CBI MARKET SURVEY: THE NATURAL COLOURS, FLAVOURS AND THICKENERS

MARKET IN SPAIN

CBI MARKET SURVEY

THE NATURAL COLOURS, FLAVOURS AND THICKENERS

MARKET IN SPAIN
Publication date: March 2010
Report summary
This CBI market survey discusses, amongst others, the following highlights for the natural
colours, flavours and thickeners market in Spain:
Spain is a medium-sized market for natural colours, flavours and thickeners in the EU.
Several food ingredient producers have facilities in Spain.
Spanish producers are strong competitors on products such as natural colours, citrus oils
and specific thickeners, including locust bean and agar-agar.
Spain is a medium-sized importer of natural colours, flavours and thickeners in the EU,
with imports amounting to 147 million in 2008. Between 2004 and 2008, the value of
imports increased by 7.2% annually. Spain is a net exporter of natural colours and agaragar.
Developing countries play an important role in Spanish imports, as they accounted for a
share of 50% in total imports. Moreover, imports from developing countries increased by
14% annually during the review period.
This survey provides exporters of natural colours, flavours and thickeners with sector-specific
market information related to gaining access to Spain. By focusing on a specific country, this
survey provides additional information, complementary to the more general information and
data provided in the CBI market survey The natural colours, flavours and thickeners market in
the EU, which covers the EU market in general. That survey also contains an overview and
explanation of the selected products dealt with, some general remarks on the statistics used as
well as information on other available documents for this sector. It can be downloaded from
http://www.cbi.eu/marketinfo.
1.

Market description: industrial demand and production

Industrial demand
Total market size
Spain is a medium-sized market for natural colours, flavours and thickeners in the EU. This is
largely due to the presence of several production facilities of multinational food ingredient
companies in the country, particularly flavour manufacturers. The Spanish food additive sector,
organised in the Spanish Association of Manufacturers and Traders of Food Additives, consisted
of 119 companies in 2009.
Spain has the fifth largest food industry in the EU, accounting for 9.7% of the total turnover of
the EU food industry. In 2007, the turnover of the Spanish food and drink industry was
estimated at 97 billion.
Table 1.1

Manufacturing of food products, beverages and tobacco in Spain

Food and drink

industry sectors
Total
Meat
Beverages
Oils and fats
Dairy

Share in EU food
industry, 2006

Share in Spanish
food industry, 2007

100%
*19.1%
14.1%
4.4%
12.7%

100%
19.6%
18.0%
11.2%
9.8%

Average annual
change in Spanish
food industry, 20032007
5.7%
6.6%
5.1%
10.3%
5.4%

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Food and drink

industry sectors

Share in EU food
industry, 2006

Animal feeds
Fruit and vegetables
Fish
Grain mill products
and starch
Tobacco
Other food products

Share in Spanish
food industry, 2007

*5.5%
5.6%
2.4%
3.5%

9.3%
7.6%
4.7%
3.4%

Average annual
change in Spanish
food industry, 20032007
5.2%
7.0%
4.6%
5.8%

7.1%
24.7%

0.9%
15.6%

-10.1%
3.8%

Source: Eurostat (2009)

