10 tips for finding buyers on the European natural cosmetic ingredients market

This study provides key tips on how to increase your chances of finding suitable buyers for your natural ingredients on the European market for natural cosmetic ingredients. The aim of this study is to provide tips on finding buyers. However, success depends on lots of factors, such as product quality, pricing, level of competition, types of ingredients you supply, etc. Due to its impact on global trade, the COVID-19 pandemic is a new factor that must be considered, and it will likely remain an important consideration for the foreseeable future.

1. Know which buyers to target

Before you start approaching buyers, it is important that you do some market research to understand and find out about the needs of the market you are targeting and seeking to enter. Ensure you have knowledge about how the industry is structured and what the supply chain is. Doing so can save you time and resources as well as help you find buyers more quickly. These are the key advantages of following this tip. Meanwhile, not following this tip will give your competitors an advantage over you.

As a business, it is also important that you know your strengths and weaknesses, because this will help you find suitable buyers that meet your needs. For example, knowing your production capacity and the volume you can supply will help you determine what type of buyers are a good match for you. For instance, if you can supply large volumes of conventional and certified ingredients, then large to medium-sized buyers are the most suitable for you. On the other hand, if you supply low volumes, then small to medium-sized buyers may be more suitable.

Suppliers of natural ingredients from developing countries should look to target distributors or cosmetic companies directly. European buyers of natural ingredients for cosmetics vary in size and in their product range. With a growing trend towards natural products, more conventional cosmetic companies are adding natural ingredients to their formulations. Large European distributors (such as IMCD) are adjusting their portfolios accordingly.

Some of the most important cosmetic companies in Europe are L’Oréal, Unilever, Beiersdorf, P&G and Coty. Important natural and ethical cosmetic companies are Weleda, Neal’s Yard Remedies, Léa Nature, Primavera, Lush, L’Occitane, Yves Rocher and The Body Shop.

There are also small and medium-sized distributors of cosmetic ingredients. Some specialise in natural and organic raw materials (such as SanaBio). Some distributors specialise in specific types of ingredients, such as essential oils or vegetable oils (such as Henry Lamotte). Thus, you should target these types of distributors if you can cater to the sectors they specialise in.

Table 1: Types of buyers in the European cosmetics sector

Buyer type	Description	Reasons to target	Example
Large to medium-sized buyers	These buyers offer a wide range of conventional and certified ingredients.	Approach these buyers if you can supply in bulk or have a wider range of ingredients.	IMCD
Small to medium-sized buyers	These companies include smaller traders. These buyers tend to specialise in certain ingredient groups or a specific market.	Approach these buyers if you supply lower quantities, your ingredients are certified or you supply niche ingredients.	SanaBio
Large to medium-sized cosmetic companies	This group includes conventional cosmetics manufacturers that use natural ingredients in their formulations.	Consider approaching these companies if you can supply larger quantities of your ingredients.	L’Oréal
Small to medium-sized natural and organic cosmetic companies	Natural and organic personal care manufacturers that almost exclusively use natural ingredients.	Approach these companies if you are looking to set up long-term projects and/or if you can supply certified ingredients.	Weleda

Consider using industry magazines as a source of information when looking for potential buyers. Examples include Cosmetics Business, Cosmetics Design Europe, Happi and Cosmetics and Toiletries. Use the information from these magazines to judge which companies have the best match with your company.

A growing number of cosmetic companies and distributors are setting up sourcing projects. This is because it gives them more control over the supply chain and provides traceability of ingredients. The Swedish-Danish processor AAK is an example of a company that does this; it directly sources shea butter from Western African countries such as Ghana and Burkina Faso through its responsible sourcing of shea grower project.

This trend is likely to continue in the future. You should therefore consider contacting companies that directly source natural ingredients to see if they are interested in doing business with you.

2. Participate in industry trade fairs

Visit and/or attend trade fairs focusing on the cosmetics industry. You should also target trade fairs focusing on natural and organic cosmetics. This will give you the opportunity to have direct contact with various importers and get an idea about your competition, their product portfolio and prices. These are key advantages of following this tip. Not following this tip will give competitors who attend an advantage over you.

However, due to the global COVID-19 pandemic, many trade fairs, exhibitions and industry conferences have been postponed or cancelled. Many of these events are likely to resume in the latter part of 2021 and/or in 2022. When deciding whether to attend them, you will need to assess the health and safety risks. Key factors you must carefully consider include the seriousness of COVID-19 in the country where the trade fair will take place and the travel, quarantine and lockdown measures you will have to comply with during your journey and after arrival.

