follows with 9% (205 thousand tonnes) and Ireland with 1% (12 thousand tonnes). Norway is
also an important European producer. China is the largest producer in the world.
Natural colorants
EU production figures for natural colorants are not available. EU trade data show that France
and Germany are the leading suppliers to the EU market, partly based on imported raw
materials. However, in the FAO publication Natural colorants and dyestuffs, which includes
an overview of major colorants and dyestuffs entering international trade, no significant
production in EU countries is reported, except for paprika from Spain and Hungary. This
colorant is, however, mainly used in food products.
According to industry sources, the EU also produces the following raw materials for colorants:
grape, elderberry, black carrot, carotene and chlorophyll. Note that Carmine and turmeric root
are raw materials for which a particular import need exists, as they are not available in the EU.
2.2
Trends
Increasing scale of EU ingredient suppliers

Of great importance is the increasing scale of operations of many EU ingredient suppliers,
following developments in the cosmetics industry, although at a less frantic pace. Large
chemical companies are looking at specialised ingredient suppliers. Ingredient suppliers, in
turn, are looking at natural/organic producers. Some recent acquisitions are Engelhard
purchasing Coletica, Cognis purchasing the UK company Cosmetic Rheologies and Croda
purchasing Uniqema (Kline 2007). Other examples include the joint venture between UKs
Earthoil and Treatt, the acquisition of Tisserand by First Natural Ltd., and Pentapharm by DSM
(Cosmetics Design 2007). Companies such as Naturex and Cognis are also setting up, or
scaling up their natural ingredient branches independently (Phytopharm 2007). This increasing
scale could make it more difficult for new (very) small companies in developing countries to
enter the EU market, because volumes and operational procedures will need to be scaled up to
meet the demand from EU buyers. However, large numbers of smaller players are still in
existence.
Moreover, as many cosmetics company are moving part of their production to Eastern Europe,
some ingredients companies are also investing in those countries, enlarging existing plants in
Germany and Eastern Europe, and strengthening their sales and distribution channels in those
countries (Cossma 2007). A more threatening situation is the increasing cosmetics production
for the EU market in Asia. Although limited up to this point, it could change the demand for
natural ingredients in the EU itself.
EU companies diversifying
Another result of the increasing scale of operations is the diversification of products offered by
the larger, merged companies. EU companies are increasingly producing both conventional and
organic product lines, and are offering ingredients destined for the cosmetic, food, OTC
healthcare and pharmaceutical sectors. Of course, some companies still only offer ingredients
to a specific sector. This shows the need for developing country suppliers to carry out very
thorough market research to target the right company or right division in a company, and to
pay close attention to the sectors in which they are interested, and capable of entering, before
actually contacting diversified companies.
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This development is also visible in trade fairs. Natural ingredients trade fairs bring together
ingredients for cosmetics, food, OTC healthcare, while (organic) food fairs, such as Biofach and
SIAL are now also active in cosmetic ingredients. These trade fairs now take place in addition
to pure trade fairs, such as In-Cosmetics for cosmetic ingredients.
Cultivation and wild-harvesting
There are two distinct trends in EU medicinal and aromatic plant production. Large-scale
cultivation of relatively low value products such as evening primrose, thyme and milk thistle is
generally on the decline and is being replaced by imports. Production of more specialist plants
is, however, increasing, especially using organic or bio-dynamic cultivation techniques. Many
companies prefer cultivated material, due to more steady supply. However, many plants are
not available from cultivation as the active ingredient quantity contained is then too low. It is
therefore essential to work towards developing sustainable sources for any wild-collected
plants.
Wild collection standards
Stemming from concerns on over-harvesting of medicinal and aromatic plants, land conversion
and habitat loss, standards are being developed. In recent years, a number of initiatives has
been launched to achieve a better framework for the sustainable use of biological diversity,
such as the International Standard for Sustainable Wild Collection of Medicinal and Aromatic
Plants (ISSC-MAP) initiated by the German Federal Agency for Nature Conservation (BfN),
IUCN and WWF/TRAFFIC. This standard plays an intermediate role between relevant general
guidelines for sustainable use, particularly at the policy level, and specific management and
monitoring strategies which involve local collectors and producers. More information can be
obtained from
http://www.imo.ch/portal/pics/IMO_CH/documents/issc_map_standard_version1_0.pdf. Also
of interest is also the position of ITC on this subject, which can be found at
http://www.intracen.org/dbms/organics/index.asp.
Moreover, wild-collection is suitable for Fair Trade labelling, as it can contribute to income
supporting activities by low-income rural households. This is in contrast to cultivation where
these groups hardly reap any benefits. Sometimes the Fair Trade labelling is combined with
organic certification. Organic certification is gaining in importance for all the product groups.
Fairwild (http://www.fairwild.org) is an initiative striving to combine ethical and environmental
standards.
Traceability
Due to the increased importance of traceability within value chains of natural cosmetics
ingredients, GACP (Good Agricultural and Collection Practice) and its standard operating
procedures (SOP) and other standards are of increasing importance within EU production. You
can find these at http://whqlibdoc.who.int/publications/2003/9241546271.pdf.
REACH
The implementation of the REACH regulation
(http://ec.europa.eu/enterprise/reach/index_en.htm) is likely to have an impact on EU imports
of natural ingredients which are classified as dangerous under EU regulations, as EU producers
are faced with more stringent requirements on documentation and safety. The latter reduce
the opportunities especially for new products on the EU market, which cannot provide
adequate technical data. This poses difficulties for smaller producers. Next to this, compliance
with the cosmetics directive (http://ec.europa.eu/enterprise/cosmetics/index_en.htm) is also
obligatory.
2.3
+ Many raw materials for natural ingredients for cosmetics cannot be grown in the EU, and
have to be imported from elsewhere. Moreover, many raw materials require considerable
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labour input, thus giving developing countries a competitive advantage. Taking only EU
production into account, developing country exporters may find the best opportunities in
the supply of exotic ingredients, or their (semi-processed) raw materials.
+ Tracing and tracking of ingredients is increasingly required by cosmetics companies and
ingredient processors in the EU. Suppliers in developing countries, who have a system of
tracing and tracking, supported by documentation, have a competitive advantage in
dealing with EU importers.
- Increasing quality requirements, documentation and safety assessments pose a threat to
companies in developing countries attempting to enter the EU market, as these
requirements are increasingly difficult for smaller exporters to meet. Exporters are further
constrained by the increasing scale of EU producers.
+ Increasing traceability also means that the downstream manufacturer or retailer might take
stronger direct interest in the origin of the raw materials. This provides the opportunity to
target the downstream manufacturers and retailers with new ingredients, if the ingredients
can meet the legal and market requirements at this level.
In addition to production factors such as quality and quantity, other factors of reliability,
availability, communications and price, need to receive careful attention by supplier in order to
meet or exceed their customers expectations.
2.4
Useful sources
Information on EU production of vegetable oils can be found at Fediol (http://www.fediol.be/).

EHGA Europam (http://www.europam.net/) offers information on the cultivation, also limited
information on the collection, of medicinal and aromatic plants in EU. The Public Ledger (See
chapter 5) also provides information on events and trends influencing the production of
vegetable oils and essential oils. Information offered through the Biotrade Initiative
(http://www.biotrade.org/) is also of interest. Furthermore, many of the sources as mentioned
in section 1.5 also offer information on production.
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Trade channels for market entry
3.1
Trade channels
The figure below gives a schematic overview of the distribution channels for natural ingredients
for the cosmetics industry in the EU. The raw plant materials traded are largely unprocessed,
whereas the other four product groups are in general already processed. Therefore, the figure
presents two major channels, one for ready-to-use or finished ingredients, and one for crude
raw materials. Regarding specific product groups, CBI offers surveys on vegetable oils and
fats and on natural colorants and thickeners and essential oils, in which the trade structure
for these products is analysed more in depth. However, these have a focus on their use in
food. Moreover, the trade structure of vegetable saps and extracts and medicinal and aromatic
plants is also discussed in the CBI survey on the market for natural ingredients for
pharmaceuticals.
Figure 3.1 presents the trade structure, starting from the products offered by producers of
natural ingredients of cosmetics as covered in this survey. Processing steps taking place within
this trade structure concern those performed in the EU. Initial processing taking place in
developing countries is therefore not covered. Although producers of essential oils, natural
colorants and vegetable saps and extracts in developing countries supply products which are
already processed, in many cases second step processing will take place in the European
Union. This is conducted either by wholesalers/traders or by processing companies. Products
are then sold to end-product manufacturers.
Figure 3.1
Distribution channels for export of natural ingredients to the EU
Genuine and authentic

natural ingredients suitable
for end-manufacturers
(some specialty ingredients
can be purchased directly
by the end-manufacturer)
Genuine and authentic

crude raw natural
ingredients (to be
processed)
Distributor/wholesaler with
manufacturing facilities
(sometimes through
agent/broker)
Distributor/
wholesaler without
manufacturing facilities
(sometimes through
agent/broker)
Sales under name of DC

supplier
Processing company
Distributor/wholesaler/
with manufacturing
facilities
(sometimes through
broker/agent)
Sales under name of agent

