Entering the European moringa market

To enter the European market for moringa, you must meet mandatory requirements set by the European Union (EU). You also should meet 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 food supplements and food products.

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

What are mandatory requirements?

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 food supplements. As such, this study does not cover these applications of moringa.

If the moringa you produce is used in food supplements, you must comply with:

• European General Food Law, which requires all foods marketed in the EU to be safe and traceable
• Food safety requirements, including those on maximum residue levels (MRLs), contaminants in food and microbiological contamination of food, food hygiene as outlined in the EU’s Hazard Analysis and Critical Control Points (HACCP).
• EU food supplement legislation, which lays down requirements on the composition and labelling of supplements.
• National positive lists for botanicals, which specify whether a botanical is already allowed in food supplements, such as the BELFRIT (Belgium, France and Italy) list which lists the moringa plant.

There have been several registered food safety issues with moringa in the EU’s Rapid Alert System for Food and Feed, which resulted in action being taken, including border refusals.

Although Moringa oleifera is not considered a Novel Food, other moringa species are. This legislation requires that consumer safety needs to be assured for ingredients that were not consumed within the EU before 15 May 1997.

In September 2019 the European Food Safety Authority (EFSA) raised safety objections for Moringa stenopetalaas (African moringa), effectively preventing it from being sold as a traditional food, a specific category under Novel Food regulation. The EFSA could not ascertain whether this species could pose a risk for human consumption due to a lack of information.

Sustainable sourcing

Sustainable sourcing is important to buyers given the supply shortages affecting an ever-increasing number of cultivated, but especially wild-collected species. You can stand out from the competition by implementing Good Agricultural and Collection Practices (GACP) to demonstrate sustainable sourcing. Although this is only mandatory for herbal medicinal products, it is also crucial for ingredients used in food supplements like moringa. 

Demands for sustainable sourcing are expected to increase as a result of the European Green Deal (EGD) launched in 2019. The EGD is a package of actions to reduce greenhouse gas emissions and minimise the use of resources while achieving economic growth. This means that products sold in the EU market will need to meet higher sustainability standards. As a supplier, you may need to put more rigorous traceability systems in place in order to provide the information that your buyers need from you.

Documentation

European buyers of natural ingredients require exporters to provide them with well-structured and organised product and company documentation. Buyers use it to verify whether you meet their requirements. The technical dossier should include Technical Data Sheet (TDS), Safety Data Sheet (SDS) and Certificate of Analysis (COA).

Table 1: Content of the Safety Data Sheet (SDS), Technical Data Sheet (TDS) and Certificate of Analysis (CoA)

What additional requirements do buyers often have?

Quality requirements

The use of moringa is based on its composition, and so 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

Moisture content must be around 8-10% to prevent mould and browning. Buyers favour 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 affect the nutritional profile of moringa powder. The drying process has a particularly significant effect on the nutrients in moringa. Buyers therefore prefer drying methods that preserve as many nutrients as possible. Lower temperatures (~40 degrees Celsius) and shorter exposure to heat (<24 hours) generally result in the preservation of more nutrients.

To minimise variations in quality, you can also develop Standard Operating Procedures (SOPs), which include instructions on how to conduct specific activities in production.

Quality management standards

European buyers of natural ingredients for health products increasingly use quality management standards when assessing the credibility of prospective exporters. These are applied alongside the mandatory HACCP standards. Adopting such standards can give your company added credibility and reputation, as it shows your commitment to delivering high-quality products. It also helps to demonstrate that you comply with mandatory requirements.

Examples include:

• International Organization for Standardization (ISO) 22000 food safety management system certification;
• Food Safety System Certification (FSSC) 22000.

Organic ingredients

To market your moringa as organic on the European market, you must meet European Union regulations. You can find information on EU organic certification on the IFOAM website.

Demand for certified ingredients for health products on the European market is expected to continue to grow. As an exporter of moringa from a developing country, you should consider organic certification when targeting the European market.

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 and identification, including CAS (chemical abstracts service) number
• Batch code
• Country of origin or place of provenance
• Date of manufacture
• Best-before date
• Net 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. Label your products in English, unless your buyer wants you to use a different language.

Packaging requirements

Your packaging will need to preserve product quality and prevent contamination. Buyers therefore prefer suitable packaging for the volume ordered, such as a kraft paper bag lined with high-density polyethylene or polypropylene bag that can hold 25 kilograms for an order of that size.

