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Spices, herbs and essential oil


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Business Opportunities : Spices, herbs, medicinal plants
essential oils

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Spices, herbs and essential oil

  1. 1. Market opportunities for Herbs and Essential oils M.SundaraRajan
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 19. Thank you Herbs & Medicinal Plants - Business Opportunities Information