Entering the European market for exotic tropical fruit

The European market offers opportunities for both regular exotic fruit in conventional retail and niche products for ethnic and culinary segments. Several Latin American and Asian countries such as Colombia and Vietnam have an ample supply of exotic fruit. To compete in this trade you must be able to supply high quality products at specific times of the year and find buyers that are familiar with the characteristics and the market segment of your product.

For the product description and HS Codes for exotic fruit, see the CBI study on the European market potential for exotic fruit.

1. What requirements must exotic fruit comply with to be allowed on the European market?

Fresh exotic fruit must comply with the general requirements for fresh fruit and vegetables. You can find these in the general buyer requirements for fresh fruit and vegetables on the CBI market information platform. You can also use the Trade Helpdesk that provides an overview of export requirements for exotic fruit (code 08109020 or 08109075).

What are mandatory requirements?

Avoid pesticide residues and contaminants

Pesticide residues are one of the crucial issues for fruit and vegetable suppliers. To avoid health and environmental damage, the European Union has set maximum residue levels (MRLs) for pesticides in and on food products. Exotic fruits containing more pesticides than allowed will be withdrawn from the market. The same goes for contaminants such as heavy metals.

Exotic fruits sometimes carry a higher risk of pesticide residues. For some fruits and origin countries there may be increased measures or a temporary increase of official controls at borders. ANNEX I and II of European Regulation 2019/1793 indicate increased physical checks for:

• Pitahaya from Vietnam: 10% is checked on pesticide residues
• Jackfruit from Malaysia: 20% is checked on pesticide residues
• Goji berries from China: 20% is checked on pesticide residues

Note that large retailers in several Member States such as the United Kingdom, Germany, the Netherlands and Austria, use MRLs that are stricter than the MRLs laid down in European legislation. Other channels, such as wholesalers and food services, pay more attention to the physical appearance and taste of the product and follow the general European guidelines.

Follow phytosanitary regulations

In December 2019, the new European regulation for the trade in plants and plant products from non-EU countries came into force. The Implementing Regulation (EU) 2019/2072 (ANNEX XI part A & B) requires all exotic fruits with HS codes 08109075 and 01809020 to have a phytosanitary certificate before being brought into the European Union.

For pomegranates there are special requirements for suppliers in countries on the African continent, Cape Verde, Saint Helena, Madagascar, La Reunion, Mauritius and Israel (see ANNEX VII of the above regulation). Pomegranates with these origins require an official statement that the fruits originate in a country, area or production place recognised as being free from Thaumatotibia leucotreta (Meyrick) or have been subjected effective treatment. Information on traceability and official inspection in the place of production may be required.

Maintain high quality standards

All exotic fruit need to comply with the General Marketing Standards in ANNEX I Part A of Regulation (EU) 543/2011.

The minimum quality requirements state that these fruits must be:

• intact
• sound; products affected by rotting or deterioration such as to make them unfit for consumption are excluded
• clean, practically free of any visible foreign matter
• practically free from pests
• practically free from damage caused by pests affecting the flesh
• free of abnormal external moisture
• free of any foreign smell and/or taste.

The condition of the products must of a level that enables them to withstand transport and handling, and to arrive in satisfactory condition at the place of destination. This also means paying attention to the minimum maturity requirements:

• The products must be sufficiently developed but not over-developed, and fruit must display satisfactory ripeness and must not be overripe.
• The development and state of maturity of the products must of a level that enables them to continue their ripening process and to reach a satisfactory degree of ripeness.

The Codex Alimentarius, the ‘food code’ of the World Health Organization (WHO) and the Food and Agriculture Organization (FAO), provides several specific marketing standards for several exotic varieties:

• Standard for Pomegranate
• Standard for Pitahaya
• Standard for Passion Fruit
• Standard for Carambola
• Standard for Litchi (lychee)
• Standard for Cape Gooseberry (physalis)
• Standard for Rambutan
• Standard for Longan
• Standard for Prickly Pear (cactus fig)

These specific exotic fruits are classified in three classes: “Extra” Class, Class I and Class II. European buyers almost always require Class I fruit as a minimum.

Check on product size and uniformity

Exotic fruits are often a luxury product. Presentation and uniformity in size are crucial aspects for selling them to your clients. The size for exotic fruit can be determined by the maximum diameter, weight or count.

