The European market potential for moringa oil for cosmetics

Germany: largest cosmetics market provides opportunities

Germany is Europe’s largest retail market for cosmetics, valued at €13.3 billion in 2022. It also has the largest market share of European natural and organic cosmetics. Germany is Europe’s second largest exporter of cosmetics and stands out globally with a 6.2% share in total beauty product exports.

Germany is among the 10 largest importers of vegetable oils in Europe. In 2022, the country imported over 17 thousand tonnes of vegetable oils (valued at €101 million), accounting for 8.0% of total European imports in value and 4.1% in volume. However, between 2018-2022, imports of these products have fallen on average by 1.7% each year in value and by 4.2% in volume. This drop is associated with the negative impact of Covid-19 pandemic.

About 30-40% of German imports of vegetable oils come from non-European countries, which provides opportunities for moringa oil suppliers from different regions including developing countries. Although it is not possible to determine how much of these imports are moringa oil, Germany is estimated to be among the largest importers of moringa oil in the world.

Examples of German companies already formulating and selling products with moringa oil include Logona, Balmyou, Bio:Végane Skinfood, That’s me organic, and Moricare. Logona is a pioneer of natural cosmetics in Germany. This company sells an organic sensitive shampoo containing moringa oil intended for irritated and dry scalps. Like all products, the shampoo is Bio and Natrue-certified. Bio:Végane Skinfood is a German manufacturer of natural cosmetics, specialising in healthy "skin nutrition". All products are certified according to Natrue guidelines and are 100% vegan. Among their active ingredient lines, they offer products with moringa oil such as serums, creams, and glow fluid. Moricare stands out because its entire range of products has moringa as an active ingredient, in combination with other natural products. The company offers Natrue-certified vegan products such as moisturizers, anti-ageing creams, serum, eye contour, cleansing gel and facial toner.

France: largest importer of vegetable oils in Europe

France is the second-largest retail market for cosmetics in Europe, valued at €12.9 billion. France is also the main exporter of cosmetics in Europe, along with Germany. In 2022, both countries dominated over 50% of total EU exports, with a shared value of €13.6 billion. France is also among the world’s leading exporters of beauty products. In 2021, France had a 17% share of global beauty product exports.

France has a large cosmetics manufacturing industry, with the second-largest number of cosmetics manufacturing SMEs in Europe (1,389 companies). Some French manufacturers of natural cosmetic products already have beauty and personal care products made from moringa oil. Examples include: Garnier SO’BiO étic offering micellar water with moringa seed oil, Lady Green Paris selling a purifying cleansing foam and a gel containing moringa oil, and Nuxe offering moisturising creams, anti-ageing creams, and micellar cleansing water.

France is the world’s third largest importer of vegetable oils and oilseeds and the largest importer in Europe, both in value and volume. In 2022, French imports accounted for a share of 18% in value and 17% in volume of total European imports of vegetable oils. Since 2018, imports grew at an average annual rate of 1.4% in volume and 11% in value, reaching 73 thousand tonnes imported in 2022 (€235 million).

France is also a relevant import hub for vegetable oils from non-EU countries. In 2022, about 20-30% of French imports came from non-European countries such as Burkina Faso, Argentina, Morocco, Kenya, and Peru. This provides opportunities for suppliers from developing countries.  To illustrate, there is a network of French distributors that sources moringa products including moringa oil from a company called Moringa Wave Sarl located in Madagascar.

The Netherlands: largest import hub for vegetable oils from non-European countries

The Netherlands is the second largest importer of vegetable oils in Europe, both in value and volume. It is also among the top 5 importers in the world. The Netherlands has a share of 11% in the total value of European imports and 13% in terms of volume. In 2022, Dutch imports of vegetable oils reached a volume of 57 thousand tonnes (€141 million), representing an average annual growth of 3.0% in volume and 8.5% in value since 2018.

The country is the major European import hub for vegetable oils from non-European countries. More than 50% of Dutch imports come from countries outside Europe, such as Ghana, China, Burkina Faso, Vietnam, and Thailand. In 2022, from 57 thousand tonnes imported, 31 thousand were sourced from non-European countries. As a large import hub, the Netherlands has a significant number of distributors of natural cosmetic ingredients. Among them are Sigma Oil Seeds. This might be a good indicator for exporters of vegetable oils from developing countries, including suppliers of moringa oil.

