CBI Product Factsheet: Carrot seed oil for cosmetics in Europe

Practical market insights into your product Carrot seed oil, produced from wild-collected carrot seeds, is in limited supply. However, demand for this oil is higher than the amount of product available. The main barrier for entering the market is securing sufficient supplies of the raw material. The wild carrot plant grows in different regions in the world, but collection of its seeds for oil production is labour-intensive. The shortage of oil supplies and the potential to cultivate wild carrot provide DC exporters with opportunities to produce this oil.
Product definition
Wild carrot (Daucus carota), also known as Queen Annes Lace, is a biennial flowering plant in the Apiaceae family. The domesticated carrot is a cultivar of a subspecies of the wild carrot (Daucus carota ssp sativa). The seeds of this subspecies are not suitable for essential oil production. Considered a weed in most countries, the plant is native to the temperate regions of Europe and southwest Asia, and it has been naturalised in North America and Australia. It grows on rough grasslands, coastal cliffs and dunes. Care should be taken, as the leaves of the wild carrot closely resemble those of the poisonous species poison hemlock (Conium maculatum), water hemlock (Cicuta maculata) and fools parsley (Aethusa cynapium). Wild carrot flowers in summer (end of June) and sets seed in late summer/autumn. The plant is not sensitive to frost and can survive the winter if the root crown diameter is at least 3.2 mm. The wild carrot is sometimes cultivated as an ornamental plant, particularly in meadow areas of wildlife gardens. However, the plant reproduces by seed and can be prolific. It should be prevented from going to seed in a garden situation. The wild-harvested seeds from the wild carrot are used to obtain an essential oil through steam distillation. The entire plant can yield essential oil, however. Sometimes the oil is confused with an infusion of carotenoids from domesticated carrots that produce a vegetable oil. Most of the production of carrot seed oil takes place in India and France. The yellow to orange-brown oil is used in the cosmetics, aromatherapy and flavour industries. Classification of carrot seed oil: Chemical Abstract Service (CAS) number: 8015-88-1 Harmonised System (HS): within the EU / EFTA, carrot seed oil does not have a separate HS code. Instead it would be classified under: o 3301.29: essential oils other than citrus and mint oils Cosing, the European Commission database with information on cosmetic substances and ingredients, lists several derivatives of carrots and their seeds under their INCI names. o Perfuming name: Daucus carota fruit oil, with perfuming properties.
Wild carrot

Carrot seed oil

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CBI Product factsheet: Carrot seed oil for cosmetics in Europe

INCI name: Daucus carota sativa seed oil, with emollient, masking and skin conditioning properties. UN number: 1169, Class 3, Packing Group III The International Fragrance Association (IFRA) has identified maximum levels of limited substances in carrot seed oil. o

Product specification
Quality The main component of carrot seed oil is carotol. Its level varies between 40-70%. Other constituents include -pinene, pinene, sabinene, myrcene, -terpinene, limonene, -bisabolene and geranyl acetate. Due to the low availability of the oil, buyers do not require oil with a specific carotol level. Providing an oil with a certain composition is less important than offering a pure, unadulterated oil. To be of optimum quality, carrot seed oil must be 100% natural (i.e., not adulterated through the addition of any chemicals) and 100% pure (i.e., not mixed with or infused in any other oils that have similar characteristics). In order to initiate the growth of the plant, wild carrot seeds require large amounts of water. Therefore, the plant grows best in regions with high rainfall. The IFRA has identified maximum levels of geraniol (<2 %) and methyl eugenol (<0.5 %) in carrot seed oil. Considerations for action: Work with botanists to identify the available sources of wild carrot in your country. Take care not to confuse it with other species, especially those that are poisonous, in particular poisonous hemlock, water hemlock and fools parsley. Work together with a local university department or laboratory to determine the composition of your carrot seed oil, including the level of carotol. Information on the chemical profile by (accredited) laboratories of the oil is important to buyers and should be part of your Product Factsheet and specifications. You should do a feasibility study to determine whether your oil has sufficient potential in the market, looking into its functionality, safety and market opportunities (also based on price and availability). Use the extraction method (temperature, pressure, time) consistent with buyers preferences and specifications. Prevent dilution, adulteration and contamination by foreign materials (e.g. synthetic -pinene or other monoterpenes) to preserve you reputation. Importers regularly analyse products for adulteration and contamination.