The most important European trade fairs are:

• In-Cosmetics Global – the largest trade show in the world focusing on cosmetic ingredients. This is the most important trade show for natural ingredients for the cosmetics industry;
• Vivaness – this trade fair specialises in organic and natural cosmetics. Consider visiting this trade show if you supply certified ingredients;
• Natural & Organic Products Europe (NOPE) – a trade show focusing on natural and organic finished products in Europe. As an ingredient supplier, you will be able to network with some of the leading natural and organic cosmetic companies and buyers here;
• NatExpo – French trade show for the natural and organic sector. Consider visiting this trade show if you want to target the French market;
• Eco Life Scandinavia – Scandinavian edition of NOPE. This trade show focuses on the natural and organic products industry in the Scandinavian region. However, many exhibitors from outside the region attend. The trade fair focuses on finished products;
• Cosmoprof Bologna – the largest trade show in Europe for cosmetic products. The trade show focuses on conventional cosmetic products, but there is a dedicated pavilion for natural and organic cosmetics. Consider visiting to network with conventional and natural cosmetic companies.

European buyers can also be met at trade shows outside Europe. Some of the most important trade shows dedicated to cosmetics and cosmetic ingredients in Asia include:

• PCHi – leading personal and home care ingredients trade show in China. You can find buyers looking for new ingredient suppliers;
• In-Cosmetics Asia – Asian edition of In-Cosmetics. This trade fair focuses on ingredients for the cosmetics industry. Most visitors are from Asia, although exhibitors from across the world attend;
• Cosmoprof Asia – Asian edition of Cosmoprof Bologna. Although this trade show is dedicated to conventional cosmetics, it has a dedicated pavilion for natural cosmetics. Consider visiting if you are looking at markets other than Europe;
• Beautyworld Middle East – the largest trade show in the Middle East for cosmetic products, hosted in Dubai.

Important African trade shows are:

• Beauty Africa Expo – a leading cosmetics trade show for the beauty and wellness industry in Africa, taking place in Tanzania;
• My Beauty Expo – Cosmetics trade show in South Africa. You should be able to meet distributors, manufacturers and traders in the cosmetics industry.

Trade fairs in Latin America you should consider include:

• In-Cosmetics Latin America – Latin American edition of In-Cosmetics. This trade fair focuses on ingredients for the cosmetics industry;

• Biofach Brazil – leading trade show on organic products in Latin America. Consider visiting this trade show if you supply certified ingredients.

Visiting trade shows in your region may save you costs. It is also a great opportunity to find background information on your new target market and present your company directly to potential customers. However, the concentration of European buyers at trade shows in your region may not be that high. You should try and participate at European trade shows to increase your chances of entering the European market.

Due to the uncertainty and risks posed by COVID-19, trade fairs are being organised online as an alternative. For example, in-cosmetics Global also organises online webinars and events as an opportunity for the personal care ingredients community to meet. Check the events calendar of in-cosmetics.

3. Attend industry events

To have a successful presence in the European market, it is important that you expand your network in the cosmetics industry. Attending conferences and events taking place in Europe is 1 way of doing this. Consider specifically targeting events focusing on natural cosmetics and sustainability. By attending such events, you can gain valuable insights into trends and developments in the sector and network with potential customers. These are the key advantages of following this tip.

Not attending industry conferences could result in you missing out on opportunities to grow your network and your export activities, which could harm your business in the long run. You could also miss out on new and technical developments in the industry. These are some of the disadvantages of not following this tip.

Examples of events that you should consider are the UEBT Sourcing with Respect Digital Dialogues 2021, SCSS Naturals events and Vivaness Congress. These events are good platforms for networking with buyers, other exporters and formulators.

However, because of the global COVID-19 pandemic and the associated risks, you should carefully consider whether you can safely attend industry events. Key factors to consider include the severity of COVID-19 in the country where the event will be held along with travel, quarantine and lockdown measures you must comply with during your journey and after arrival. Alternatively, you might consider finding and attending virtual industry events. For example, the European edition of the Sustainable Cosmetics Summit provides a good platform for networking with buyers, other exporters and formulators online.

4. Connect with sector associations

Contact sector associations in Europe and in specific European country markets, because they can provide support with necessary regulation you must comply with. They can also provide information about important market players, potential buyers and the effects and implications of COVID-19.

