Exporting moringa to Europe

Moringa is increasingly popular on the European market for food supplements. The plant’s dried leaves are marketed for a wide range of health benefits. These benefits are based on their high level of antioxidant activity and chemical composition. The growing global demand for moringa can offer opportunities for you as a supplier. India is currently the main global supplier, but European buyers question whether organic-certified Indian moringa leaves are truly organic. More and more African suppliers are entering this growing market.

1. Product description

Moringa oleifera is indigenous to the sub-Himalayan regions of northern India and Pakistan. The plant is now distributed across tropical zones in Africa, Asia, islands in the Pacific and the Caribbean, and South America. The tree is cultivated and has become naturalised in the wild in many areas of the world.

Products from the tree have multiple health, food and cosmetic uses.

• Health products: food supplements are the main market for moringa (leaf powder)
• Food: as a herbal tea (dried leaves) and vegetable (fresh seed pods)
• Cosmetics: main market for moringa seed oil, called Behen or Ben oil (known since Egyptian times)

Scope of this study

This study focuses on dried Moringa oleifera leaf powder and its use in health products. European legislation doesn’t allow use of moringa in herbal medicinal products, nor the use of moringa seed oil in food supplements. Therefore, this study does not cover these applications of moringa.

Moringa extracts and moringa seed oil for food (supplement) use are considered novel foods. Before these can be sold in European food supplements, companies need to apply for Novel Food regulation 2015/2283.

Classification of moringa

Moringa is marketed as a “superfood” on the European food supplements market. The term “superfood” is a marketing term and not a regulatory category. A single and legal definition of a superfood does not exist. Superfoods usually have high concentrations of certain beneficial nutrients. Moreover, the term superfood is not an authorised product or health claim in Europe. European companies can only use this on their product label if it is part of their brand name.

In trade data, dried moringa leaves and leaf powder are recorded under Harmonized System codes (Trade helpdesk):

• 0712.9090: Other dried vegetables, whole, cut, sliced, broken or in powder
• 1211.9086: Other medicinal plants and parts of plants

Moringa leaves contain a variety of nutrients and have a high level of antioxidant activity. Research indicates that it even outperforms other superfoods with high levels of antioxidant activity, such as açai and blueberries.

According to several studies and the Moringa oleifera monograph of the African Herbal Pharmacopoeia the leaves are rich in the following substances.

• Vitamins: A, B, C and E
• Minerals: iron, calcium, selenium, phosphorus and potassium
• Essential fatty acids: omega-3 and omega-6
• Protein
• Fibre

Based on this composition, moringa is commonly marketed as:

• supporting immune health
• improving general health
• increasing energy levels.

In addition, moringa is marketed for various other uses. These include weight management, improving digestion and helping to support normal sugar levels in the body.

Producers who use moringa in their food supplements cannot make any medicinal claims. Examples of non-medicinal claims that can be used in Europe are included in Table 1.

Table 1: Examples of claims used on supplements with moringa

Supporting immune health	Improving general health	Increasing energy levels
“Moringa supports anti-inflammatory function and a healthy immune system function” “Moringa benefits include acting boosting healthy immune system function”	“Moringa is a nutritional powerhouse containing mineral calcium, phosphorous, iron, potassium, magnesium, manganese & Vitamins A, B complex, C, D, E and K.” “The moringa tree is also known as the miracle tree.” “Supports healthy metabolism”	“Naturally boosts and sustains energy levels.” “Increases natural energy”

2. What makes Europe an interesting market for moringa?

Underdeveloped European market for moringa

The European market for moringa is still young and underdeveloped. Only a few European consumers know moringa. Therefore, most consumers still need to be educated on the benefits of moringa before they will consider buying it.

Official data on the size of the European moringa market are not available. Importers estimated market demand at a few hundred tonnes in 2017. Leading markets in Europe are:

• United Kingdom
• Germany
• France.

Moringa production in Europe is insignificant. Supplies need to be met by imports. Globally, India is the largest producer and supplier of moringa. In 2017, global annual exports of moringa (including leaf powder, seed oil and other products) by India were estimated to amount to around 500 tonnes, of which an estimated 100–200 tonnes goes to Europe.