* Data from 2005
Compared to other EU countries, the Spanish food industry achieves relatively much of the
turnover with the production of beverages, oils and fats, animal feed, fruit and vegetables and
fish. The market for specific natural colours, flavours and thickeners, which are used in these
segments, is thus estimated to be relatively large in Spain.
Growth in demand for many natural colours, flavours and thickeners slowed down during the
first year of the economic crisis, as traders and users reduced their stocks and working capital,
and shortened their contracts. According to the Spanish Federation of Food industries (FIAB),
however, the Spanish food industry has been affected less by the global economic crisis than
other economic sectors and still registered slight growth in 2008. The food additive and
supplements sector even grew by an estimated 6% in 2008. Moreover, since the second half of
2009, trade has picked up again, as inventories ran low and had to be replenished.
Between 2004 and mid-2005, Spain had the third highest number of new product releases
labelled as all natural or without preservatives or additives, after the UK and Germany
(Mintel, 2005). It is expected that industrial and consumer demand will at least remain stable
in the near future.
Product groups
Colours
Spain is estimated to be the fifth largest EU market for colours (synthetic and natural),
accounting for 10% of the total EU market. However, compared to other EU countries, Spain is
a relatively small market for natural colours, as opposed to synthetic colours. The interest in
natural colours, which are generally perceived to be healthier, is still low, due to the generally
higher costs of natural colours than synthetic and nature-identical colours. However, this
pattern is changing in favour of natural colours. The rapid increase in consumption of organic
products confirms the trend to natural products.
Flavours
Spain is estimated to be a medium-sized market for natural flavours in the EU. Several
multinational flavour manufacturers, such as Givaudan and Lucta, have production locations in
Spain. Most of the leading multinational flavour producing companies, however, have their
production facilities in other EU countries.
Citrus oils have for many years formed an especially important part of Spains gastronomic
traditions.
Thickeners
Spain is a large market for agar-agar and other thickeners in the EU. Industry sources indicate
that Spain has a strong demand for agar-agar, largely influenced by the agar-agar industry in
the country and by the national preference for this product. Demand is also strong for locust
bean gum and carrageenan. Locust bean gum is processed by several companies, including
Cargill. Carrageenan is mainly processed by the company CEAMSA.

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Market segmentation
The market segmentation in Spain is similar to the market segmentation in other EU countries.
Therefore, please refer to the CBI survey on The natural colours, flavours and thickeners
market in the EU for an elaborate description of the market segmentation.
Spain is only the eight largest market for organic food products in the EU. In 2008, the total
sales of organic products amounted to 600 million or 0.6% of the total food market in Spain.
The average per capita consumption amounted to 13, compared to the EU average of 34.
Trends in industrial demand
Industrial demand for raw materials for natural colours and flavours is expected to further
harmonize with the rest of the EU. This will lead to more industrial demand for natural
colours and flavours, as opposed to synthetic products.
There is an increasing demand for convenience food with an attractive appearance and
similar in taste as catered or home-made food. The product formulations of these foods
must often include food additives to achieve these goals.
Demand for functional foods is increasing. Spanish consumers are particularly interested in
superfruits which contain vitamins, anti-oxidants and other nutrients. They are also
interested in fibre content. The Spanish food industry consequently uses increasing
amounts of functional ingredients in foods.
Spanish food manufacturers are removing fats from their product formulations, to respond
to increased demand from Spanish consumers for low-fat products. This favours the
replacement of gelatine and other fats by other texturising systems, which often contain
natural thickeners.
For more information on trends, please also refer to the CBI survey covering the EU market for
natural colours, flavours and thickeners.
Production
The production described here focuses on the production of raw materials, since the processing
into end-products has already been described in the previous section.
Total production
Spain is a leading producer of natural colours, flavours and thickeners in the EU. Essential oils
and thickeners are, in particular, produced in relatively large amounts. Industry sources
indicate that production of natural colours, flavours and thickeners is expected to increase, in
response to a growing demand for natural food ingredients.
Product groups
Colours
Spain is a large producer of natural colours in the EU, as indicated by industry sources. Spain
is a particularly large producer of paprika. Spain also has some cochineal production (30
tonnes annually) on the Canary Islands, and saffron production. The company Vitatene
(http://www.vitatene.com/) produces natural lycopenes and beta-carotenes. However, other
important products like anthocyanins are produced in other countries, and subsequently
supplied to Spain.
Flavours
Spain is a large producer of essential oils of oranges, grapefruits, mandarins, lemons and
bergamot oil. The citrus processing industry is of considerable size. Despite the strong
competition from other growing areas, the Mediterranean region produced more than one third
of the total lemon essential oil on the global market in 2006. Many buyers also prefer the
characteristics of the citrus oil produced in Spain. It is expected that Spanish production of
citrus fruits will continue to grow in the near future. The increased production of citrus fruits,
however, does not necessarily entail an increased production of citrus oils. Due to the higher