or distributor
Cosmetics manufacturers
Many buyers prefer to stick with their existing suppliers instead of investing in all the
arrangements which are necessary to go into business with a new supplier. Only when you can
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offer the buyer a significantly better deal than your competitor, or when the buyer is looking to
expand its business, will there be interest in entering a new trade relationship.
Exporters/importers/wholesalers/brokers
Different types of traders can be distinguished. Enterprises based in the producing countries
are mainly involved in the sale and export of natural ingredients from local plant species. They
usually deal in large quantities of a few commodities, either processed or unprocessed
ingredients, which are produced or harvested locally, and meet quality requirements for
national and regional markets. The documentation requirements according to UN guidelines
are not fully implemented on this level. Ingredients are purchased either directly from
producers, collectors or from farmers, or after they have passed through a number of traders
(e.g. local dealers, village cooperatives, district traders). Brokers and agents can act on behalf
of purchasing companies.
Enterprises based in consuming countries are concerned with imports and supply of the
domestic markets. They require documentation on GMP and GACP as well as certification.
Lastly, some merchant houses are specialised in international trade of large-volume quantities.
In most EU countries/regions, trade is dominated by just a few wholesalers. They sell
commodities to a large number of different companies.
Wholesalers/distributors may also process raw plant material or conduct second step
processing of essential oils, natural colorants, vegetable saps and extracts, and vegetable oils
and fats. For example, ingredients are tested for contamination and formed into bulk
ingredients. Further processing in the form of extraction, particularly standardised extracts, is
undertaken. Some companies use voucher specimens at this stage, to ensure correct species
identification and quality. Due to consolidation in the industry, the production of bulk
ingredients from raw plant material is often undertaken by wholesalers/importers.
Processing industry
The processing industry buys raw ingredients and processes them, before selling them to the
end-product manufacturers. In the case of essential oils, natural colorants, vegetable saps and
extracts and vegetable oils and fats from developing countries, second-step processing may
take place by processing industries or by wholesales/distributors in the EU. Fragrance houses,
for example, use essential oils to create fragrance formulae used in the production of
perfumes. In the processing industry (please note that this partly takes place in the country of
origin) important components are:
extractors (extraction, evaporation,
juicing, distillation, fermentation,
purification, drying, blending,
granulation, grinding, milling)
farms (cultivation, drying, milling,
sieving, density adjustment, distillation,
extraction, juicing)
nut and seed oil producers (cold pressing, CO2

super critical extraction, de-fatting,
etherification, hydrogenation, refining)
wholesale distributors which have value-added
capabilities
Some leading industrial users have their own purchasing department, so that major producers
may be tempted to sell directly to industrial users, often achieving a better price. Many smaller
processors work with intermediaries when trading with developing country suppliers. Direct
sourcing only takes place in the case that significant quantities of a product are needed. For
example industry sources indicate, that below 3-5 tonnes of raw plant material, direct sourcing
is too difficult and costly. Nevertheless, since traders and brokers are well informed on the EU
market, they fulfil important functions:
Purchase of natural ingredients throughout the world or from specific geographic areas;
Traders dealing with crude materials have the processing equipment and knowledge to
process the ingredients in such a way that they meet the demands of the industry;
Analysis and quality control;
Rectification of the ingredients to fit the commercial standards;
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Blending;
Sale to users.
End-product manufacturers
End-product manufacturers, like the perfume industry, make the final products as they are
found in the consumer market. Some manufacturers (usually smaller companies) use
distributors to sell finished products to retail outlets, while others sell directly to retailers. The
bulk of finished products is sold through retail outlets, either mass market or speciality.
However, direct sales to consumers also constitute a significant proportion of the market.
Trade channels for new ingredients
The same trade structure as described above applies to exporters in developing countries.
The following channels are especially relevant for producers of new ingredients:
Suppliers of raw material and processed ingredients could promote new natural ingredients
to EU processors, finished product manufacturers or even retailers, to assess their interest.
They could also supply ingredients or formulae which they have identified through literature
as being of possible interest (with certain interesting functionalities).
Many natural personal-care companies have grown out of strong personal interest in
natural ingredients on the part of the founder, such as Ales Groupe, Aveda, The Body
Shop, Yves Rocher and Rainforest Nutrition. This often translates into continued interest
and involvement in new product development, including field trips to collect samples for
further study in the companys laboratory. Many other companies can be found in the
surveys covering individual EU countries.
Large companies with screening programmes sub-contract brokers, research institutions,
and other intermediaries. These intermediaries collect samples in a similar way as for the
pharmaceutical industry, but with greater emphasis on traditional use, and an eye towards
raw material sourcing strategies, which are of immediate concern to companies in the
personal care and cosmetics industry.
There are also specific research and training centres specialised in extraction and
purification processes, offering services to companies involved in the food industry,
pharmaceuticals and cosmetics (e.g. Archimex in France).
Since quality demand for cosmetic ingredients are very high, joint ventures or other forms
of partnership are popular and increasingly necessary to be able to surmount issues such
as costly safety tests.
Traceability and GMP
Most companies source raw materials in dozens of countries. The material has usually passed
through many hands before it reaches a manufacturing company, implying difficulties in ease
of traceability. However, also as a consequence of, for example, GMP (Good Manufacturing
Practices) requirements, traceability is increasingly a must for EU buyers. Therefore, a trend
towards more direct sourcing can be distinguished. Regarding the traceability in sourcing
natural ingredients, the following can be observed:
Trend towards more organic-certified material;
Increasing involvement in sources, as a way to control quality;
Increasing levels of cultivation for some species;
Increasing interest in GACP (Good Agricultural and Collection Practice), and other
standards (for more information, please refer to http://www.cbi.eu/marketinfo/). It is
currently being considered whether ISSC-MAP principles will become part of GACP.
As a consequence, several partnerships have been created based on the sourcing of raw
materials, often with the express purpose of contributing to environmental and social
objectives, and sharing commercial benefits. Furthermore, the capacity of many countries
harbouring biological diversity to engage in value-adding research has increased over the last
decade, and companies are increasingly open to collaborations with provider-country
institutions, if they are confident of the quality and cost-effectiveness of their work.
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Next to this, the application of Fair Trade principles is considered a viable strategy by many EU
companies, as a way to distinguish themselves from their competitors in the sector of cosmetic
ingredients.
3.2
Price structure
A value chain covers the full range of activities required to bring a natural ingredient for
cosmetics from its conception to its end use, such as research and development, raw material
supply and all activities of production, marketing and sales to international buyers. Activities
which comprise a value chain can be contained within a single company or divided over
different companies, and can cover a single geographical location or be spread over wider
areas.
Different prices and margins apply throughout the various trade channels. Moreover, these
differ widely across the different product groups discussed in this survey, and within these
groups, depending on:
whether or not the product is organic,
whether it is Fair Trade certified or in another Fair Trade or ethical sourcing programme,
whether it is a new product or not,
the level of processing,
the point in the supply chain,
the length of the supply chain,
if there is a market price and the development therein,
its availability.
As the ingredients market is not transparent, it is virtually impossible to determine prices and
margins.
An example of essential oils and plant extracts can be given based on information from the
Rural Industries Research and Development Corporation (http://www.rirdc.gov.au/). The price
of the final cosmetic ingredient can be up to five times as much as the raw materials. Around
75% of the value added at the processing, from raw material to cosmetic ingredient, is
accounted for by extraction. Between export and use in manufacture of final product, the
difference in value added may not be so great, if most of value addition takes place in the
country of origin e.g. an essential oil exported from Sri Lanka may undergo very little if any
further processing before use in a fragrance blend.
Regardless of the margin structure, every stakeholder in the supply chain has to focus on their
area of expertise and maintain information on costs of production and returns on investment,
clearly understanding the value-added proposition and competitive advantage in order to
maximize their profit. They should also remain fully aware of what their competitors are doing.
Opportunities for suppliers to move up the value chain require a value chain analysis. This
enables them to understand the value of the product offered by the downstream supplier and
the risks of supplying that particular product, followed by decisions on whether the upstream
company can make appropriate investments and compete effectively with the downstream
company. For example a producer of essential oils could step up to be an exporter of essential
oils (same product new market) using lower investment than entering the aromatherapy
products market.
Margins
The margins for the different intermediaries in the trade structure (importers, agent, etc.) are
difficult to determine, because they are influenced by many factors, such as:
Size of the order;
Length of the trade channel;
Quality of the product;
Availability of the product;
Value added.
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For example, trade for many vegetable oils is well established and the traded volumes are very
large. Many players are active in production and, as such, margins throughout the value chain
are low to very low. For certain other products such as waxes, margins have decreased in the
last couple of years due to more competition from Chinese producers. Other products are not
so well established, or in high demand. Here margins are much higher. Examples include
certain tropical fruit extracts with still a limited number of players, such as sea buckthorn.
Margins of prices could be very useful information for exporters in developing countries in
determining the sales price of your product. However, more important is to know the cost price
of your product and from there on determine the sales price. However, data for calculation of
the raw material cost is often difficult to obtain.
3.3
Useful sources
Please refer to the individual country surveys of your interest for further, country-specific
information on trade structure, especially for lists of companies active in the cosmetics and
natural ingredients industries.
Many EU importers have an Internet site, where interested parties can find more information
on the field in which these importers are active.
Besides Internet sites of respective companies, the cosmetic suppliers guide
(http://www.cosmeticsbusiness.com) and Europages (http://www.europages.com) are
other good sources for finding contact details and information on the activities of importers.
The European Directory of Public Access (http://www.europeancosmetics.info/site/index.cfm?SID=14075) can also be of use.
The site http://www.ingridnet.com is a marketing instrument for companies supplying
ingredients. The database includes contact details of 15,000 ingredient suppliers and is
used by the food, cosmetic and pharmaceutical industries to source ingredients.
The Personal Care Products Council (formally CTFA) International Buyers Guide
(http://www.ctfa-buyersguide.org) offers a specific site for cosmetic ingredients which is
available on CD-Rom as well. Potential exporters in developing countries can register their
offer on this site.
For information on essential oil producers in the EU, please refer to the Ienicas Essential
Oils Information Booklet, available at http://www.ienica.net.
Moreover, a trade fair is a good way to get into contact with companies from all over the
world, which could be interested in new suppliers. Please refer to the Export Guidelines for
natural ingredients for cosmetics for more information on trade fairs.
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Trade: imports and exports
This section discusses the imports and exports of natural ingredients of the EU. Please note
that this data can also include natural ingredients which have been refined with the use of
chemicals. Although these are not natural according to the definition used in this survey (see
Appendix 1 of the EU survey), Eurostat does not distinguish them in trade data.
4.1
Total EU imports
Overall, EU imports are increasing for all five product groups considered in this survey. The
leading EU markets for natural cosmetic ingredients are Germany, France, the United Kingdom
and Italy. At the level of product groups, however, there can be other countries which are
important markets. Spain, for example, is a leading market for colouring matter of vegetable
or animal origin. The Netherlands is a leading importer of vegetable oils, but not so much of
oils destined for the cosmetic industry. In many cases, these products are further processed in
the EU before they are re-exported. This is also visible in the higher values per tonne of EU
exports than for EU imports. It is likely that these are to a larger extent composed of
further-processed products. As to the new EU countries, Poland is a growing market for natural
ingredients where some interesting trade fairs take place. This is also related to Polands
rapidly increasing role in the production of cosmetic products.
Table 4.1 shows EU imports of the main groups into which natural ingredients for cosmetics
fall. However, not all of the products falling in these groups are used for the production of
cosmetic products to the same degree. Moreover, the difference in value per tonne is highly
differentiated making it is not worthwhile to add up the import figures.
Table 4.1 Imports by the EU27 of natural ingredients for cosmetics, 2003-2007,
million, 1,000 tonnes
2003
Value
Vol.
Total EU
Of which from
Intra-EU
Extra-EU
DCs
Total EU
Of which from
Intra-EU
Extra-EU
DCs
Total EU
Of which from
Intra-EU
Extra-EU
DCs
Total EU
Of which from
Intra-EU
Extra-EU
DCs
Total EU
2005
Value
Vol.
2007
Value
Vol.

