WP T1 Activity A. T1.2 Implementation of VCA OUTPUT FOR DELIVERABLE D T1.2.1 PROCESSING AND MARKETING RECOMMENDATION Author: ENVIRONMENT PARK

STRUCTURE OF THE ITALIAN SUPPLY CHAIN ...... 9 MARKET IN THE EUROPEAN ALPINE SPACE ...... 15 GERMANY ...... 16 AUSTRIA ...... 19 SLOVENIA ...... 19 FRANCE ...... 19 NEW TREND IN THE MARKET OF HERBS ...... 25 REFERENCES ...... 29

THE VALUE CHAIN OF HERBS IN EUROPE

THE MARKET SITUATION IN ITALY

The cultivation of herbs represents a niche for specialist, since the particular requirements and needs they have for growing. Moreover, it is very difficult to obtain exhaustive statistical data due to the niche economic sector, where the productions are traditionally represented by spontaneous species and characterized by low volumes. Furthermore, for these crops, which are not subject to the Common Market Organization (CMO) of the Common Agricultural Policy (CAP) in the European Union, there isn’t statistical monitoring at European level, as opposed to other crops. The aromatic are included in the definition of medicinal plants (medicinal, aromatic and perfume plants). The list of officinal plants cultivated in Italy was realized with the collaboration of the Italian Federation of Officinal Plants Producers (FIPPO), of Assoerbe (Italian Association representing the Growers, Collectors, Transformers, Importers, Exporters, Wholesalers and Representatives of Foreign Houses of Medicinal Plants, Herbs, Spices, Extracts, Essential Oils and their derivatives) and SISTE (Italian Society Applied sciences to medicinal plants and products for health). The list contains 296 species, spontaneous and cultivated, used in Italy (therefore also imported). Around 48% of the species included in the list, are also cultivated or cultivable in other countries. As for the habitat, 32 species (11%) are cosmopolitan. The species that have a habitat in Europe are 89 (30%); also, there are 56 Eurasian species, 33 Mediterranean species and 6 alpine species (Achillea erba-rotta subsp. Moschata- common name simple leaved milfoil, Alchemilla alpina, Artemisia genepi and ostruthium). In the table below there is a list of species cultivated in Italy (as a result of FIPPO members interviews in 2012). The total cultivated surface in Italy is about 1,500 hectares and the main species, in terms of cultivated area, are mint, lavender, chamomile, , sage, lemon balm, passionflower, , etc . The table also shows the term "different species" that refers to species, like saffron, milk thistle, yarrow, rota grass, Artemisia genipi that are present in areas under 0.3 hectares (Istat 2011).

Species Surface in ha Mint 253.54 Lavender 136.64 Chamomile 123.10 Fennel 78.21 Sage 68.45 Melissa 47.69 Roman 45.05 chamomile Passiflora 39.21 Coriander 37.00 Hybrid 32.13 lavender Oregano 24.25 Psillo 23.00 Helichrysum 22.44 Rosemary 20.97 Absinthe 18.62 Savory 17.37 Dandelion 17.10 Nattle 15.10 Hyssop 14.53 Mallow 12.86 Aloe vera and 12.08 arborescens Thyme 11.48 Echinacea 7.52 Sclarea 7.33 Blackcurrant 7.31 Burdock 6.80 Artichoke 5.20 Yarrow 4.38 Escolzia 2.50 Galega 2.26 Violet 2.25 Marigold 2.11 St. John’s wort 1.62 Tarragon 1.25 Marjoram 1.10 Myrtle 0.52 Lespedeza 0.50 Different 379.94 species Total 1503.38 Table 1 List of plant and relative hectars of cultivation in Italy (ISTAT 2010, FIPPO, 2012)