There are a few Dutch manufacturers selling products with moringa oil such as Love Beauty and Planet selling moringa oil shampoo and conditioner, and Marzou offering organic moringa oil as a daily moisturizer.

Italy: cosmetics manufacturers formulate with moringa oil

Italy ranks as the third-largest European market for cosmetics, with a value of €11.5 billion. Italy is a growing market. Between 2021 and 2022, the Italian cosmetics industry recorded a growth of 8.1%. This positive trend is expected to continue for 2023, and the industry is forecasted to grow 7.7%.

In 2022, Italy had the fourth highest import value of vegetable oils, with an 8.5% share in total European imports of vegetable oils. The value of vegetable oil imports from this country grew significantly in the last 5 years, at an average rate of 19% each year, reaching €108 million in 2022. The volume of imports also shows a positive trend. In 2022, Italy imported 28 thousand tonnes of vegetable oils and has recorded an average annual growth rate of 8.9% since 2018. 

There are several manufacturers in Italy who are already formulating and selling cosmetic products with moringa oil. Good examples include: N&B Natural is Better, Naturalis, Sole Toscana and Arrival. All these companies are natural cosmetics manufacturers, offering Natrue-certified products. Among their range of products, these companies sell cosmetics with moringa oil such as hair treatments, hair conditioners, shampoos, and body wash.

Spain: outstanding growth of vegetable oils imports

Spain is the fifth-largest market for cosmetics, with a value of €9.3 billion in 2022. Like Italy, Spain is a growing market, expected to grow rapidly for the foreseeable future. Between 2021 and 2022, the Spanish cosmetics market grew by 10.6% while Spain’s beauty exports grew by 23%.

Spain is among the top 5 European importers of vegetable oils in terms of value, with a share of 8.2% in total imports. The value of vegetable oils imports from this country has grown strongly in the last 5 years. In 2022, Spanish imports of vegetable oils were valued at €104 million, corresponding to an average annual growth rate of 45% since 2018. The volume of imports also shows a positive trend. In 2022, Spain imported 31 thousand tonnes, corresponding to an average growth of 37% each year during the period 2018-2022.

Tips:

• Focus on Western European countries as they import the highest volumes of exotic vegetable oils (HS code 151590). They also have the largest cosmetics markets.
• Be flexible in your offer to European customers. Don’t get fixed on large minimum order quantities. Offer solutions that make you an attractive supplier and look to the long term.
• Consider obtaining NATRUE certification or approval for your moringa oil. NATRUE-certified cosmetic products are very common among European manufacturers working with moringa oil. Offering ingredients with these recognitions could be very valuable to some potential buyers.
• Educate potential buyers on the uses and benefits of moringa to help them promote moringa effectively and build interest in moringa oil in the European market.

4. Which trends offer opportunities or pose threats on the European moringa oil market for cosmetics?

Moringa oil benefits from the growing wellness trend in the European market. European consumers are looking for health-focused products and more natural and organic ingredients. Changing preferences are leading consumers to evaluate product attributes and research ingredient properties. It is therefore becoming increasingly important for companies to formulate products containing natural and active ingredients such as moringa oil.

Consumers are shifting their perspective on beauty with a focus on wellness and health

The beauty and cosmetics market is driven by a growing wellness trend. Consumer values and preferences are shifting towards a more holistic approach, in which beauty encompasses not only physical appearance, but also health and wellness. Most consumers now perceive or define beauty as “looking healthy” and they are demanding products that are good for their skin with a focus on health, wellness and environmental implications.

While wellness has long been an important trend, the pandemic accentuated its importance, as consumers felt more vulnerable. Euromonitor identifies wellness as one of the top 10 trends shaping consumer behaviour, attitudes, and consumption choices in the long term. In response to this growing trend, industries are merging their traditional portfolios with new health needs.

Moringa oil as an active ingredient fits well into this overall context. In the EU, moringa has been marketed as supporting immune health, improving general health, increasing energy levels, improving digestion, and managing weight. Nowadays, there is a certain level of consumer awareness of the nutritional and health benefits of moringa. Due to the use of moringa as an ingredient in health products (food supplements), consumers can easily associate moringa oil with health and wellness. This creates opportunities for moringa oil and its suppliers.