2,539 2,782 3,057 2,902 3,422
2,915
1,238
900
1,533 1,030
92
84
68
33
1,210 1,799
1,457 1,839
623
71
659
70
1,727
68
1,627
1,071
31
1,813
749
81
254
26
243
24
138
9
166
11
232
35
249
36
1,022
262 1,229
288
284
164
301
32
11
38
1,272
305
Av.
annual
change
%
7.7%
8.7%
-7.2%
7.7%
4.7%
2.9%
4.5%
6.7%
5.6%
5.3%
-0.6%
10.4%
608
107
698
115
177
21
164
20
238
134
367
153
Raw plant material
412
195
436
217
746
172
353
134
22
150
495
195
168
83
161
81
32
104
203
90
202
68
26
101
4.7%
4.8%
1.8%
5.9%
28
228
31
4.1%
65
175
33
89
97
173
Colouring matter
211
195
27
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Of which from
Intra-EU
Extra-EU
DCs
Source: Eurostat (2008)
4.2
125
26
44
19
1
6
129
31
51
19
2
7
132
37
59
21
2
8
1.4%
9.7%
7.6%
EU imports per product group

Total imports of vegetable and animal-derived oils, fats and waxes by EU member countries
amounted to 3.4 billion in 2007, representing an average annual increase of 7.7% since
2003. In terms of volume, imports increased less significantly, reaching 2.9 million tonnes in
2007, an annual increase of 1.2%. The leading EU importers are Germany (23% of imports in
2007), The Netherlands (18%), France (14%), Belgium (13%) and the United Kingdom (8%).
Developing countries supplied 48% of the total imported value of vegetable oil, fats & waxes in
2007. The importance of the developing countries in the EU imports remained the same
compared to 2005. Peanut oil (61% of imports from DCs), coconut oil (78%) and waxes (60%)
are predominately imported directly from developing countries. Fixed vegetable fats, cocoa
butter and oils are derived from the EU. It is however important to note that, although The
Netherlands is the leading supplier of cocoa butter, fat and oil to the EU, the cocoa beans used
in the production of these products are imported from developing countries.
Developing countries which showed an above-average increase in exports to the EU are Ghana
(21% annually between 2003 and 2007), China (+19%) and Malaysia (+18%). The first two
countries remain among the smaller suppliers compared to Indonesia. The important position
of The Netherlands mostly concerns re-exports, despite its leading role in cocoa butter. EU
countries showing growth are The Netherlands (+12%) and Spain (+13%).
Table 4.2
EU imports and leading suppliers of vegetable (and animal) derived oils,

fats and waxes, 2003 - 2007, share in % of value
Total EU,
of which from
Intra-EU
Extra-EU ex. DC*
DC*
2003
2005
mln mln
2,539 3,057
1,238
1,533
92
1,210
68
1,457
2007
mln
3,422
Leading suppliers to EU in 2007

Share in %
1,727 The Netherlands (29), France (7), Belgium (4),

Germany (4), Spain (2)
68 USA (1)
1,627 Indonesia (14), Philippines (6), Malaysia (6),
Ivory Coast (6), India (3), Ghana (2) Brazil (1),
China (1), Argentina (1), Papua N.G. (1), Ghana
(1)
Share
(%)
51
2
48

*Developing countries
The largest sub-group in terms of value is cocoa butter, fat and oils ( 1.55 billion / 437.0
thousand tonnes); it is mostly supplied by The Netherlands and, to a lesser degree, by France
and Ivory Coast. Imports increased 9.6% annually between 2003 and 2007. The largest
sub-group in terms of volume is coconut, palm kernel or babassu oil ( 990 million / 1.66
million tonnes) and is mostly supplied by Indonesia, the Philippines and The Netherlands.
Between 2003 and 2007, the value of imports increased on average by 7.3% per year while
the volume decreased by 1%. Peanut oil imports decreased by 5.5% annually, although the
last few years saw a slight increase. This smaller sub-group ( 145 million / 147 thousand
tonnes) is mostly imported from Senegal, Belgium, Argentina and France. Fixed vegetable fats
and oils ( 682 / 649 thousand tonnes) showed a strong 7.8% increase annually. The main
suppliers are India, Belgium, The Netherlands and France. Between 2003 and 2007, the
smallest sub-group, waxes ( 56 million / 20.9 thousand tonnes), increased by 13.3%
annually, and is mostly imported from Brazil, China and Germany.
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Essential oils & oleoresins

Between 2003 and 2007, total imports of essential oils & oleoresins by EU member countries
increased by 4.7% in terms of value. In terms of volume, imports of this product group
increased by 3.5% annually, indicating an overall increase in prices. The most important EU
importers of essential oils and oleoresins are France (26% of total EU imports), the United
Kingdom (21%), Germany (18%), The Netherlands (9%) and Ireland (6.5%). Imports into
Ireland showed a remarkable increase of 16% in terms of value, between 2003 and 2007.
France remains the leading EU importer of essential oils & oleoresins. This is related to its large
fragrance industry, which uses essential oils to create fragrance formulae which are applied in
the production of perfumes. France and the United Kingdom together accounted for almost half
of all EU imports in terms of value. Ireland is an emerging market for essential oils.
Nearly two thirds of essential oil and oleoresins by value is supplied by countries outside the
EU. Especially the United States, with 17% of the market the largest supplier, is growing in
importance with imports increasing 4.1% annually. The main EU supplier, France, is decreasing
in importance as imports from that country are falling by 0.4% annually.
Developing countries account for 40% of EU imports. However, their share in imports
decreased somewhat between 2003 and 2007. Developing countries play a relatively important
role in the supply of the selected essential oils, except for lavender which is predominately
supplied by other EU countries. This is especially the case for orange oil (48% of EU imports
comes from developing countries), lemon oil (55%), geranium, jasmine and vetiver oils
(37%), other mint oils (44%), and other essential oils (51%). It is interesting to note that
most essential oil products come from a select number of countries. Developing countries
showing a positive development are India (+10% annually), Argentina (+24%) and Indonesia
(+10%).
Table 4.3
EU imports and leading suppliers of essential oils and oleoresins, 2003 2007, share in % of value
Total EU,
of which from
Intra-EU
2003
2005
mln mln
623
659
254
243
Extra-EU ex. DC*
138
166
DC*
232
249
2007
mln
749

Share in %
284 France (9.1%), Germany (5.4%), United

Kingdom (4.8%), Italy (4.4%), Spain (3.1%),
Ireland (3.1%), Netherlands (3.0%)
164 USA (17%), Switzerland, (2.1%), Australia
(1.8%)
301 India (6.7%), China (6.0%), Brazil (5.4%),
Argentina (4.1%), Indonesia (3.2%), Mexico
(1.9%), South Africa (1.5%)
Share
(%)
38
22
40

