malvernmugadzikwa
Trade Focus
Allan Majuru
ESSENTIAL oils have become a significant part of the global natural products market.
This presents Zimbabwe with a unique opportunity to capitalise on its rich biodiversity and underutilised resources.
Essential oils are undoubtedly emerging as a crucial economic driver in Zimbabwe, transforming a product that was once overlooked into a source of prosperity for local communities.
Zimbabwe’s wild fruits, such as baobab, mapfura, marula and ximenia (also known as nhengeni), have long been undervalued, with their seeds — which are the key material for the production of essential oils — seen merely as by-products of fruit consumption.
However, President Mnangagwa’s administration has changed the narrative, with ongoing efforts to unlock the economic value of these wild fruits gaining momentum.
On many occasions, the President has emphasised the need to use Zimbabwe’s natural resources to spur economic development and improve livelihoods.
Over the past few years, deliberate partnerships involving small businesses, communities and institutions of higher and tertiary education to boost heritage-based products have seen positive results, which have transformed Zimbabwe’s wild fruit sector into a globally competitive industry.
These wild fruits are now being innovatively processed into valuable oils, particularly in rural areas, where baobab and marula trees grow in abundance.
This push aligns with President Mnangagwa’s broader national agenda of creating an inclusive economy, where “no place and no one is left behind”, as the country works towards achieving Vision 2030.
Technical interventions have also been made to equip cluster groups with the necessary machinery and processing facilities to increase production volumes and ensure consistency in quality.
These efforts are paying off, with Zimbabwean essential oils now meeting the stringent requirements of international buyers, particularly in the beauty and personal care sectors.
Efforts to improve the commercial viability of wild fruits are also driven by the Government’s commitment to sustainable development.
These fruits, which grow naturally in Zimbabwe’s dry regions, require minimal water and care, making them a sustainable source of economic activity without putting undue pressure on the environment.
Growing demand
Essential oils are in high demand in global markets, creating a lucrative opportunity for small businesses and rural communities.
They are used widely in the beauty, personal care, healthcare, food and home care industries due to their numerous benefits. They have therapeutic and antimicrobial properties, among others.
According to the Allied Market Research, the essential oils market saw significant growth during the Covid-19 pandemic, as more consumers sought natural remedies to address mental health and wellness concerns.
This shift in consumer preferences presents huge opportunities for local exporters to capitalise on the rising demand for essential oils, particularly those derived from organic, wild-harvested sources like baobab and marula.
According to Trade Map, the global import bill of the essential oils market has been growing over the past years, from US$4,4 billion in 2015 to US$5,6 billion in 2023, with major importers being the United States, France, India, Germany, Ireland, China, the United Kingdom, Switzerland and Indonesia, among other countries.
The US alone imported US$1,1 million worth of essential oils last year and India grew its imports from US$285 million in 2021 to US$420 million in 2023, highlighting the immense potential for Zimbabwean producers to expand their footprint in international markets. The country’s national trade development and promotion organisation, ZimTrade, has been focusing on unlocking access to existing and emerging markets, such as in Asia.
For example, at the recent Malaysia International Halal Showcase, essential oils produced by Zimbabwean youth-led enterprises developed under the ZimTrade’s Eagles Nest Youth Export Incubation Programme were popular at the country’s pavilion.
These youth-led businesses showcased the quality of Zimbabwean essential oils in the market. They also demonstrated the potential for small enterprises to thrive in global markets.
Demand for Zimbabwean essential oils is not limited to the beauty industry; the healthcare, food and home care industries also present vast opportunities.
Essential oils are increasingly being used in natural healthcare products, aromatherapy and alternative medicine to promote relaxation, reduce stress and enhance respiratory health.
In the food and beverage sector, oils from lemon, peppermint and basil are being used to flavour teas, cocktails and baked goods; while the home care industry utilises essential oils as natural cleaning agents and air purifiers.
With such diverse applications, essential oils have the potential to become one of Zimbabwe’s top non-mineral exports.
Capacitation
There are huge opportunities for local producers to tap into the global essential oils market, which is projected to grow significantly in the coming years.
Key markets include the US, South Korea, the UK, Malaysia, Japan, the United Arab Emirates and China, all of which have shown a strong demand for essential oils.
To maximise their export potential, Zimbabwean producers must continue to focus on quality, sustainability and compliance with international standards.
There is need for continued investment in research, innovation and market development.
One of the main challenges is inadequate investment in processing infrastructure.
To compete on the global stage, local producers must scale up their production capacity and ensure consistency in quality.
Additionally, compliance with international regulatory standards is necessary to gain access to lucrative markets.
In markets like South Korea, essential oils are classified as cosmetics, requiring strict adherence to the Cosmetic Act, and certification from the Korea Food and Drug Administration.
Similarly, in the UK, producers must comply with the Cosmetic Product Safety Report to sell their products. Whilst they are seemingly challenging to attain, these strict regulatory requirements present opportunities for local producers to differentiate themselves by offering high-quality, certified products that meet global standards.
By focusing on these critical areas, Zimbabwean essential oil producers can position themselves as trusted suppliers of natural, eco-friendly products in the competitive global market.
Allan Majuru is the chief executive officer of ZimTrade.
Online Reporter