Business Opportunities : Spices, herbs, medicinal plants essential oils

1. Market opportunities for Herbs
and Essential oils
M.SundaraRajan
www.primaryinfo.com

2. Spices & Herbs
• Spices may be defined as the
dried parts of aromatic plants
with the exception of the
leaves
• Any of various aromatic
vegetable productions as
pepper, cinnamon, nutmeg,
mace, allspice, ginger, cloves,
etc., used in cookery to season
and to flavour sauces, pickles,
etc.; a vegetable condiment or
relish, usually in the form of a
powder; also, as condiments
collectively.
• Herbs may be defined as the
dried leaves of aromatic plants
used to impart flavour and
odour to foods with,
sometimes, the addition of
colour. The leaves are
commonly traded separately
from the plant stems and leaf
stalks.
• ISO document 676 lists 109
herb and spice plant species
useful as ingredients in food

3. Spices and herbs markets
• The foodservice/catering sector
• Fast food chains
• Food and drink manufacturers
• There are opportunities for value-added
processing, including the packing of private
brands
• The industrial sector - the main outlet for
spices and herbs exporters in developing
countries

4. Essential oils and extracts markets
• The flavourings market - lack of reliability of
suppliers, high price premiums, and
legislation - The major certification standards
(EU, NOP, JAS)
• Cosmetics - the most promising sector for the
development of the organic essential oils and
extracts business.
• Pharmaceutical Ingredients - Unique

5. Top Herbal products exported
• While Amla fruit (Phyllanthus emblica) is the highest
consumed botanical raw drug by the domestic herbal
industry, 70% of total botanical raw material exports
(by volume) are made up just a few species, namely
• Psyllium husk (Plantago ovata),
• Senna leaf and pod (Cassia angustifolia),
• Henna leaf & powder (Lawsonia inermis), and
• The three Myrobalans: amla fruit (Phyllanthus
emblica), belleric myrobalan fruit (Terminalia bellerica),
and chebulic myrobalan fruit (Terminalia chebula).

6. Regulations
The quality standards that are applied to Natural
Ingredients and finished products in the
United States of America (USA) are dependent
on the regulatory framework for the product,
i.e. whether it is a botanical drug product,
herbal dietary supplement product,
natural cosmetic product, or
natural food product

7. Regulations…
The United States Pharmacopeia – National Formulary (USP-
NF)35 designate that the article has an FDA-approved or
USP-accepted use. USPNF botanical monographs are FDA-
enforceable and include descriptions, requirements, tests,
analytical procedures, and acceptance criteria. The USP-NF
includes three sections:
1. USP monographs provide standards for drug substances
including certain medicinal herbs and extracts;
2. 2. USP-DS monographs provide standards for dietary
supplement ingredients; and
3. 3. USP-NF monographs provide standards for excipient
ingredients

8. Export Channels
Manufacturing Facility in SEZ ► Exclusive /
Master Distributor in the USA ► 1) Wholesale
Distribution Companies servicing retail stores
► Retail Stores 2) Wholesale Distribution
Companies servicing practitioners ►
Practitioners (Doctors of Chiropractic,
Naturopathy, and Osteopathy, among others)
3) Mail Order Companies servicing consumers
4) Own Company Outlets (health stores,
nutritional consultants (Vaidyas) and spas)

9. Indian Export Promotion Structure
• CHEMEXCIL
Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council -
agarbattis (herbal incense sticks), castor oil & derivatives, herbal cosmetics
& toiletries, dyes & dye intermediates, chemicals (menthol)
• PHARMEXCIL
Pharmaceuticals Export Promotion Council - bulk drugs and intermediates,
formulations, herbal medicinal products, Ayurvedic, Unani and
Homoeopathic medicines, nutraceutical products, biotech and biological
products
• SHEFEXCIL
Shellac and Forest Products Export Promotion Council - dyeing substances
(myrobalans), gum resins, lacs, mixtures of odoriferous substances,
mucilages, oil cakes, oleoresins and other resins, vegetable saps and
herbal extracts

10. Export Destination
• The USA, Western Europe and Japan are the
main consumers of these products and
account for approximately 78% of total world
consumption.
• The forecasted annual growth for these
products is 3.5 to 4% for the next few years.