Citrus oils are big sub-groups, especially in quantity. Orange oil ( 60 million / 22 thousand
tonnes) imports decreased slightly by 0.3% annually, but are predominately supplied by Brazil
(42%) and the USA. Lemon oil ( 71 million / 4.5 thousand tonnes) imports increased 18%
annually and are predominately supplied by Argentina (41%) and the USA. Imports of other
citrus oils ( 55 million / 3 thousand tonnes) are increasing by 10% per year and are imported
from a larger range of countries, although Italy, Mexico and the USA supply half of the market.
The imports of geranium, jasmine and vetiver oils are small, amounting to 4.9 million / 149
tonnes. Between 2003 and 2007 imports were decreasing substantially by 29% per year.
Especially imports from developing countries decreased (-39%). France and Egypt are the
dominant suppliers. While Haiti and China are also important DC suppliers, their exports are
decreasing considerably.
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Imports of lavender show a very large decrease in value of 23% per year since 2003 while the
volume increased by 1.3%, indicating plummeting prices. The imports in 2007 amounted to
5.7 million / 965 tonnes. The role of developing countries is small, but slowly increasing.
The decreasing imports of peppermint oil ( 53 million / 2.9 thousand tonnes) are mostly
dominated by the USA, although India as the third largest supplier is gaining in importance.
Other mint oils (40 million / 2.8 thousand tonnes) are increasingly imported from developing
countries and imports are increasing by 10% annually. Although the USA remains dominant,
India and China also play a particulary large role and show bigger increases.
Imports of other essential oils ( 301 million / 15 thousand tonnes) were decreasing by 4.6%
annually. Many countries play a role but France, China, Indonesia and the USA are the largest
suppliers. Developing countries that show a large increase are Indonesia (+10%), South Africa
(+27%), Haiti (+115%) and Egypt (+21%).
Resinoids ( 11 million / 1.1 thousand tonnes) are imported mostly from other EU countries,
especially France. Between 2003 and 2007 imports decreased rapidly in value, by 12%
annually, while volumes increased by 6.5%, indicating lower prices. Only India (6.7% of EU
imports coming from developing countries) and Morocco (6.0%) are significant developing
country suppliers.
Extracted oleoresins imports amounted to 147 million / 29 thousand tonnes in 2007,
increasing by 11% annually since 2003. The USA, Ireland and India were the dominant
suppliers with average annual growth rates of 25%, 1% and 19% respectively. Other relatively
important DC suppliers are Brazil, China and Morocco with the last two showing considerable
growth rates.
Between 2003 and 2007, imports of vegetable saps & extracts by EU member countries
increased by 5.6% annually, amounting to 1.27 billion / 305 thousand tonnes in 2007. The
import volumes increased on average by 5.6% annually. The leading importer is Germany
(23% of total EU imports) which has a number of commodity houses in Hamburg active in the
trade of these products. Other principal importers are France (14%), the United Kingdom
(9.4%), Italy (8.0%), Denmark (6.9%), and Spain (6.6%). Although not yet among the top
importers, Poland, the Czech Republic and Romania show a rapid increase.
Vegetable saps and extracts are for 28% imported from developing countries and this
percentage is increasing. Important developing country suppliers are India, China and Sudan
of which especially the second and third showing a large increase in importance. However, the
main suppliers of vegetable saps and extracts are EU countries.
Table 4.4
EU imports and leading suppliers of vegetable saps and extracts, 2003 2007, share in % of value
Total EU,
of which from
Intra-EU
2003
2005
mln mln
1,022 1,229
608
698
Extra-EU ex. DC*
177
164
DC*
238
367
2007
mln
1,278

Share in %
Share
(%)
746 Germany (12%), France (11%), Denmark

(7.5%), Spain (7.4%), Italy (5.8%), United
Kingdom (3.6%), Netherlands (3.0%)
172 USA (6.2%), Switzerland (3.4%), Norway
(1.2%)
353 India (5.6%), China (4.3%), Sudan (3.5%),
Philippines (3.1%), Morocco (1.8%)
59
14
28

Lacs, natural gums, resins gum-resins and balsams are the sub-group which most often
originates in developing countries. In 2007, 52% of the 192 million / 110 thousand tonnes
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imported by the EU originated in developing countries, mostly Sudan, India, Chad, Iran and
Venezuela. Imports from developing countries increased by 12% annually, comparable with
overall growth. Especially imports from Venezuela increased rapidly.
The group of other vegetable saps and extracts is much larger, with imports amounting to
1.08 billion / 195 thousand tonnes, increasing by 4.6% annually between 2003 and 2007.
Although EU countries such as Germany, France, Denmark and Spain dominate imports,
imports from developing countries increase much faster (+10%) than imports from EU
countries. India and China are the most important DC suppliers. China shows particularly high
growth rates.
Raw plant material
In 2007, total EU imports of raw plant material amounted to 495 million / 195 thousand
tonnes. Between 2003 and 2007, the value of imports increased by 4.7% annually, while
volumes remained the same.
German-based companies dominate the global herbal medicine supply industry. Consequently,
Germany is the leading importer of raw plant material. Imports amounted to 24% of total
EU27 imports in 2007. Germany is not only a leading importer of medicinal and aromatic
plants, but also a leading supplier of this product to other EU countries. Other principal EU
importers are France (15% of EU imports), Italy (11%), the United Kingdom (10%), Spain
(9.1%), Belgium (6.7%) and The Netherlands (5.9%).
Almost 60% of imports originate outside the EU, and 41% in developing countries. Imports
from developing countries show an average annual increase of 5.9% while overall EU imports
only increased by 4.7%. Especially Poland (17% annually), Israel (13%) and Bulgaria (+12%)
are quickly increasing in importance as suppliers, but Germany, the main supplier, is also
showing a 5.2% annual growth. Among developing countries, especially China (+7.7%
annually) and India (7.5%) are increasing in importance.
Table 4.5
EU imports and leading suppliers of raw plant material, 2003 - 2007,

share in % of value
Total EU,
of which from
Intra-EU
Extra-EU ex. DC*

DC*
2003
2005
mln mln
412
436
168
175
83
161
89
173
2007
mln
495

Share in %
Share
(%)
203 Germany (8.5%), Poland (6.8%), France

(6.2%), Bulgaria (3.6%), United Kingdom
(2.3%), Netherlands (2.1%), Belgium (2.1%),
Austria (2.0%)
90 USA (6.6%), Israel (5.5%)
202 China (7.4%), India (3.8%), Morocco (3.7%),
Chile (3.0%), Egypt (2.7%), Turkey (2.7%),
Kenya (2.0%)
41
18
41

Medicinal and aromatic plants are the largest product group, with imports accounting for 425
million / 141 thousand tonnes in 2007. The trade in medicinal and aromatic plants largely
follows the developments discussed above. Regarding seaweed and algae, France, the United
Kingdom and Spain are the three largest importers, together accounting for 55% of EU
imports. The supplies are rather equally divided between the EU, extra EU, and DC suppliers.
The three largest suppliers, Chile, Japan and China, all show large increases.
Between 2003 and 2005, imports of colouring matter of vegetable or animal origin by EU
member countries increased by 4.1% in value amounting to 228 million / 31 thousand
tonnes. The leading EU importers were Germany (18% of total EU imports), France (12%),
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Spain (12%), United Kingdom (11%) and The Netherlands (11%). Together these countries
accounted for more than 60% of EU imports.
Table 4.6
EU imports and leading suppliers of colouring matter of vegetable or

animal origin, 2003 - 2007, share in % of value
2003
2005
mln mln
195
211
Total EU,
of which from
Intra-EU
125
129
26
44
31
51
Extra-EU ex. DC*

DC*
2007
mln
228

Share in %
Share
(%)
132 Germany (11%), Netherlands (9.1%), France

(9.0%), Spain (8.8%), Denmark (8.0%), United
Kingdom (4.2%), Italy (3.2%)
37 USA (9.3%), Israel (2.1%), Japan (1.6%)
59 China (9.3%), Peru (6.5%), India (6.2%),
Mexico (0.9%), Malaysia (0.5%)
58
16
26

More than a third of colouring matter was imported from outside the EU, of which 26% was
imported from developing countries. Their share in EU imports has increased significantly.
While intra-EU imports increased by 1.4% and extra-EU by 9.7%, imports from developing
countries showed an increase of 7.6% annually between 2003 and 2007. In recent years, the
USA (+14% annually) and China (27%) have become important suppliers of colouring matter
to the EU. India also showed a large increases but remains a medium-sized player.
4.3
The role of developing countries
The EU imports large amounts of natural ingredients for cosmetics from developing countries.
The product groups imported experienced varied developments in the period between 2003
and 2007.
Table 4.7
Imports of natural ingredients for cosmetics from developing countries,

2003-2007, million / 1,000 tonnes, major EU importers, average
annual change and countries share of EU DC-imports in %
2003
Value
Vol.
EU27
The Netherlands
Germany
France
United Kingdom
Italy
Belgium
Spain
1,210
345
260
249
93
79
61
46
EU27
France
United Kingdom
Germany
The Netherlands
Spain
Italy
232
83
49
32
26
25
4
35
6
7
6
7
5
1
EU27
Germany
France
United Kingdom
Denmark
238
52
54
25
29
134
31
34
19
7
2005
Vol.
Value
2007
Value
Vol.
Vegetable oils
1,839 1,627 1,813
586
528
595
538
349
535
222
279
169
99
120
86
126
108
124
101
78
104
75
56
79
Essential oils
249
36
301
38
82
6
108
6
63
7
64
7
32
6
47
8
34
9
33
8
23
4
23
3
2
0.9
6.5
1
367
153
353
150
89
37
86
41
97
35
74
36
45
18
39
16
26
7
31
8
1,799 1,457
504
455
564
304
212
291
108
111
116
97
112
64
86
48
Av.
annual
change
%
Share of total EU
imports from
developing
countries
8%
11%
8%
3%
7%
8%
7%
5%
100%
32%
22%
17%
7%
7%
5%
3%
7%
7%
7%
10%
6%
-2%
16%
100%
36%
21%
16%
11%
8%
2%
10%
13%
8%
12%
2%
100%
24%
21%
11%
9%
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2003
Value
Vol.
Italy
Belgium
Spain
The Netherlands
Czech Republic
24
13
9
14
4
14
5
6
6
0.8
EU27
Germany
France
Spain
Italy
The Netherlands
United Kingdom
Poland*
Belgium
161
49
32
17
16
14
14
N.A.
4
97
25
30
15
6
3
7
N.A.
3
EU27
44
6
Spain
15
2
Germany
9
1
United Kingdom
5
0.4
Denmark
2
0.1
The Netherlands
0.7
0.1
France
3
1
Italy
5
2
Belgium
1
0.1
* No data was available for 2003. The
2005
Vol.
Value
2007
Value
Vol.
Av.
annual
change
%
4%
18%
28%
-0.3%
17%
Share of total EU
imports from
developing
countries
8%
7%
6%
4%
2%
34
14
28
13
13
5
24
7
18
8
23
7
15
16
13
6
5
0.8
8
1
Raw plant material
173
104
202
101
5.9%
100%
48
25
61
27
6%
30%
35
30
37
28
3%
18%
20
16
25
17
9%
12%
13
6
19
6
4%
10%
15
4
17
3
5%
9%
20
9
15
7
0.8%
7%
5
5
7
4
21%
4%
3
2
7
3
12%
3%
Colouring matter
51
7
59
8
8%
100%
19
2
20
2
7%
34%
11
1
10
0.7
3%
17%
5
0.3
7
0.8
9%
13%
2
0.3
7
0.3
42%
11%
1
0.1
4
0.8
55%
7%
5
0.2
4
0.2
3%
6%
4
2
3
2
-7%
6%
2
0.7
2
1
14%
3%
average annual change is calculated between 2005 and 2007.
Table 4.7 shows the imports from developing countries by the EU, the main EU importers
importing from developing countries and the development over the period between 2003 and
2007. The shares supplied by developing countries increased for all product groups. Within the
different groups, the share supplied by developing countries showed a more differentiated
development. The share of developing countries is provided in an overview in Figure 4.1.
Regarding the selected natural ingredients, developing countries are particularly strong in the
production and processing of vegetable oils such as coconut oil, peanut oil and waxes. Their
importance for waxes is increasing.
The picture for essential oils is mixed, since other mint oils and other essential oils show a
good development, while geranium, jasmine and vertiver oils showed a substantial decrease.
Considering recent problematic weather circumstances in Haiti, a large producer of vetiver oil,
supply on the world market will be more limited. For other oils, the development was less
straightforward. Developing countries are also increasing in importance as suppliers of other
vegetable saps and extracts and colouring matter.
Page 41 of 57
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Figure 4.1
Share of EU imports of selected natural ingredients for cosmetics