Table 1: Size codes for pitahaya, passion fruit, carambola, physalis and cactus fig

	Yellow pitahaya	Red/white pitahaya	Passion fruit	Passion fruit	Carambola	Physalis	Cactus fig / Prickly pear
Size code	(grams)	(grams)	(grams)	Diameter (mm)	(grams)	Diameter (mm)	(grams)
A	110-150	110-150	>139	>78	80-129	15.0-18.0	90-105
B	151-200	151-200	>128-139	>67-78	130-190	18.1-20.0	105-140
C	201-260	201-250	>122-128	>56-67	>190	20.1-22.0	140-190
D	261-360	251-300	>106-122	≤ 56*		≥22.1	190-270
E	>361	301-400	>83-106				>270
F		401-500	≥74-83
G		501-600
H		601-700
I		>701

* The minimum diameter for golden passion fruit is 56 mm

Table 2: Size codes for rambutan and longan fruit

	Rambutan single fruit	Rambutan single fruit	Rambutan in bunches	Longan	Longan
Size code	(grams)	Number of fruits per kg	Number of fruits per kg	Number of fruits per kg	Diameter (mm)
1	>43	<23	<29	<85	>28
2	38-43	23-26	29-34	85-94	>27-28
3	33-37	27-30	35-40	95-104	>26-27
4	29-32	31-34	41-45	105-114	>25-26
5	25-28	35-40		≥115	24-25
6	18-24	41-50

Table 3: Size codes for pomegranate

	Pomegranate	Pomegranate
Size code	Diameter (mm)	Weight (g)
1/A	≥81	≥501
2/B	71-80	401-500
3/C	61-70	301-400
4/D	51-60	201-300
5/E	40-50	125-200

Table 4: Size code for lychee

	Lychees
Minimum size	Diameter (mm)
“Extra” Class	33mm
Class I and II	20mm

Use protective packaging

Packaging requirements differ between different products, customers and market segments. In all cases you must use protective packaging to maintain the freshness and quality of your exotic fruit.

Small exotic fruits such as lychees, rambutan and passion fruit come in cardboard boxes of 1.5 to 2.5 kilos. Physalis are sometimes prepacked in small consumer sized trays, for example 10/12 x 100 grams. Pomegranate and red pitahaya often use 3.5 to 4 kilo boxes. Fresh pomegranate arils can come in wholesale plastic bags or consumer trays of around 150 grams.

What additional requirements do buyers often have?

Obtain commonly used certifications

GlobalG.A.P. is one of the most common certifications in the fresh fruit sector to show buyers you maintain good agricultural practices. Generally this also applies for exporters of exotic fruit. Only if your products are not destined for demanding market channels such as major retailers in Northern Europe, you may get away without GlobalG.A.P.

Other certifications that can support your activities in handling, packing and processing are HACCP-based food safety management systems such as BRCGS, IFS or similar schemes. Management systems recognised by the Global Food Safety Initiative (GFSI) are most recommendable to use.

Apply additional sustainability and social standards

Complying with sustainable and social standards has become common for all fresh fruit and vegetables. Besides GlobalG.A.P. to ensure good agricultural practices, a social certificate is highly recommended to get your product up to retail standards. Common standards are SMETA (Sedex Members Ethical Trade Audit), and GRASP, a social and accessible add-on of GLOBALG.A.P..

Retailers can also impose their individual standards, such as Tesco Nurture. Especially larger retail chains in Northern Europe are more prepared to buy your product if your compliance to social and sustainability standards is in order.

What are the requirements for niche markets?

Use organic certification to increase product value

Organic certification can be used to emphasise the healthy characteristic of a certain exotic fruit and market them at a higher value. The demand for organic fruit is growing, but the market for exotic fruit remains a niche in a niche. Nevertheless, the exclusive value and higher price segment of exotic fruit could justify the added value of an organic certification.

In order to market organic products in Europe, you have to use organic production methods that comply with European legislation, and apply for an organic certificate with an accredited certifier. Note that the new Regulation (EU) 2018/848 will come into force in January 2021. You must use sustainable and organic production methods and apply for an organic certificate with an accredited certifier.