Labelling Facilitate the traceability of individual batches with markings and a registration system, whether they are produced by blending or not. Use the English language for labelling unless your buyer has indicated otherwise. Labels must include the following: o Product name/INCI name o Batch code o Place of origin o Name and address of exporter o Date of manufacture o Best before date o Net weight o Recommended storage conditions o Organic: Name/code of the inspection body and certification number. Ensure the buyer can access the following documentation: o Technical Data Sheet (TDS) or Specification, including CAS number, check this example of a TDS of frankincense oil o Certificates of analysis to support the claims of the specification, check this example of a certificate of analysis of peppermint essential oil o Safety Data Sheet (SDS), check this example of an MSDS of carrot seed oil o GMO certificate (if requested)

Hazard label

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CBI Product factsheet: Carrot seed oil for cosmetics in Europe

o Certificate of origin o Product information sheet o Allergen declaration, check this example of carrot seed oil Carrot seed oil is classified as a hazardous liquid; include the relevant symbols (as shown on the right) to indicate that the product is dangerous for the environment (N), harmful (Xn) and flammable. Also include the risk phrases with the following numbers: R10-22-43-51/5365, and the safety phrases with the following numbers: S24-37-46-61-62. EU Directive 2001/59/EC elaborates on these and other risk and safety phrases.

Packaging Always consult with your buyer for specific packaging requirements. Use UN approved packaging, as specified by your buyer. For more information, check the details provided by the European Federation of Essential Oils on the transport of dangerous goods. Ensure the preservation of the quality of carrot seed oil by: o Using containers of a material that does not react with constituents of the oil (e.g. lacquered or lined steel, aluminium). o Cleaning and drying the containers before filling them with oil. o Filling the headspace in the container with a gas that does not react with constituents of the oil (e.g. nitrogen or carbon dioxide). Facilitate the re-use or recycling of packaging materials by, for example, using containers of recyclable material (e.g. metal). Store the containers in a dry, cool place to prevent quality deterioration. Organic oils should remain physically separated from conventional oils.

Food grade containers

Legislative requirements
EU Cosmetics Regulation: The Cosmetics Considerations for action: Regulation includes, amongst others, Familiarise yourself with EU legislation on requirements (physic-chemical, microbiological & Cosmetic ingredients and products. If you toxicological) for substances/ingredients to be can provide all the information needed in the included in each Cosmetic Cosmetics product information file, you can offer your manufacturers and ingredient producers buyer a better package. Also ask your buyer increasingly place the responsibility for for advice on legislative requirements. For compliance on their suppliers. more information on product safety reports, check EU Regulation 1223/2009. Globally Harmonised System for the Familiarise yourself with the EC Regulation classification, packaging and labelling of 1272/2008 on the classification, packaging chemicals: The EU sets requirements for the and labelling of chemicals. You can access packaging of chemical substances, as well as the such information through the European required symbols and phrases warning users and chemical Substances Information System providing safety advice that should be used on (ESIS). the labels. REACH is the requirement for EU importers and manufacturers of chemicals to register imports and/or production of chemical substances. There are some exemptions for natural and unmodified extracts, but the burden of proof rests with the EU manufacturer/importer who wishes to use this exemption. CLP: The classification, labelling and packaging of substances and mixtures (EC 1271/2008) is based on international legislation the Globally Harmonised System (GHS) Product Liability Directive: This directive states that the EU importer is liable for the products put on the European market. In Familiarise yourself with REACH regulation. The European Chemicals Agency (ECHA) offers guidance on exemptions.

Familiarise yourself with UN GHS and the EC 1271/2008, which is aligned with this legislation. Be aware that EU importers can pass on a claim for defective products to exporters.

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CBI Product factsheet: Carrot seed oil for cosmetics in Europe

principle the EU importer can, however, pass on a claim to the producer/exporter depending on contracting arrangements. Packaging and packaging waste: Among other requirements, EU packaging legislation restricts the use of certain heavy metals. Make sure you comply with the EU legislation on packaging.

Non-legislative requirements
Good Manufacturing Practices: GMP is not obligatory for producers of cosmetics ingredients, but compliance can provide a competitive advantage on the European market. See the GMP Guide for cosmetic ingredients. Quality safety management: ISO 9001:2008 sets out the criteria for a quality management system. The standard is based on several quality management principles including a strong customer focus, the motivation and support of top management, the process approach and continuous improvement. Considerations for action: The European Federation for Cosmetic Ingredients (EFfCI) provides a guide that defines specific GMP principles for cosmetic ingredient manufacturers. Moreover, ISO Good Manufacturing Practices for Cosmetics (ISO 22716:2007) includes a chapter on how manufacturers should deal with raw materials. Making it easier for your buyer to comply will provide you with a competitive advantage.