originating in developing countries, 2003-2007, % of imported value
VEGETABLE OILS, FATS AND WAXES
48%
Peanut oil
61%
Coconut, palm kernel & babassu oils
82%
Fixed fats and oils
27%
Waxes
60%
Cocoa butter
35%
ESSENTIAL OILS AND OLEORESINS
40%
Orange oil
48%
Lemon oil
55%
Other citrus oils
27%
Peppermint oil
16%
Other mint oils
2003
44%
Lavender oil
2005
6%
2007
Geranium, jasmine & vetiver oils
37%
Other essential oils
51%
Resinoids
16%
Extracted oleoresins
24%
SAPS AND EXTRACTS
28%
Lacs, natural gums and resins
52%
Other saps and extracts
23%
RAW PLANT MATERIAL
41%
Medicinal and aromatic plants
41%
Seaweed algae
39%
COLOURING MATTER
26%
0%
20%
40%
60%
80%
100%
The most important developing country suppliers of the selected ingredients are China, India,
Turkey, Indonesia, Malaysia and Morocco. The supply of many ingredients from developing
countries is dominated by a single or several countries. Haiti is, for example, dominating the
developing country supply of vetiver oil, while Argentina dominates the supply of lemon oil.
4.4
Exports
The EU export data must be interpreted and used with caution. It should be realised, that a
substantial amount of these products is imported, further processed and re-exported at a
higher value. This is demonstrated by export prices exceeding import prices. The Netherlands
and France, for example, are listed as leading exporters of vegetable oils, fats and waxes.
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Germany, and to a lesser degree France, plays this role for saps and extracts and raw plant
material, and Spain for colouring matter. Vegetable oils, fats & waxes are not only the leading
product group imported by EU member countries, but also the leading export product.
Table 4.8 Exports by the EU of natural ingredients for cosmetics, million,
average annual change 2003-2007 in %
2003
Value
Vol.
TOTAL
Intra-EU
Extra-EU
1,483
1,126
357
TOTAL
Intra-EU
Extra-EU
482
245
237
TOTAL
Intra-EU
Extra-EU
1,109
598
512
TOTAL
Intra-EU
Extra-EU
256
182
74
TOTAL
204
Intra-EU
130
Extra-EU
74
2005
Value
Vol.
2007
Value
Vol.

1,015 1,909 1,116 1,988 1,074
792
1,514
941
1,606
905
223
396
175
381
169
40
482
40
547
43
26
244
25
280
28
14
238
15
267
15
170 1,134
165 1,043
165
94
608
95
582
994
77
527
70
461
71
Raw plant material
76
288
95
322
95
57
216
71
237
68
19
72
24
85
27
Colouring matter
29
233
27
247
30
23
140
18
142
19
6
93
9
105
11
Av.
annual
change
%
Share
of
EU
exports
7.6%
9.3%
1.7%
81%
19%
3.2%
3.4%
3.1%
51%
49%
-1.5%
-0.7%
-2.6%
56%
44%
5.9%
6.9%
3.4%
74%
26%
4.9%
2.3%
8.9%
58%
42%

Between 2003 and 2007, EU exports of vegetable oils, fats & waxes increased strongly by
approximately 7.6% in value annually, amounting to 1,116 million / 1,074 million tonnes.
The largest export products are cocoa butter and fixed vegetable fats and oils. By far the
leading exporter was The Netherlands, serving as a major entry point for vegetable fats and
oils. The country accounted for 49% of EU exports. Other important exporters are France
(18%), Belgium (9%) and Germany (7%). Denmark and some other West European countries
are quickly gaining in importance as exporters. The major destinations were other EU
countries: Germany, Belgium, France, the United Kingdom, Italy and Switzerland together
received 63% of the value exported by EU member countries in 2007.
Exports of essential oils and oleoresins by EU member countries increased by 3.2% annually
during the review period, reaching 547 million / 43 thousand tonnes in 2007. By far the
leading EU exporter was France, accounting for 34% of EU exports. Other leading exporters
were the United Kingdom (18%), Germany (12%), Italy (10%) and Spain (8%) and The
Netherlands (8%). Germany continues to increase in importance but also Bulgaria shows a
strong increase, probably due to its large rose oil sector. The major destinations were
Germany, the USA, Switzerland, France, Japan and the United Kingdom, together receiving
58% of exports by EU member states.
Between 2003 and 2007, exports by EU member countries of vegetable saps and extracts
decreased by 1.5% in terms of value annually, amounting to 1,043 million / 165 thousand
tonnes in 2007. The leading EU exporter was Germany, accounting for 24% of EU exports,
followed by Spain (15%) and France (14%). Other leading exporters are Italy (10%), the
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United Kingdom (8%) and Denmark (8%). The major destinations were Germany, France, the
USA, Russia and Denmark, accounting for 40% of exports by EU member countries in 2007.
Raw plant material
Between 2003 and 2007, EU exports of raw plant material increased by 5.9% annually,
amounting to 322 million / 95 thousand tonnes in 2007. The leading EU exporter is
Germany, accounting for 25% of EU exports. Other leading exporters are France (14%),
Poland (13%), Belgium (9%) and Bulgaria (6%). New EU member states such as Poland and
Bulgaria are playing a relatively important role in the production and trade of medicinal and
aromatic plants. France is by far the most important exporter of seaweed and algae. The major
destinations of raw plant material were Germany, France, The Netherlands, the UK,
Switzerland and the USA which together received 53% of EU-exports in 2006.
Exports by EU member countries of colouring matter of vegetable and/or animal origin
increased by 4.9% in value annually. In 2007, exports amounted to 247 million / 30
thousand tonnes. The leading EU exporters were Spain and Germany, each accounting for 18%
of EU exports. Interesting is that the exports of Spain are twice as big in volume as the
exports of Germany, indicating lower prices. Other important exporters are The Netherlands
(14%), Denmark (13%), the United Kingdom (13%), France (9.0%) and Japan (5.2%). The
major destinations were the USA, Germany, The Netherlands, France and the United Kingdom
which together received nearly half of exports by EU member states in 2006.
4.5
+ The EU imports large amounts of natural ingredients for cosmetics from developing
countries.
+ Imports are increasing for all product groups.
+ Imports from developing countries are increasing for all product groups, and, except for
saps and extracts, are increasing more than the EU average growth.
On a product level, the picture is more differentiated.
+ Imports of cocoa butter, coconut & palm kernel & babassu oils, citrus oil, lemon oil, other
mint oils, oleoresins, gums & resins, medicinal & aromatic plants and seeweed & algea
increased.
+ The share of developing countries showed an especially good development for waxes, other
essential oils, other saps and extracts and peppermint and other mint oils.
- Imports of peanut oil, orange oil, lavender oil, geranium, jasmine & vetiver oil, peppermint
oil, other essential oils and resinoids is decreasing, or showing only a very limited increase.
- The share of developing countries decreased for other citrus oils and geranium, jasmine
and vetiver oils.
- Many product groups, and especially the sub-groups, are dominated by a limited number of
countries. In some cases only one country dominates EU imports.
- New member countries are playing an increasingly important role in the supply of the
major consuming countries in Western Europe, especially for vegetable saps and extracts
and raw plant material. With increasing outsourcing and relocation of production to Eastern
EU countries, this trend is likely to continue and can be detrimental to developing country
suppliers of the same product.
- China is an increasingly strong player for several products and will be a formidable
competitor for many developing country producers. India is also becoming an increasingly
large player on the EU market.
4.6
Useful sources
EU Expanding Exports Helpdesk
http://exporthelp.europa.eu/
go to: trade statistics
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Eurostat official statistical office of the EU

