Entering the European moringa market

To enter the European market for moringa, you must meet mandatory requirements set by the European Union (EU). In addition, consider meeting the common additional requirements that European buyers and niche markets have, as this will help you access the European market. The European market for moringa can be divided into three end-user segments, each with different channels you can enter through. The three end-user segments are the health, food and cosmetics industries respectively. This study focuses on dried moringa oleifera and its use in health products only.

1. What requirements must moringa for natural health products comply with to be allowed on the European market?

What are mandatory requirements?

As an exporter from a developing country, you can only export moringa to the European natural health product market if you comply with the European Union’s mandatory legal requirements for natural ingredients for health products. Failure to comply will stop your moringa from entering the European market.

European legislation does not allow the use of moringa in herbal medicinal products or the use of moringa seed oil in nutritional supplements. As such, this study does not cover these applications of moringa.

If your moringa is used in food supplements, you must comply with EU food supplement legislation and the European General Food Law. Food supplements are also covered by food legislation, so you must also comply with the EU’s food safety requirements. This specifically covers:

• Maximum Residue Levels (MRLs) for pesticides and Polycyclic Aromatic Hydrocarbons (PAHs)
• Maximum limits for trace metal elements in food supplements as outlined in Regulation (EC) No 629/2008
• Contaminants in food and microbiological contamination of food – contamination by salmonella (a pathogenic microorganism) is a common food safety issue for moringa leaf powder. For further information search “moringa” on the EU’s the Rapid Alert System for Food and Feed portal
• Food hygiene as outlined in the EU’s Hazard Analysis and Critical Control Points
• Food irradiation
• Traceability
• Extraction solvents

Table 1 Purity and microbiological requirements for moringa dried moringa oleifera and its use in health products.

Lead(Pb)	<3.0 mg/kg
Cadmium(Cd)	<1.0 mg/kg
Mercury(Hg)	<0.1 mg/kg
Total plate count (Microbiological activity)	Max 1,000 cfu/g
Yeast and moulds	Max 100 cfu/g
Salmonella	Absent
E.Coli.	Absent

Source: eur-lex.europa.eu

Convention on Biological Diversity (CBD) / Access and Benefit-Sharing (ABS)

To export moringa to the European market you must comply with the requirements on using plant resources agreed under international treaties and protocols within the Convention on Biological Diversity (CBD). The CBD is a part of EU law and your own country is likely to be a signatory, meaning you need to comply with it.

The Nagoya Protocol’s Access and Benefit-Sharing (ABS) provides guidelines for accessing and using genetic resources and traditional knowledge and the fair and equitable sharing of benefits. Similar to the CBD, European companies need to comply with ABS legislation. Furthermore, ABS is likely to be a part of your country’s regulations. As an exporter of moringa to the natural health product sector, make sure you abide by ABS.

What additional requirements do buyers often have?

Quality requirements

European buyers demand consistently high-quality moringa which is delivered to them in various order volumes and batch sizes. For European buyers, quality moringa will have a specific composition and chemical profile because this determines its use. Other common buyer requirements concerning quality include the active ingredient, moisture content, contaminants and residues of your moringa.

Speak to European buyers and find out what their specific requirements are, and then meet these requirements. To prove you meet their requirements, you will need to develop structured company and product information, including detailed Technical Data Sheets.

Ensure your moringa is rich in nutrients, specifically high levels of antioxidants, as the nutritional profile of moringa powder is its main selling point. The drying of moringa during its processing into powder has a large effect on its nutrient level. Lower temperatures – below minus 40°C – along with shorter periods of exposure to heat (under 24 hours) usually results in the greater preservation of moringa’s nutrients. In addition, to prevent moulding and browning, the moisture content of your moringa should be around 8-10 percent.

As an exporter of moringa to the natural health products industry, consider additional buyer requirements that demonstrate good quality. This includes compliance with Hazard Analysis and Critical Control Points (HACCP); having certification of a food management system based on HACCP; having Food Safety System (FSSC 22000), International Organization for Standardization (ISO) 22000 and ISO 9001:2015, British Retail Consortium Global Standard for Food Safety (BRCGS) and International Food Safety (IFS) certification.