General requirements that you will have to take into account include:

• Always ask your buyer for their specific packaging requirements.
• If you produce moringa powder, package your product in waterproof material. For example, use paper bags that are lined with plastic. Preferably use an eco-friendly lining (such as bio-degradable or recyclable lining). Importers have been steadily banning certain packaging materials for sustainability reasons, as well as to reduce the cost of purchasing and disposing of packaging. Using biodegradable packing materials can give you an advantage on the market and, for some buyers, it may even be a requirement.
• Store bags or containers in a dry, cool place to prevent quality deterioration.
• If you offer certified-organic moringa, keep it physically separated from moringa that is not certified.

Payment and delivery terms

For both importers and exporters, Letters of Credit (LC) is thought to be the safest payment term. 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 once goods have been dispatched. Other payment terms include cash in advance, documentary collections and open account.

When agreeing delivery terms with European buyers you must carefully consider the delivery time, volume/quantity of the order and costs. Larger buyers and distributors commonly order moringa in container loads, with around 10-22 tonnes per delivery, according to one buyer. Smaller buyers often buy quantities of 1 tonne or more directly from EU distributors, rather than importing it directly. Importing of a small quantity is not usually cost-effective due to the freight and logistics costs. 

The International Chamber of Commerce has developed a set of international commercial terms (Incoterms). These provide guidance on delivery terms and other trade aspects such as packaging or preparing a certificate of origin. The most common Incoterms for moringa are FOB (Free on Board) and CIF (Cost, Insurance and Freight).

What are the requirements for niche markets?

Meeting environmental and social standards

European consumers and retailers are putting increasing pressure on companies to ensure their products are made in accordance with social and environmental standards. Some European health product manufacturers have made meeting environmental and social standards part of their policy and strategy.

Whether or not European moringa buyers are interested in certified ingredients depends on the type of health product they produce and how they communicate regarding sustainability with their customers. If moringa is presented as a food product, such as in powder form, certification is more common than for moringa that is sold in tablet/capsule form.

Examples of fair-trade standards include Fairtrade International, Ecocert Fair Trade and Fair for Life

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

On the European market, moringa leaves and leaf powder are used in the food and food supplement industries.

How is the end-market segmented?

The European moringa market can be segmented by end-users for food supplements and the food industry. Figure 1 gives example of moringa products on the European market according to end-user segmentation.

Figure 1: End-market segmentation for baobab products

Sources: Purasana, Bol.com, Holland & Barrett, Amazon.co.uk

Food supplements

Global demand for moringa ingredients was estimated at US$5.8 billion in 2018 and predicted to grow by 8.9% between 2019-2025. Of the total global market of US$10 billion in 2025, the European market is predicted to be US$2 billion. Moringa powder is sold in the form of capsules or powder.

Moringa powder is used in food supplements because of its beneficial health properties. Based on its composition, moringa is commonly marketed in the EU as supporting immune health, improving general health and increasing energy levels.

Europe has many food supplements manufacturers. In addition to several large (multinational) players, many local players exist as well. Examples of manufacturers include Pharma Nord (Denmark), A. Vogel group (Switzerland), Abtei (Germany), Purasana (Belgium), Naturando (Italy), Natures Aid (UK) and Simply Supplements (UK).

Food industry

Moringa leaves and leaf powder 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.

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. This figure shows that farming, processing and exporting activities in countries of origin are often combined in the same company. Similarly, many European importers combine different activities. They can often package moringa under their own label or under the label of their customer.

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 to become leaf powder.

Figure 2: Export Value Chain for Moringa

Source: ProFound

Importer / Distributor

The majority of moringa enters the European market through importers. 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. Some importers in Europe import moringa leaves and process them in Europe.

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.

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. Unlike importers/distributors, agents do not buy products themselves but contact potential customers on your behalf to sell your products. 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

European processors play a relatively small role in the moringa value chain. Since moringa leaves need to be processed soon after harvesting, most processing takes place in the country of origin. European processors may be involved in the standardisation of moringa leaf powder for protein content or the content of specific vitamins, for example.

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 base in terms of 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.

If you have the human resources/staff available, you could supply end-product manufacturers directly and get a better price. To supply these players directly, you must have impeccable company and product documentation, and you will need to ensure a consistent quality and quantity. You will also need to improve your logistics so that you can deliver smaller quantities at a short notice, and convince manufacturers to add another supplier instead of using an existing supplier, which will be difficult.

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

What countries are you competing with?

It is estimated that India accounts for around 80 percent of the global moringa supply. Moringa is also produced in countries such as the Philippines, Bangladesh, Pakistan, South Africa, Ghana, Mozambique, Kenya, Zambia, Pakistan, Brazil and Peru.