http://epp.eurostat.ec.europa.eu;
go to themes on the left side of the home page
go to external trade
go to data full view
go to external trade - detailed data
Understanding eurostat: Quick guide to easy comext
http://epp.eurostat.ec.europa.eu/newxtweb/assets/User_guide_Easy_Comext_20080117.pdf
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Price developments
5.1
Price developments
The prices of natural ingredients for cosmetics can fluctuate widely, depending on the raw
material. The price level of natural ingredients is influenced by:
Quality factors: Determined by the country of origin, the climate, the crop, the
concentration of the ingredients and the extraction method.
Economic factors: Based on supply and demand. The supply depends on the size of the
current crop, the carry-over from previous crops, stocks held by traders, processors and
final users, and the existence of synthetic substitutes.
Furthermore, organic or Fair Trade certification and (for some products) wild collection/
cultivation can have an influence on the price, with organically certified and wild collected
products being sold at premium prices. The discussion on Fair Trade also raises the question of
cost and price calculation for raw materials from wild collection and cultivation.
In the cosmetics sector, there is an almost direct relationship between the price of a raw
material and how much of it is used in the end-product. Every finished product has its target
price which manufacturers must hit, in order for the company to achieve its profit margin for
that product. The type of product also affects the amount of raw material used. A highquality/premium product permits the use of more expensive ingredients. The formulator can
vary the amount of ingredients used to achieve both functional benefits and price targets.
When negotiating prices with a buyer, it is critical to know the bottom line a point below
which you will not go. That calls for an in-depth understanding of the costs of the product and
the overheads and, crucially, how the cost of overhead is shared across the range of products.
A single product may have to absorb the entire overhead. At the same time, the price which
can be demanded is also affected by factors such as quality, reliability, uniqueness of the
supply and the attitude of the buyer.
It is important from the outset to emphasise that it is difficult to obtain information on the
prices which are paid for goods in the country of origin, or even for prices in general, as no
world-market price exists for most products. Brokers and traders form the main source of price
information. Moreover, market research and market intelligence gathering are necessary. It
can be easier if similar items are already exported from the same country, because it may be
possible to obtain crude price data from local companies.
No price information is available for relevant saps and extracts, colorants or raw plant
materials (except gums and resins), although ITCs Market News Service Medicinal Plants and
Extracts sometimes offers information on species which are also used in cosmetics. Regarding
essential oils, price developments are highly differentiated. For example, in 2007 prices for
geranium oil and lemon oil increased, while prices for vetiver oil and peppermint oil showed a
considerable decrease (Public Ledger 2006, 2007).
Regarding vegetable fats and oils, developments are more in line across the board. During the
period reviewed, there was an increase in prices for the selected oils. Even since the beginning
of 2008, price increases have been high, caused by the low dollar as well as high demand for
vegetable oils for biofuels and from emerging economies such as China and India. Coconut oil
increased by 12%, groundnut oil by 25%, palm oil by 4% and palm kernel oil by 19%
(Worldbank 2008). According to industry sources, the price for vegetable oils could increase
even further. Prices for castor oil increased during 2007 (Public Ledger 2006, 2007).
Between 2006 and 2007, prices for beeswax from Ethiopia and Tanzania were more stable in
2007, while prices of beeswax from China increased somewhat. Prices for Guam Arabic and
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Guar Gum were somewhat lower at the end of 2007, while prices for Candellila and Camauba
were relatively high (Public Ledger 2006, 2007).
5.2
Useful sources
The Internet is a good source for obtaining an idea of prices for raw materials. At some sites,
professional users can request samples and offers for ingredients. The Internet site of the Herb
Growing and Marketing Network includes an herb crop shop, where growers and buyers of
botanicals come together (http://www.herbworld.com/).
The company FDL (Fuerst Day Lawson http://www.fdl.co.uk) frequently publishes market
reports on essential oils and aroma chemicals, castor and industrial chemicals, etc. with inside
information on the industry and price developments.
Green Trade is an online market place for organic natural ingredients:
http://www.greentrade.net/. Here, buyers and sellers can register for online services.
The Public Ledger (http://www.agra-net.com/portal/) provides news and topical features on
world commodity markets, including regulatory issues and comments from leading industry
figures as well as exclusive interviews with key players. The Public Ledger weekly publishes the
latest trading prices for over 700 commodities world-wide, including essential oils, oilseeds,
oils and fats and waxes and gums.
The magazine COSSMA monthly publishes prices of a number of cosmetic raw materials
(mostly essential oils), such as vetiver oil, citrus oil, patchouli, geranium oil. A more elaborate
analysis of price developments is available several times a year.
ITC provides a Market News Service for medicinal plants and extracts. This MNS bulletin
presents prices and market intelligence for those products for which current information is not
readily available, but which is of substantial importance to a significant number of developing
countries and offers promising market potential. The bulletin is published quarterly and
provides information on indicative prices of raw materials and extracts commonly consumed in
the region (North America, Western Europe, East and Southern Europe, India, China and
Japan), regional demand and supply scenarios including factors influencing the market,
industry news including mergers, acquisitions, developments and trade fairs, conferences, and
industry events taking place in the region. For subscription, please refer to
http://www.intracen.org.
Finally, FAO and Worldbank provide up-to-date price information on vegetable oils:
http://www.fao.org/ and http://www.worldbank.org/ (search for Pink Sheet).
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Market access requirements
As a manufacturer in a developing country preparing to access EU markets, you should be