Labelling requirements

To export moringa to the European market you must comply with the following labelling requirements:

• The name, address and telephone number of supplier
• Product name
• Batch code
• Country of origin or place of provenance
• Date of manufacture
• Best-before date
• Weight
• Storage conditions or conditions of use

If you export organic moringa you must also list the name and/or code of the inspection body and the certification number.

Packaging requirements

European buyers demand moringa of the highest quality. As such, consider preserving the quality of your moringa by using appropriate packaging materials along with following general packaging requirements, which include:

• Using packaging materials that do not react with components of your moringa. Packaging material that reacts with the moringa will hurt its quality.
• Using clean packaging material at all times. Packaging materials that are contaminated with bacteria, for example, will likely contaminate the moringa and hurt its quality.

• Ensure certified organic moringa and conventional moringa are physically separated to prevent contamination.

Packaging requirements offer differ from one European buyer to another. As such, speak to European buyers and find out what their specific packaging requirements are, and consider meeting them.

Payment terms

At the centre of all trade is payment, which presents risks to all involved. You should do risk assessments of the available payment terms before beginning a trading relationship with European buyers. As an exporter of moringa, try and minimise your risks while at the same time working to meet the needs of European buyers. This is particularly important because you cannot afford to alienate and potentially risk losing European buyers.

There are several methods of payment. However, for both importers and exporters, Letters of Credit (LC) is thought to be the safest payment term. This is because an LC lets both parties contact an impartial arbitrator, usually a bank, to solve any issues. For the exporter, as long as goods have been dispatched the chosen bank is a guarantor of full payment. In such instances, to avoid more losses, exporters should find new buyers and pay for the return of dispatched goods.

According to their needs, importers and exporters can choose from several LC payment terms. These include standby, revocable, irrevocable, revolving, transferable, un-transferable, back to back, red clause, green clause and export/import. For exporters, standby LC is thought to be the safest, with it being used commonly in international trade as it provides security to both importers and exporters who have little trading experience with one another. Other payment terms include cash in advance, documentary collections and open account.

Delivery terms

When agreeing delivery terms with European buyers you must carefully consider three important factors: delivery time, volume and cost. Failure to meet agreed delivery terms may end your trading relationship with European buyers.

1. Delivery time - European buyers prefer shorter delivery times. Air cargo is usually faster than sea freight and is more reliable in terms of time delivery.
2. Delivery volume/quantity of order - Larger quantities are often cheaper to ship by sea. Air freight can be less expensive for lower volumes air freight, as margins get smaller. Moringa is usually transported by air freight.
3. Cost of delivery method - It is estimated that sea freight is generally 4-6 times cheaper than air freight. This applies to larger volumes. It is not likely that price of your cargo will increase substantially if you increase the volume.

What are the requirements for niche markets?

Organic and fair trade

Europe has one of the largest markets for organic products in the world. Since consumers are looking for organic products, many buyers are looking to use organic ingredients in their natural health products. As an exporter of moringa you should therefore consider getting organic certification. In order to market your natural ingredients as organic on the European market, you must meet EU regulations. You can find information on the EU organic certification on the EU organics website.

Fair-trade ingredients are also in demand from European health product companies. Examples of various fair-trade standards include:

• Fairtrade International
• Ecocert Fair Trade and Fair for Life
• FairWild standard is for sustainable collection, social responsibility and fair trade principles for wild collected plants.

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

On the European market, moringa is used in the food industry, natural health products industry and cosmetics industry.

How is the end-market segmented?

The European moringa market can be segmented by end-user industry: the food, health products and cosmetics industries, in this case. Figure 1 gives example of moringa products on the European market according to end-user segmentation.

Figure 1: Example of moringa products on the European market

Source: Various

Health products industry

In 2018, the global moringa products market was valued at USD 5.5 billion. The market is expected to increase at a healthy rate until 2025. Moringa leaf powder accounts for the largest market share, with over 30 percent in 2018. This high share is because of its use in nutritional supplements. Europe has the largest market for moringa-based products because of the popularity of nutritional supplements.

Moringa powder is also used in nutritional supplements because of its beneficial health properties. Moringa is associated with lowering blood sugar levels; protecting against diabetes; reducing inflammation and oxidation; defending against viral, fungal, and bacterial infections; defending against cognitive decline; protecting kidney and liver function; and strengthening skin and hair. Moringa powder is sold in the form of capsules or powder.