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prices paid in the fresh fruit sector, an increasing share of the lemon production has been
diverted from the essential oils market to the fresh fruit market (Perfumer & Flavourist, 2005).
Table 1.2
Estimated production of essential oils in Spain, 2008
Product
Production size (tonnes)
Orange
800
Lemon
700
Mandarin
150
Rosemary
80
Spike Lavender
70
Lavendin
45
Thyme
40
Spanish Sage
30
Cypress
25
Labdanum oil
20
Spanish Oregano
20
Fennel (sweet)
15
Fennel (bitter)
8
Anise
6
Cade
5
Petitgrain
5
Grapefruit
5
Cistus
3
Rue
2
Bitter Orange
2
Narol
2
Eucalyptus
1
Lemon petitgrain
0.5
Source: Presentation Un "sojour" nel mondo delgi oli essenziali e degli estrattiof SISTE, 2008
Natural gum and seaweed thickeners
Spain is a leading producer of selected thickeners, such as locust bean gum, carrageenan and
agar-agar. Locust beans, which are used for the production of locust bean gum, can, in
Europe, only be found in the Mediterranean region. Spain is the largest producer of locust bean
gum in the EU, accounting for approximately half of the locust bean production. Between 2003
and 2007, Spanish production increased by 2% annually to an estimated 72 thousand tonnes
of locust beans (FAOstat, 2009). The locust bean gum is produced by around 5 companies. It
is expected that, in the near future, production of locust bean gum will further increase, in
order to meet the market demand.
The same industry sources indicate that Spain is also a large producer of carrageenan,
compared to other EU countries. The carrageenan is partly made from Chondrus seaweed
cultivated along the Spanish coast and partly from imported seaweeds. Furthermore, it is
expected that production of carrageenan will increase in the near future, as a result of
increased applications for hydrocolloids in the food industry.
Spain is the largest producer of agar-agar in the EU. For a great part, this is due to the fact
that the raw material for agar-agar is present along the Spanish coast line. Three companies
produce most of the agar-agar in Spain. Industry experts indicate that production has been
constant over recent years and it is expected that it will remain constant in the near future,
due to a stable supply of raw material.
Furthermore, Spain is a small producer of potato starch in the EU, as it has a production quota
of this product of 1.9 thousand tonnes for the marketing year 2008/2009. Potato starch could
be a competitive product to manioc starch. The country also manufactures corn and wheat
starch.

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Finally, Spain does not produce significant amounts of alginates, pectins, xanthan gum, guar
gum or gum Arabic.
Major players
Herbes del Moli - http://www.herbesdelmoli.com - producer of essential oils.
Carbonnel - http://www.carbonnel.com - Producer of essential oils.
Destilaciones Bordas Chinchurreta - http://www.bordas-sa.com Producer of essential oils.
Ingredientes Naturales - http://www.ingrenat.com Producer of paprika oleoresin, paprika
powder, Rosemary, annatto and chlorophyll. Formerly part of Chr. Hansen.
Carob SA - http://www.carob.es - leading producer of locust bean gum and tara gum.
Ceamsa SA - http://www.ceamsa.com - producer of carrageenan and locust bean gum.
Roko SA - http://www.rokoagar.com - leading producer of agar-agar in the EU.
Hispanagar - http://www.hispanagar.com - producer of agar and carrageenan.
Iberagar - http://www.iberagar.com - producer of hydrocolloids.
Productos Giro - http://www.productosgiro.com/ - processor of locust vean gum, guar gum
and tara gum.
Compaia Espaola de Algas Marinas S.A. (CEAMSA) - producer of carrageenan.
Roquette - http://www.roquette.com French starch manufacturer, has a production
facility in Spain.
Syral - http://www.syral.com French starch manufacturer, has a production facility in
Spain.
Cargill http://www.cargill.es American company, has a cereal starch production facility
in Spain.
Trends in production
New developments in the production of agar-agar and QSA (Quick Soluble Agar) and
carrageenan have considerably extended their fields of applications across the whole food
industry, replacing gelatine and meeting Halal and kosher norms.
For more information on trends, please also refer to the CBI survey covering the EU market for
natural colours, flavours and thickeners.
Opportunities and threats
- Spain is a leading producer of natural colours, flavours and thickeners in the EU.
Particularly the production of paprika, citrus oils, and several thickeners (in particular
locust bean and agar-agar) could form a threat to developing country suppliers of these
products.
+ Spain has a leading food and drink industry with a strong demand for natural flavours and
thickeners. Moreover, demand for natural food ingredients in Spain is increasing, thus
offering opportunities for developing country suppliers.
+ Developing country suppliers can benefit most from the increased demand for functional
foods by promoting the functional characteristics of their products (e.g. anti-oxidant
content).
+ Demand for semi-refined, relatively cheap carrageenan is increasing. Moreover Spanish
cultivation of seaweed for carrageenan production consists only of Chondrus Crispus.
Developing countries supply most of the other types of seaweeds.
- The strong Spanish production of locust bean gum poses a threat to suppliers of guar gum,
which can be substituted by locust bean gum in several applications.
+/- Tara gum is being increasingly used as a substitute for locust bean gum, offering
opportunities for suppliers in developing countries of tara gum, but a threat to suppliers of
locust bean gum.
+/-Although the organic food market is expected to grow in the coming years, it is still
relatively small compared to other EU countries. Moreover, the steadily growing domestic
production of organic food forms a threat to DC exporters.
Exporters should take into account that the same trend can be an opportunity for one exporter
and a threat to another. Please review these opportunities and threats according to your own