According to a moringa importer in the Netherlands, India currently exports around 500 tonnes of moringa to the global market annually. India is also Europe’s main supplier of moringa.

Europe’s main importers of moringa products from India are:

• Germany (35% of Indian exports to Europe in value)
• United Kingdom (14%)
• Austria (9%)
• France (8%)
• Spain (6%).

As the plant grows in various regions worldwide, there is a potential for smaller producers if they can create a unique selling proposition (USP) for their product compared to supplies from India, especially since European importers have strong concerns about the quality of Indian supplies (e.g. fearing heavy metal contamination). Smaller producers entering the global market include various African countries, such as Kenya, South Africa, Malawi and Mozambique.

Growing demand for moringa because of a changing perception of health

The market for moringa showed strong growth in the last ten years. A changing understanding among consumers of what it means to be healthy is driving demand for health products and stimulating demand for moringa. European consumers use health products to prevent diseases and to feel good, for example by adding supplements to their regular diet. This is translated into a growing market for food supplements. Future Market Insights expects the European food supplement market to increase 7% annually from 2015 to 2025. In 2025, the market would be over US$ 60 billion. Technavio expects the global moringa products market to grow annually by 10% from 2018 to 2022.

How well moringa is adopted in Europe will very much depend on how well the product is promoted by importers, retailers, bloggers and the media. Articles in popular blogs such as Happy Healthy Blog can help stimulate demand by creating wider recognition amongst consumers.

New product development can further stimulate future sales of moringa. Especially when major food manufacturers start using moringa as an ingredient in their products, consumer recognition of moringa should improve. This will also affect sales of food supplements based on moringa. For example, in Germany, the natural ingredients company Naturex has developed a moringa powder standardised to 1% omega-9 and 600 ppm vitamin E. Such standardised ingredients are particularly useful for food and beverage manufacturers. This can stimulate the adoption of moringa by these manufacturers and further boost the market. There is also a growing interest in products that can easily be consumed on the road, which could offer opportunities for moringa as well.

Demand for immune system food supplements

More specifically, there is a growing demand for food supplements that support the immune system. European consumers link the immune system to preventive health. This opens up opportunities for moringa supplements.

Globally, the market for immune system food supplements is expected to grow by 7% annually from 2017 to 2025, reaching US$ 25 billion in 2025. Vitamin supplements took up a third of the market in 2017 (US$ 5.3 billion), while supplements based on botanicals accounted for the second largest market share.

Demand for products that increase energy

The changing perception of health is also leading to consumers using energy products to support an active lifestyle. There is a growing demand for these products worldwide, which offers opportunities for moringa. Especially energy drinks and food supplements that offer an alternative source of energy to caffeine are increasingly popular among European consumers.

Globally, the market for sports nutrition and high energy supplements is expected to grow by 10% annually from 2014 to 2020. In 2020, this market is expected to reach US$ 66 billion (€59 billion).

Interest in organic and fair-trade certified moringa

Currently, industry experts indicate that global supplies of organic certified leaf powder are insufficient to meet market demand. This opens up opportunities for (new) producers who can supply organic moringa.

Consumers of food supplements are health-conscious. They look for products which support a healthy lifestyle and generally prefer natural and organic products, which they believe to be healthier. As a consequence, many consumers prefer to buy organic moringa food supplements.

Fair-trade certification can also help to show your buyer that the production of your moringa is generating rural income and does not harm local communities.

3. With which requirements must moringa comply to be allowed on the European market?

Your moringa needs to be sustainably sourced. You need to make sure that you can supply a stable supply of moringa to your buyers, both in terms of quality and quantity. This may make it easier to compete with suppliers in India that grow moringa on large plantations.

You can only export your moringa to the European food supplements market if you comply with the legal requirements for natural ingredients for health products. For food supplements, these include:

• European legislation for food supplements (composition and labelling requirements)
• General Food Law
• Food safety requirements.

Moringa for supplements must be safe for human consumption to enter the European market. Suppliers must have a food safety management system in place to become successful in Europe. Buyers demand proof of your product’s safety and proof that your product meets their quality requirements before they will buy from you. If European companies or authorities find out that the safety of your moringa cannot be guaranteed, they will take the product off the market.