International Fragrance Association (IFRA): IFRA Standards form the basis for the globally accepted and recognised risk management system for the safe use of fragrance ingredients and are part of the IFRA Code of Practice. Regulation (EC) 834/2007 on organic agriculture: Standards for organic cosmetics mentioned below require certain thresholds of organically certified organic ingredients to be used in certified cosmetics products. Organic ingredients need to comply with requirements regarding the production and labelling for organic products as established by the EU. This regulation legally only applies to food products, but standards for organic cosmetics are based on this regulation. Supplier Ethical Data Exchange (SEDEX): SEDEX offers an online database that allows members to share information on Labour Standards, Health & Safety, The Environment and Business Ethics depending on the particular industry and role in supply chain.

Since carrot seed oil can be used as a fragrance in the cosmetic industry, check the IFRA Code of Practice on the associations risk management system. If you choose to obtain a certificate for organic production, find out more about Organic production and labelling. French buyers prefer certificates issued by Ecocert

Cosmos and NATRUE standards: These standards, and other standards of national certification bodies, specify what cosmetic products need to comply with to be certified natural and organic. Although not directly applicable to ingredient producers, it is important to be aware of these standards in terms of permitted processes and additives. Documentation: Buyers need well -structured product and company documentation. Buyers generally require detailed specifications supported by certificates of analysis and Safety

Use SEDEX information to familiarise yourself with responsible business practices. Share your companys information on ethical and responsible practices, such as selfassessments, audits and certifications efficiently with your buyers on the online database of SEDEX. Find out more information on the standards of Cosmos and NATRUE. Prepare and publish a code of conduct that defines your social and environmental responsibility as an employer and supplier.

For your own internal purposes, it is advisable to prepare a more detailed dossier with all the technical data from both primary and secondary research.

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CBI Product factsheet: Carrot seed oil for cosmetics in Europe

Data Sheets (SDS).

Representative samples: Your sampling method should result in lot samples that represent what you can deliver in terms of quantities, quality and lead time as specified by the buyer and in your technical data sheet. Delivery terms: Pay attention to strict compliance with delivery terms as agreed upon with your buyer.

Preparing a Safety Data Sheet (SDS) can pose technical challenges, especially for new ingredients. Consider seeking qualified advice. Check websites of European companies for examples of an SDS, e.g. The Soap Kitchen or Eramex. Buyers will appreciate a commercially oriented Product Data Sheet with photos, information on origin and bibliographic references, where available.

Website: European buyers look for credible suppliers. You can improve the perceived credibility of your company by developing your website accordingly.

Familiarise yourself with international delivery terms. Ensure that your customers receive a copy of your terms and conditions of sale before agreeing the sales contract. See the websites of Earthoil, Azelis and Seatons for examples of terms and conditions. The Synthite website provides a good example of a website that enhances the credibility of a company. This website has a professional image with clear and relevant information on the company and its product range.

Trade and Macro-Economic Statistics

(!) No specific trade statistics are available for carrot seed oil. They are included in the trade data on essential oils, non-deterpenated, other than those of citrus fruit, mint, niaouli and ylang-ylang. Limited supply of carrot seed oil Considerations for action: The world market for carrot seed oil is Take advantage of the lack in supply of carrot estimated at 10-14 tonnes per year. In seed oil by commencing production of the oil. comparison, markets for other essential oils (such as citrus oils) can amount to several thousands of tonnes annually. Industry sources estimate that the supplies of this particular oil are insufficient to satisfy global demand. Carrot seed oil is mainly produced in France Explore your potential for securing sufficient and India. However, the wild carrot plant is wild carrot seeds for essential oil production native to other countries in Europe, Asia, by working with collectors of the seeds, for North Africa and North America as well. These example. countries have the potential to commence production of the oil. However, since collection of the seeds is labour-intensive, production in developed countries may be too expensive to be feasible. Production of wild-harvested carrot seed oil in France is mostly non-organic. Industry sources have indicated that 80% of the production is used for processing in the domestic cosmetics industries, especially as a fragrance ingredient in perfumes. Oil production in France is assumed to be closely related to the cosmetics industry in the

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CBI Product factsheet: Carrot seed oil for cosmetics in Europe

country. End products that contain carrot seed oil are exported. India produces more organic carrot seed oil. Production is generally destined for exports to Europe, the USA, Australia, South Africa and Japan. In Europe, the leading importers of carrot seed oil are Western European countries. These include Italy, France, Spain, Germany, the UK and some Northern European countries. Due to the shortage in carrot seed oil, producers should be able to find buyers if they promote their products sufficiently. Demand for carrot seed oil comes from the cosmetics (skin care and fragrances), aromatherapy and food flavouring industries.