Exporters in countries that produce smaller amounts of moringa and who are asked to produce moringa in large volumes and meet high standards of quality, including certified-organic moringa, often face difficulties when in the collection, standardisation and certification processes. Because farmers tend to be small-scale and dispersed, collection and inspection are expensive and it is difficult to achieve a uniform quality. African moringa usually meets requirements on pesticides but can suffer from microbiology issues according to one moringa buyer.

India

India’s strong market position is due to its long tradition of including moringa in people’s diets. Today, moringa leaf powder is produced by large plantations at a comparatively low price. India’s national government, as well as its individual states, also actively support the country’s moringa industry.

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 is sometimes of poor quality and contaminated, specifically with pesticide residues, even in certified-organic moringa. Several European buyers complained that they had to stop importing moringa from India citing inconsistency and lack of quality, bribery and corruption. Speedy delivery can also be an issue when sourcing moringa from India. However, Indian moringa suppliers offer very competitive prices.

Buyers have indicated that recently there have been issues in contamination with Ethylene Oxide (ETO) gas in Indian shipments of various products. This gas is sometimes used to sterilise spices and packaging materials. The EU’s Rapid Alert System for Food and Feed (RASFF) also checks for ETO contamination in moringa from India. One buyer of moringa indicated that Indian companies are increasingly targeting the US market for moringa as a result of these contamination issues and disagreements with the EU over certification standards. This could provide opportunities for suppliers from other countries.

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. 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 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 (African moringa) 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 is leading a project that aims to plant around 75,500 moringa trees, as well as 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?

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

• High quality: European buyers struggle to source high-quality moringa, meaning moringa with a high concentration of nutrients (such as antioxidants activities and vitamins), bright green in colour instead of brown or yellow, and with a good taste profile.
• Organic certification: India dominates the market for conventional leaf powder, but struggles to meet strict European requirements for organic moringa. According to European buyers, several shipments of organic moringa from India contained pesticides that are banned in the European organic market. These problems have resulted in stricter checks on Indian organic moringa, creating opportunities for other suppliers with an organic certificate.
• Marketing story: maybe you work with smallholder farmers or support rural communities, for example.

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. Other moringa companies from India include Aayuritz, Mother Herbs and Organic India.

Indian companies also compete in the standardisation of moringa. Some even produce ingredients registered as intellectual property. For example, Sabinsa produces a standardised ingredient from dried Moringa oleifera leaves with a standardised minimum level of antioxidant activity.

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. 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. The company also provides benefits and services 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.

Examples of other African companies that are entering the market for moringa include:

• Botanica Natural Products from South Africa
• Moringa Connect from Ghana
• me Moringa from Kenya
• Moringa Malawi from Malawi

These companies differentiate their moringa products from Indian products by focusing on 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.

What products are you competing with?

Which products you will compete with on the European market depends on how the products are used. This section includes three examples of products with a high nutrient content which are marketed for a wide range of health benefits. Barley grass and the seaweeds spirulina and chlorella have a similar taste profile to moringa. Turmeric is another ingredient that originates from India, is marketed for a very wide range of health benefits in Europe, similar to moringa.

Barley grass

Barley grass derived from Hordeum vulgare (commonly known as barley), 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 according to FAO. 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.

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. 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: Canva

Spirulina and chlorella

Edible algae, such as spirulina and chlorella, is a niche market that is predicted to grow as European consumers become more aware of the nutritional benefits of seaweed. Edible seaweed falls into several categories such as red, green and brown algae. In recent years, there has been increasing demand for green algae spirulina and blue-green algae chlorella because of their wide range of health benefits. Spirulina and chlorella are therefore competitor products to moringa.

The health benefits of spirulina include being high in omega-3 fatty acids, riboflavin, thiamine, iron and copper. The health benefits of chlorella include riboflavin, thiamine, iron and copper. Spirulina and chlorella are therefore rival products to moringa.

Figure 4: Spirulina tablets and powder

Source: Canva

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 8-30 per kilogramme. The CIF price of moringa oil ranges between EUR 20-40 per litre.

However, there is still a lot of cheap low quality moringa on the market. Price of moringa hugely depends on the quality.

Figure 5 gives an example of the price breakdown for moringa exported from Zambia to Germany, which is sold on the Dutch market through an online retailer.

This study was carried out on behalf of CBI by ProFound – Advisers In Development.

Please review our market information disclaimer.