Specifically, food safety requirements cover:

• Maximum residue levels (MRLs) for pesticides and polycyclic aromatic hydrocarbons (PAHs). You can find MRLs for moringa pods (no. 0260030-005), seeds (0401070-001) and leaves (0632030-003).
• Contaminants in food and microbiological contamination of food (the most common food safety issue for moringa leaf powder is contamination by the pathogenic micro-organism Salmonella). For more information, have a look at the Rapid Alert System for Food and Feed, search for results for “moringa”.
• Food hygiene (HACCP: Hazard Analysis Critical Control Points)
• Extraction solvents
• Food irradiation
• Traceability.

Additional requirements

Many buyers have additional quality requirements. These can go beyond legislation and standards. They are established in buyer specifications. Examples are requirements related to:

• Nutrient or active ingredient content
• Moisture content
• Contaminants
• Residues.

To show that you meet the specifications of buyers, you need to develop well-structured company and product information. This includes detailed Technical Data Sheets, as well as process and product certifications.

European food industries increasingly demand compliance with quality and food safety management standards. Examples include:

• ISO 9001:2008 (required for health ingredients)
• Food Safety System Certification (FSSC22000), mainly for suppliers of ingredients that will be further processed
• ISO 22000 (food safety management)
• ISO 31000 (risk management)
• International Food Safety (IFS), British Retail Consortium (BRC) and Safe Quality Food (SQF), for suppliers of final products in Europe.

Requirements for niche markets

Standards and requirements for social and environmental sustainability include:

• Organic production, as specified in the European Union Regulation 834/2007
• Verification and/or certification of sustainable production (these include FairWild, Fairtrade International, Fair for Life, UNCTAD BioTrade Initiative, Union for Ethical BioTrade. Currently, nine moringa suppliers from India, Sri Lanka and Egypt have a Fairtrade certificate (FLO-Cert, 2018), while five moringa suppliers have a Fair for Life certificate)
• Company and supplier codes of conduct
• Implementation based on ISO 26000 guidance on social responsibility.

Quality requirements

The use of moringa is based on its composition. Therefore, European buyers have specific requirements on composition and nutritional profile. Buyers will usually request a Certificate of Analysis to verify that your moringa meets their quality requirements.

Table 2: Template for Certificate of Analysis

Type of specification	Example of specification	Explanation of specification
Appearance	Fine powder
Colour	Green	The dried powder must look “fresh”
Flavour	Characteristic	Flavour is subjective
Moisture content	8–10%	A low moisture content prevents mould and browning
Particle size	50–100 μm	Particle size preferences differ between buyers
Heavy metals
Lead(Pb)	<3.0 mg/kg	Legal limit for food supplements
Cadmium(Cd)	<1.0 mg/kg	Legal limit for food supplements
Mercury(Hg)	<0.1 mg/kg	Legal limit for food supplements
Microbiological activity
Total plate count	Max 1,000 cfu/g	n.a.
Yeast and moulds	Max 100 cfu/g	n.a.
Salmonella	Absent	n.a.
E.Coli.	Absent	n.a.

Moisture content must be around 8–10% to prevent mould and browning. Buyers appreciate high levels of nutrients in moringa and especially high levels of antioxidant activities. The nutritional profile is your main sales argument for moringa powder.

Growing, harvesting, processing and packaging all influence the nutritional profile of moringa powder. The drying process has a particularly large effect on nutrients in moringa. Therefore, buyers prefer drying methods which preserve a maximum amount of nutrients. Lower temperatures (~40 degrees Celsius) and shorter exposure to heat (<24 hours) generally result in preservation of more nutrients.

Labelling requirements

To put your moringa on the European market you must comply with the following labelling requirements:

• Set up a registration system for individual batches of your moringa, whether they are blends or not. Mark them accordingly to ensure traceability.
• Label your products in English, unless your buyer wants you to use a different language.

Your labels must include:

• Product name
• Batch code
• Place of origin
• Name and address of exporter
• Date of manufacture
• Best before date
• Net weight
• Recommended storage conditions.

If you supply organic moringa, your label needs to include the name/code of the inspection body and certification number.

You also need to give your buyer the following documentation:

• Technical Data Sheet (TDS) (check this example for moringa leaf powder)
• CAS number
• Certificates of Analysis (check this example of organic moringa powder)
• GMO certificate (if requested)
• Certificate of Origin.