REGIONAL SPECIFICATION Region Number of Surface (ha) Companies Piemonte1 248 869.18 Valle d’Aosta 32 10.73 Liguria 89 34.50 Lombardia 119 151.11 Trentino Alto 71 19.18 Adige Veneto 75 115.13 Friuli Venezia 37 50.67 Giulia Tab. 2 Companies and surface- regional specification (ISTAT Censimento, 2010)

PRODUCTS AND PROCESSES The main market areas for herbs in Italy are represented by: 1. PRIMARY AGRICULTURAL ACTIVITY PROCESSES PRODUCTS Cultivation and harvesting Fresh plants wash 4- range products (ready-to- eat fresh-cut herbs)

2. AGRO-INDUSTRY PROCESSES PRODUCTS Cutting and selection Herbs for infusions, flavors Extraction Liquid and semi-liquid extract (maceration, industrial, semi- industrial Distillation Essential oils Rectification Drying Dried plants for tea Concentration , freeze drying Concentrated extracts Formulation, packaging Final products with herbs

In Italy, a limited range of species that include peppermint, passiflora, wormwood, dandelion, echinacea, lemon balm, oregano, sage and chamomile, there is a well- established agronomic practice, which allows its production in an advanced and competitive context. For other species, lacks of technical and agronomic notions on all the phases of the cultivation process are still present.

ITALIAN IMPORTS In 2011, Italian imports of officinalis plants and their derivates amounted to about 161 thousand tons with an outlay of 999 million euros. Compared to the total imports of agricultural and food products, the sector represents around 2.5%.

Fig. 1 Pie chart for the percentage of imported officinal plants and their derivates (ISMEA 2013)

% Import of officinalis plants Odoriferous substances for the food 30.5% industry Odoriferous substances for the no- 22.8% food industry Juices and plant extracts 11.6%

The and mate 5.9%

Essential oils 4.8% Spices and aromatic herbs 4.7% Officinalis and aromatic plants 5.5% Dyes 3.9%

Extract for tanning 3.5%

Pepper 2.4%

Tires and resins 2.3% Table 3 Export in Italy- Others 1.5% percentage ITALIAN EXPORTS In 2011, total Italian exports of officinal plants and their derivatives amounted to about 82 thousand tons with revenues of 413 million euros. Compared to total exports of agricultural and food products, the sector represents around 1.4%.

Fig. 2 Pie chart for the percentage of exported officinal plants and their derivates (ISMEA 2013)

Export of officinalis plants %

Odoriferous substances for the food 15.6%

industry

Odoriferous substances for the no- food 7.8%

industry

Juices and plant extracts 27.0%

The and mate 3.4%

Essential oil 19.3%

Spices and aromatic herbs 5.6%

Officinalis and aromatic plants 4.4%

Dye 8.7%

Extract for tanning 4.5%

Pepper 2.4%

Tires and resins 1.2%

Others 0.5%

Tab.4 Export of officinal plants – percentage

STRUCTURE OF THE ITALIAN SUPPLY CHAIN

The value chain of officinal plants in Italy is particularly complex. The main difficulties in defining a model that summarizes and expresses in a complete manner the structure of the supply chain and the relationships between the different actors that compose it, can be traced to the following points: - High number of cultivated, semi-finished and finished products that are generated in this chain; - Number of types of actors taking part in the supply chain (collectors, producers, processors, end users, etc.); - Different degree of vertical integration between actors of different stages of the supply chain.

Fig. 3 Structure of Italian supply chains (ISMEA, 2013)

THE CARACHERISTICS OF ACTORS IN THE VALUE CHAIN SPONTANEOUS COLLECTORS The manual harvesting of herbs is the less practiced but it is recognized by the legislation on organic farming, which assimilates it to cultivation. The buyer is generally a wholesaler, often located also far from the collection areas, which on the basis of relationships established over time, assures a certain purchase of raw materials, year after year. The volumes and values of this market are unknown, even if there are important products - such as helichrysum, gentian roots, birch, oregano, etc. - which still largely come from spontaneous harvesting carried out in the Apennines, in the Alps and in the islands.

