Exports of essential oils from the Caribbean are soaring, reaching over EUR32 million last year according to trade agency Caribbean Export. With the European cosmetics market growing at an annual rate of 8-10% and worth over EUR77 billion, this is a rich avenue for Caribbean producers who can capitalise on the region’s natural biodiversity to offer not just essential oils but other unique and healthy products that tap into the lucrative natural cosmetics market.
All natural
Cosmetics are one of the largest markets in the world, and especially profitable in Europe – one of the region’s biggest trading partners. And European clients are more distinguishing than most. Around half of British customers prefer to buy cosmetics with natural ingredients, according to Caribbean Export and sales of natural/organic beauty products grew 14 per cent last year to reach GBP86.5 million.
“More and more people are conscious not only about what they put into their bodies, but also what they put on their skin,” says Damie Sinanan, Manager of Competitiveness and Innovation at Caribbean Export. “People are realising that the skin is a major organ and harmful chemicals can penetrate through their skin, causing major harm in a similar manner to habitually ingesting unhealthy food. Therefore people are looking to not only be healthy on the inside, but also on the outside.
“There is a great opportunity for Caribbean producers to capitalise on this growth trend and market to the European consumer.” Natural cosmetics may be a niche within the wider industry, but it still has many applications and opportunities. Essential oils are one of the fastest growing areas – with exports from CARICOM to the EU growing by 33 per cent in the past year. These include bay oil, allspice and pimento among others. Essential oils have a myriad of uses. They can be used in aromatherapy or as ingredients in moisturizers, shampoos, face wash and other beauty products.
The movement towards wellness and health has transformed markets worldwide, and the cosmetics industry is no different. Consumers check labels for all sorts of reasons – health concerns, allergies, environmental issues, a desire to promote ethical agriculture. The terms ‘organic’ or ‘fairtrade’ now have a currency of their own, and manufacturers are looking overseas to find unique ingredients that are grown sustainably and with strong environmental credentials.
In the Caribbean, this provides an opportunity across the entire agricultural sector. Coconut oil, the stalwart of the market, has always been a popular export thanks to its moisturizing properties but is now gaining more attention as its antibacterial and antimicrobial characteristics become more well-known. Another big earner in the region is castor oil, long used as a moisturizer, skin soother and hair conditioner.
“We believe aloes and coconuts would be two of the key ingredients that are seeing huge demand. Also products such as black castor oil, found in Haiti and Jamaica,” says Sinanan who points out that this demand creates space for all types of sectors from tourism to agriculture. “This is a huge opportunity for the Caribbean to play a part in all areas of the value chain. From an agricultural point of view, for the farmers to grow and harvest the natural products in sustainable and organic ways. Manufacturing in the region, producing the cosmetics, essential oils and natural foods and finally, from a tourism point of view, the tourist coming to the region to detox and spend time away in retreats where they have a truly natural, holistic experience. The Caribbean is a prime location for this kind of tourism.”
Getting the word out
Caribbean cosmetics may have a growing foothold in the European market, but there is still plenty of untapped potential in the sector. One of the most challenging obstacles for producers is ensuring that products meet international packaging and labelling requirements. Sinanan explains: “This is critical because otherwise your product may not be able to be sold in certain channels such as retail or wholesale. This will limit manufacturers to direct consumer sales.” He also points to the challenge of capacity, with some smaller businesses unable to fulfill orders, meet deadlines or afford shipping and other logistics costs.
Caribbean Export works with regional firms to support them as they take their products beyond borders. The group provides mentoring, technical support, information on market demand and valuable exposure in the form of trade shows and forums. The 4th CARIFORUM-EU Business Forum takes place in Frankfurt in September and 18 Caribbean cosmetics and neutraceutical firms are set to attend, including St Lucian success story Natmed which was founded by naturopathic doctors and produces skincare, suncare and herbal products.
“The business forum is really about enabling Caribbean companies to meet with buyers and also consumers,” says Sinanan. “From a buyer’s perspective, while they may like the idea of travelling around the Caribbean to source new products, having a range of companies from across the region all in one place makes it easier for them. They get to see multiple products, speak to companies directly and make buying decisions in a much more cost-effective manner. Events in the target markets are important, not only for relationship building but also because firms get the opportunity to get direct consumer feedback. This is invaluable market research.”
Sinanan predicts a profitable future for the natural cosmetics niche, provided Caribbean firms can achieve more recognition in the market and capitalise on their strengths, saying: “The natural cosmetics market is definitely growing and will continue to grow. It’s up to the Caribbean to be a part of this growth and position itself to leverage demand.”