Moringa leaf powder is not classified as hazardous, so no hazard symbols are required on your label.

Packaging requirements for bulk packaging

Packaging requirements may differ per buyer. However, there are some general requirements you have to take into account which are included in standards. See the tips below.

4. What competition do you face on the European market for moringa?

Market entry barriers

Market entry barriers for moringa leaf powder are relatively low. This also means that you can expect a lot of new entrants.

The main market entry barriers are the technological requirements for drying moringa, as well as requirements for organic certification:

• Drying moringa leaves requires know-how, suitable drying equipment and logistical arrangements. You need to process moringa leaves directly after harvesting to prevent quality deterioration.
• Most European buyers in the food supplements market demand organic-certified moringa. If you supply organic moringa you also avoid direct competition on price with India. However, organic farming limits possibilities to use fertilisers, pesticides and other crop protection agents. This may complicate production if you don’t have sufficient knowledge of organic farming. Furthermore, organic certification is expensive, especially when inspectors have to travel far to visit your production site.

Market entry barriers are higher if you want to produce final products, such as capsules containing moringa leaf powder. You need to include costs for:

• product development
• capsule manufacturing by a company with an advanced food safety management system (such as British Retail Consortium or International Featured Standards) and Good Manufacturing Practices
• market authorisation
• marketing.

This also means that the threat of new entrants decreases substantially once you can produce a final product that complies with legal and buyer requirements. It may be difficult to produce final products, as this is often beyond the scope of most companies in many developing countries.

Note that only very few European companies are interested in purchasing moringa-based final products directly from manufacturers in developing countries. Most European companies prefer to either manufacture final products themselves or to buy final products from established companies based in Europe. They put more trust in companies which are under the control of European authorities.

What are substitute products for moringa?

Substitute products for moringa used for immune support

For immune support, vitamins and minerals are the main synthetic food supplement substitutes for Moringa oleifera. These products make up around half of the European food supplement market. It will be difficult to compete with these products on price, as they are much cheaper than moringa products. However, you can compete by emphasising that moringa products are a natural source of a wide range of nutrients and have a high level of antioxidant activity.

A wide range of natural products are marketed for immune support and overall wellbeing. These include:

• Plant-derived vitamins or products with plant materials that are high in vitamins
• Probiotics and prebiotics, which are often consumed as yoghurt (drinks)
• Fruit-based antioxidants, such as blueberries, elderberries and açai fruits.

Commonly used plants for immune support include:

• Echinacea (Echinacea purpurea)
• Ginseng (Panax quinquefolius and P. ginseng)
• Green tea (Camellia sinensis)
• Ginger (Zingiber officinale)
• Cat’s claw (Uncaria tomentosa)
• Eleuthero (Eleutherococcus senticosus).

Other “superfoods” and in particular superfood powders pose strong competition. These are often used to improve general health or immune support, especially if these boast a healthy nutritional profile, such as vitamins, or high levels of antioxidant activity. Examples include:

• Turmeric (Curcuma longa)
• Baobab fruit powder (Adansonia digitata)
• Mulberries (Morus spp.)
• Spirulina (Arthrospira plantensis)
• Barley grass powder (Hordeum vulgare)
• Wheat grass (Triticum aestivum)
• Maca (Lepidium meyenii).

Substitute products for moringa used to increase energy

There is a wide range of products on the European market for energy-boosting supplements. These include both synthetic and natural alternatives.

The main synthetic alternatives are:

• Caffeinated energy drinks
• Vitamins and minerals
• Protein-based products.

Natural alternatives are increasingly popular to increase energy. Most of these ingredients are also marketed for other health benefits, such as boosting concentration. These include:

• “Super-fruits”, such as guarana fruit and goji berries
• Botanicals, such as yerba mate, Rhodiola rosea and green tea
• Other natural products, such as royal jelly.

Company competition

India is the main supplier of moringa worldwide, accounting for around 80% of global demand. In India, most moringa is produced on large plantations as a conventional ingredient. This makes it possible to sell the product at low prices.

Main players from India include:

• Veg India Exports
• Green India
• Aayuritz
• Mother Herbs
• Organic India.