FARMS In Italy, the area used for the cultivation of aromatic, medicinal and seasoning plants is about 7,000 hectares. In detail, the area dedicated permanently to the cultivation (according to properly agronomic canons) of herbaceous and arboreal plants that are strictly definable as officinalis is between 2,000 and 2,500 hectares, with a production that can be estimated between 2,000 and 3 thousand tons of product per year (FIPPO; 2012). This type of farms is mainly located in historical production areas, such as the Po Valley, between the Cuneo area and the Turin area (Moretta, Pancalieri, Savigliano), in some areas of the Veneto region, in the Marches (Macerata, Ascoli) and in some areas between Puglia and Basilicata, and in Sicily. This type of farms - in practice the heart of the primary sector - according to FIPPO covers about one hundred structures; the cultivation of officinalis plants is practiced on surfaces between 5 and 30 hectares, whith 3 up to 10 different species. From a technical point of view, this cultivation is done by following "intensive" models, using the irrigation and fertilization practice. According to FIPPO assessments, in these pedoclimatic and business contexts the yields are quite high, in the order of 3-5 tons of dry product per hectare or 50-80 kg of essential oil (always per hectare) and the production costs (in the order of 2-5 € / kg per dry product) reach their minimum levels. These types of companies, usually own simple equipment for the first step of the transforming and processing phase of the plants and herbs that are cultivated. Normally they have a dryer and an oil distiller for the production of dried plant or essential oils. In general, this type of companies produces 20-50 ton of dried material or up to 2 ton of essential oils with an income of 150-250.000 euros (FIPPO).

TOTALLY INTEGRATED COMPANIES This type of companies are normally called “closed-cycle companies”, in which the entire production cycle is realized within the company, as well as the marketing and commercialization phase. In this case obviously, the company own the majority of the incomes. In general, these types of activities have also a laboratory for samples analysis and all the necessary equipment for the processing and transformation phases of herbs. These companies produces a wide range of products with different business incomes.

WHOLESALE TRADING OPERATORS The wholesale trading operators usually buy products in bulk, qualify them (analytically and with checks on contaminants of various kinds and distribute. The companies of this segment of the supply chain can be traced back to the following main types: -companies specialized in the trade of dried primary products; -companies specialized in the trade of essential oils, less present in Italy, which have a particular expertise for this type of raw materials; -other companies that trade a wide range of products (dried herbs, extracts and essential oils, together with other ingredients of natural origin Normally, the supply chain is international, on the basis of the regional specialization products.

INDUSTRIAL COMPANIES These are companies that manufacture and market derivatives from agricultural raw materials, both as industrial semi-finished products and as finished products. It is difficult to find precise data regarding the number of companies operating solely in this sector.

ORGANIC SECTOR In the field of officinal plants, the organic production has a considerable importance. On the basis of the administrative data provided to Mipaaf by the Control Bodies and elaborated by SINAB, the area of aromatic, medicinal and seasoning plants in 2011 is equal to 2,916 hectares, of which 452 hectares are being converted to organic cultivation. Compared to the total organic agricultural area, these crops affect for 0.3%. But more interesting is the comparison with the total hectares invested in aromatic, medicinal and seasoning crops, resulting from the Census of Agriculture, from which it is deduced that in 2010 41% of the area planted with these plants is organic, while for the total of agricultural crops, the incidence of the organic surface is only 9%. In the table below, there is the number of organic farmers operating into aromatic, medicinal and seasoning plant sector.