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situation. Chapter 7 of the CBI market survey The market for natural colours, flavours and
thickeners in the EU presents an example of an analysis of whether a trend/development is an
opportunity or a threat.
Useful sources
FIAB - http://www.fiab.es - Spanish Federation of Food and Drink Industries
AEFAA - http://www.aefaa.com - Spanish Food Flavours and Fragrances Association
FiBL - http://www.fibl.org/ - Research Institute for Organic Agriculture
2.

Trade channels for market entry

Trade channels
Natural colours, flavours and thickeners are traded at an EU level. A small number of
compounders, traders and agents internationally trade most of the Spanish and EU production.
The Spanish trade structure has to be viewed in conjunction with EU trade structure. Please
refer to the CBI survey on The natural colours, flavours and thickeners market in the EU.
Compounders
The market for colours and flavours is dominated by compounders, which supply the largest
food manufacturers. These multinational compounders are often vertically integrated including
import, production/processing, marketing and sales. Moreover, they are often integrated
horizontally as well, to include different products within the group of food additives (i.e.
colours and flavours).
Although production facilities are located in just one or only a few locations, sales offices of
compounders are spread out more widely. They are located in many different countries, in
order to cover specific countries or regions. International Flavours and Fragrances Inc. (IFF),
for example, has sales offices in 11 EU countries. Whereas smaller markets are often covered
by sales offices located in other countries, larger markets such as Spain are generally covered
by one office, dedicated solely to that market. By having offices in many different countries,
compounders are able to increase their market coverage and their knowledge of customer
requirements. In this manner, they can also reach more buyers and gather more information
about national, regional and company specific requirements. This enables them to compete
more successfully with other suppliers.
Distributors
The multinationals sometimes use a separate distributor. There are two main reasons for the
existence of distribution intermediaries in the market for ready-to-use natural colours, flavours
and thickeners: the need for readily available customer service and for just-in-time delivery.
Distributors enable exporters to enter a foreign market without specific operational knowledge
or experience in this market, and to provide customers with a consistent, quality supply of raw
materials.
Traders and agents
Smaller food manufacturers in Spain are, in many cases, supplied by independent traders and
agents. Similar to compounders, some traders have set up local offices in different countries
from where they sell their products. Local sales offices sometimes have their own purchasing
department. They basically operate independently, but under the same flag as the mother
trading company.
The EU-wide scope of the multinational compounders, traders and agents requires that
developing country exporters carefully assess the channels through which country and
company products reach end-users. The location of end-users is often different from where the
products are actually imported. Products sold by the sales office of IFF in Spain, for example,
might come from one of the production facilities in France, The Netherlands, Sweden or the
UK. This means that products from a developing country exporter, aiming to supply large food
manufacturers in Spain, might first have to go through these countries.