Sector associations usually disclose member lists, which can serve as a valuable source of information about the market players or sector associations of individual countries. Following this tip will give you an advantage over your competitors, whilst not following this tip will put you at a disadvantage.

The most important sector associations include the following:

• The European Federation for Cosmetic Ingredients (EFfCI) is an organisation for the ingredients sector. Its members are public authorities, trade groups and private organisations inside and outside the European Union (EU). You can find the list of members on the EFfCI website.
• Cosmetics Europe represents the cosmetics industry in Europe. Its members are personal care manufacturers and associations representing the cosmetics sector at the national level. The full list of members is available on the Cosmetics Europe website. COVID-19-related updates can be found on the COVID-19: Working together in crisis section of this website.

You should also consider approaching sector associations on a country level. Important cosmetics associations at the country level are:

• La Fédération des Entreprises de la Beauté (FEBEA) - French association for the beauty industry. It provides regular updates on the effects of COVID-19 on the industry (in French only);
• Industrieverband Körperpflege und Waschmittel (IKW) – German association for the beauty and home care industry. You can find the full list of members on the IKW website;
• Cosmetica Italia – Italian association for the cosmetics industry. You can find the full list of members on the Cosmetica Italia website. It provides information on the implications of the coronavirus (in Italian only);
• La Asociación Nacional de Perfumería y Cosmética (STANPA) – Spanish association for the perfumery and cosmetics industry. You can find the full list of members on the STANPA website. It provides information on the implications of the coronavirus for these industries;
• Cosmetic, Toiletry and Perfumery Association (CTPA) (UK) – you can find the full list of members on the CTPA website. The website provides information about the implications of both the coronavirus and Brexit (Britain’s exit from the EU).

You should also visit websites of natural & organic cosmetics certification standards in Europe. The most important ones include:

• NaTrue – Brussels-based international non-profit association and certification agency for natural and organic personal care products and ingredients. You can find the full list of members on the NaTrue website;
• Cosmos – non-profit association based in Brussels that provides certification for natural and organic personal care products and raw materials. You can find the full list of members on the Cosmos website.

You can find information on certification schemes, products and ingredients that are already certified, as well as details of important natural and organic personal care companies, on these websites. Germany and France are where most of the demand for natural cosmetic ingredients in Europe comes from. Thus, suppliers in developing countries should focus on sector associations in those countries, as they will be in the best position to provide information and assistance regarding those markets.

5. Promote yourself online

A key part of exporting is promoting business services on the internet. Investing your time and resources building your online presence where you market yourself can create long-term opportunities. Buyers can get a sense of trust by accessing your website or social media content. Neglecting your company’s online presence and not promoting yourself can reduce your visibility and therefore opportunities to connect with potential buyers. Not following this tip is only to your disadvantage.

Having a presentable website is an important part of your online presence because it allows you to market yourself positively. Ensure your content is concise, orderly and grammatically correct. Always provide the list of ingredients you supply and related certifications. Professional photographs of your products, team and production facilities can add a sense of credibility. You can also create a video about your company and products you supply and post it on your website. Candela Peru is an example of a good company website.

Candela Peru clearly explains how its raw material is harvested. The company provides detailed information about the growers and indicates which regions specific ingredients come from. There is also a section on the sustainable production, traceability projects and fair trade projects the company is involved in. The information provided is accompanied by videos and photographs from the project. This is a great way to make your sustainability claims more credible and believable.

Figure 1: Candela Peru website

Source: Candela Peru

Companies often make their sustainability reports available on their website, as this allows them to advertise their commitment to upholding environmental and social sustainability. These reports explain how companies are addressing their environmental and social impacts and reflect a high degree of transparency. Indfrag is an Indian exporter of essential oils which carries out sourcing projects in several countries.

Indfrag’s 2020 sustainability report contains information about its initiatives and the impact of its sourcing and production on the eco-system. It also contains information on its governance mechanisms, certifications and partnerships with organisations such as the Union for Ethical and BioTrade (UEBT).

Figure 2: Indfrag’s sustainability reporting

Source: Indfrag

The global COVID-19 pandemic is a having a major impact on the ability of businesses to function and trade internationally. Use your company website to promote yourself and reassure prospective and existing customers about your trading status. Also, inform them about any measures you may have implemented to continue trading in the future. This will give credibility to your business and allow you to market yourself positively.