aware of the market access requirements of your trading partners and the EU governments.
Requirements are demanded through legislation and through labels, codes and management
systems. These requirements are based on environmental, consumer health and safety and
social concerns. You need to comply with EU legislation and have to be aware of the additional
non-legislative requirements that your trading partners in the EU might request.
For information on legislative and non-legislative requirements, go to Search CBI database at
http://www.cbi.eu/marketinfo, select natural ingredients for cosmetics and the EU in the
category search, click on the search button and click on market access requirements.
The unit Cosmetics and Medical Devices, at the European Commission/ Directorate General
Enterprise and Industry, offers much information on a broad range of issues relating to the
cosmetics sector, including legislation at
http://ec.europa.eu/enterprise/cosmetics/index_en.htm. The Directorate Generals press
release section offers information on developments in the elaboration process of the new
Cosmetics Directive, due 2010. Of specific interest is its Comparative study on cosmetic
legislation in the EU and other principal markets, which can be found at:
http://ec.europa.eu/enterprise/cosmetics/html/cosm_comparative_study.htm. Next to direct
cosmetic regulation, REACH is of importance (especially for essential oils).
Additional information on organic and natural certification can be found on the websites of the
major EU certifiers. Important certifiers for natural cosmetics are BdiH
(http://www.kontrollierte-naturkosmetik.de/), Soil Association
(http://www.soilassociation.org/) and especially Ecocert (http://www.ecocert.com/). Ecocert
also plays a large role in certifying ingredients. Several large players have their own schemes.
The organic cosmetics market has remained largely unmonitored, with no legal requirements
for manufacturers regarding the amount of organic content needed to be able to use the word
organic on their product. The above certifiers (http://www.soilassociation.org/) and others do
have organic cosmetics standards. A recent initiative of the Organic Farmers and Growers
independent body (OF&G, http://www.organicfarmers.org.uk/) launched another certification
scheme for organic cosmetics. Other certification for ingredients includes ISSC-MAP (the
International Standard for Sustainable Wild Collection of Medicinal and Aromatic Plants)
(http://www.imo.ch/imo_services_wildcollection_isscmap_en,38866,998.html) and Fairwild
(http://www.fairwild.org/).
Packaging and labelling
The overall trend in the EU is towards facilitating re-use and recycling of packaging through
incentives. In order to harmonise the different forms of legislation, the EU has issued a
directive for packaging and packaging materials (Directive 94/62/EC) in which minimum
standards are regulated. Directive 79/831/EEC details laws, regulations and administrative
provisions relating to the classification, packaging and labelling of dangerous substances.
Communication with your EU trade partner regarding the required packaging is of the utmost
importance when trading with the EU. Your partner should know what is officially required and
will state his specific preferences.
The label must be clear, permanently affixed and be made of non-toxic material. In general,
legal requirements specify that the fabrication material must be indicated on the label of the
product and the label must also indicate from which batch the material comes from. Further, it
is highly recommendable to include the name and address of the producer/exporter, the net
weight and recommended storage conditions.
Vegetable fats, oils and waxes
Page 48 of 57
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Directive 96/3 EU regulates the sea transport in bulk of liquid oil and fats, in respect to food
hygiene standards. The Maritime Safety Division of the International Maritime Organisation
(IMO) has advised that animal and vegetable oils and fats are, to some extent, a flammable
product. It is strongly recommended that exporters in developing countries comply with IMO
Guidelines for the Packing of Cargo in Freight Containers and Vehicles.
Vegetable oils are generally transported in iron drums. EU Directive 93/43/EC applies to bulk
packaging of oils and fats. Furthermore, Fediol, the EU Oil and Protein Meal Industry, has
developed a code of practice for the transport in bulk of oils and fats to or within the European
Union, which can be downloaded from the following link:
http://www.fediol.be/dm/docs/95dda85467b21ad13f04a938ed9147db/fediol_05COD236_0229
.pdf. Finally, according to industry sources, vegetable oils can best be transported to the EU in
crude form. This relates to the fact that most vegetable oils and fats are transported by ships
which usually takes 4 to 5 weeks. The time for transportation is in general too long to secure
the stability and quality of refined vegetable oils and fats.
Essential oils
Bulk products are packaged in containers, which serve to prevent contamination of the oils and
should preserve the organoleptic qualities. The most widely used material for drums containing
essential oils is lacquered or lined steel. Expensive products are sometimes stored in
aluminium drums. Cheaper plastic drums of high density polyethylene (HDPE) are only
accepted by a few buyers. Although the use of second-hand 200-litre containers is widely
accepted for several essential oils, in view of the growing cost of new drums, it is important to
thoroughly clean and remove all trace of impurities which could affect the quality of the oil.
The importance of ensuring that linings are intact and not cracked cannot be overstated. The
above also largely applies to vegetable saps and extracts. Preferably, headspace in containers
should be filled with nitrogen gas for storage. Carbon dioxide is a cheaper and more available
alternative. However, there is a risk of reaction with residual moisture to form carbonic acid,
which may in turn react with essential oil constituents (ITC, 2004).
Raw material
The majority of raw plant material is traded in dried form. Moisture content should be less than
14%, depending on the plant part harvested, while retaining the chemical composition of the
plant. A minority of material is traded fresh internationally, or preserved in alcohol. Packaging,
marking and labelling of herbal raw material is principally carried out according to the
requirements of the buyer. At present, general requirements are part of the Good Agricultural
and Collection Practices for Medicinal and Aromatic Plants (GACP). The product should be
preferably packaged in new, clean and dry sacks, bags or chests. In the period before
transportation, packaged dried materials should be stored in a dry, well-aerated building, in
which the daily temperature fluctuations are limited and good aeration is guaranteed. Fresh
products should be stored between 1C and 5C, frozen products below 18C.
Natural colorants
Most colouring matter is packaged in drums, solid boxes and cans. Packaging should protect
colorants against:
moisture (hygroscopic natural colourings may lose functionality if they come into contact
with moisture);
light (light-sensitive materials need to be protected against direct exposure to sunlight and
fluorescent lights);
heat (most ingredients need to be protected from extremes in temperature otherwise they
may lose their functionality);
oxidation (some colorants require cold storage to prevent oxidation of pigments);
and chemical reactions.
No interaction between products and packaging material should be possible.
Additional information on packaging can be found at the website of ITC on export packaging:
http://www.intracen.org/ep/packaging/packit.htm.
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Information on tariffs and quota can be found at http://exporthelp.europa.eu. For many of the
products considered in this survey a tariff of 0% applies. This holds for products which are not
produced in the EU, or products which are not further processed. In some cases the 0% tariff
only applies for the poorest developing countries and for more developed countries tariffs of up
to 3.5% apply. In certain cases, mostly processed oils and fats, higher tariffs apply. An
example is cocoa butter which has a tariff of 7.7%.
No quotas apply to the products included in this survey.
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Opportunity or threat?
In this survey and in the related regular and compact country surveys on the market for
natural ingredients for cosmetics, several opportunities and threats have been discussed at the
end of the previous chapters on industrial demand, production and trade. In general, we
noticed a growing demand for natural ingredients, offering good opportunities for developing
country suppliers. Opportunities exist particularly for functional ingredients, exotic and or
tropical ingredients and organic ingredients. EU industries are looking for ingredients with
properties that allow for fully natural cosmetics. Other specific ingredients or certain
functionalities in demand are mentioned throughout the survey.
Of great importance, and discussed throughout this survey, are the EU requirements regarding
quality and traceability. While the quality demands of EU buyers and EU legislation are
becoming more stringent, traceability is becoming increasingly important. Suppliers in
developing countries which have a system of tracing and tracking, well supported by
documentation, have a competitive advantage in dealing with EU importers. Suppliers who
have implemented quality assurance systems such as GACP, GMP, HACCP and ISO render
themselves further attractive to potential EU buyers.
However, all these (increasing) requirements pose a serious threat to small and very small
companies which are not able to meet them. It often proves too costly for them to meet the
demands of these quality assurance systems or it is outside the scope of their managerial or
technical skills. Moreover, the quantities they can supply to EU markets could prove too limited
to justify the investments needed. However, opportunities exist here for the creation of
partnerships with EU partners.
In other words, a trend or development could offer opportunities to certain (developing
country) exporters, but at the same time pose a threat to other exporters. As an exporter, you
will need to analyse if the developments mentioned in this survey and in the surveys on EU
countries provides an opportunity for, or a threat to, your business. This will depend on your
specific situation.
Another example: the highly processed saps and extracts which are demanded by the cosmetic
industry could fall outside the technological (and financial) reach of companies in developing
countries. However, a group of developing countries is increasingly becoming able to ,meet the
demands. They have both the technical know-how and, often, a significant internal/regional
market to achieve economies of scale. Examples include China, India, Mexico, Brazil and
Malaysia. Moreover, with the wider availability of these technologies, it becomes more a
question of sufficient financial and human capital availability. Companies not able to implement
these technologies can find opportunities in supplying semi-processed saps to EU processors.
Supplying EU extractors with raw materials also represents an opportunity.
Page 51 of 57
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Appendix A
Product characteristics
Product groups
The cosmetic ingredients discussed in this survey fall in the following groups:
Vegetable oils, fats and waxes: Vegetable fats and oils are substances, derived from plants,
composed of triaglycerol. Normally, oils are liquid at room temperature, while fats are solid.
A dense brittle fat is called a wax. Although many different parts of plants may yield oil, in
actual commercial practice oil is extracted primarily from the seeds of oilseed plants.
Examples include castor oil, coconut oil, peanut oil, sweet almond oil, cocoa butter, shea
butter, illipe butter.
Essential oils and oleoresins: Essential oils are aromatic, oily liquids (sometimes semi-liquid
or solid) obtained from plant material, for example flowers, buds, seeds, leaves, twigs,
bark, herbs, woods, fruits and roots. The oils are volatile, i.e. they evaporate from the
botanical (plant) material upon heating. It is this high volatility that distinguishes essential
oils from the fatty oils discussed above. Essential oils are usually soluble in alcohol or ether,
but are only slightly soluble in water. Examples of interest include: geranium, jasmine,
citrus, vetiver, patchouli, sandalwood, mint oils, cedar wood, nutmeg and clove.
Vegetable saps and extracts (gums, resins, other vegetable saps and extracts).
Raw plant material (medicinal and aromatic plants, seaweed and algae).
Natural colorants (indigo, cochineal, carmine, curcuma/turmeric, marigold and henna).
There are different definitions of natural, in relation to chemical ingredients. In this survey we
use the definition of Naturally Occurring as specified by REACH, which also conforms best to
the products produced by the developing country suppliers targeted with this research, namely
A naturally occurring substance as such, unprocessed or processed only by manual,
mechanical or gravitational means, by dissolution in water, by flotation, by extraction with
water, by steam distillation or by heating solely to remove water, or which is extracted from
air by any means2. This would apply to most ingredients when they are exported from the
country of origin. It excludes refined products, such as refined vegetable oils as these are
usually refined using chemicals. Most EU industries do use refined vegetable oils, in cosmetics
and would still consider these products to be natural. In some cases, developing country
producers also supply the EU with refined ingredients. Please note that it is not possible to
distinguish between refined and unrefined products in trade data.
The cosmetics industry uses natural ingredients in conventional cosmetics, natural cosmetics
and cosmeceuticals. Furthermore, there is also a market for organically certified natural
ingredients for cosmetics which are mainly used in organic cosmetic products. These natural
ingredients comply with organic production standards, whereas natural ingredients as an
overarching definition do not necessarily comply with the standards. Each of these sectors is
discussed in Chapter 1 on industrial demand. The product groups discussed above are used
throughout the cosmetic market segments (such as hair care, colour cosmetics), depending on
the type of ingredient.
A list of botanical ingredients which can be used in cosmetics and toiletries can be found on the
Personal Care Products Council Internet site (under consumer information):
http://www.personalcarecouncil.org/Template.cfm?Section=Botanicals&template=/ContentMan
agement/ContentDisplay.cfm&ContentID=1489.
It is important to note, however, that most of the ingredients are not only traded to the
cosmetic industry, but also find their way to the food and pharmaceutical industries. Partly due
to this reason, data regarding the use of natural ingredients for cosmetics are scattered and
very difficult to obtain. Moreover, companies are hesitant to share data. For more information
on these markets, please also refer to CBIs market surveys Natural Colorants, Thickeners
and Essential Oils and Natural Ingredients for Pharmaceuticals. However, the ingredient
2
Taken from Council Common Position, June 2006
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markets are increasingly interwoven, with quality standards constantly increasing and,
regarding cosmetics products, pharmaceutical grade ingredients are also called for. The
general requirements are highest for pharmaceutical products.
Statistical product classification
Prodcom and Combined nomenclature (CN)
In this survey two different sets of statistical data are used. Both sets have been provided by
Eurostat, the statistical body of the EU.
The first set is derived from Prodcom. The term Prodcom is derived from PRODucts of the
European Community. This is a survey based on products whose definitions are standardised
across the EU to allow comparability between the member countries data. Prodcom covers
some 4,800 products which are assigned to some 250 industries (subclasses) as defined by the
Standard Industrial Classification (SIC). Prodcom data contain production, imports and
exports. In this survey, Prodcom data are only used to indicate production of cosmetic
products. As such, they serve only as an indicator for industrial demand for natural ingredients
for cosmetics.
The second set is the trade data of natural ingredients based on the Combined Nomenclature.
The abbreviation CN stands for Combined Nomenclature. The Combined Nomenclature contains
the goods classification prescribed by the EU for international trade statistics. The CN is an 8digit classification consisting of a further specification of the 6-digit Harmonised System (HS).
HS was developed by the World Customs Organisation (WCO). The system covers about 5,000
commodity groups, each identified by a six-digit code. More than 179 countries and economies
use the system. In this survey CN data are used to indicate imports and exports.
Statistical data: limitations
Trade figures quoted in CBI market surveys must be interpreted and used with extreme
caution.
Please note that Prodcom data only concerns cosmetic consumer products, not ingredients.
The Prodcom data used in Chapter 1 are less reliable than the import and export statistics
used in Chapter 4, as Prodcom data are not part of official data collection for Customs.
Companies only have to send in their data on an annual or quarterly basis. The figures
sometimes show a discrepancy between years, e.g., a large fall or extraordinary growth. These
problems are caused by inaccurate, inconsistent and untimely reporting by companies.
However, Prodcom data are the only official source for production data. They are useful for
obtaining an indication of size and trends in production in different EU markets and therefore
also for the industrial demand for natural ingredients. For decision making, however, these
figures are not accurate enough and should be used in conjunction with further market
research.
In the case of intra-EU trade, statistical surveying is only compulsory for exporting and
importing firms whose trade exceeds a certain annual value. The threshold varies considerably
from country to country, but it is typically about 100,000. As a consequence, although
figures for trade between the EU and the rest of the world are accurately represented, trade
within the EU is generally underestimated. Please also note that it is not possible to distinguish
between fully natural products and chemically refined products in this trade data. This can be
the case, for example, for vegetable oils, fats and waxes, and vegetable saps and extracts.
Furthermore, the information used in CBI market surveys is obtained from a variety of
sources. Therefore, extreme care must be taken in the qualitative use and interpretation of
quantitative data, because it puts limitations on in-depth interpretation of relations between
consumption, production and trade figures within one country and between different countries.
Page 53 of 57
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Prodcom codes for cosmetic products (not ingredients)