CURRENT LEGISLATION In Italy, a specific law uniquely considered the definition, the scope, the registration process and the quality requirements of herbal medicines. Since the late 1990s, however, a large number of herbal products, as cut or powdered plants, extracts or other preparations, collectively defined as botanicals, entered into the market also as food, cosmetics and as parapharmaceuticals, term that can be used to define non pharmaceuticals products having health benefits, such as food supplements and novel foods. Currently, in Italy, the number of botanicals in food supplements is very large. Supply and demand led to a rediscovered interest from a large segment of the population towards herbal products. Herbal drugs, as drugs in general, in Italy have fluctuating market trends, stable on average in the last ten years, with a positive trend in the 2015–2016 period; despite this, all herbal drugs sales are very limited and no plant products are among the top sellers. On the other hand, the Italian market is the most flourishing in the European scene both concerning nutritional supplementation overall (over 2.5 billion euro in the period May 2015–May 2016, and concerning botanical food supplements (a little less than 1 billion euro in the period May 2015–May 2016, (Federsalus, 2016). In Italy, the botanical food supplements market is worth more than 4% of the overall revenue produced by the pharmacy sale channel (25.4 billion euro in the period May 2015–May 2016, Federsalus, 2016 stably in the first place for the sale of drugs and parapharmaceuticals. The botanical food supplements market is currently worth four times that of homeopathy and three times that of veterinary drugs (Federsalus, 2016).

Taking into account that food supplement marketing authorization is impressively cheaper and easier compared to that of herbal medicines, it is no surprise that the largest part of medicinal plants in Italy are used as botanical food supplements, associated with health claims ranging from the regularization of the intestinal transit, the maintenance of the immune system, to the normalization of cholesterol levels (to only name the top-selling products, which makes it difficult to draw the line between therapeutic and healthy functions (data on EFSA and Italian Ministry of Health). Market and legislation in Italy are at the same time cause and consequence of this peculiar situation; it is true that the legislation on botanical food supplements in Italy is one of the most permissive ones in Europe, which can only be compared to Spain, for the use of botanicals in food supplements, and, at the same time, the market has given an impressively positive feedback in terms of uniqueness of consumption in Europe, which helped to widen the use of medicinal plants in the food field. Italy has a long tradition and knowledge in the use of herbal products, and it is currently the European country with the fastest growing market, since they are used as food, novel foods, food supplements and cosmetics when intended to maintain health more than as herbal medicines with therapeutic purposes. Foods and food supplements only require the obligation of notification to the Ministry of Health that ensure safety of use, while efficacy is only referred to the use of allowed substances with health claims. Hazard Analysis and Critical Control Points (HACCP) procedures are required to manufacture these products. In addition, efficacy is not to be proven for cosmetics. Marketing a food supplement is definitely cheaper than marketing an herbal medicine. This is likely to make the food supplements market completely overwhelm the one for herbal medicines. The quality standards in botanical food supplements vary from one product to another. Companies are beginning to significantly improve their quality standards, often proposing extracts and formulations increasingly similar to herbal medicines. This notable attention to the quality still represents the smallest percentage of botanical food supplements available in Italy, and more than 90% of ingredients and formulations sold as botanical food supplements have not undergone clinical investigations.

MARKET IN THE EUROPEAN ALPINE SPACE

European imports of spices and herbs from developing countries have grown significantly in recent years, by 6.6% annually between 2013 and 2017. The global spices market is expected to grow by 5.1% between 2017 and 2021. The market has a good trade potential, especially for small-scale farmers in regions like Germany, the UK, France and the Netherlands where a significant local demand exists for spice and herb extracts. A large proportion of extracts traded in both, local and export markets, are produced by small-scale farmers, and the global trade provides them with multi-billion US dollar earnings. The key drivers leading to the growth of the spice and herb extract markets are the increased availability of international cuisines in the major economies, shifting consumer focus towards natural products and increasing demand for convenience foods.

MARKET DYNAMICS Drivers • Increased Availability of International Cuisines in the Major Economies. • Shifting Consumer Focus Towards Natural Products • Increasing Demand for Convenience Foods Restraints • Inconsistencies in the Prices of Spices and Herbs • Availability of Substitute Products Opportunities

• Positive Prospects for Small and Medium-Sized Exporters by Adopting Sustainability Measures • Increasing Demand for Flavor Variation in the Food Products • Growing Number of Aging Population

GERMANY

In 2018, herbal/traditional products continued to grow in popularity among German consumers. This can be attributed to the general trend towards more natural products in everyday life as consumers become increasingly knowledgeable and therefore skeptical about artificial ingredients. Drugs made from medicinal plants have become ever more popular among doctors and patients in Germany in recent years. Around 75 percent of customers in German pharmacies reach for a natural product when they buy non-prescription medications. In 2006, so-called phytopharmaceuticals accounted for around 2 billions euros ($2.9 billion) worth of revenue, or about a third of the total revenue in non-prescription medications. That translates into a high demand for the raw materials for these products -- medicinal plants and their leaves, flowers, roots, and seeds (dw.de) German consumers are price-sensitive in their purchases of fruits and vegetables, but their country is still Europe’s largest importer (FreshPlaza, 2014). The main suppliers of fresh vegetables (including, but not limited, to fresh herbs) to Germany include Mediterranean EU countries (Italy, France and Spain) and the Netherlands (ITC Trademap). Of these, Mediterranean countries are the largest European producers of fresh vegetables and herbs, whereas the Netherlands is an important trader. Herbs in Germany have several uses; they can be used as fresh culinary herbs, but a large part of the production is dried and further processed for animal feed, health and cosmetic applications, such as herbal medicinal products, food supplements, cosmetics and aromatherapy. Not all the herbs covered in this study are used in all forms. Chives, for example, is mostly used for culinary purposes, whereas mint and rosemary have strong applications in medicinal tea, herbal medicine and aromatherapy. Fresh Herbs | Market analysis Source: CBI Market information data base | URL: www.cbi.eu Page 6 You may find strong competition from production in Germany during production season. The cultivation of herbs and other medicinal and aromatic plants (MAPs) has a long tradition in Germany, particularly in the Eastern part of the country. Other production areas include Bavaria, Hesse and Lower Saxony. Around 75 species of MAPs are grown commercially in Germany on acreage of 13,000 ha (IVA, 2014). The German government aims to expand the area under cultivation to 20,000 ha by 2020. Product-specific The most important culinary herbs produced in Germany are , chives, marjoram, , , sweet basil, , mustard, coriander and . The main medicinal herbs produced in Germany are chamomile, mint, thyme, lemon balm, St. John’s wort, purple coneflowers, valerian, narrow leaf plantain, sage, milk thistle and sea buckthorn (Europam). German production of both potted and cut fresh herbs is highest for basil (38% of production in 2010), parsley (21%) and chives (15%) (University of Bonn, 2014). In 2013, Germany produced around 12,000 tonnes of chives (BMEL, 2014).

There are increasing opportunities in • Organic and healthy food: an increase in spending on fresh food will lead to higher consumption in terms of value of fresh herbs; • trend for “clean eating”: eating foods free from additives (Deutschlandfunk.de). Consumers increasingly see processed ingredients and additives as unhealthy additions to their foods and rather go for pure, natural food products. Fresh herbs fit this trend very well, especially as they are seen as healthy ingredients with a natural flavour (Krueger). Fresh herbs can also reduce the intake of salt, which is another goal of healthy cooking; • Interest in supply organic and local sources (Km0)

Production and exports (CBI- Import promotion desk.de) Fresh herbs for exports are grown by large-scale farming as well as small-scale, traditional farming and small to medium-scale contract farming. Producers can grow herbs for the fresh and dried herbs market, as well as to process them into essential oils. Both applications (fresh and processed) require different investments in terms of equipment and skills. There are many “touch-points” for fresh herbs in the beginning of the supply chain, such as harvesting by hand, quality sorting, bunching and packing herbs, which are potential sources of contamination. Producers and processors need to take measures to prevent contamination in these steps. Growers of fresh herbs deliver their produce to exporting companies, which usually carry out post-harvest treatments such as sorting, cleaning or washing, trimming (and sometimes cutting) and packaging & labelling. Large-scale farmers often export fresh herbs themselves. The postharvest steps carried out at the producing country will depend on the requirements of the customers down the supply chain. Usually, sorting and cleaning is done in the country of origin, as well as packaging in wholesale containers or retail packs.

