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Cosmetics’ Ingredient
Import To European Union

By  Courtesy EXPORT-IMPORT BANK OF INDIA

The leading European Union (EU) markets for natural cosmetic ingredients are Germany, France, United Kingdom and Italy. At the level of product groups, however, there can be other countries. Which are important markets. Spain, for example, is an important market for raw plant material and natural colors.

Trends which have an impact on demand for natural personal care and cosmetic products and consequently on the demand for ingredients include increasing consumer sophistication and interest in all things natural, the entity of mass and prestige market companies and their large advertising budgets, changing demographics (aging population), and increased demand for therapeutic products (cosmeticals).

Most companies source raw material in a host of countries. The material usually passes through many hands before it reaches the manufacturing company with most of the companies finding it hard to obtain satisfactory details on its origin. Many do not consider this important as long as the material meets their specifications and price requirements.

According to CBI, Netherlands, publication “EU Market Survey: 2001, Natural Ingredients for Cosmetics”, a number of partnerships have been created based on the sourcing of raw material, often with the purpose of contributing to environment and social objectives, and sharing commercial benefits. Partnerships of this kind are increasingly common for alternative marketing campaigns.

Some leading industrial users have their own purchasing departments, and major herbal oil producers are tempted to sell directly to industrial users, in order to get better price for their oils.

Nevertheless, traders and brokers still fulfill important functions, like:

* Purchase of oils throughout the world or from specific geographic areas
* Analysis and quality control
* Rectification of oil to fit the commercial standards
* Blending
* Sale to users

There are different types of traders who can be distinguished depending on their area of operation. Enterprises based in the producing countries are mainly involved in the sale and export of local products, usually dealing in large quantities of a few commodities produced locally. Enterprises based in consuming countries are concerned with imports and supply of the domestic market. Lastly, some merchant houses are specialized in international trade of large volume quantities..

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