2. Through what channels can you get exotic fruit on the European market?

Fresh exotic fruits are typically sold through specialised channels. Specialised traders and wholesalers supply a variety of large to small markets, including ethnic and culinary segments. Supermarkets often prefer doing business with a limited number of suppliers and partner with service providers that arranges their exotic assortment.

How is the end-market segmented?

There are different factors that define the segmentation of the exotic fruit market and where your product will be sold. The type of fruit is a main factor, but you can also use quality and presentation to target specific market segments. Organic labels or product transformation can create additional value.

Figure 1: Market segments for exotic fruit in Europe

The top segment consists of well-presented, high-quality exotics. Examples are highly perishable niche products and air-freighted fruit such as jackfruit, rambutan and yellow pitahaya. These exotic fruits must appear flawless, which is characteristic for the “Extra” Class. They are air-freighted to preserve their quality and freshness and are sent to luxury or ethnic food retailers and culinary professionals.

The middle and high segments are divided in niche and more common exotic fruits. Most of these are sold in specialised segments, but the variety in conventional supermarkets is increasing as well. For example lychees are typical fruit in Asian shops and Chinese restaurants, but are also available in several supermarkets during Christmas.

Common tropical and exotic fruit such as pomegranates and passion fruit have a much higher coverage in conventional supermarkets than niche exotics (see table 5). Some of the high-value products that you can typically find in larger supermarkets include fresh pomegranate arils, exotics with organic label and a seasonal offer of lychees, pitahaya or carambola.

Other commonly sold exotics are traditional and locally grown products, mostly in the south of Europe. Fruit such as cactus figs, cherimoya and medlars may be exotic to the Northern European market, but they are common in Mediterranean food culture. They have a typical traditional and seasonal consumption. Local cultivation makes import less necessary and consumption more affordable.

Table 5: Presence of tropical and exotic fruit in French conventional supermarket sector

Banana, pineapple, avocado, mango	100%
Lime, pomegranate	88%
Purple passion fruit, coconut	81%
Physalis	50%
Victoria apple, plantain, kumquat	44%
Chayote, papaya	38%
Carambola	31%
Pitahaya, mangosteen	19%
Guava	13%

Source: FruiTrop 2017

Through what channels does a product end up on the end-market?

Figure 2: European supply channels for exotic fruit

Service providers

Several fruit companies have a wide assortment of tropical and exotic fruits and use their own packing facilities to become full service providers. These companies can position themselves as suppliers of large retailers and supermarkets. They can fulfil an exotic fruit supply programme for a longer period and offer a more stable market for their foreign supply relations.

Importing companies that pack for supermarkets include Nature’s Pride, Roveg, Greenyard Fresh and Minor Weir Willis (MWW). Supermarkets that have a wider fresh assortment and exotic fruit are often leading national supermarkets such as Waitrose in the United Kingdom, Rewe in Germany and formulas with a strong focus on fresh products such as Grand Frais in France.

Wholesalers

Wholesale channels are very relevant for exotic fruit because they reach typical niche markets such as culinary professionals and ethnic shops. A majority of the wholesalers focus on typical local produce or purchase exotics through their import or ethnic trade relations. They do not often have their own import of exotic fruit, but maintain close relations with import specialists instead.

What is the most interesting channel for you?

Specialised exotic fruit importers cover both the wholesale and retail channels/sales/markets. Therefore they are the most interesting channel for exporters of exotic fruit.

The type of importer and their network are important. For niche exotics your importer must have relevant clients in food service industry or ethnic markets. Small distribution and knowledge. Margins in the wholesale channel and spot market will strongly depend on your timing and the market situation (supply and demand). You will need an importing or service partner that can represent and defend your product on the European market. Therefore they must be knowledgeable about your product and their potential in the market.

For common exotic fruit such as pomegranates and passion fruit you can also rely on the regular retail channels and their service providers. The programmed supply to retailers may provide more stability, although the requirements will also be more extensive.

3. What competition do you face on the European exotic fruit market?

Competition in the exotic trade is especially strong from Latin America and Asia. Peru, Turkey and India compete mainly in the pomegranate sector and Madagascar in lychees. Colombia and Vietnam have a more diverse exotic supply. The competitive field is diverse, but there is a common thread throughout: high product standards and pro-active commercial strategies.

Which countries are you competing with?