AUSTRIA

In Austria there are different important cultivation areas with a total production of herbs in pots: 5,25 Mio. pieces per year in approx. 350 companies. The areas are Styria around Graz (1,7 Mio pieces), Kufstein in Tyrol (1,0 Mio pieces), Wallern in Burgenland (0,4 Mio pieces), Wals Siezenheim in Salzburg (0,4 Mio. pieces) and Vienna (0,4 Mio pieces). There is a Growing market for hemp, hemp products and cannabidiols (newcomers)

SLOVENIA

In Slovenia the cultivation of herbs and their supra-regional marketing, is still at the beginning; most of the cultivation is currently carried out by farmers on small cultivation areas. The demand is high and need an organized purchase, production and processing phases and for a cultivation improvement (more automation, less manual work), on the other side the Slovenian market needs the development of secondary activities and incomes for the farmers (tourism, sells of processed products), the need for an implementation of a trademark coordinated by a “herbal cooperative” and the possibilities to use the bu-products obtained during the different step of the entire value chain.

FRANCE

All data below are coming from common agricultural policy (CAP) 2017. Overview of the production of Perfumed, Aromatic and Medicinal Plants (PPAM) in France • 52,863 hectares of perfume, aromatic and medicinal plants are cultivated in France, distributed as follows: o 28,144 hectares of perfume plants, o 18,886 hectares of medicinal plants, o 5,833 hectares of aromatic plants.

The share of organic agriculture in the PPAM sector in France More than 8,000 hectares are cultivated organically or are in the process of being converted. This is 15.30% of the PPAM cultivated area. It concerns 2,570 farms in 2017.

Main aromatic plants grown in France • Coriander : 1694 ha • Persil : 1509 ha • Thym : 547 ha • Fenouil : 452 ha • Menthe : 339 ha • Others : 307 ha • Aneth : 266 ha • Estragon : 228 ha • Ciboulette : 199 ha • Basilic : 180 ha • Romarin : 112 ha • Total : 5 833 ha

Main medicinal plants cultivated in France • Poppy (estimated): 13000 ha* • Chamomile: 574 ha • Helichryses: 300 ha • Artichoke (leaf): 250 ha • Balm: 237 ha • Milk thistle: 193 ha • Black psyllium from Provence: 143 ha • Other: 4189 ha • Total: 18,886 ha *Poppy is an integrated crop under the control of Francopia, a subsidiary of Sanofi.

Cultivated areas in SOUTH and RHONE-ALPES regions Unit = in hectares Rhone alpes region South region Perfume plants 7314 19 849 Aromatic plants 714 544 Medicinal plants 854 710 Total 8882 21 102 Number of companies 1462 To be confirmed Source: comme agricultural policy data 2017 Details of cultivated species by region in hectares Species Rhone Alpes South Aneth 33,57 24,68 Angélique 7,85 0,85 Anis 1,19 0,00 Basilic 136,56 3,10 Camomille 154,46 5,55 Chardon Marie 57,76 0,00 Ciboulette 1,16 1,08 Coriandre 38,87 93,09 Estragon 0,8 14,51 Fenouil 19,65 199,04 Lavande/lavandin 7 106,80 16 801,02 Marjolaine/origan 29,47 14,05 Mélisse 163,01 0,34 Menthe 70,08 0,69 Millepertuis 2,92 3,54 Pâquerette 0,36 0,00 Persil 41,09 34,14 Psyllium noir de 0,00 125,94 Provence Romarin 59,80 20,34 Sarriette 48,16 26,50 Sauges sclarée et 207,24 304792 officinale Thym 229,93 112,67 Autre PPAM annuelle 154,12 144,60 Autre PPAM pérenne 299,19 424,26 Espèces < 50 ha 18,54 4,43 Total 8 882 21 102 Source: comme agricultural policy data 2017 Rhône-Alpes and South region: leaders of organic PPAM Rhône-Alpes and South regions are the two most important regions in organic PPAM. Certified areas and in conversion represent 60.2% of the French organic PPAM area with respectively 2,069 ha (29%) and 2,196 ha (31%).