Focus your exports on the cosmetics industries in Western Europe, specifically for use in fragrances and aromatherapy products.

Please refer to CBI Tradewatch for natural ingredients for cosmetics for more trade statistics.

Market trends
Anti-aging trend: anti-aging remains a dominant trend in cosmetics. Carrot seed oil can be used in skin care products with antiaging properties. Natural ingredients: in Europe there is increasing consumer interest for natural ingredients in cosmetics, and the global natural cosmetics sector is estimated to grow annually by 5-9%. In addition, the global fragrance industry generally prefers natural products to synthetic ingredients. However, sufficient supplies at a commercially viable price need to be guaranteed. Vegetable extracts: a rise in the use of vegetable extracts has followed the trend of fruit-derived ingredients in cosmetic products. This rise is a result of the increasing demand for natural-based cosmetic products. Increasing numbers of consumers believe that naturally derived vegetable extracts have similar beautifying properties to exotic superfruit extracts. Ethical products: a growing interest in ethically sourced and sustainable products provides an opportunity for fair trade and organically certified essential oils. In addition, consumers are interested in the story behind ethical certification. In their marketing, cosmetics producers actively communicate the best stories for their ingredients to improve the connection with the consumer. Communication takes place using images, with short stories on the product, or using the producers corporate image. Considerations for action: Emphasise the potential of the use of carrot seed oil in anti-aging products. Use the properties as listed by Cosing in your promotional material. In your promotional material, emphasise the potential of the use of carrot seed oil in natural cosmetics. Determine whether you can deliver sufficient supplies.

Check your opportunities for obtaining certification for ethical sourcing. Please refer to the section on market segments for more information. In addition to certification, focus on the story behind your carrot seed oil in your promotional material. It is an advantage to help cosmetics producers communicate these stories, for example by providing pictures. Please refer to CBI Trendmapping for more market trends.

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CBI Product factsheet: Carrot seed oil for cosmetics in Europe

Market Channels and Segments

Market channels
Figure 1: Major market channels for carrot seed oil

Developing country

European market

Segments

Domestic processors

Cosmetics producers

Collectors

Traders (importers, agents, brokers)

EU ingredient distributors

Please refer to CBI Market channels and Segments for more information Carrot seed oil exported as oil Considerations for action: In India, the seeds of the wild carrot are Benefit from the experience and knowledge collected by local collectors and sold to local of specialised European importers and agents essential oil producers. Collection is done by instead of approaching end users directly. large numbers of local collectors who usually Especially for exporting specialised products, form a cooperative to organise the process traders are the most suitable distribution more efficiently. channels. Carrot seed oil for use in cosmetics is exported in the form of oil. As such, it generally does not need further refining or processing before it can be used in cosmetic products. Carrot seed oil can be sold directly to cosmetics producers, or more commonly through one or more traders, such as agents, importers or brokers. Speciality oils and certified organic or Fairtrade oils usually have relatively short trade channels. This is because they are often traded by specialised traders. Market segments
Table 1: Major cosmetic segments and applications for carrot seed oil Segment Fragrances Aromatherapy Sub-segment Perfume Aromatherapy oils Benefits of applying carrot seed oil Fragrance Care is needed regarding exposure to the hazardous components of this essential oil

In cosmetics, best opportunities in fragrances Carrot seed oil has highest potential for use in the fragrance sector. It has a specific scent, which is often used as a middle note and combined with sweeter oils. This segment uses between 10-20% of the available oil. European cosmetics

Considerations for action: For more information on essential oils for the food industry, check the Market Intelligence Reports on Natural Colours, Flavours and Thickeners. Check the properties of the different derivatives of carrot seed on Cosing. Use

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CBI Product factsheet: Carrot seed oil for cosmetics in Europe

manufacturers can also choose to use carrot seed oil in anti-aging cosmetic products. As it is a hazardous material, it is best to leave this decision to your buyers. In the cosmetics and fragrance segments, consumers tend to be more willing to pay a higher price. Therefore, the high price of carrot seed oil is less of an issue. The hair care and toiletries segments offer fewer opportunities for carrot seed oil, due to its high price. However, small amounts are sometimes used in products such as luxury soaps and bath wash. There is no real market for the fair trade certification of carrot seed oil. Since the seeds are often wild-collected, fair trade certification is complicated. However, consumers and cosmetics producers are increasingly interested in the story behind ethically sourced and processed final products. There is a growing interest in ethical sourcing for cosmetic products, but as fair trade certification for carrot seed oil is highly complicated, producers should focus on storytelling. There is an increasing demand for organically certified carrot seed oil, but availability is low. Be aware that certification is difficult and not always worth it. Always discuss your potential for organic certification with your buyers.

these properties in your promotional material. Focus your promotional material on skin care products. This segment offers more opportunities for carrot seed oil than the fragrance industry.

It is important to focus on the story behind ethical certification. In your promotional material, emphasise the social benefits to local communities of your production, as fair trade certification might not be feasible.

Discuss the opportunities for organic certified carrot seed oil with your buyers.

Prices High price of carrot seed oil Considerations for action: Carrot seed oil from wild-collected seeds is Calculate your production costs by using a priced at around 1,000 per kg. This is a detailed cost breakdown. Make sure to take result of the low supply and high demand of additional costs into account, such as the product, as well as the high production customs, loading/unloading, marketing, costs in relation to the collection of seeds and samples for chemical analysis and internal the low yield. For organic certified carrot seed transport. After the cost breakdown, add a oil, prices can be 3 or 4 times higher. profit to create the selling price. Pure, unadulterated carrot seed oils fetches higher prices than oils that have been blended with other essential oils. The yield of steam distilled carrot seed oil is Optimise the yield of wild carrot distillation to low. Yields of over 1% are considered to be lower your cost price. very high. o Do not cut the plants after flowering, The following price breakdown shows which since this greatly reduces seed production costs and margins are applied to carrot seed and thus yield. oil before it reaches the end user. o Dry seeds before distillation.
Figure 2: Price breakdown for carrot seed oil, mark-ups in % Export Air cargo Import Sales

Source: ProFound, 2013

+1%

+5%

+30%

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CBI Product factsheet: Carrot seed oil for cosmetics in Europe

Considerations for action: If agents are involved, they typically receive Agents are particularly interesting if you do a commission of a few (2-5) percent. not have a strong sales network. However, However, their actual profit margin strongly once you have established a trade depends on volumes sold and gross margin. relationship through an agent, you cannot They will normally lower their gross margin establish a direct relationship with the buyer for big volumes. anymore. The sales network of the agent is Importers add a margin of up to 25-100% to protected by law. the product depending on the activities You can add value by improving the quality of undertaken, such as testing and stocking. your production. Prevent contamination with foreign material.

Market competitiveness
Options to secure sufficient raw material Since carrot seed for essential oil production is wild-harvested, supply of the oil can vary significantly in quantity. Buyers prefer a stable supply, however. In addition, cosmetics producers are reluctant to buy large quantities of the oil as a cosmetic ingredient. They do not want to take the risk of a future scarcity of supply, since excluding an ingredient from a specific formula is very costly. Wild carrot seeds do not need to be distilled immediately after harvesting, but can be stored instead. As such, in terms of quality, it is not a problem if collectors need to traverse vast regions to collect sufficient quantities for essential oil production. As production of carrot seed oil requires limited know-how, technological barriers to enter the markets for carrot seed oil are relatively low. However, steam distillation requires reasonably high investments. In addition to the seeds, other parts of the wild carrot plant can be used to extract ingredients for cosmetics producers. Considerations for action: Ensure that you can secure sufficient and stable supplies of the raw material for carrot seed oil. Use sustainable practices in wild harvesting. You can look into the possibilities of the FairWild certification scheme. In addition, you can enter into agreements with collectors of the seed to stabilise supplies of essential oil. This shows your commitment to long-term trade relationships.

Producers of carrot seed oil can cooperate to share the investment in distillation equipment. Additionally, when you master steam distillation of one essential oil, the same machinery can be used to distil other plants for essential oils. Cosing lists the properties of different derivatives from the wild carrot plant. Be aware that some of these derivatives require more complicated production processes than distillation. For example, Daucus Carota Sativa Leaf Extract is obtained through solvent extraction. Before investing in the production of these derivatives, determine that they have sufficient potential in the market. Please refer to CBI Market Competitiveness for more information.

Useful sources
Trade fairs Visiting and especially participating in trade fairs is highly recommended as one of the most efficient methods for testing market receptivity, obtaining market information and finding prospective business partners. The most relevant trade fairs in Europe for exporters of carrot seed oil are: In-Cosmetics (http://www.in-cosmetics.com/) in Paris, France Beyond Beauty (http://www.beyondbeautyparis.com) in Paris, France SANA (http://www.sana.it/en) in Bologna, Italy

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CBI Product factsheet: Carrot seed oil for cosmetics in Europe

Vivaness (http://www.biofach.de) in Nuremberg, Germany (for organic producers)

This survey was compiled for CBI by ProFound Advisers In Development in collaboration with Sector Expert Andrew Jones Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer

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