There are several ways to promote your company online at relatively low costs. For example, use social media to gain exposure. As a small to medium-sized business, you can easily reach potential customers on social media platforms designed for networking, such as LinkedIn. You can promote your content through LinkedIn posts and groups. You can also contact members of LinkedIn groups without being connected to them. Ensure you share updates in sector groups to increase visibility. Doing this helps create a positive image for your business.

Create blogs to generate more traffic on your website. Additionally, post links to your blogs on other social media platforms or forums, such as Twitter, LinkedIn and Quora, to gain even more online exposure.

Figure 3: Candela Peru LinkedIn post

Source: Candela Peru/LinkedIn

It is important that you promote your ingredients and make them available on online platforms and marketplaces, such as Alibaba or Europages. European buyers can use these platforms and marketplaces to identify suppliers. Ensure you use keywords referring to your certifications, such as organic and fair trade, as buyers use these keywords when searching for suppliers of these types of niche ingredients.

Having a strong online presence where you promote yourself well is becoming increasingly important for international businesses. The internet is becoming an important tool for business services promotion. Companies are increasingly using it as a major tool to connect with customers and suppliers.

The global COVID-19 pandemic is a recent yet important driver behind this, and it is likely to remain so for the foreseeable future. The risks and uncertainties associated with COVID-19 are resulting in customers and suppliers turning to the internet. For example, due to trade fairs and industry events being postponed and cancelled, customers and suppliers are using online platforms to assess the credibility of companies when deciding whether to do business with them.

6. Make an initial list using company databases

Both general and cosmetic-specific databases make it easier for suppliers to find buyers. In your search for new buyers, using these databases should be 1 of your first steps. However, be aware that no database is complete, and even paid databases may not include all potential buyers in your key European target markets. Nevertheless, to make your search faster and easier, you should use them in addition to following the other recommendations in this study. Doing so will likely increase your chances of successfully entering the European market. A key disadvantage of not following this tip is that it will likely make it more difficult for you to enter the European market.

Popular databases relevant for exporters of natural cosmetic ingredients include the following:

• EUROPAGES – directory of European companies, which can be searched by sector (for example, natural ingredients cosmetics) or by keyword. You can filter your results further and select companies that are traders and not manufacturers (by selecting ‘agent’, ‘wholesaler’ or ‘distributor’, for example);
• ‘Wer liefert was’ – the leading B2B online marketplace in Germany, which is the most promising European market for natural cosmetic ingredients. This database allows you to search for companies and filter out results as per your specifications. The companies are mostly German speaking, so it is a good idea to search in German in addition to English, as this will generate a wider range of results.;
• Kompass – large database of companies. Subscribers can apply a number of filters to find potential buyers. It is also possible to perform a basic search free of charge by entering the product name and to refine your search by selecting ‘importers’;
• Green trade – A marketplace for organic products.

It is important to be aware of fraudulent companies selling fake databases. There are several ways of identifying emails sent by fraudulent companies: these will often have no online presence, and their emails will contain impersonal greetings and poor grammar and spelling. The presentation may also be sloppy.

7. Contact business organisations, embassies and chambers of commerce that can provide support

It is important to take advantage of the resources that various business support organisations (BSOs), embassies and chambers of commerce provide for your export activities. This is because they are a valuable source of information on regulations, intellectual property, solvency and advice on import-export issues. You should use the information provided when approaching European buyers. A key advantage of following this tip is that it will likely increase your chances of successfully entering the European market.

A key disadvantage of not following this tip and not using BSOs, embassies and chambers of commerce and the information they provide is that it may result in you missing out on valuable information they provide. Thus, it will likely become more difficult for you to enter the European market. By using BSOs, embassies and chambers of commerce, you could also create a list of potential buyers to target. You can also find financial information on chamber of commerce websites, which you could use to judge the reliability and solvency of buyers.