Cultivated areas in alpine regions 2017 Number of companies Certified areas in organic and transition South 443 2196 Rhone alpes 695 2069 Total 1138 4265 Source: comme agricultural policy data 2017 Cultivated areas in alpine departments Rhone alpes Surface (ha) South Surface (ha) Drôme (dpt n°26) 7819,77 Alpes de hte 14 084,5 provence Isère (dpt n°38) 316,7 Hautes alpes 392,91 Savoie (dpt n°73) 8,94 Alpes Maritimes 36,85 Haute-Savoie (dpt 0,84 n°74) Source: comme agricultural policy data 2017 Harvesting plants According to the Conservatoire National des Plantes à Parfum, Médicinales, Aromatiques et Industrial (CNPMAI), the main plants harvested are as follows:

Aconit napel, Spring Adonis, Arnica (Arnica chamissonis), Arnica (Arnica montana), Asaret d'Europe, Carline, Cigüe vireuse, Criste marine, Diotis, Edelweiss, Fraxinelle, Genepi (3 species), Marine Germandrée, Grande Douve, Grande Gentiane, Gratiole, Black helleborus, hyssop, immortal sands, immortal Italy, Menyanthe, Super carnation, Sea panicaut, Cat's foot, Round-leaved pirole, Umbel oil, Peony officinale, Blue polemony, Winter horsetail, Pulsatile, Rose de Provins, Rossolis (3 species), Sea Scale, Staphysaigre.

The majority of wild plants are marketed as organic. The surfaces and volumes are very difficult to estimate. Some national botanical conservatories have carried out studies and some estimations were made. There are 257 harvesters on the territory of the Conservatoire Botanique du Massif Central for 370 species and 700 operators concerned (2012 study). 197 harvesters on the territory of the National Botanical Conservatory of the Pyrenees and Midi- Pyrenees for 436 plants (2014 study). In addition, harvesting is practiced throughout French territory but the main areas are located in the mountainous massifs (the Vosges in particular for arnica, Jura for yew (Taxus baccata),

Auvergne for gentian. NEW TREND IN THE MARKET OF HERBS

All the drugs and herbal medicinal products were listed in the official pharmacopoeias of different countries or in reference texts such as World Health Organization Monographs on Medicinal Plants. Efficacy, safety and chemical standardization of herbal medicines were guaranteed and quality controls well defined. Due to the increased interest, Europe started to regulate this sector. In 1997, a regulation was issued on “Novel Food” (Regulation 258/97/CE); then, the community directive which regulates the requirements for the marketing authorization of food supplements (Directive 2002/46/CE) tried to harmonize the lists of "botanicals" used in the food industry, but with little success because of the differences in norms between the different European countries that make it difficult to distinguish between herbal drugs and botanicals foods supplements (Biagi et al., 2016). Other European countries are looking to harmonize these claims but also in this case with great difficulty. The European Food Safety Authority (EFSA) today recognizes very few claims associated with plant derivatives and these only refer to active ingredients or classes of active ingredients of medicinal plants in well-defined dosages (for example, 5 mg/die of olive oil polyphenols expressed as hydroxytyrosol to avoid lipoproteins peroxidation or 10 mg/die of monacolin from red yeast rice to maintain regular blood cholesterol levels) and not, as in Italy, to the botanicals (EFSA, 2018). The number of botanicals allowed in Italy as ingredients in food supplements is very large and to date includes two lists: one, the Italian list, and another, the so-called BELFRIT (BELgium FRance ITaly) list resulting from a collaboration between Belgium, France and Italy. Every European country defines its own list of plants usable in food supplements and soon also the Italian Ministry of Health will define only one list that will include most of the plants placed on the two lists. EFSA moreover published a revised version of a botanical compendium (https://www.efsa.europa.eu/en/microstrategy/botanical-summary- report ) in which it is possible to find all the plant species with the relative composition and the reverse effect eventually present.