In addition, there are some key aspects of this trend with which moringa is very much in line. For example, the idea of achieving beauty through overall health is promoting the integration of superfoods into beauty products. Moringa is considered a ‘superfood’ due to its high nutrient and protein content, the associated health properties and its high level of antioxidants. Also, there is a growing preference for products that help to maintain the skin’s natural health, rather than products providing temporary and superficial solutions. Moringa oil not only benefits the skin as an emollient and conditioner but is also perceived to have detoxifying properties that can help protect the skin.

Moreover, in Europe, there is an increasing trend to use exotic food ingredients in personal care. Avocado, baobab, mango, marula, moringa, acai, goji berry and papaya are getting more popular in the European cosmetics market. Interest in such components may be fuelled by the associations consumers make with particular ingredients. As indicated above, moringa is a known health supplement and consumers may be more willing to use moringa oil in cosmetics because of the associations they make with the ingredients.

Consumers are increasingly looking for natural and organic ingredients

Sustainability is taking centre stage for many beauty consumers, and they are choosing products made with natural and organic ingredients, produced in an environmentally responsible way, and which come in sustainable packaging. The demand for natural and organic cosmetics is rising sharply due to growing consumer inclination toward ‘cleaner, greener beauty’, especially among millennials and Gen Z. As consumers (and manufacturers) continue to move towards natural and organic beauty products, the demand for ingredients like moringa oil is likely to increase.

There is a strong public perception in Europe that natural ingredients are safer and healthier than synthetic substitutes. In addition, the use of natural and organic beauty products is associated with minimising negative impacts on the environment. Consumers are therefore more aware of the ingredients used in their cosmetic products and are increasingly choosing products with natural and organic ingredients. By 2021, searches for ‘natural ingredients makeup’ increased 180% year on year. There is a strong interest in natural oils, as stated by Spate's Top Rising Ingredients report.

The European cosmetics market has a strong focus on natural and organic. Certification and standards are important in this market as they provide a guarantee to consumers that products meet certain criteria for natural and organic products. In fact, Europe has the highest number of products and companies certified as COSMOS organic, the most widely used international standard.

To meet consumers’ evolving needs, key market players are launching natural products and using new and exotic ingredients aiming to differentiate themselves. Many skincare brands also now offer products with an ‘organic’ label to increase their visibility among consumers. Today, European cosmetics brands not only have to meet consumer expectations, but they are under increasing pressure to adopt sustainable practices driven by the European Green Deal and related regulation.

Rational purchase allows opportunities for new products and ingredients

Consumers have a more rational purchasing behaviour, which leads them to check the ingredients and properties of cosmetic products before buying them. As a result, consumers are learning about new ingredients such as moringa oil and are also more willing to try them.

EU legislation requires cosmetics companies to publish the detailed list of ingredients contained in each product. Consumers are paying more attention to ingredient formulations, especially in the skincare segment. In 2022, 19% of global consumers were influenced by ingredient formulation when purchasing skincare products, up from 17% in 2021. 

This means that a larger share of consumers now evaluate the attributes of a product thoroughly before purchasing it, researching about ingredients and their benefits. Services such as INCIDecoder have emerged to allow consumers to check ingredients in beauty products.

Moringa Connect (Ghana) has tapped into this trend to promote its cosmetics brand True Moringa. On their websites they make a clear exposition of the components (nutrients and antioxidants) of moringa, and the benefits of moringa oil for the skin, claiming that it helps fight premature ageing, combat dryness and care for damaged skin. To encourage consumers to try and buy the products, True Moringa links its cosmetic products directly to the benefit the consumers want to obtain. It even offers customers a quiz to find out what their skin needs are and then shows them branded products they should use. They also display previous user reviews so that customers can rely on them when making their purchase decisions.

Tips:

• Have a look at our study about trends for natural ingredients for cosmetics for more market trends and information on organic and fair trade cosmetics.
• See our study on buyer requirements for natural ingredients for cosmetics for more information on certifications for natural/organic cosmetics. Always discuss these options with your buyers.
• Be prepared to support any statements that you make with documentation. Increasingly, you also need to prove your policies on Corporate Social Responsibility (CSR).

Fair Venture Consulting and ProFound – Advisers In Development carried out this study on behalf of CBI.

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