11. Natural Ingredients
Natural ingredients are often expected to have to
following characteristics:
• Derived from natural occurring raw materials with the
least possible processing
• No use of Genetically Modified Organisms (GMOs)
• No use of pesticides
• No irradiated ingredients
• No animal testing
• Biodegradable

12. Natural Ingredients for Cosmetics
Marketing conditions for cosmetic products :
The Cosmetics Regulation sets restrictions on which substances
may not be used in cosmetics and which information on
physic-chemical, microbiological & toxicological characteristics
of ingredients have to be included in a so called ‘Cosmetic
Product Safety Report’ and a ‘Product Information File’.
• Regulations to be followed
• Read more about Marketing conditions for cosmetic products
in the EU Export Helpdesk

13. REACH (Registration Evaluation and Authorisation of
Chemicals) Regulation
• Ingredients used in cosmetics are chemical
substances and are therefore bound to the
rules for the placing of the market of chemical
substances.
• Web sites to Study
Registered Substances
European Chemical Agency
Export Help Desk

14. Common buyer requirements: Quality
and sustainable sourcing
• Follow HACCP principles the GMP standard
for cosmetic ingredients used by the European
Federation for Cosmetic Ingredients.
• Adhere to the guidelines of the World Health
Organization and in all operations and
activities.
• Depending on the ingredient, EU buyers will
ask for analysis reports providing information
on the quality of your product.

15. Labelling
Labelling
Containers and/or packaging must bear, in indelible, easily legible and visible
characters:
• - the name or trade name and address or registered office of the manufacturer or
of the person responsible for marketing the cosmetic product within the
Community;
• - the nominal contents at the time of packaging, by weight or by volume;
• - Beside the regular price indication the price should also be indicated per Ltr or
Kg.
• - for products with a minimum durability of less than 30 months: the date of
minimum durability indicated by “Best used before the end of ...”;
• - for products with a minimum durability of more than 30 months: the period of
time after opening for which the product can be used without any harm to the
consumer (this information is indicated by underneath symbol representing an
open cream jar

16. Market Entry
• In many cases suppliers and buyers have been doing
business for many generations and have developed reliable
long-term relationships.
• However a growing sense of scarcity, increasing global
demand and rising prices are changing the marketplace.
• Some buyers will focus more on their existing suppliers
investing in increasing yields and improving quality.
• However, buyers will also be forced to look for other
sources to secure and supplement supply. They will have to
be less picky regarding price and order size allowing new
entrants to enter the market. This also provides
opportunities for smaller suppliers.

17. Trade Fair
• Food Ingredients Global
• SIAL - the world's largest food innovation
marketplace“
• BIOFACH - World's leading Trade Fair for
Organic Food
• EventsEye – about all kinds of trade fairs
worldwide

18. Analysis of Exports of herbal ayurvedic medicine
• India exported herbal ayurvedic medicine worth USD 333,861 with
total quantity of 226,594.
• Ukraine is the largest buyer of herbal ayurvedic medicine
accounting for exports worth USD 107,162 followed by
• Malaysia and
• Germany which imported herbal ayurvedic medicine worth USD
55,589 and USD 40,181 respectively.
• Tughlakabad accounted for 45.8% of exports followed by Bombay
Air Cargo and
• Tuticorin Sea which account for 29.1% and 16.3% of exports
respectively.
• Average price of herbal ayurvedic medicine per unit is USD 1.47 and
average value per shipment is 2,318
• During Jan 2013 to March 2015

19. Thank you
http://www.primaryinfo.com/herbsprofiles.htm
Herbs & Medicinal Plants - Business
Opportunities Information