Well-known BSOs supporting exporters in developing countries are:

• Centre for the Promotion of Imports from Developing Countries (CBI) – a government-funded organisation supporting over 800 entrepreneurs in becoming successful exporters on the European market. CBI offers market information for several natural ingredients for cosmetics, export coaching programmes and technical support. CBI also informs and influences policy makers and involves importers in the development and implementation of their programmes;
• The Swiss Import Promotion Programme (SIPPO) – a government-funded organisation supporting exporting companies in improving their services and strengthening their institutional set-up and connecting them to an extensive network;
• The Import Promotion Desk (IPD) – a government-funded organisation from Germany aiming to offer continuous and structured promotion for the import of certain products and services from selected partner countries. The IPD aligns the interests of German importers with those of exporters in emerging growth markets;
• International Trade Centre (ITC) – agency of the United Nations based in Switzerland, dedicated to supporting the internationalisation of small and medium-sized enterprises around the world. Most of the ITC’s activities are aimed at supporting exporters from developing countries;
• Enterprise Europe Network (EEN) – established by a commission of the European Commission aiming to help companies offering all kinds of products and services to innovate and grow internationally. Check if your country has an EEN focal point.

The BSOs mentioned above can help you in your exporting activities. However, always start by checking the possibilities for getting support from your own country. Organisations such as export promotion agencies, embassies and trade promotion agencies of your country in your European target markets can help you with your exporting activities. In addition, some sector-specific associations deal with export promotion activities.

Figure 4: Logos of well-known BSOs supporting exporters in developing countries

Source: Various

Examples of valuable chambers of commerce include Eurochambres, KVK (the Netherlands) and British Chambers of Commerce. Visit the Eurochambres website for a full list of chambers of commerce in Europe.

The chambers of commerce operate various matchmaking programmes that help with raising awareness, matchmaking and training courses. These programmes provide guidance to enterprises to help them create profitable partnerships.

8. Participate in matchmaking programmes and trade missions

As an exporter of natural ingredients to Europe, you should try and connect with various matchmaking programmes and trade missions. These programmes offer a wide range of tools that will help you access the European market. By participating in trade missions, you could save a substantial amount of time and resources, which is a key advantage of following this tip. Meanwhile, a key disadvantage of not following this tip is that it will likely result in you wasting substantial time and resources.

These programmes offer coaching schemes and market intelligence on specific European sectors. You can acquire insights on what regulations you must comply with and what trends are taking place in the European cosmetics market.

Not working with the tools that various matchmaking programmes provide could result in you missing out on vital information on the European market. Your export activities could also be hampered by a lack of knowledge on regulations and requirements that European buyers have. These are other key disadvantages of not following this tip.

Consider participating in programmes such as those run by the Centre for the Promotion of Imports from developing countries (CBI), the Swiss Import Promotion Programme (SIPPO), the Import Promotion Desk (IPD) and Open Trade Gate Sweden (OTGS). Organisations such as the Food and Agricultural Organization (FAO) and the International Trade Centre (ITC) also provide market access services.

9. Ensure your documentation and technical dossiers are of a high standard

Ensure your dossier is complete and up to date before approaching European buyers. Competition to supply natural ingredients to the cosmetics sector in Europe is high. Rising quality standards and stricter EU regulations put lots of pressure on buyers to meet their customers’ needs. It is therefore very important that you invest a substantial amount of time and resources into preparing your documentation.

A key advantage of following this tip is that it will likely increase your chances of successfully entering the European market. Key disadvantages of not following this tip include you potentially losing credibility and customers along with it harming your reputation and hampering your export activities on the European market.

A comprehensive dossier of data and information about your cosmetic ingredient includes Technical Data Sheets (TDS), Safety Data Sheets (SDS) and Certificates of Analysis. Table 2 shows what is contained in the SDS, TDS and CoA to help you prepare these 3 important pieces of documentation.

Table 2: Contents of SDS, TDS and CoA

Safety Data Sheet (SDS)	Technical Data Sheet (TDS)	Certificate of Analysis (CoA) which matches
Product description	Product description	Data mentioned in the TDS
Product classification	Product classification	Pre-shipment samples approved by the buyer
Hazard identification	Quality analysis	Contractual agreements with the buyer
Information on safety measures	Information on applications
	Certificates

Source: Ecovia Intelligence

Information in the technical dossier can be also used for marketing purposes. It can contain pictures and illustrations and information on the benefits of natural ingredients and what effect they will have on the customer. Having a complete and up-to-date technical dossier is essential for suppliers wanting to export to the EU. Failure to have 1 may result in European buyers refusing to trade with you and your reputation as a credible supplier of natural ingredients being damaged.

For example, when a European buyer of natural ingredients for cosmetics was asked about the importance of documentation, they stated, “Yes of course, if you do not have them (technical documentation), there is not going to be a sale at all”. You should therefore invest a substantial amount of time and resources in preparing a well-organised and structured dossier