The European demand for spices and herbs continues to grow. This is due to trends such as healthy living, interest in new tastes, convenience and sustainability. Thanks to high demand, leading to increasing prices and a sense of scarcity, European buyers are continuously looking for new suppliers. You can also find opportunities in smaller or niche markets focusing on special varieties, improved quality and sustainability. However, you need to comply with strict requirements for quality, food safety and traceability to enter the European market. European imports of spices and herbs from developing countries have grown significantly in recent years, by 6.6% annually between 2013 and 2017. The global spices market is expected to grow by 5.1% between 2017 and 2021. New trends and good opportunities for developing new business models are related to the possibilities to • supply special varieties • focus on product characteristics (e.g. better colour and taste) • customize according to buyer’s preferences; • produce sustainably (e.g. organic, fair trade).

ORGANIC MARKET The organic market for spices and herbs is growing and is expected to continue to grow in the future. This growth is mainly driven by consumer preference for a healthy lifestyle and its associated correlation with organic food. A second reason is the growing demand of food manufacturing companies, who use the organic label to distinguish their products in a competitive market.

SOURCE AND ORIGIN OF THE PRODUCTS European buyers are moving closer to the source of supplies in order to better control the supply chain and make it more traceable and make sure that the strict European requirements are met. This also enables them to avoid middlemen that add no value

REPLACEMENT OF SYNTHETIC MOLECULES FOOD INDUSTRIES Moreover, healthy living is one of the most important trends in Europe. Unhealthy food ingredients such as salt, sugar and synthetic additives, are increasingly being replaced by natural ingredients, such as spices and herbs. Another important health trend in Europe is the intake of various protein products as an alternative to meat consumption and, in this sense, spices and herbs play an important role in food industry for the possibility to season and imitate the taste of meat. MEDICINAL PURPOSES On the other side, the interest in the practical use of herbal substances and preparations for medicinal purposes is growing continuously worldwide. The interest in herbal products is mainly based on the assumption of a better tolerability compared to synthetic drugs and sufficient efficacy. This on the one hand due to the long tradition of natural medicine and, on the other hand, to the frequent belief that herbal products and medicinal products are natural and safe if compared to synthetic pharmaceuticals ( NATURAL COSMETIC Demand for certified cosmetic ingredients is growing, mainly Organic and Fairtrade. The popularity of Organic (mostly with the COSMOS standard) and Fairtrade certifications in cosmetics is also driven by the use of these certifications in food products. The main European markets for organic cosmetics are Germany and France, followed by Switzerland, Italy and the United Kingdom. Germany, France and the United Kingdom also have the highest number of natural product launches and a strong focus on innovation. Cosmetic companies put strong effort in research for new natural ingredient coming from plant that will replace some synthetic molecules. Moreover, on the market there is a growing offer of natural cosmetic products. Some of these products focus on the performance of natural ingredients in the marketing of cosmetic products, especially in the case of botanical extracts. Instead of using the natural origin of an ingredient, they highlight the performance of extracts (as “active naturals”) or their hightech properties. Others build the value proposition of their company on the natural origin of the ingredients that they use without any specific active claim. Companies that position themselves as “natural” also depend on high-tech natural actives. At the same time, companies oriented towards efficacy claims might use a large share of natural ingredients (CBI.eu)

REFERENCES

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