Food industry

Moringa leaf, seed powder and seed oil are used by the food industry because of their functional and nutritional properties. For example, the meat sector uses moringa leaf, seed and powder as preservatives and antioxidant additives, while the bakery sector uses it for nutritional fortification. Retailers also selling moringa-based products, such as moringa tea made from moringa leaves. Moringa seed oil is also used in cooking.

Cosmetics industry

The cosmetics industry mostly uses moringa in the form of an oil. This is because moringa oil has moisturising, cleansing, and emollient properties. Moringa oil is used in cosmetic products such as shampoos, conditioners, body care products, facial creams, oral care, perfumes and deodorants. In addition, moringa oil is used in aromatherapy and massage oils because it blends well with other essential oils and because it is a good carrier oil.

This study focuses on the use of moringa in the health products industry.

Through what channels does moringa end up on the end-market?

Figure 2 shows the export value chain for moringa on its journey to the European market. The production process of moringa powder starts with moringa leaves being stripped from the moringa tree, after which they are washed, drained, dried (room / solar / mechanical), milled, sieved and then finally dried into leaf powder.

Figure 2: Export Value Chain for Moringa

Source: Ecovia Intelligence

Importer / Distributor

As a processor/exporter of moringa, importers/distributors are the main entry points to the European moringa market. European importers/distributors usually deal in a wide range of natural ingredients. Their expertise is in the global sourcing of natural ingredients, ensuring the quality and documentary and regulatory compliance, along with selling to processors and natural health product manufacturers.

Leading importers/distributors of moringa on the European market include Tradin Organic, Bio Import Europa, Green Origins and Organic Herb Trading Co. These importers/distributors specialise in trading and supplying organic moringa to European natural health product companies.

Some importers in Europe import moringa leaves and process them in Europe. German importer Proflora has its own moringa plantations in India from where it sources moringa leaves. They say the reason for this is that they are not satisfied with the quality level of moringa that is generally processed in India.

Agents

An export agent is a firm or an individual that handles most of the exporting activities on behalf of an exporter, usually for a commission. Agents can be found in developing countries as well as in Europe; however, it is not that common for companies to use agents on the European market. As an exporter from a developing country, you can work with agents who represent and act on your behalf on the European market.

Other channels

Both the processing and exporting of moringa can be combined and undertaken by the same company. Fresh Mantra Organics LLP is an example of an Indian company doing so. In addition, moringa can end up on the European market as a finished natural health product. For example, Moringa Initiative Ltd is a Zambian company that exports moringa capsules (nutritional supplements) to the European market.

Most moringa comes onto the European market as moringa powder. Very few finished moringa products come into Europe, and they represent a small share of the market. As such, you should focus on exporting moringa powder, as most of the bottling and packaging is done in Europe.

What is the most interesting channel for you?

Importers/distributors are the most interesting channel for you as an exporter of moringa from a developing country. This is because importers/distributors have expertise importing and distributing moringa on the European market, a good understanding of the European health products market, and an established customer based in terms of processors and supplement companies. European importers/distributors also have storage facilities and an established logistics network. This can be very helpful if you are a small or medium-sized exporter of moringa from a developing country that is just starting to export to Europe.

Importers/distributors demand consistently high-quality moringa. That is one of their main requirements. They may also have specific requirements concerning the composition of moringa. Other common buyer requirements that importers/distributors have include certified organic and/or fair-trade moringa. Importers/distributors make their products available on their company website and promote them through their marketing materials, such as product catalogues and portfolios.

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

What countries are you competing with?

India

It is estimated that India accounts for around 80 percent of the global moringa supply. Moringa oleifera, which is considered to be the most used species of moringa, is native to India. India’s national government, as well as its individual states, actively support the country’s moringa industry. For example, the National Bank for Agriculture and Rural Development provides subsidies to farmers, while the government of Tamil Nadu State is providing subsidies to farmers, especially to cultivate moringa. It may therefore become easier for Indian producers to export moringa to the European market.

However, small and medium-sized Indian producers of moringa may find it difficult to compete with larger Indian companies exporting moringa when it comes to price, making it difficult for them to enter the European market. Other challenges that the Indian agricultural industry faces include a lack of access to good-quality seeds, mechanisation, marketing channels, capital and storage facilities and climate change.