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Major compounders, traders and agents active in the Spanish market for colours, flavours and
thickeners are listed below. Many of the major players are multinational companies which are
mentioned in the survey covering the EU market. For each company, an indication is given of
the location of the headquarters, production facilities or sales offices. Only offices and facilities
active in this market are shown:
Cosmos Aromtica Internacional - http://www.cosmosaromatica.es - manufacturer of
flavours based in Spain.
Lucta S.A. - http://www.lucta.com - manufacturer of flavours.
Cargill Espaa S.A. - http://www.cargill.com - supplier of flavours and thickeners.
Evesa - http://www.evesa.com - manufacturer of colours and flavours, based in Spain.
Givaudan Ibrica S.A - http://www.givaudan.com - manufacturer of flavours. It has a
creative office and 3 sales offices in Spain.
Deprovesa WILD S.A - http://www.wildflavors.com - manufacturer of flavours,
headquartered in the USA with a manufacturing facility in Spain.
Lluche - http://www.lluche.com trader of essential oils and oleoresins.
Ecoarome - http://www.ecoarome.com/ - flavour manufacturer.
Sancolor - http://www.sancolor.com colour manufacturer.
Ventos - http://www.ventos.com distributor of flavours.
Fraginter - http://www.fraginter.es - distributor of flavours.
Carob SA - http://www.carob.es - leading producer of locust bean gum and tara gum and
trader of guar gum and xanthan gum.
Univar Food Ingredients - http://www.univareurope.com distributor of colours, flavours
and thickeners.
De luque - http://www.deluque.com/ - flavour manufacturer.
Derivados Esenciales de Limn - http://www.delsa.es/ - flavour manufacturer.
Boix & Domnech - http://www.boix-domenech.es/ - trader of natural colours, flavours and
thickeners.
Coralim - http://www.coralim.com/ - trader of natural colours, flavours and thickeners.
Trades - http://www.trades-sa.com distributor of natural colours, flavours and
thickeners.
Other companies active in the Spanish market for natural colours, flavours and thickeners are:
Sensient Food Colors Europe (through distributors Vents and IMPEX Quimica), Symrise,
Firmenich, Danisco, Dhler, International Flavours & Fragrances, Robertet, Mane,
Eurofragrance, Destilaciones Bordas Chinchuretta, Dauper, Hausmann, Lluch Essence,
Brenntag, Curt Georgi, Crop Iberica, Functional Ingredients, Guzman Segui, Helm Iberica, and
Monteloeder.
Price structure
Different prices and margins apply throughout the various trade channels. In general, margins
in Spain follow those in the EU. Prices paid for materials increase significantly along the value
chain. However, the market is not transparent at the different levels, thus making impossible
to provide margins.
The margins charged by different intermediaries in the trade of natural colours, flavours and
thickeners are influenced by many different factors. These include the product type, the
current and expected future harvest situation, the availability or number of sources for the
particular product, the level of demand and the trend in prices.
Importers and traders generally take a margin of 10-25%, while agents take a margin of 510% in any market. However, due to the often very specific expertise needed in this sector,
the margins for these trade channels might be higher when compared to other sectors.
Moreover, the margins differ widely between the different product groups. In general, margins
at processing level by compounders are larger for flavours and colours than for thickeners.

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Finding a suitable trading partner

Finding a trading partner in Spain does not deviate from the general EU method as described
in the CBI survey on The natural colours, flavours and thickeners market in the EU. Spanish
importers look for new suppliers in developing countries by visiting the country of interest,
through recommendations or through trade fairs. The most common ways for developing
country exporters to approach Spanish customers are through direct (e-)mail, personal visits
as follow-up, inviting potential Spanish customers to visit them, building a network and visiting
international trade fairs.
After obtaining contacts, evaluating potential trade partners should be done according to
criteria such as information quality, geographic coverage; the kind of trade relation the partner
is interested in, the position of the partner and the financial status and credibility.
The following websites can be of use when finding a trading partner in Spain:
For more suppliers of colours, flavours and thickeners - http://www.thomasglobal.com.
AEFAA - http://www.aefaa.com - Spanish Food Flavours and Fragrances Association
Ingredients Directory - http://www.ingredientsdirectory.com
Food Ingredients suppliers search engine - http://www.food-ingredients.com
Kompass - http://www.kompass.com/ - Supplier directory
3.

Trade: imports and exports

Imports
Total imports
Spain is the fifth largest EU importer of natural colours, flavours and thickeners, accounting for
7.2% of total EU imports. In 2008, Spain imported 147 million or 32 thousand tonnes of
natural colours, flavours and thickeners. Between 2004 and 2008, imports increased by 7.2%
annually in terms of value, but decreased by 3.2% annually in terms of volume. The decrease
in volume was mainly caused by a sharp decrease in the volume of locust bean imports. The
increase in value coincides with the increasing consumer interest in natural food ingredients, in
combination with the demand coming from the manufacturing industry in Spain.
Developing countries accounted for 50% of the supplies, which was a large share compared to
the average in the EU of 37%. Moreover, the value of imports from developing countries
increased by 14% annually in the period 2004-2008. The leading supplier was China,
accounting for 21% of the imports. Between 2004 and 2008, supplies from China increased at
an annual rate of 24% in terms of value. Supplies from India, the fourth largest supplier, also
increased at a high rate of 15% in this period. The Philippines is an emerging supplier, while
several other developing countries also supply significant amounts of natural colours, flavours
and thickeners.
Imports by product group
In terms of value, the imports of Spain consisted primarily of gum and seaweed thickeners
(40%) and essential oils (37%), followed by natural colours (18%), menthol, liquorice and
locust beans (4.7%) and manioc starch (0.3%). Imports of manioc starch are negligible and
are therefore not discussed in detail.
Table 3.1
Product
Total market
sector

Imports by and leading suppliers to Spain

2004 - 2008, share in % of value
2004
mln

2006
mln

2008
mln

60

67

7.0

7.6

44

56

Leading suppliers in 2008

Share in %
68 Intra-EU: France (13), Denmark (8.4), The
Netherlands (6.7), Germany (6.1), Portugal
(3.5), Italy (3.2)
6.1 Extra-EU ex. DC*: USA (2.1), U.A.
Emirates (0.6)
73 DC*: China (21), India (7.1), Philippines

Share
(%)
46
4
50

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Product

Natural food
colours

Menthol,
liquorice and
locust beans

Essential oils

Manioc
starch

Natural gum
and seaweed
thickeners

2004
mln

2006
mln

2008
mln

5.4

5.7

7.7

0.3

0.5

0.2

15

18

19

2.0

1.9

3.2

0.1

0.3

0.3

2.5

3.8

3.4

19

21

21

5.3

5.9

4.8

19

20

28

0.2

0.1

0.2

0.0
0.0

0.0
0.0

0.0
0.3

34

38

35

1.3

0.9

0.8

7.0

14

23

Leading suppliers in 2008

Share in %
(5.1), Brazil (2.3), Indonesia (2.3), Peru
(2.2), Morocco (1.5), Malaysia (1.3), Haiti
(1.2), Chile (1.1)
Intra-EU: Ireland (9.1), Italy (7.0),
Germany (5.3), France (3.2), The
Netherlands (2.1),
Extra-EU ex. DC*: USA (1.5), Norway
(0.1), Japan (0.1)
DC*: China (53), India (9.0), Peru (6.4),
Zambia (0.5)
Intra-EU: Portugal (15), Germany (12),
France (9.8), Netherlands (4.0), Italy (2.1)
Extra-EU ex. DC*: Switzerland (2.3), Israel
(1.5), Japan (0.9)
DC*: India (23), China (16), Morocco
(5.9), Algeria (3.4), Tunisia (1.1)
Intra-EU: The Netherlands (13), France
(13), United Kingdom (3.3), Germany
(2.7), Italy (2.6)
Extra-EU ex. DC*: USA (5.0), U.A.
Emirates (1.6), Australia (0.7), Canada
(0.5)
DC*: China (18), India (8.2), Brazil (5.3),
Indonesia (5.3), Haiti (3.4), South Africa
(2.3), Morocco (1.8), Egypt (1.4),
Paraguay (1.3), Argentina (1.2)
Intra-EU: Germany (29), France (4.5), The
Netherlands (1.9)
Extra-EU ex. DC*: DC*: Thailand (35), Brazil (24), Colombia
(2.2), Paraguay (1.5), Bolivia (1.2), Peru
(0.8)
Intra-EU: Denmark (20), France (17),
Germany (8.7), Portugal (5.6), The
Netherlands (3.1)
Extra-EU ex. DC*: South Korea (0.7), USA
(0.4)
DC*: Philippines (13), China (11), India
(3.3), Malaysia (3.3), Chile (2.4), Peru
(2.4), Morocco (1.2), Pakistan (1.0),
Indonesia (0.9), Brazil (0.8)

Share
(%)

29
1
70
46
5
49
40
9
51

35
0
65

59
1
39

Source: Eurostat (2009)

*Developing Countries

Natural food colours

Spain is the fifth largest EU importer of natural colours, with imports amounting to 27 million
or 2.5 thousand tonnes in 2008, representing 11% of the total EU imports in that year.
Between 2004 and 2008, imports increased by 6.3% annually. China was by far the leading
supplier, accounting for 53% of the supplies. The value of Spanish imports from China
increased by 19% annually in the period under review. The imports from India, another
leading supplier, fluctuated, resulting in a net increase of 47%. In contrast, supplies by Peru
decreased by 4.9% annually on average.
Menthol, liquorice and locust beans
Spain is the sixth largest importer of menthol, liquorice and locust beans in the EU, accounting
for 5.0% of the total EU imports. In 2008, Spain imported 6.9 million or 10 thousand tonnes
of this product group. Between 2004 and 2008, the value of imports increased at an annual
rate of 11%.

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The value of supplies from developing countries increased by 7.9% annually during the review
period. The leading suppliers were India and China. Their supplies increased at annual rates of
64% and 16% respectively during the review period. China supplies mainly liquorice, while
India mainly supplies menthol. Supplies from Algeria peaked in 2006, and then decreased
rapidly.
In terms of value and compared to other EU countries, the Spanish imports consisted for a
relatively large part (24%) of locust beans, while liquorice comprised a relatively small part
(35%) of the imports.
Essential oils
Spain is a medium-sized importer of essential oils, accounting for 6.7% of total EU imports in
2008. Between 2004 and 2008, the value of imports increased by 5.5% annually on average.
The leading suppliers are China, The Netherlands and France. Between 2004 and 2008,
imports from China and The Netherlands increased rapidly, at annual rates of 20% and 41%
respectively. During the same period, imports from France decreased by 4.2% annually. China
mainly supplies spice and herb oils. Imports from all developing countries combined increased
by 9.3% annually during the review period.
In terms of value and compared to other EU countries, the Spanish imports consisted for a
relatively large part (18%) of orange oil, lemon oil (15%) and other citrus oils (17%). This
confirms the importance of citrus oils in Spanish gastronomy. The sources of the citrus oils are
diverse, including countries in Europe, Latin America, North America and Africa.
Natural gum and seaweed thickeners
Spain is a medium-sized EU importer of gum and seaweed thickeners, accounting for 7.0% of
total EU imports. Between 2004 and 2008, imports increased by 9.0% annually to 59 million
/ 12 thousand tonnes. The leading suppliers are the EU countries Denmark and France.
However, in the period 2004-2008, the value of imports from EU countries fluctuated, resulting
in a small net increase of 4.2%, while imports from developing countries increased rapidly at
35% annually.
The leading developing country suppliers are the Philippines and China. The value of imports
from these countries increased at annual rates of 83% and 62% respectively between 2004
and 2008. Other emerging suppliers are India, Malaysia, Chile and Peru.
The Spanish imports of natural gums and seaweeds consisted for a relatively large part of
carrageenan and alginates. Imports from the Philippines, Malaysia, Chile and Peru are
estimated to consist almost entirely of raw material supplies for carrageenan production. As
demand for carrageenan in the EU is increasing and raw material production in Spain is stable,
imports are rapidly increasing.
Exports
Spain is the third largest EU exporter of natural colours, flavours and thickeners. Between
2004 and 2008, the value of exports increased by 5.8% annually on average to 209 million /
45 thousand tonnes in 2008, representing 13% of total EU exports. The main countries of
destination are the USA, other West-European countries and Japan.
The exports primarily comprise domestically produced locust bean gum, carrageenan and agar.
Re-exports are small. In 2008, exports consisted for 52% of thickeners of natural gums and
seaweeds, for 23% of essential oils, and for 22% of natural food colours. The value of exports
of natural gum and seaweed thickeners, and essential oils both increased by 9.1% annually.
The value of exports of natural colours decreased by 1.4% annually during the review period.
Opportunities and threats
- Spain is a major competitor to suppliers in developing countries of many products under
review, including natural colours, lemon oil, locust bean gum, agar-agar and carrageenan.

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

Spain is a net exporter of these products and substitutes, which compete with these
products.
Developing countries still have a major role to play in the supply of raw materials for
several of the above-mentioned products, such as citrus oils, agar-agar and carrageenan.
The raw materials are processed in Spain and largely re-exported to other EU countries.
Developing countries supply a substantial part of the Spanish market for citrus oils.
Domestic production, which is relatively big, compared to other EU countries, is still not
sufficient.
The Spanish market for menthol, liquorice and locust beans offers particularly good
opportunities for developing country suppliers, as domestic production of menthol and
liquorice is small and demand is growing.
The market for manioc starch from developing countries is negligible. Domestic starch
production is significant and imports are very small.
The markets for gum Arabic and guar gum are small. These products face fierce competition
from locust bean gum and various seaweed-based thickeners.
The market for pectins offers good opportunities, as Spain does not produce pectins.
Moreover, pectins are the thickener of choice in many fruit preparations. The Spanish fruit
processing segment is considerable and the increase in pectins imports shows that interest
in pectins is growing.

Exporters should take into account that the same trend can be an opportunity for one exporter
and a threat to another. Please, review these opportunities and threats according to your own
situation. Chapter 7 of the CBI market survey The natural colours, flavours and thickeners
market in the EU presents an example of an analysis of whether a trend/development is an
opportunity or a threat.
Useful sources
EU Expanding Exports Helpdesk - http://exporthelp.europa.eu
go to: trade statistics
Eurostat http://epp.eurostat.ec.europa.eu - official statistical office of the EU
go to themes on the left side of the home page
go to external trade
go to data full view
go to external trade - detailed data
Understanding Eurostat: Quick guide to easy comext http://epp.eurostat.ec.europa.eu/newxtweb/assets/User_guide_Easy_Comext_20090513.pdf
4.

Price developments

Please refer to the CBI survey on The natural colours, flavours and thickeners market in the
EU for prices regarding this sector. The price indications given there are the best reference
point for prices in Spain. If any price differences exist, they are the result of differences in
transport costs and individual buyer preferences for product origin, quality, packaging, etc.
These differences are considerable, both between countries and within countries. Nonetheless,
global market prices as mentioned in the CBI market survey The natural colours, flavours and
thickeners market in the EU are the basis for price calculations in every country. Actual prices
are dependent on negotiation with partner companies.
Useful sources
The Public Ledger - http://www.public-ledger.com - prices for selected colours, flavours and
thickeners
MCX India - http://www.mcxindia.com - prices for menthol and guar
Organic Trade Services - http://www.organicts.com - prices for organic products

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CBI MARKET SURVEY: THE NATURAL COLOURS, FLAVOURS AND THICKENERS

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5.

Market access requirements

As a manufacturer in a developing country preparing to access Spain, you should be aware of

the market access requirements of your trading partners and the Spanish government.
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.
For information on legislative and non-legislative requirements, go to Search CBI database at
http://www.cbi.eu/marketinfo, select food ingredients, and Spain in the category search,
click on the search button and click on market access requirements.
Packaging requirements are different for each type of product that you export, so please refer
to the CBI market survey covering the EU market for more information on this. Additional
information on packaging can be found at the website of ITC on export packaging:
http://www.intracen.org/ep/packit.htm
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.
In Chapter 2, the importance of networks, trade fairs and company visits was expressed in
terms of promoting your company and finding trade partners. Trade fairs also offer useful
information on trends, potential competitors and the products and services they offer. Trade
press should not be underestimated, both as a source of information (e.g. trends and
companies) and as a means of promoting your company and your products.
Trade associations
Spanish Federation of Food and Beverage Industries / Federacin Espaola de Industrias de
la Alimentacin y Bebidas - http://www.fiab.es
Spanish Association of Manufacturers and Traders of Food Additives - http://www.afcaaditivos.org
Trade press
On-line information tool on the Spanish Food Industry - http://www.marketuno.com
Tecnifood - http://www.tecnifood.com/ - Magazine on food technology
Trade fairs
Alimentaria Barcelona - http://www.alimentaria-bcn.com - International trade fair for the
food industry. The most recent event was held in March 2010.
Biocultura - http://www.biocultura.org - an organic trade fair annually held in November in
Madrid and Barcelona.
Qualimen - http://www.feriazaragoza.com/qualimen.aspx - International food market fair.
The next event will be held 1 to 3 March, 2011.
This survey was compiled for CBI by ProFound Advisers In Development
Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer

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