Description
Perfumes
Toilet waters
Lip make-up preparations
Eye make-up preparations
Manicure or pedicure preparations
Powders; whether or not compressed; for cosmetic use
Beauty, make-up and skin care preparations
Shampoos
Preparations for permanent waving or straightening
Hair lacquers
Hair preparations (excluding shampoos and preparations for
permanent waving or straightening)
Pre-shave, shaving and after-shave preparations
Personal deodorants and anti-perspirants
Perfumed bath salts and other bath preparations
Other personal preparations (perfumeries, toiletries)
Prodcom Code
24521150
24521170
24521250
24521270
24521300
24521400
24521500
24521630
24521650
24521670
24521700
24521930
24521950
24521970
24521990
Combined nomenclature
Product description
Peanut oil & its fractions (not chemically modified)
Coconut, palm kernel or babassu oil (not chemically modified)
Fixed vegetable fats and oils and their fractions (e.g. jojoba oil, castor oil,
tung oil and sesame oil)
Waxes (vegetable, bee and other insects)
Cocoa butter, fat and oil
Orange
Lemon
Other citrus fruits
Peppermint
Other mints
Geranium, jasmine and vetiver
Lavender and lavendin
Other essential oils
Resinoids
Extracted oleoresins
Lac; natural gums, resins, Gum-resins and balsams
Other vegetable saps & extracts
Raw plant material
Medicinal and aromatic plants
Seaweed and algae
HS code
1508
1513
1515
1521
1804
3301
3301 12
3301 13
3301 14/19
3301 24
3301 25
3301 29 71
3301 29 79
3301 29
11/31/41/91
3301 30
3301 90
13
1301
1302
12
1211
1212 20
3203
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Appendix B
Introduction to the EU market
The European Union (EU) is the current name for the former European Community. As from
January 1995, the EU consisted of 15 member states. Ten new countries joined the EU in May
2004. In January 2007 two more countries Bulgaria and Romania - joined the EU.
Negotiations are in progress with a number of other candidate member states. In this survey,
the EU is referred to as the EU27, unless otherwise stated.
Cultural awareness is a critical skill in securing success as an exporter. The enlargement of the
EU has increased the size of the EU, and also significantly increased its complexity. With more
people from culturally diverse backgrounds, effective communication is necessary. Be aware of
differences in respect of meeting and greeting people (use of names, body language etc.) and
of building relationships. There are also differences in dealings with hierarchy, presentations,
negotiating, decision-making and handling conflicts. More information on cultural differences
can be found in chapter 3 of CBIs export manual Exporting to the EU (2006).
General information on the EU can also be found at the official EU website
http://europa.eu/abc/governments/index_en.htm or the free encyclopaedia Wikipedia
http://en.wikipedia.org/wiki/Portal:Europe.
Monetary unit: Euro
On 1 January 1999, the Euro became the legal currency within eleven EU member states:
Austria, Belgium, Finland, France, Germany, Italy, Ireland, Luxembourg, The Netherlands,
Spain, and Portugal. Greece became the 12th member state to adopt the Euro on January 1,
2001. Since 2002, Euro coins and banknotes replaced national currency in these countries.
Slovenia adopted the Euro in 2007, and Cyprus and Malta adopted the Euro in January 2008.
Slovakia will adopt the Euro in January 2009. Denmark, United Kingdom and Sweden have
decided not to participate in the Euro.
In CBI market surveys, the Euro () is the basic currency unit used to indicate value.
Table 1
Exchange rates of EU currencies in ,
average yearly interbank rate

Country
Name
Code
2007
Sept
Bulgaria
Lev
BGN
0.513
Czech Republic
Crown
CZK
0.036
Denmark
Crown
DKK
0.134
Estonia
Crown
EEK
0.064
Hungary
Forint
HUF
0.004
Latvia
Lats
LVL
1.436
Lithuania
Litas
LTL
0.290
Poland
Zloty
PLN
0.265
Romania
New Lei
RON
0.301
Slovakia
Crown
SKK
0.030
Sweden
Crown
SEK
0.108
United Kingdom
Pound
GBP
1.462
Source: Oanda http://www.oanda.com (May 2008)
2008
0.514
0.040
0.134
0.064
0.004
1.440
0.290
0.291
0.278
0.033
0.106
1.239
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Appendix C
List of developing countries
OECD DAC list - January 2006

When referring to developing countries in the CBI market surveys, reference is made to the
group of countries on this OECD DAC list of January 2006.
Afghanistan
Albania
Algeria
Angola
Anguilla
Antigua and Barbuda
Argentina
Armenia
Azerbaijan
Bangladesh
Barbados
Belarus
Belize
Benin
Bhutan
Bolivia
Bosnia & Herzegovina
Botswana
Brazil
Burkina Faso
Burundi
Cambodia
Cameroon
Cape Verde
Central African Rep.
Chad
Chile
China
Colombia
Comoros
Congo Democratic Rep.
Congo Rep.
Cook Islands
Costa Rica
Cote dIvoire
Croatia
Cuba
Djibouti
Dominica
Dominican Republic
Ecuador
Egypt
El Salvador
Equatorial Guinea
Eritrea
Ethiopia
Fiji
Gabon
Gambia
Georgia
Ghana
Grenada
Guatemala
Guinea
Guinea-Bissau
Guyana
Haiti
Honduras
India
Indonesia
Iran
Iraq
Jamaica
Jordan
Kazakhstan
Kenya
Kiribati
Korea Rep. of
Kyrgyz Rep.
Laos
Lebanon
Liberia
Libya
Macedonia
Madagascar
Malawi
Malaysia
Maldives
Mali
Marshall Islands
Mauritania
Mauritius
Mayotte
Mexico
Micronesia, Fed. States
Moldova
Mongolia
Montenegro
Montserrat
Morocco
Mozambique
Myanmar
Namibia
Nauru
Nepal
Nicaragua
Niger
Nigeria
Niue
Oman
Pakistan
Palau
Palestinian Admin. Areas
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Rwanda
Samoa
Sao Tome & Principe
Saudi Arabia
Senegal
Serbia
Seychelles
Sierra Leone
Solomon Islands
Somalia
South Africa
Sri Lanka
St. Helena
St. Kitts Nevis
St. Lucia
St. Vincent & Grenadines
Sudan
Suriname
Swaziland
Syria
Tajikistan
Tanzania
Thailand
Timor-Leste
Togo
Trinidad & Tobago
Tunisia
Turkey
Turkmenistan
Turks & Caicos Islands
Tuvalu
Uganda
Ukraine
Uruguay
Uzbekistan
Vanuatu
Venezuela
Vietnam
Wallis & Futuna
Yemen
Zambia
Zimbabwe
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CBI countries October 2008:

CBI supports exporters in the following Asian, African, Latin American and European (Balkan)
countries:
Albania
Armenia
Bangladesh
Benin
Bolivia
Bosnia-Herzegovina
Burkina Faso
Colombia
Ecuador
Egypt
El Salvador
Ethiopia
Georgia
Ghana
Guatemala
Honduras
India
Indonesia
Jordan
Kenya
Kosovo
Macedonia
Madagascar
Mali
Moldova
Montenegro
Morocco
Mozambique
Nepal
Nicaragua
Pakistan
Peru
Philippines
Rwanda
Senegal
Serbia
South Africa
Sri Lanka
Suriname
Tanzania
Thailand
Tunisia
Uganda
Vietnam
Zambia
Page 57 of 57

El Mercado de Ingredientes Naturales para Cosmeticos en La UE

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CBI MARKET SURVEY:

THE MARKET FOR NATURAL INGREDIENTS FOR COSMETICS IN THE EU

CBI MARKET SURVEY

THE MARKET FOR NATURAL

INDUSTRIAL DEMAND ........................................................................................... 5

TRADE CHANNELS FOR MARKET ENTRY............................................................... 30

TRADE: IMPORTS AND EXPORTS ......................................................................... 35

MARKET ACCESS REQUIREMENTS ....................................................................... 48

OPPORTUNITY OR THREAT ? ............................................................................... 51

LIST OF DEVELOPING COUNTRIES ..................................................... 56

This survey was compiled for CBI by ProFound

CBI MARKET SURVEY:

CBI MARKET SURVEY:

CBI MARKET SURVEY:

CBI MARKET SURVEY:

CBI MARKET SURVEY:

EU per capita consumption of cosmetics, 2005-2007 in

Source: Colipa, 2008

CBI MARKET SURVEY:

EU market share cosmetics product groups, 2007, million, share of total

The market for natural and organic cosmetic products

CBI MARKET SURVEY:

CBI MARKET SURVEY:

Production of cosmetic products in the EU, in million*

CBI MARKET SURVEY:

CBI MARKET SURVEY:

CBI MARKET SURVEY:

Kline distinguishes several important ingredient groups in cosmetics, relating to their

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CBI MARKET SURVEY:

CBI MARKET SURVEY:

Processing industries and end-users

CBI MARKET SURVEY:

Trading up to higher-priced, value-added products (up-scaling of mass brands as well as the

CBI MARKET SURVEY:

CBI MARKET SURVEY:

Trends within the natural ingredients market

Source: Adapted from Andrew Jones, 2007

Organic and certified ingredients

CBI MARKET SURVEY:

Opportunities and threats

CBI MARKET SURVEY:

CBI MARKET SURVEY:

Vegetable saps and extracts and raw plant material

CBI MARKET SURVEY:

Interesting trade press providing market information are the following:

CBI MARKET SURVEY:

CBI MARKET SURVEY:

CBI MARKET SURVEY:

Total area Organic Growers

300 Allium sativum Garlic

636 Chamaemelum English

108 Mentha spp

Source: EHGA Europam (2005)

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Seaweed & other algae

Increasing scale of EU ingredient suppliers

CBI MARKET SURVEY:

Opportunities and threats

CBI MARKET SURVEY:

Information on EU production of vegetable oils can be found at Fediol (http://www.fediol.be/).

CBI MARKET SURVEY: