Gums

Natural ingredients for foods, cosmetics
and pharmaceuticals
CBI MARKET SURVEY: THE EU MARKET
FOR NATURAL GUMS, RESINS AND WAXES

Source: CBI Market Information Database URL: www.cbi.eu Contact: marketinfo@cbi.eu www.cbi.eu/disclaimer

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Natural ingredients for foods, cosmetics and pharmaceuticals

The EU market for natural gums, resins and waxes

Publication date: September, 2008

Report summary
This CBI market survey discusses the following highlights for the EU market for natural gums,
resins and waxes:
The industrial demand for gums, resins and waxes is growing at a low rate. Only a few
products experience growth in demand (gum Arabic, beeswax). Production of gums and
resins in the EU is limited to a small number of products. Beeswax production in the EU is
more considerable, although it does not meet EU demand either.
Imports of gums, resins and waxes are increasing in line with demand at low rates. Gum
Arabic is the most imported product. Political instability in Sudan caused major fluctuations
in Gum Arabic supplies in the period 2003-2007 as it is the main supplier providing a high
share of overall imports of the product.
Gums and resins are imported by a small number of importers. A much larger number of
traders is active in distributing the products within the EU and advising end-users on
application. Waxes are often imported by refiners.
Developing countries supply nearly all gums and resins in the EU, although re-exports
partly hide this in trade statistics. Beeswax is also supplied by more developed countries.

This survey aims to provide developing-country exporters of gums, resins and waxes with
product-specific market information related to gaining access to the EU market(s). By focusing
on the EU market(s) for one product(group), this document provides additional in-depth
information, complementary to the more general information and data provided in the CBI
market surveys The natural colours, flavours and thickeners market in the EU, The market
for natural ingredients for cosmetics, and, to a lesser extent, The market for natural
ingredients for pharmaceuticals which all can be downloaded from
http://www.cbi.eu/marketinfo

Detailed information on the selected product (groups) is given in appendix A. This survey
discusses the EU in general and the following markets in particular: France, Germany, United
Kingdom, Italy, The Netherlands.

1 Market description: consumption and production

Industrial demand

Gums and resins
According to IMR International, a consulting firm specialised in hydrocolloids, the global market
for hydrocolloids amounted to 2.4 billion in 2007. This includes hydrocolloids for all uses
(food, cosmetics, pharmaceuticals, petrol) and products which are not hydrocolloids by
definition, but which serve a similar function. Between 2003 and 2008, the global aggregate
growth rate of demand for hydrocolloids was expected to be 1.5-2.5% annually. For the period
2007-2012, growth is expected to reach 2.8% annually for the global market, which will
increase the value of the market to 3.9 billion in 2012 (IMR International, 2007). The main
drivers behind the growth are increases in the manufacturing of processed foods and increases
in the demand for healthier products and natural ingredients.

The Network for Gums And Resins in Africa (NGARA) estimated global demand for resins at
around 2,500 tonnes in 2006 (NGARA, 2006). The demand is stable. Importers have stated
that there are no supply problems and that, at the same time, they are not aware of any new
applications which could significantly increase demand for resins.
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The USA and the EU are the largest markets for gums, each accounting for a little less than
one-third of the global market. Important EU markets for gums are Germany, France, UK, The
Netherlands and Italy. China and Europe are the main markets for resins. Within the EU,
Germany is the largest market for resins.

Food applications account for 90% of the global hydrocolloids market (SRI Consulting, 2007).
Gums are used as thickeners, stabilizers, emulsifiers, clouding agents and for flavour
encapsulation. The ability to perform in this wide range of functions has made gums work well
in fat-replacement systems. Food manufacturers often use saturated fats to improve the
textural and mouthfeel properties of their food formulations. However, consumers are
increasingly looking for low-fat and low-calorie foods, which has caused food manufacturers to
look for alternatives to fats. Gums offer a good solution. The food formulation determines
which type of gum will be used. Gums perform differently in mixtures with other ingredients.
Moreover, the temperature needed for the preparation of the food can also influence gum
performance. Blends of different gums or blends of gums with other ingredients, which
combine into unique properties, are also a common solution. An example is Equacia, a blend of
gum Arabic with wheat fibres, from the leading gum Arabic importer CNI.

After food and petrol, the pharmaceutical industry is the third most important market for
gums. Gums are used in pharmaceutical products such as conditioners and viscosifiers,
thickeners in toothpastes and shampoos, binders in tablets and to disintegrate compressed
tablets. Resins are used in pharmaceutical products for their anti-septic and anti-inflammatory
properties.

The cosmetics industry is still a small market for gums. Gums are valued by cosmetics
companies for their emulsifying and adhesive properties. Gums are used by the cosmetics
industry for their functional characteristics when synthetic substitutes are not available, are
less effective, or when cosmetics companies want to produce a natural product. The cosmetics
industry is also a small but important market for many (oleo)resins. Especially the essential
oils contained in many resins are highly valued by the cosmetics industry for the production of
perfumes. However, importers have indicated that the use of resins in perfumes is declining.

Resins can consist of resin, essential oils, gums, acids, alcohols and other components. Their
uses can be diverse, depending on the components which are extracted. Nevertheless, many
resins are mainly used as incense. The following table provides an overview of gums and resins
and their applications. Keep in mind that the table only includes information about known
applications, whereas the products might also be used in other applications.

Table 1.1 Gums, resins and their applications
Product Market Function Application
Gums
Gum Arabic Food

Emulsifier Beverages and
confectionery
Encapsulation of
flavours
Dry soups, sauces, dessert
and cake mixes
Adhesion Toppings and icings
Thickener/binder Pastilles, gum drops, jelly
candies, cough lozenges
and other confections high
in sucrose
Foam stabilizer Marshmallows, caramels,
nougats, beer
Pharmaceutical

Binder, coating, film Tablets
Cosmetics Adhesive agent, Colostomy rings, laxatives,
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texturing dental prosthesis, denture
fixative
Emulsion stabilizer,
texturing
Lotions, emollient creams
Gum karaya Pharmaceutical Thickener Confections, salad
dressings, sauces
Gum tragacanth Food Binder, stabilizer Bread, cakes, pastries
Pharmaceutical Soothing Burns treatment
Guar gum Food Thickener Dressing, desserts, instant
products
Locust bean gum Food Thickener and
gelling agent
Dairy gels, water gel
desserts, ice creams,
dressing, sauces, soup,
fruit preparations, bakery
Gum tara Food Thickener and
stabiliser
Convenience foods, such
as ice cream
Pharmaceutical Anti-inflammatory Gargling infusions for
inflamed tonsils and
washing wounds
Gum ghatti Food Emulsifier Beverages and
confectionery
Thickener/binder Pastilles, gum drops, jelly
candies, cough lozenges
and other confections high
in sucrose
Pharmaceutical Binder, coating, film Tablets
Gum cassia Food

Thickener and
gelling agent
Soup mixes, sauces and
selected oil-free salad
dressings
Stabilizer Frozen dairy desserts
Clouding and
glazing agent
Beverages, such as soft
drinks
Pharmaceutical Suppuration and
pain relief
Skin diseases, such as ring
worm, psoriasis and itch
Resins
Damar Food Anti-inflammatory
and antiseptic
Mouthwashes and gargles,
gastrointestinal disorder
treatment
Myrrh

Pharmaceutical Emollient Skin care
Cosmetics

Anti-wrinkle Moisturizer
Fragrance Perfume (soap)
Antiseptic and anti-
inflammatory
Shampoo, soap
Copaiba

Cosmetics

Fixative Perfume
Anti-inflammatory
and antiseptic
Mouthwashes and gargles,
gastrointestinal disorder
treatment
Pharmaceutical Fixative Perfume
Ladanum

Cosmetics Fragrance Perfume (soap)
Pharmaceutical Anti-microbial Skin disease treatment
Peru balsam

Pharmaceutical

Antiseptic and
astringent
Medicines
Fixative Perfume
Cosmetics Fragrance Perfume (soap)
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Reparation Dental fillings
Sandarac Pharmaceutical Emollient Skin care
Frankincense

Cosmetics

Fixative Perfume
Opoponax Cosmetics Fragrance Perfume
Pharmaceutical Soothing Chest rubs
Turpentine Pharmaceutical Antiseptic Medicines
Tolu balsam

Pharmaceutical

Expectorant, flavour Cough mixtures
Cosmetics Fixative Perfume
Asafoetida Cosmetics Fragrance Perfume (soap)
Elemi Cosmetics Fixative Perfume
Galbanum Cosmetics Fragrance Perfume (soap)
Turpentine Cosmetics Fragrance Perfume (soap)
Styrax Cosmetics Fragrance Perfume (soap)
Benzoin Cosmetics Fixative Perfume
Gurjun balsam Cosmetics Fragrance Perfume
Dragons blood Pharmaceutical Coagulant Healing and treatment of
blood disorders
Inhalation/Diffusion Hiccups, stress and panic
Soothing Rubs for abdominal
cramps, spasms and
coughs
Sources: FAO, Wikipedia, importers

The growth in the hydrocolloids market does not apply to all hydrocolloids. The highest growth
rates are generated by carrageenan, pectins and xanthan gum, products which are not
covered by this survey. In general, natural gums, as mentioned in the appendix, are not
performing very well. Importers have indicated that only demand for guar gum is growing
slightly, while demand for other gums is stable or decreasing.

Table 1.2 Natural gums and competing hydrocolloids
Total Product groups Products (examples)
Hydrocolloids
Starches Potato, corn
Gelatin Gelatin
Natural gums, laboratorial
production
Xanthan, pectin
Synthetics MC/HPMC, CMC, MCC
Seaweed extracts Carrageenan, alginates, agar
Natural gums, agricultural
production
Arabic, guar, locust bean

The difference in performance of natural gums and competing hydrocolloids can be explained
by differences in reliability of supply. The reliability of supply concerns quantities, quality and
prices of the products. The quantity and quality of the production of natural gums and resins
are strongly dependent on climatic conditions. Consequently, bad climatic conditions can lead
to small harvests and a shortage in supply. Manufacturers need a constant and reliable supply
of ingredients. Sudden shortages can lead to production problems, which are harmful to sales
and relationships with buyers. Thus, manufacturers tend to substitute natural gums and resins
for products which are less prone to supply chain problems.

The quality of natural gums and resins is also dependent on climatic conditions. Moreover,
natural products are sometimes derived from different botanical sources and can vary greatly
in quality. The competitive products named before are produced under much more controlled
conditions. As a result, they have better homogeneity and quality consistency. Note that a few
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oleoresins, such as myrrh, opoponax and frankincense containing particular essential oils are
less susceptible to substitution, as their fragrance is more difficult to reproduce synthetically.

Finally, prices of most hydrocolloids competing with natural gums are more stable. Climatic
and political instability cause price fluctuations for natural gums and resins, which pose
challenges to manufacturers.

The substitution of gums and resins is accelerated by the increasing scale of operations of
many EU ingredient suppliers. The ingredient suppliers follow developments in the food,
pharmaceuticals and cosmetics industries which are consolidating. The larger companies place
more emphasis on stability of supply in terms of both quantity and quality and are developing
a strong preference for synthetic substitutes.

The substitution of natural gums by synthetic products is slowed down by the increased
demand for healthy food products. The increasing awareness of the importance of diet and
nutrition among EU consumers has been accompanied by increasing concerns about the safety
of food. Together with a higher appreciation of products from nature and an expanding
environmental consciousness, this has made natural products more popular. Food
manufacturers have responded by producing more natural products. In 2007, more than 4,000
processed food products labelled as additive- and preservative-free were released in Europe.

Wax
The apparent consumption of beeswax in the EU amounted to approximately 8 thousand
tonnes in 2005. Note that this is only a rough indication as production figures are not available
for most countries, resulting in a lower apparent consumption. Apparent consumption
increased by 2% between 2001 and 2005.

A major market for beeswax is Spain, which had an apparent consumption of 2.5 thousand
tonnes in 2005. Consumption in this country is stable. France has an apparent consumption of
1.1 thousand tonnes. Its consumption increased by 5% annually between 2001 and 2005.

The main applications for beeswax are in the food market. Beeswax is often used in coatings to
give foods a shiny look. An importer supplying The Netherlands and Belgium indicated that the
food market accounted for 40-50% of beeswax sales. The pharmaceutical market and
cosmetics market accounted for 7-15% of sales.

The market for organic beeswax is a niche market in the total beeswax market. Organic
beeswax is mainly used in natural cosmetics. The market for natural cosmetics is growing
worldwide. Euromonitor predicts annual growth of 9% from 2003 to 2009, while the total
cosmetics market is expected to grow by only 1% annually. The growth of the natural
cosmetics market could have a positive effect on demand for organic beeswax. Because of the
limited number of applications, which justify the high value of organic beeswax, the total
volume of the organic beeswax market is small. However, some refiners believe that the
number of applications will increase in the future, for instance in food products, and they
expect the market for organic beeswax to grow.

Production

Gums and resins
The only significant gum production in the EU is locust bean gum production. Globally, most
locust bean gum is produced in the EU, the producers being concentrated around the
Mediterranean. Locust beans grow on the carob tree which is native to the Mediterranean
region. According to Cybercolloids, a service provider in the hydrocolloids market, there are 5
producers in Spain, 2 in Portugal and 1 in Italy. As a general rule, the locust bean gums with
the lightest colour and highest gel strength come from Portugal, with a gradual deterioration in
properties if you travel East across the Mediterranean. Most of the demand in the EU for locust
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beans is met by EU countries. However, some supplies of locust beans are still imported from
outside the EU when prices are lower or EU production is disappointing.

The hard resins and soft oleoresins discussed in this survey are not produced commercially in
the EU, except for ladanum. Ladanum is produced in the Mediterranean region, especially
Spain, Greece and Cyprus. Exact numbers are not available.

Waxes
The only natural wax produced commercially in the EU is beeswax. The production of beeswax
in the EU amounted to approximately 3,831 tonnes in 2005. Between 2001 and 2005,
production decreased slightly, by 1% annually.

Data on production of beeswax in the EU is incomplete. For example, production of beeswax in
Germany is set at 0. However, as Germany is a leading honey producer it is unlikely that no
beeswax is produced in this country. Figures are also lacking for the UK and The Netherlands.
However, as beeswax production is strongly related to honey production and the UK and The
Netherlands are only small honey producers, their beeswax production is expected to be small
as well.

By far the leading producer of beeswax in the EU is Spain, accounting for 59% of total EU
reported production. Spain produced 2,250 tonnes of beeswax in 2005. This is 50 tonnes less
than in 2001; an annual decrease of only 0.6%. France and Italy produced approximately 400
and 90 tonnes of beeswax respectively. Their production is stable.

Opportunities and threats
+ Many gums and resins cannot be grown in the EU, and have to be imported from
elsewhere. Especially non-temperate species are sourced in developing countries.
- Importers have indicated that the market for gums and resins is saturated. Most gums and
resins are commoditized. Margins have become minimal and new suppliers are left without
any means to convince importers to switch between suppliers.
- Food manufacturers require stable supplies. Supplies of natural ingredients are often
affected by climate conditions. Food manufacturers have therefore been substituting many
natural ingredients by synthetic products in the past few decades.
- Food manufacturers also require homogeneous supplies with a consistent quality.
Therefore, food manufacturers tend to favour synthetic ingredients for which it is easier to
realize homogeneity and quality consistency.
+ The market for natural food additives is growing. The growth is mainly driven by the
health trend, which has stimulated demand for natural food ingredients. Consumers pay
more attention to food labels and also have more concerns about the safety of synthetic
ingredients. Food manufacturers are making efforts to replace synthetic ingredients by
natural substitutes. The growing demand for natural food additives also has a small but
positive effect on demand for natural gums and resins.
+ Demand for organic waxes offers opportunities to suppliers with organic certification. Many
importers and processors are currently building up an organic assortment, but the
availability of organic substitutes is limited. Therefore, premiums are sometimes high.

Note that the same development or trend can be an opportunity for one exporter and a threat
to another. You should analyse if the developments and trends discussed in the previous
chapters provide opportunities or threats for your specific situation.

Useful sources
IMR International - http://www.hydrocolloid.com/ - Food hydrocolloid information
center
FoodNavigator - http://www.foodnavigator.com/ - News about the food industry
NGARA - http://www.ngara.org/ - Network of gums and resins producers with
information center

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2 Trade channels for market entry

Trade channels

Gums and resins

Figure 2.1 Trade structure for gums and resins

Exporter
Importer/Processor
Trader
End-user
Agent

The gums, resins and waxes which are imported from outside the EU, enter the EU mostly
through specialised importers, concentrated in Hamburg (Germany) and Marseilles (France).
Direct trade with end-users in the food, pharmaceutical and cosmetics industries is not
possible as many end-users do not have the means to import the products themselves (quality
control, logistics, Customs). Importers and, often, traders or agents handle this business. The
number of traders handling gums and resins in the importing countries has declined
considerably in the past 10 to 20 years. The decline is partly the result of consolidation in the
industry. An example of this consolidation is the sale of Alfred L. Wolffs business in a number
of products to A2 Trading in February 2008. Alfred L. Wolff was a major trader in gums and
resins.

Gums are processed on large scales by various companies in the EU, both importers and
traders. Processing of guar gum is done by a few large facilities in Northwest Europe. Much of
the EU demand for processed guar gum is met by these facilities. Consequently, most demand
for unprocessed guar gum comes from these facilities. Processing facilities for locust bean gum
are found in numerous EU countries. These facilities supply the bulk of the EU demand. Arabic
gum is also processed in the EU on large scales. Alland & Robert can produce 10,000 tonnes of
spray-dried Arabic gum annually.

Resins are often fractionated to extract specific components. As resins consist of many
components which all have their own specific function, the processing industry is more
segmented than the processing industry for gums. Processing is therefore often done by
specialised traders or by the end-users themselves.

The importers sell the products either directly to the end-user or to other traders or agents.
Traders keep stock, while agents never own the products. If more traders or agents are
involved in the value chain, they often process the product and/or provide extra services to the
end-users. Those services are usually technical solutions for end-users. For example, a food
manufacturer requiring improved mouthfeel and stability of its food formulation may get advice
from the trader on the (blend of) gums and resins to use.

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Due to the consolidation in the food, pharmaceutical and cosmetics industries in the EU, trade
in natural ingredients for these industries is becoming concentrated. Companies in the trade of
natural ingredients are increasingly producing both conventional and organic product lines, and
are offering ingredients destined for the cosmetic, food and pharmaceutical sectors. The
expansion offers the companies economies of scale.

Traders in gum, resins and waxes include:
Roeper - http://www.roeper.de/ - German trader in gums, resins and waxes
A2 Trading - http://www.a2-trading.com German trader in ingredients for
pharmaceuticals and food, including gums, resins, balsams and waxes
Colloides Naturels International - http://www.cniworld.com/ - French trader in gum Arabic,
guar gum, gum ghatti
Alland & Robert - http://www.allandetrobert.fr/ - French trader in gum Arabic and gum
karaya
Meht - http://www.meht.de/ - German trader in resins and balsams
Ernst H. Singelmann - http://ernst-h-singelmann.de Importer of gums, resins and balms
Willy Benecke - http://www.willy-benecke.com/ - Importer of gums and resins
Chemcolloids - http://www.chemcolloids.com UK trader in gums supplying the food
industry
Moellhausen - http://www.moellhausen.com Italian trader in raw materials for food,
pharmaceutical as well as cosmetic industries.
Kerry - http://www.kerry.ie Food ingredients supplier and importer of gums
International Specialty Products http://www.ispcorp.com Ingredients supplier for the
food, cosmetics and pharmaceutical markets.
Toyota Tsusho - http://www.toyota-tsusho.com/ - Trader of gums
Johannes Bassen - mailto:johannes.bassen@t-online.de importer of gums
Valmar Group - http://www.valmargroup.com/ - Importer of gum Arabic and gum Ghatti
EMIGA mailto:EMIGA.FR@wanadoo.fr Importer of gums
Caldic - http://www.caldic.com/ - Trader of gums
Alsiano - http://www.alsiano.com Danish agent for food and pharmaceutical ingredients
Pol-nil - http://www.pol-nil.com.pl/ - Polish agent for pharmaceutical and cosmetic
ingredients

Beeswax

Figure 2.2 Trade channels for beeswax in the EU

Beeswax exporter
Refiner
Importer/refiner
End-user
Agent
Agent

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Approximately 60% of beeswax imported by the EU is crude and needs first to be refined
before the industry can use it. The crude beeswax is either imported directly by a refiner or
through an importer or agent. Some importers of honey also import beeswax and have it
refined by specialist refiners, before they sell it to the industry.

Traders in waxes include:
Kahl & Co Vertriebsgesellschaft GmbH - http://www.kahlwax.de/ - German refiner and the
only wax refinery certified to refine organic wax in the EU
Koster Keunen B.V. - http://www.kosterkeunen.com/ - Netherlands refiner
British Wax Refining Company Ltd. - http://www.britishwax.com/ - UK refiner
Walter Lang Honigimport GmbH - http://www.honigimport.de/ - German beeswax importer
Alfred L. Wolff Honey GmbH - http://www.alwolff.de/ - German beeswax importer
Fuerst Day Lawson Honey Ltd - http://www.fdl.co.uk/ - UK beeswax importer
Kimptons - http://www.kimpton.com/index.htm - UK trader

Price structure
The price structure of natural gums, resins and waxes is complex. In many cases, the products
first go to an intermediary. Depending on the value addition by the intermediary, the price of
the product can increase from a few percent to a few hundred percent. The mark-up will be
minimal when the intermediary limits activities to only executing the administrative work
associated with purchasing and selling items. The mark-up will be much higher when the
intermediary actively sources by visiting suppliers, arranges transport including
documentation, stores products and advises clients on the application of the products. The
intermediary often sells the product to a processor. The mark-up of the processor also depends
on the kind of processing. The (re)cleaning of natural gums or the distillation of oleoresins
does not have to be very costly, but when it concerns a fragrance compounder, which develops
new fragrances with applications in complex perfume formulations, value addition will be much
higher.

The price for high-quality refined gum Arabic is 8-10 times higher than that for the crude
exudate. The price for the essential oils from resins is 5-10 times higher than the price of the
dry extract on a weight basis. Exporters can maximize the value of their products through
integrated systematic selection, cultivation, tapping and processing. Processing may include
cleaning, sorting, grading, filtering, pasteurizing and spray-drying. The products will often be
further processed in the EU. The resins can be distilled to yield essential oils, or extracted
using a suitable solvent to yield other components.

Organic versions of hydrocolloids command a price premium of 30% to 40%, according to
Dennis Seisun of IMR International (2008).

Selecting a suitable trading partner
A particularly important aspect of doing business in the EU market for natural gums, resins and
waxes is market research to target the right company or right division in a company. Although
there are many companies trading gums, resins and waxes in the EU, only a few companies
actually import the products from the country of origin. Moreover, many companies have
specialised in a particular market: food, pharmaceuticals or cosmetics. Exporters will need to
find out which market they should target and, consequently, which companies to contact.
Focused marketing activities will have better results than a wide range of activities.

You should at least obtain the following information in order to select suitable trading partners:
Is the company an importer, trader or agent?
Is the company active in your market segment (food, pharmaceuticals, cosmetics)?
Does the company sell in your geographical target market (country/region)?
Which person or department is responsible for your market segment?

If the importers mentioned earlier do not match your criteria, you could also try the following
online marketplaces:
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Alibaba - http://www.alibaba.com/ - International marketplace
Trade India - http://www.tradeindia.com/ - Marketplace for Indian exporters

3 Trade: imports and exports

Imports

Total imports of natural gums, resins and waxes amounted to 247 million in 2007. Imports of
natural gums and resins had a value of 192 million and imports of waxes had a value of 55
million. The major importers are France, Germany and the UK.

Table 3.1 Imports and leading suppliers of natural gums, resins and waxes (excl.
spermaceti), 2003 2007, share in % of value
Product 2003 2005 2007 Leading suppliers in 2006 Share
mln mln mln Share in % (%)
Total EU 59.1

92.0 103.3

Intra-EU: France (13%), Germany (11%),
UK (7%), The Netherlands (3%), Italy (2%),
Spain (2%), Belgium (2%)
42%
8.2 11.0 10.9 Extra-EU ex. DC*: USA (2%) 4%
70.6

165.0

133.3 DC*: Sudan (18%), Brazil (8%), China
(6%), India (5%), Chad (4%), Indonesia
(2%), Iran (2%), Venezuela (2%), Nigeria
(2%), Senegal (1%)
54%
France 9.4

12.1 13.0

Intra-EU: Germany (8%), The Netherlands
(5%), Spain (3%), Belgium (2%), UK (2%),
Italy (2%),
23%
0.9 1.2 1.9 Extra-EU ex. DC*: USA (1%) 3%
24.6 61.6

41.8 DC*: Sudan (38%), Chad (10%), Senegal
(5%), China (4%), Nigeria (3%), Iran (3%),
India (2%), Eritrea (2%), Brazil (2%)
74%
Germany 4.9

10.8

7.3

Intra-EU: France (9%), the Netherlands
(3%), UK (2%), Spain (1%)
17%
1.4

1.7

2.7

Extra-EU ex. DC*: Australia (3%), USA (1%) 6%
16.7

36.8

33.1

DC*: Brazil (15%), China (12%), Sudan
(11%), Iran (8%), India (8%), Chad (5%),
Indonesia (3%), Nigeria (2%), Thailand
(2%), Argentina (2%), Ethiopia (2%),
Vietnam (2%), Mexico (2%)
77%
United Kingdom 6.3

9.6

9.3

Intra-EU: France (21%), Germany (8%),
Belgium (2%), Italy (2%), Spain (2%), The
Netherlands (1%),
36%
3.3

3.5

3.2

Extra-EU ex. DC*: USA (10%), Japan (1%) 13%
11.1

28.2

13.3

DC*: Sudan (27%), China (5%), India (5%),
Chad (3%), Iran (3%), Brazil (3%), Nigeria
(3%)
52%
Italy 9.6

13.2

12.3

Intra-EU: UK (24%), France (18%),
Germany (6%), The Netherlands (2%),
Belgium (1%)
52%
1.3 0.6 0.6

Extra-EU ex. DC*: Switzerland (1%), USA
(1%)
3%
4.6 15.0

10.8

DC*: Sudan (17%), Brazil (13%), China
(6%), Indonesia (5%), India (4%)
45%
The Netherlands 3.5

7.1

18.4

Intra-EU: Germany (43%), France (20%),
Belgium (6%), UK (4%), Spain (3%)
77%
0.5

2.5

1.2 Extra-EU ex. DC*: USA (2%), unspecified
(3%)
5%
2.0

7.7

4.4

DC*: Brazil (8%), India (6%), China (2%),
Indonesia (2%)
18%
Source: Eurostat (2008)
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*Developing Countries

Total EU imports of gums, resins and beeswax increased by 94% between 2003 and 2005 and
then decreased again by 8% between 2005 and 2007. The development was mostly caused by
recovering but unstable imports of gum Arabic, which accounted for 43% of total EU imports in
2003, 64% in 2005 and 44% in 2007. The unstable political situation in Sudan causes large
fluctuations in gum Arabic supplies. The growth shown in the table is therefore not expected to
continue in the coming years.

France retained the leading position in the imports of gum Arabic. The import value for gum
Arabic increased by 15.7% annually between 2003 and 2007. France also increased imports of
other natural gums and resins by 10.7% annually, but lost the leading position in that market
to The Netherlands. Imports of beeswax increased by 7.8% annually and imports of vegetable
waxes increased by 3.8% annually.

German imports of gum Arabic increased by 15.9% annually in the period 2003-2007. Imports
of other natural gums and resins also increased strongly by 19.9% annually. Germany has
fortified its leading position in imports of beeswax and vegetable waxes by importing 13.6%
more beeswax annually and 18.7% more vegetable waxes annually.

Of the individual markets, the United Kingdom showed the smallest imports growth in the
period 2003-2007. The country reported a 3.5% annual decrease in imports of natural gums
other than gum Arabic. A reason could be that the United Kingdom produces large amounts of
xanthan gum, which is a direct competitor for many gums. Gum Arabic imports increased by
14.3% annually in value. Beeswax imports and vegetable waxes imports remained stable.

Italian imports of gum Arabic decreased slightly in volume. The rapidly increased prices for
gum Arabic consequently resulted in smaller increases in the value of gum Arabic imports than
in the other countries under review. Imports of other gums and resins nevertheless increased
by 14.2% annually. Imports of beeswax decreased by 4.7% annually, while imports of
vegetable waxes increased strongly by 26.9%.

The Netherlands showed a very strong growth in total imports of gums, resins and waxes.
Imports by The Netherlands consisted mostly (69%) of natural gums and resins, excluding
gum Arabic. It is not clear if the 76.2% annual increases in imports will be sustained, as the
cause of the increase is not known. Gum Arabic imports increased at a relatively small rate of
8% annually. Beeswax imports fluctuated strongly in the period 2003-2007 and vegetable
waxes imports increased strongly by 20.7% annually.

All the countries under review increased their imports from developing countries. However,
imports by the UK from developing countries increased at a notably lower rate. The cause was
the 9.8% annual decrease in imports of natural gums and resins other than gum Arabic from
developing countries. The UK and Italy also decreased their imports of beeswax from
developing countries.

In 2007, EU imports of gums, resins and waxes consisted of gum Arabic (44%), other gums
and resins (34%), vegetable waxes (13%) and beeswax and other insect waxes (10%). The
origin of the products provides further indication of the composition of EU imports. Other gums
and resins originate mostly from India, which produces 80% of the worlds guar gum. Another
major source is Iran, which is only known to supply significant amounts of gum tragacanth. In
fact, one importer indicated that local gum tragacanth collection in Iran was not allowed in
2008 and that imports from Iran would be much lower this year. Nearly half of the vegetable
waxes are sourced in Brazil, which produces mainly carnaubawax, Brazil being the only source
of carnaubawax. Therefore, carnaubawax is not further discussed in this survey. The other
major vegetable wax, melillawax, is sourced mainly in Mexico and is not discussed in detail
either.

and pharmaceuticals


Page 12 of 18
Imports of beeswax consist of crude beeswax (60%) and refined beeswax (40%). Figures
show that imports of crude beeswax are increasing at an annual rate of 12%, while imports of
refined beeswax are only increasing at a rate of 5% annually. This indicates that much of the
refining continues to be done in the EU. Moreover, imports of crude beeswax originate for 75%
in developing countries, while 33% of imports of refined beeswax originate in developing
countries.

Exports
In 2007, EU exports of gums, resins and waxes amounted to 158 million / 45 thousand
tonnes. This represents a 48% increase between 2003 and 2007, which was realised
completely between 2003 and 2005. The development resembles the development in imports,
as exports by EU countries consist nearly entirely of re-exports. Only locust bean gum is
produced on a large scale in the EU. The target markets for the re-exports consist for
somewhat less than 50% of EU countries.

Opportunities and threats
+ Imports of gums, resins and waxes increased considerably in the period under review. This
indicates continued interest in these products.
- The increases in imports are limited to a few products, notably gum Arabic. Importers have
indicated that imports of most other gums have remained stable.
- Refining of beeswax is mostly done in the EU. There is limited interest from EU importers to
let this value addition take place in developing countries.

Useful sources
EU Expanding Exports Helpdesk - http://exporthelp.europa.eu
Eurostat official statistical office of the EU - http://epp.eurostat.ec.europa.eu
Understanding eurostat: Quick guide to easy comext
http://epp.eurostat.ec.europa.eu/newxtweb/assets/User_guide_Easy_Comext_20080117.pdf

4 Price developments

Prices of most hydrocolloids increased in 2005 and 2006 due to rising energy, raw (processing)
material, transport and environmental compliance costs. Increased demand from China also
contributed to price increases. Most price increases, as announced by leading food
manufacturers, were in the range of 5 to 10% for their processed hydrocolloids (xanthan gum,
carrageenan, pectin). Prices for other hydrocolloids, such as natural gums, are expected to
follow, although at a slower rate. An exception is Tara gum for which prices increased by
approximately 50% in 2007.

Tight supplies kept prices of beeswax high in 2005. However, large imports of low-priced
beeswax from China pushed prices down in 2006. In 2007, prices for beeswax from Ethiopia
and Tanzania decreased, while prices of beeswax from China increased.

Table 4.1 Prices of gums, resins and waxes
Product Quality/Origin period Incoterms Price Development
Gum Arabic Kordofan from
Sudan
1
st
half 2008 FOB 1,950
/tonne
1

Rising
Gum Arabic No. 2 from
Nigeria
1
st
half 2008 CIF main
European
port
2,000
/tonne
1

Rising
Guar gum 100 mesh
3,500 cps
1
st
half 2008 FOB
Kandla,
India
870 /tonne
(spot)
1

Fluctuating
Guar gum 200 mesh
5,500 cps
1
st
half 2008 FOB
Kandla,
India
790 /tonne
(spot)
1

Fluctuating
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Page 13 of 18
Locust bean
gum
Not available January
2008
Not
available
9,400
/tonne
Not available
Tara gum Not available February
2008
Not
available
8,000
9,000 /
tonne
Rising
Copaiba Not available 1
st
half 2008 Not
available
10,050
/tonne
(spot)
Stable
Tolu balsam Not available 1
st
half 2008 Not
available
13,480
/tonne
(spot)
Stable
Peru balsam Not available 1
st
half 2008 Not
available
21,120
/tonne
(spot)
Stable
Myrrh 1
st
grade July 2005 C&F
Hamburg
2,900
3,300
/tonne
3

Stable
Frankincense Ethiopia,
1
st
grade
July 2005 C&F
Hamburg
1,700
/tonne
3

Stable
Frankincense Ethiopia July 2005 C&F
Hamburg
1,100
/tonne
3

Stable
Opoponax Somalia July 2005 C&F
Hamburg
1,700
2,100
/tonne
3

Stable
Beeswax Ethiopia 1
st
half 2008 C&F main
European
port
2,900
/tonne
1

Stable
Beeswax Tanzania 1
st
half 2008 C&F main
European
port
2,800
/tonne
1

Stable
Beeswax China 1
st
half 2008 C&F main
European
port
2,600
/tonne
1

Fluctuating
1. US$ converted to with an exchange rate of $1 = 0.65 (average of first half 2008)
2. converted to with an exchange rate of 1 = 1.29 (average of first half 2008)
3. US$ converted to with an exchange rate of $1 = 0.83 (average of July 2005)
Public Ledger, IMR International (2008)

Useful sources
The Public Ledger Weekly - http://www.agra-
net.com/portal/puboptions.jsp?Option=menu&pubId=ag047 - publication on commodities
with overviews of global market prices.
MCX India - http://www.mcxindia.com/ - Prices for guar gum.
Food Navigator - http://www.foodnavigator.com/

5 Market access requirements

As a manufacturer in a developing country preparing to access the EU, you should be aware of
the market access requirements of your trading partners and of the EU regulations.
Requirements are demanded through legislation and through labels, codes and management
systems. These requirements are based on environmental, consumer health and safety and
social concerns. You need to comply with EU legislation and have to be aware of the additional
non-legislative requirements that your trading partners in the EU might request.

and pharmaceuticals


Page 14 of 18
Suppliers of guar gum should be aware of the EU legislation which became valid in spring 2008
and which obliges EU importers to test guar gum for PCP/dioxin contamination. The PCP
concentration is not permitted to exceed 0.01 mg/kg.

For more information on legislative and non-legislative requirements, go to Search CBI
database at http://www.cbi.eu/marketinfo, select your market sector and country of interest
in the category search, click on the search button and click on market access requirements.

Quality
Resins have an intrinsic quality, which is determined by their chemical composition. Some
buyers only accept resins with a specific intrinsic quality, as they know that other resins will
not give the desired properties to their final product. Resins also have a handling quality,
which is determined by its treatment and handling from collection to processing. During the
collection, resins often get contaminated with bark and dirt. During handling between
collecting and exporting, resins often get broken into smaller pieces and/or form irregular
masses caused by high temperatures. Loss of volatile but valuable oils is particularly bad for
the quality of the product.

Some of the analytical parameters which are used to determine the quality of resins include
optical rotation (tree origin), moisture content, alcohol solubility (organic matter content), ash
(non-organic matter content), volatile oil content, microbiological count. Quality is, however,
often determined subjectively by the buyer based on appearance (colour, viscosity) and
aroma. If the properties of the product appear to be worse during or after processing, buyers
will pay a lower price, assuming that the product is purchased on consignment. Exporters sort
and grade their products in advance to indicate prices for different qualities. The products are
graded according to size, colour and state of cleanliness. The highest grades are often used for
pharmaceutical applications, while the lowest grades are used for incense.

The quality of waxes determines for a great part in the application for which it is used. Many
technical applications such as coatings and detergents only require low-quality waxes. Food
applications, on the other hand, require high-quality waxes, free of any harmful substances.
Suppliers who aim for the food market have to be able to show that their product does not
contain any allergens, pesticides or anti-biotics. The required documents are provided by
research laboratories, which analyse samples at a fee of approximately 500 per analysis.

Packaging

Gums and resins
Gums and resins should retain their organoleptic qualities, such as colour and viscosity. The
packaging of gums and resins depends on their composition. Gums are hygroscopic and should
therefore be packaged in waterproof material. Most resins harden on exposure to air, which
slows or even halts quality degradation. This is particularly important for resins with volatile
compounds, which are kept inside. These hard resins can be packaged in simple paper or jute
bags. Soft resins require closed and more hygienic containers. The following table gives an
overview of common packaging for gums, resins and waxes.

Form Type Packaging
Solid grains Galbanum, myrrh, sandarac,
asafoetida, damar, opoponax
Paper bags, cartons, jute
bags
Gum powder Guar, locust vean, gellan,
karaya, tara, tragacanth,
cassia
Multi-wall paper bag with
plastic (polyethylene) liner,
tins/cans
Semi-solid pastes Elemi, styrax, ladanum,
benzoin, peru balsam, tolu
balsam, gurjun
Tins/cans, drums, plastic
(polyethylene) lined cases

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Page 15 of 18
Beeswax
Importers in the EU prefer to receive blocks of beeswax bare, without any cover of jutes or
polyethylene bags. The latter stick to the beeswax when it melts during transport. Moreover,
blocks of 25 or 65 kilograms are difficult to handle during processing for processors. The blocks
have to be cut into smaller pieces, which is almost impossible. They are divided in smaller lots
by melting the wax another time, which costs extra energy and time. High temperatures
during storage and transport should be avoided, because they deteriorate the quality of the
beeswax. To preserve the quality of refined beeswax, it is best to wrap the wax in special
paper or plastic foil and place it on shelves or in stainless-steel containers. Containers made
from other metals such as aluminium, zinc, or copper can make the beeswax too dark. More
information can be found at the CBI website: http://www.cbi.eu/marketinfo.

Additional information on packaging can be found at the website of ITC on export packaging:
http://www.intracen.org/ep/packit.htm

Marking and labelling
The required marking mostly depends on the specific requirements of the importer.
Information which is often required includes date, supplier name, address, product name, net
weight, if the product is intended for food use, grade, recommended storage conditions. The
information should be in English and using EU measures (e.g. grams).

Quality labels, such as a label for organic products, could also be put on the packaging.
Sometimes, the attachment of certain documents can also be required. These may include a
certificate of analysis or a certificate of origin. Depending on the sourcing methods of the
importer, documentation might be important and elaborate or even obsolete. Some importers
prefer to visit companies from which they have received interesting offers, while others prefer
to gather documentation which proves that the company can meet their requirements.

Information on tariffs and quota can be found at http://exporthelp.europa.eu

6 Doing business

General information on doing business like approaching potential business partners, building
up a relationship, drawing up an offer, handling the contract (methods of payment, and terms
of delivery) can be found in CBIs export manuals Export Planner and Your image builder.
Furthermore cultural awareness is a critical skill in securing success as an exporter.
Information on cultural differences in the EU can be found in chapter 3 of CBIs export manual
Exporting to the EU. These manuals can be downloaded from http://www.cbi.eu/marketinfo -
go to search publications.

Trade associations:
AIPG - http://www.treegums.org Association for International Promotion of Gums
NGARA - http://www.ngara.org/ - Network of companies in the gums and resins market

An interesting place to learn about applications of hydrocolloids and possibly promote your
products could be one of the two conferences on hydrocolloids:
Food Hydrocolloid Conference - http://www.hydrocolloid.com/ - Conference organized
annually by IMR International. The last conference was held in April 2008.
International Hydrocolloid Conference - http://www.9ihc.org/ - Conference on theoretical an
applied aspects of hydrocolloids structure and interactions with natural food ingredients and
pharmaceuticals. The last conference was held in June 2008.

The most interesting trade fairs for gums and resins are:
Food ingredients Europe - http://www.fi-events.com/ - The next event will be held in
November 2009.
Natural ingredients - http://www.fi-events.com/ - The next event will be held in November
2008.
and pharmaceuticals


Page 16 of 18

This survey was compiled for CBI by ProFound Advisers in development
in collaboration with Klaus Duerbeck

Disclaimer CBI market information tools : http://www.cbi.eu/disclaimer

and pharmaceuticals


Page 17 of 18
Appendix A General product description

Gums and resins are mostly exudates from plant material which can be harvested by making
incisions in the bark of the tree. There is also a number of gums, which are produced as seeds.
Gums and resins differ from each other in their chemical composition and properties. Most of
the gums discussed in this survey belong to the group of hydrocolloids. Hydrocolloids are
mixtures of substances (the hydrocolloid) and water in which the substance is evenly dispersed
and which can take on different states (e.g. gel or liquid) depending on the concentration of
the mixture. The capability of gums to cause a large viscosity increase in a mixture makes
them valuable ingredients in the food industry, the cosmetics industry as well as the
pharmaceutical industry. They are used as thickeners, emulsifiers, stabilisers, suspending
agents and gelling agents.

Resins, which are also plant exudates, have a different chemical composition than gums and,
consequently, weaker colloidal properties. Some resins are also called gum-resins when they
still have colloidal properties. Resins are composed mainly of volatile fluid terpenes, which can
escape from the compound. Some resins also contain volatile essential oils. When resins are in
a viscous fluid state, they are called soft resins or oleoresins. Soft resins containing benzoic
acid or cinnamic acid are called balsams. When the resins contain little volatile fluids, they are
called hard resins.

Waxes may be natural secretions of plants or animals, artificially produced by purification from
natural petroleum or completely synthetic. This survey only discusses natural waxes. Waxes
have the following properties: plastic (malleable) at normal ambient temperatures, melting
point above approximately 45C, low viscosity when melted, insoluble in water and
hydrophobic. As a food additive, beeswax is known as E901 (glazing agent). It is also a release
agent, stabilizer, texturizer for chewing gum base, carrier for food additives (including flavours
and colours) and a clouding agent. The melting temperature of around 40C makes waxes
particularly interesting for the cosmetic industry as an emollifier, emulsifier and stiffening
agent for oils and fats. Due to the high melting energy needed for fluidization, it adds to the
properties of cosmetic products, making them more resistant to melting by sun heating.

Name Botanical source E-number Product group
Gum arabic Acacia senegal; Acacia seyal E414 Exudate gum
Karaya Sterculia urens E416 Exudate gum
Tragacanth Astragalus gummifer and other
species of Astragalus
E413 Exudate gum
Gum ghatti Anogeissus latifolia E419 Exudate gum
Guar gum Cyamopsis psoraloides;
Cyamopsis tetragonolobus
E412 Seed gum
Locust bean gum Ceratonia siliqua E410 Seed gum
Tara Caesalpinia spinosa E417 Seed gum
Cassia Cassia floribunda; Cassia
obtusifolia; Cassia occidentale;
Cassia roemeriana. All also
called Senna spp.
E499 Seed gum
Damar Shorea javanica; S. lamellata;
S. virescens; S. retinodes; S.
guiso; S. robusta; Hopea
dryobalanoides; H. celebica;
Vatica rassak; Vateria;
Balanocarpus
n.a. Hard gum-resin
Dragons Blood Croton draconoides
C. draco
Croton lechleri
Croton urucurana
n.a. Hard resin
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Page 18 of 18
Name Botanical source E-number Product group
Croton xalapensis Daemonorops
draco
Daemonorops didymophylla
Daemonorops micranthus
Daemonorops motleyi
Dracaena cinnabari
Dracaena draco
Myrrh Commiphora myrrha n.a. Hard resin
Ladanum Cistus ladaniferus n.a. Hard resin
Sandarac Callitris quadrivalvis n.a. Hard resin
Frankincense
/olibanum
Boswellia serrata;
B. Sacra; B.carteri; B. thurifera
n.a. Hard resin
Opoponax Commiphora erythrea
glabrescens
n.a. Hard resin
Asafoetida (Devils
dung)
Ferula asafoetida; Ferula
alliacea; Ferula narthex
n.a. Gum-oleoresin
Elemi Canarium luzonicum n.a. Oleoresin
Galbanum Ferula galbaniflua n.a. Oleoresin
Turpentine Ericameria laricifolia; Pinus
elliotti; P. massoniana; P.
kesiya; P. pinaster; P. merkusii;
P. roxburghi; P. oocarpa; P.
caribaea; P. radiata
n.a. Oleoresin
Asian styrax/
American styrax
Liquidambar orientalis;
Liquidambar styraciflua
n.a. Balsamic oleoresin
Benzoin Styrax tonkinensis; Styrax
benzoin; Styrax paralleloneurus
Peru balsam Myroxylon balsamum var.
Pereirae
Tolu balsam Myroxylon balsamum n.a. Balsamic oleoresin
Copaiba Copaifera reticulata; Copaifera
guianensis; Copaifera multijuga;
Copaifera officinalis; Copaifera
langsdorffii
Gurjun Dipterocarpus turbinatus and
several other Dipterocarpus spp.
Beeswax Apis mellifera E901 Wax
Carnaubawax Copernicia prunifera E903 Wax
Candelilla Euphorbia antisyphilitica E902 Wax

HS codes Description
13012000 Gum Arabic
130190 Natural gums, resins, gum-resins, balsams and other natural oleoresins (excl.
gum Arabic)
15211000 Vegetable waxes, whether or not refined or coloured
15219091 Beeswax and other insect waxes (crude)
15219099 Beeswax and other insect waxes (refined)

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