Industry sources have highlighted that Indian moringa oleifera is sometimes of poor quality and contaminated, specifically microbiologically, and that it does not always European market standards. Some European buyers indicated that they sometimes have to switch suppliers due to contamination issues. Speedy delivery can also be an issue when sourcing moringa from India. However, Indian moringa suppliers offer very competitive prices.

South Africa

Several parts of South Africa have ideal climatic, agricultural and environmental conditions for moringa cultivation. The South Africa’s Department of Science and Innovation has been working with the Moringa Development Association of South Africa to develop the country’s moringa industry. For example, by establishing moringa farms where moringa trees have been planted and farmers are trained.

According to industry feedback, European buyers find it easier to work with South African suppliers because of their native English and high level of professionalism. South African moringa is usually the same type as the moringa from India (moringa oleifera). With regards to the nutritional profile, there is no difference between moringa coming from South Africa and India. However, South African moringa is a bit more expensive. Moringa production in South Africa is relatively well-developed.

Ghana

There are large and small-scale moringa farms established in the country. Ghana’s government as well several Non-Governmental Organisations (NGOs) are supporting and developing the country’s moringa industry. Examples include the Cultivate Foundation through its Moringa Development project and the Moringa Association of Ghana together with NGOs are helping farmers cultivate and process moringa.

A lot of moringa powder from Ghana is exported to the UK market. Ghana supplies moringa oleifera. However, the production of moringa in Ghana is hampered by land degradation, pests and disease.

Mozambique

Moringa production in Mozambique is still in in a developing stage. The commercial production is expected to grow with governmental support. The supply chain of moringa in Mozambique is still underdeveloped. Moringa farmers lacking cultivation and processing knowledge and climate change.

Industry sources have highlighted a lack of flights to Europe, long waiting times for delivery via shipping, language barriers and safety concerns as challenges European buyers face when importing from Mozambique. Production of moringa takes place on a small-scale in the country.    

Kenya

Kenya has an established commercial moringa production industry that is continuing to develop. In recent years, a number of organisations have been supporting Kenyan farmers cultivate moringa. For example, the International Tree Foundation NGO has helped farmers plant more than 25,000 moringa trees and provided training on cultivating moringa.

Moringa production in Kenya is still in an early stage. Both moringa oleifera and moringa stenopetala are cultivated in Kenya. Moringa is also consumed by local communities. There is a potential for further development of moringa production. However, moringa cultivation is threatened by pest attacks and disease.

Zambia

The NGO CELIM Zambia will lead a project that aims to plant around 75,500 moringa trees, as well providing farmers practical training on cultivating moringa successfully. The Zambian government is also focusing on moringa production as part of its plans to develop the country’s economy. Lack of access to capital and essential knowledge on producing and processing moringa in a way that complies with European quality standards are some of the main obstacles that Zambian farmers face.

Exporters of moringa from Zambia are not capable of supplying larger volumes when compared to countries like India. The production of moringa is still developing. Exporters of moringa sometimes struggle to meet the quality standards that European buyers have.

What companies are you competing with?

A number of established companies successfully export moringa leaf powder to the European market. These companies position themselves as able to deliver high-quality moringa products to the European market in accordance with common buyer requirements as well as requirements for niche markets.

One thing that established companies – including the companies selected below – share is a professional website containing well-prepared content. Their websites will include sections informing prospective buyers who the companies themselves, how they source and process their moringa as well as its technical details and the certifications they hold, accompanied by professionally taken photographs.

Indian companies

One of Fresh Mantra Organics LLP’s key strengths is its commitment to exporting high-quality EU Organic certified moringa to the European market. The company also has ISO 22000:2018 Food Management Systems certification specifically for manufacturing and supplying organic food and food supplements. This is another of the company’s key strengths.

Mozambican companies

MoSogari is able to export high-quality certified organic moringa to the European market, which has been cultivated and processed in accordance with its Corporate Social Responsibility (CSR) policy. These are two of its key strengths. The company’s CSR policy concerns capacity building and creating food and health awareness, and it strives to meet the United Nation’s Millennium Development Goals in the local community.

Zambian companies

One of Moringa Initiative Ltd.’s key strengths is its ability to export high-quality moringa that is free of pesticides and chemicals. Another of the company’s key strengths concerns the benefits and services it provides to its employees; these include training, childcare and free housing and healthcare on its on-farm basic clinic. In addition, the company provides a monthly allocation of moringa to all employees.

What products are you competing with?

Barley grass

Barley grass derived from hordeum vulgare (commonly known as barley), is a product that competes with moringa on the European health product industry as they share several beneficial properties. Barley grass is a rich source of vitamins A, B and C, iron and calcium, and antioxidants; it lowers sugar levels, and protects against bacterial and viral infections. Barley is cultivated in several countries around the world; with Russia, Australia, Germany, France and Ukraine being the largest producers. A key strength of barley grass powder is that it contains an exceptional range of nutrients including Vitamin B1 and C, and calcium, and it is rich in fibres.

Recent research found that barley grass powder is the best functional food for cell nutrition and detoxification in nutritional and health products all over the world. This is another of its key strengths. In recent years, there is growing consumer awareness about the health benefits of barley grass. As such, barley grass powder is a threat to moringa. However, climate change is a key issue the barley grass industry faces, as it is sensitive to extreme drought and heat. This is one of its key weaknesses.

Figure 3: Barley grass

Source: Eskymaks / Shutterstock.com

Ginger

Ginger in its root, extract and powdered form is another product that competes with moringa, as they share beneficial properties such as improving blood sugar levels and reducing inflammation. It is widely cultivated in parts of the world with tropical and semi-tropical conditions. India accounts for most of the global production of ginger. However, importers of ginger have concerns about the quality and cleanliness of India’s ginger, specifically its adulteration. This is a key weakness. However, ginger is widely cultivated in other countries which include Nigeria, China, Indonesia and Nepal. That is a major strength.

Ginger is used in food supplements because of its wide range of health benefits – another of its key strengths. Health benefits of ginger include improving digestion, blood sugar levels and harmful cholesterol levels, as well as reducing inflammation, nausea and menstrual pain. The European ginger market is expected to grow in the next few years because of increasing consumer awareness of its health benefits, along with its growing use in the healthcare industry.

Figure 4: Ginger

Turmeric

Turmeric is another product that competes with moringa because they share several beneficial properties, such as anti-bacterial, anti-viral, anti-inflammatory and anti-oxidant qualities. 2018 Eurostat data showed that India was the largest exporter of turmeric to Europe in terms of volume. However, industry sources state adulteration is a key food safety issues for turmeric from India, specifically when its supply is low. This is a key weakness. On the other hand, turmeric is widely cultivated in other countries such as Peru, Madagascar, Thailand, Costa Rica and Vietnam, which is a major strength.

Turmeric is used in food supplements and pharmaceuticals because of its active substances which have several beneficial properties, including anti-bacterial, anti-viral, anti-inflammatory, anti-tumour, antioxidant, antiseptic, cardio-protective, hepato-protective, nephron-protective and radio-protective properties. This is another of turmeric’s key strengths. Turmeric can be used in natural health products such as nutritional supplements and it is gaining popularity on the European market. Researchers have named turmeric as a superfood to watch. As such, turmeric is a a threat to moringa, because it has similar properties and it is used in health products for its anti-bacterial and anti-viral properties.

Figure 5: Turmeric

4. What are the prices for moringa on the European market?

The market price of moringa has increased slightly in the last couple of years because of growing demand. The market is dominated by moringa from India. The wholesale price (FOB) of moringa powder ranges from USD 3.5-6 per kilogramme. Organic moringa powder is priced at (FOB) USD 9-11 per kilogramme. The FOB price of moringa oil is around USD 17-20 per litre. Organic moringa oil is (FOB) priced above USD 25 per litre.

The price of moringa is expected to increase further in the future. This is due to rising demand for moringa ingredients as well as negative effects of climate change on moringa harvests. The COVID-19 pandemic has also pushed moringa prices upwards. The lockdown in India caused moringa production to shut down in March and April, disrupting supply chains. It is expected that new pandemic waves in the near future will spike price of moringa further.

Figure 6: Estimated price breakdown of moringa products on the European market

Source: Ecovia Intelligence

This study has been carried out on behalf of CBI by Ecovia Intelligence.

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