For smaller suppliers it will be very difficult to compete on price with Indian companies. Therefore, you need to develop a unique selling point (USP) for your moringa. You could use the following USPs.

• High quality: European buyers are having problems with finding sources of high-quality moringa. This is moringa with a high concentration of nutrients (e.g. antioxidants activities and vitamins), a bright green colour instead of a brown or yellow hue, and a good taste profile.
• Organic certification: India dominates the market for conventional leaf powder, but has difficulty meeting the strict European requirements for organic moringa. According to Dutch importer Z‑company, several supplies of organic moringa from India contained pesticides that are not allowed on the European organic market. These problems have resulted in stricter control on Indian organic moringa supplies and create opportunities for other suppliers with an organic certificate.
• Marketing story: for example if you work with smallholder farmers or aid rural communities.

In recent years, more and more African companies have entered the market for moringa. For example, from:

• South Africa (e.g. Botanica Natural Products)
• Ghana (e.g. Moringa Connect)
• Mozambique (e.g. MoSagri)
• Kenya
• Malawi (e.g. Moringa Malawi)
• Zambia.

These companies have differentiated their moringa products from Indian products on the market by focusing on product quality and an interesting marketing story. There is also a producer of organic-certified moringa on the island of Tenerife, which is part of the European Union. This company uses its European location as a USP. Other upcoming producers are located in the Americas, such as El Salvador, Nicaragua and the United States.

European processors play a relatively small role in the moringa value chain. Since moringa leaves need to be processed shortly after harvesting, most processing takes place in the country of origin. European processors can be involved in the standardisation of moringa leaf powder, such as the protein content or the omega-9 and vitamin E content.

Indian companies also compete at this level of processing. Some even produce ingredients registered as intellectual property. For example, the company Sabinsa developed a standardised ingredient from dried Moringa oleifera leaves with a standardised minimum level of antioxidant activity. Indian companies also produce final products based on moringa, such as the company Grenera.

5. Which channels can you use to put moringa onto the European market for health products?

Market channels

Figure 3: Market channels for moringa for food supplements

Source: ProFound

The figure above shows that farming, processing and exporting activities in countries of origin are often combined in the same company. Many European importers combine different activities as well. They often pack moringa in consumer packaging under their own label or under the label of their customer.

Importers are key in the current moringa market in Europe. The market is still quite small and consists of many small retailers and manufacturers. These companies are generally not interested in importing themselves. They need small volumes and prefer to purchase from reputable importers which can offer low prices and reduce risks.

Therefore, importers and distributors are your most important entry point into the European moringa market. They may trade in up to 500 natural ingredients, together with other (synthetic) ingredients. They focus on:

• global sourcing
• analysis and quality control
• standardisation
• packing
• product documentation
• sales to processors and food supplement manufacturers.

Direct trade with retailers and manufacturers only becomes more feasible when the moringa market grows and these players scale up their moringa sourcing. You can then use economies of scale to be able to offer lower prices.

6. What are the end-market prices for moringa?

As the main supplier of moringa, India dictates the global prices for the product. It will be difficult to compete on price with most Indian producers of moringa. As Indian companies operate on a large scale, they can offer low prices. Main import prices on the European market are:

• Large lots (> 1 tonne) of (Indian) moringa powder: on average around €5/kg
  • Conventional (non-certified) moringa powder usually has a lower price: as low as €4/kg
  • Organic certified moringa powder is commonly priced higher: up to €7/kg
• Small lots (< 1 tonne) of moringa powder: on average around €10/kg
  • Conventional moringa powder: around €8–10/kg
  • Organic certified moringa powder: prices can reach up to €10–12/kg.

Prices of moringa leaves are slightly lower than for powder.

Due to the highly fragmented trade in moringa some (online) retailers offer consumer prices as high as €135/kg of powder. These high prices are the results of the sales volumes of online retailers and the inefficiency of their logistics. The table below explains how such prices are composed.

Table 3: Indicative price breakdown for 1 kg moringa powder in European retail

Price component	Share in %
Exporter	5
Importer in transit country (incl. freight)	10
Import tariff (0% under Generalised Scheme of Preferences)	0
Importer in end market (incl. freight)	10
Packer and distributor	20
Online retailer (incl. delivery costs)	49
VAT (6%)	6
Total	100

Source: ProFound

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