Post by Ismail AbdulAzeez on May 31, 2019 20:07:46 GMT 1
European demand for rose geranium oil is growing. This is the result of a growing market for natural fragrance ingredients and a renewed interest in aromatherapy. This opens up the market for new investors.
Rose geranium essential oil is mainly extracted from the leaves of the plant with steam distillation. The oil is a clear, colourless liquid and has a rose-like smell. For that reason, rose geranium oil was traditionally produced to replace the more expensive rose oil.
Currently, rose geranium oil is mostly used in cosmetics in fragrances and skin care products. The flavour and aromatherapy industries are smaller users of rose geranium oil.
Varieties of rose geranium exist, but only a few are suitable for commercial essential oil distillation. The most common, especially on the European market is, likely a crossover of different rose geranium species. The plant is called a geranium because it is part of the Geraniaceae family.
Currently, most suppliers of rose geranium essential oil are making a lot of money from the highly profitable business.
What makes Europe an interesting market for the export of Rose Geranium Oil?
European demand for rose geranium oil is met by imports. Historically, this oil has been produced in Europe. However, production is now considered too expensive as it is labour intensive. Moreover, the plants perform better in warmer climates which gives African countries an edge in the business.
According to market survey, demand for rose geranium oil is growing and currently outstripping the growth in supply which makes the business a rare opportunity for investors to take advantage of. World market demand for the various geranium oils is estimated at 400 tonnes per year. Of that, the market for rose geranium oil is about 100 tonnes.
The market for organic rose geranium oil has also increased in recent years, now accounting for 10–12% of the total market. Demand for the product certifies that rose geranium oil supply is limited.
Europe is the leading market for essential oils, accounting for 44% of global demand in 2015. Various market research organisations expect a strong growth in the global market for essential oils. In the coming years, demand is expected to grow between 8.4% and
11.3% annually until 2024–2025, reaching between $14.0 and $15.8 billion.
Western European countries (France, the UK, Spain, Italy and the Netherlands) as well as Russia are estimated to be the largest importers of rose geranium oil. Industry sources indicate that France is the largest importer. This country imports most of its rose geranium oil from Réunion Island.
Falling supplies of high-quality rose geranium oil
Industry sources indicate that supplies cannot keep up with the growing demand for rose geranium oil, offering opportunities for new suppliers. To fill this gap, African producers have increased their production of rose geranium in the last five years from a few tonnes to 20–25 tonnes.
Various countries in Eastern Africa have also entered the market for rose geranium oil to fill the gap in supply.
Global market for Rose Geranium oil for aromatherapy
In Europe, there are strong markets for aromatherapy in France, Germany, Austria and Switzerland. In these countries, aromatherapy is also commonly used as a medicine.
The United Kingdom and the Netherlands are good markets as well. Here, aromatherapy is marketed under cosmetics legislation.
Besides Rose Geranium's main use in fragrances, rose geranium oil also has potential in the growing aromatherapy market. In aromatherapy, rose geranium oil is used for its balancing and relaxing scent.
Future Market Insights expects that the global aromatherapy market will grow by 7.7% annually from 2016 to 2026 to reach just over $8 billion in 2026 (€7 billion). North America and western Europe are the two dominant markets, accounting for more than half of the global market.
What requirements must rose geranium oil comply with to be allowed on the European market?
You can only export your rose geranium oil to the European cosmetics market if you comply with the legal requirements for natural ingredients for cosmetics . These include:
Relevant European cosmetics legislation (Regulation (EC) 1223/2009)
Documentation: supplying your buyers with well-structured product and company documentation
Registration Evaluation and Authorisation of Chemicals (REACH)
Classification, Labelling and Packaging of chemicals (CLP), you can also discuss with the freight forwarder or transport company who will also advise.
Additional product requirements
Good and reliable level of quality, by following basic practices such as Hazard Analysis & Critical Control Points or Good Manufacturing Practices of the European Federation for Cosmetic Ingredients if you want to do more.
- Being a sustainable supplier, ensure consistent availability of your ingredients.
- Ensure you can deliver a stable quality and quantity of rose geranium oil.
- Showing good Corporate Social Responsibility practices, such as developing code of conduct and improving your performance in key areas (for example child labour and limiting damage to the environment).
- Buyers want oils of a consistent quality. They need to be:
100% natural (not adulterated through the addition of chemicals)
100% pure (not mixed with, or infused in, any other oils that have similar characteristics).
- Detailed labelling.
- Proper packaging.