According to a 2021 report by the Centre for the Promotion of Imports from developing countries (CBI), worldwide demand for natural ingredients is on the rise, including the European market. A 2019 study conducted by the German Ministry of Agriculture and Nutrition found that the trend of removing synthetic ingredients from food products was gaining momentum in Europe.
Similarly, due to rising consumer awareness, recent studies show that the European natural organic cosmetics market, valued at €3.6 billion in 2018, is growing faster than the overall cosmetics market. With the largest cosmetic market in the world, Europe presents a great opportunity for exporters throughout the Blue Pacific to capitalise on this fast-growing shift to organic and natural ingredients.
Pacific Trade Invest Europe Trade Commissioner Jodie Stewart has been working closely with Pacific exporters to help them enter the European market, noting that while organic certification is an added level of compliance, this will provide competitive advantage for Pacific growers, exporters and producers who are often already farming in a chemical-free manner.
Natural ingredients are defined as products made from raw materials and containing minimal levels of synthetic substances such as petrochemicals and parabens.
Stewart says that the natural and organic momentum presents an exciting opportunity for Pacific exporters who certify their products and gain accreditation for sustainability, traceability and organic authenticity.
“Natural ingredients are increasingly used in conventional cosmetics and personal care products. Companies are replacing synthetic chemicals with natural ingredients, partly because of consumer demand, and partly due to the move towards sustainable raw materials. Thanks to its large consumer population, Europe’s cosmetics market is expected to continue expanding, making it an ideal market for our Pacific growers, producers and exporters,” says Stewart.
“As the Western world continues to improve its traceability and authentication processes, to include and champion sustainable indigenous and traditional practices, we should continue to see more space for Pacific products, or products containing ingredients from our region, on global shelves. There is an increasing importance on requirements from buyers to seek out exporters who have instituted systems and compliance around sustainability, traceability, and authenticity. Suppliers of natural ingredients should consider adopting accreditations relevant to their industry and potential buyers to establish credibility and improve competitiveness in the European market.”
“Businesses who do not have the capability to get certification for their ingredients, should consider creating a sustainability story about the way they grow, collect, produce and/or manage their ingredients including drawing on their rich, ancestral taught knowledge of the land. This should be able to be clearly communicated to European buyers.”
Stewart says due to similar influences, the food market is shifting alongside the cosmetics market, providing further opportunity for organic and natural products from the Blue Pacific.
“What we are seeing now is a rising trend for mainstream supermarkets to stock healthy and ethically sourced products. Restaurants and cafés are also including a greater range of plant-based options on their menus due to consumer demand, with such factors driving a growing need for natural ingredients in Europe, the largest food and beverage market globally.”
With the COVID-19 crisis further boosting consumer demand, Pacific businesses are encouraged to enter the market sooner rather than later, says Stewart.
“During the pandemic, European consumers have been buying more organic foods, as they want to boost their personal immunity and improve their overall health. Nielsen data showed that organic food sales increased by 25.6 per cent in March 2020. Throughout the Pacific, we have some fantastic emerging natural ingredients such as turmeric, moringa, plant proteins, ginger, exotic nuts, kappa seaweed and essential oils. All would be perfectly suited to enter the European market right now.”
If you would like to find out more about exporting to Europe, please contact PTI Europe Trade Commissioner Jodie Stewart at Jodie.Stewart@pacifictradeinvest.com
