CBI Product Factsheet: Chia seeds in the EU and EFTA ‘Practical market insights into your product’ Chia seeds are becoming increasingly popular in the EU / EFTA region due to their nutritional- and health-related properties. They are used as a food supplement and are popular in vegetarian and gluten-free diets. Additionally, they are used in the bakery industry as an ingredient in bread or as a topping. Due to legislative limitations, their use in large industries is still restricted, but potential market opportunities in Europe are abundant. Product definition Chia is a plant originally known as Salvia hispanica and is native to Southern Mexico and Guatemala. The original colour variations of chia seeds are speckled brown / white. They have a faint nutty aroma and a free flowing texture. Chia is grown commercially for its seed, which is rich in omega-3 fatty acids and can be used as a flavour additive in food, as a nutritional supplement and as a base for beverages, mainly in Mexico and the Southwestern United States. Its nutritional properties are similar to those of sesame and chia seeds are therefore becoming significantly popular in other markets. Chia seeds are primarily produced in Mexico, Argentina, Guatemala, Bolivia, Ecuador, Nicaragua and Australia. There is no specific Harmonised System (HS) or other codes applicable to chia seeds. Product specification Quality General Avoid long delays between harvesting and transportation of chia seeds. Chia seeds should also be free from sand, stalks, plant debris and other foreign materials. Some of the most important quality factors concerning chia seeds are: moisture content, uniformity of seeds, purity and quantity of damaged / mouldy seeds. Chia seeds should also be free from aflatoxins. Aflatoxin contamination is known to be a problem for many producers, and buyers monitor this aspect closely. Prevent adulteration and contamination by foreign materials (e.g. dust) by keeping facilities and equipment clean. Ensure proper storage and transportation (see ‘Packaging’). Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer Source: Original Chia CBI Product Factsheet: Chia seeds in the EU and EFTA Organic Comply with organic standards for the production of chia seeds: avoid use of synthetic pesticides, use only natural fertilisers, natural control of weeds, full traceability, internal control system, etc. Labelling Ensure traceability of individual batches. Use English for labelling purposes, unless your buyer has indicated otherwise. Labels must include the following: o Product name o Manufacturer’s lot or batch code o Whether or not the product is destined for use in food products o Declaration of allergenic substances o Name and address of exporter o Product’s country of origin o Shelf life: Best-before date / use-by date o Net weight / volume in metric units o Recommended storage conditions Source: Original Chia Foodstuffs containing Chia (Salvia hispanica) should be labelled as ‘Chia (Salvia hispanica) seeds’. Additional labelling of pre-packaged Chia (Salvia hispanica) seed is required to inform the consumer that the daily intake should not exceed 15 g. Organic: Name / code of the inspection body and certification number. Packaging Chia seeds are transported as break-bulk cargo in 25 kg polypropylene (PP) bags. Buyers might have specific packaging requirements, such as the use of paper bags instead. When chia seeds reach Europe, they are re-packed in quantities of 250 / 500 mg, for instance (for private customers), or 25 kg (for commercial customers). Organic chia seeds should remain physically separated from conventional seeds. Ensure preservation of quality by: o Thoroughly cleaning the holds or containers before loading the seeds. o Protecting the cargo from moisture during loading, as to avoid mould, spoilage and self-heating. o Ensuring appropriate temperature, humidity / moisture and ventilation conditions during transportation. o Protecting the cargo from pests such as beetles, moths, etc. Source: KETEPA Source: Sadaf Legislative requirements Contaminants in food: The EU has laid down maximum levels of contaminants in food, and this also applies to ingredients such as chia seeds. Considerations for action: For more information, read the CBI study on EU legislation: Contaminants in food. Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer CBI Product Factsheet: Chia seeds in the EU and EFTA Maximum Residue Levels (MRLs) of pesticides in food: EU legislation has been laid down to regulate the presence of pesticide residues (MRLs) in food products. If the chia seed has been treated with pesticides, verify that residues remain within limits. For more information, consult the specific EU legislation: Maximum Residue Levels (MRLs) of pesticides in food. Additives, enzymes and flavourings in food: The EU has set a list of permitted flavourings and requirements for their use in foodstuffs intended for human consumption, which includes chia seeds. This is particularly relevant to food manufacturers. However, insight into this legislation can help you to understand their requirements. Familiarise yourself with the concerns of the end-users of your products by checking EU legislation on Additives, enzymes and flavourings in food. Ensure compliance with EU legislation on Hygiene of foodstuffs (HACCP). Novel Food: The Novel Food Regulation covers foodstuffs that are newly developed by industry, but also natural foodstuffs or ingredients which were not consumed to a significant degree within the EU before 15 May 1997. This was the case for chia seeds until 2009, when it was approved as a novel food. Nonetheless, there are still limitations to its use in the food industry. Read more under ‘Market trends’. Learn about the legislation for chia seeds and the Novel Food restrictions still applicable to this product. Hygiene of foodstuffs: Food business operators shall put in place, implement and maintain a permanent procedure, or procedures, based on the HACCP (Hazard Analysis and Critical Control Points) principles. This also applies to the import of food to the EU and export from the EU. Non-legislative requirements Food safety management: Buyers commonly require that their suppliers have a quality / food safety management system in place. These systems require companies to demonstrate their ability to control food safety hazards in order to ensure that food is safe at the time of human consumption. Regulation (EC) 834/2007 on organic agriculture: The EU has established requirements on the production and labelling requirements with which an organic product of agricultural origin must comply in order to be marketed in the EU as ‘organic’. Fair Trade: FLO International is the leading standard-setting and certification organisation Considerations for action: Suppliers can apply a basic HACCP system. However, if they aim to supply food manufacturers more directly, it is necessary to have a certified food safety management system recognised by the Global Food Safety Initiative, such as ISO 22000, BRC or IFS: Food Safety Management Systems. Visit the website of the Global Food Safety Initiative for more information. In general, chia seeds which enter the EU / EFTA market are certified organic; this is expected by most buyers. Find out more about Organic production and labelling. Make sure that your organic certification is harmonised with EU / EFTA legislation. Before jumping into Fairtrade certification, make sure that you assess (in consultation with your potential buyer) whether this Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer CBI Product Factsheet: Chia seeds in the EU and EFTA for Fairtrade. Products which carry the Fairtrade label indicate that producers are paid a Fairtrade Minimum Price. Other fair trade standards available in the European market are Fair Trade Ecocert and IMO’s Fair for Life. label has sufficient demand in your target market and whether it will be cost beneficial for your product. Although FLO certification is the leading fair trade certification scheme in Europe, you can also check out other schemes such as IMO’s ‘Fair for Life’ and Ecocert Fair Trade. Market trends Healthy properties of chia seeds at the centre of attention. The growing demand for chia seeds in Europe accompanies a general consumer interest in healthy diets. According to industry sources, chia seeds are most popular in countries such as the Netherlands, Germany, the UK, and those in the Scandinavian region. The most significant health benefit which drives the market for chia is its high omega3 fatty acid content. In general, the positive prospects for chia accompany the upward development of the Omega-3 market. According to IFAU, the global Omega-3 market (foods, beverages and food supplements) was estimated at € 5.6 billion in 2012, with a forecasted growth of 1520% until 2015. Considerations for action: Popularity among vegetarian consumers Chia seeds are also a source of fibre, rich in numerous vitamins & minerals and are naturally gluten-free. These characteristics make it ideal for vegan / vegetarian diets, thus creating further consumer interest. In Europe, vegetarian and vegan consumers represent a growing population. In Italy, for instance, 10% of the population is estimated to be vegetarian. In Germany and Switzerland, around 9% of the population does not eat meat. However, vegans still account for less than 1% of the total population in most European countries. Chia seeds for gluten intolerant population The gluten-free aspect of chia seeds also creates a strong interest among consumers suffering from gluten intolerance (celiac disease) or those who simply avoid gluten intake. The prevalence of celiac disease in Europe ranges between 0.5% and 1.0% of the total population, with the highest incidence in Ireland, Italy and Sweden. Global sales of gluten-free foods are Promote the various applications and health properties of chia seeds. Make sure to provide your buyer with accurate product specifications and composition. Make sure your product characteristics and quality match your target market and enduser in terms of: o Taste and odour o Purity level & uniformity Stay informed on the news for Supplements and Nutrition trends in the EU market by visiting the Nutraingredients website. Take advantage of the vast amount of information on the growing Omega-3 market and promote your product’s properties accordingly. Stay informed on the vegetarian market trends in the EU. For more information visit the European Vegetarian Union’s (EVU) website which is an umbrella organisation for vegetarian societies and groups in Europe. Explore your opportunities in this niche market by staying informed on the Glutenfree food applications and legislation developments. You can visit the Gluten Free website for information on the various gluten-free products and companies. If you have the opportunity, attend events which reveal market opportunities stemming from this condition. There are various trade shows and exhibitions in Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer CBI Product Factsheet: Chia seeds in the EU and EFTA expected to reach US$4.3 billion by 2015, according to a recent analysis by Datamonitor, thus indicating growth opportunities for products such as chia seeds. Legislative developments Chia seeds have only recently been allowed in the EU market. In 2009, a decision of the EU Commission authorised chia seeds to be placed on the market as a novel food ingredient. However, the initial licensing was limited to baked products subject to a maximum content of 5%, which represented a major restriction for the use of this product in large-scale industries. After a few years on the market, a change in legislation came about in the beginning of 2013, when the use of chia seeds was expanded to: o Baked products: not more than 10% o Breakfast cereals: not more than 10% o Fruit, nut and seed mixes: not more than 10% o Pre-packaged chia seed as such: not more than 15 g per day According to one of the largest chia seed buyers in Europe, imports in the first half of 2013 already represent a tenfold increase compared to 2012’s overall figures. Other industry sources also report their positive prospects, with exponential growth in client orders for 2013. What is seemingly a small legislative step is in fact a giant leap in terms of market opportunities for this seed. The growing use of chia seeds in other applications / industries (e.g. breakfast cereals, snack mixes) has been automatically translated into market growth – in spite of persistent limitations. Europe, where the focus is placed on allergy-free products, such as the Allergy & Free From Show in London. For more information on novel food legislation, you can visit the European Commission website, designed particularly for that subject. Research your target markets and learn about existing legal provisions. CBI’s Market Access Requirements database can be a useful point of departure. Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer CBI Product Factsheet: Chia seeds in the EU and EFTA Market channels and segments Market channels Figure 1: Trade channels for chia seeds in the EU and EFTA Developing country Chia seed producers DC exporters EU/EFTA market Traders (importers, brokers) The general trade structure for chia seeds is not very different from the general structure for other oilseeds. However, chia seed trade channels and segments revolve around the consumer market. This is a segment directly accessible to end consumers, who purchase chia seeds almost exclusively at niche retailers (e.g. health shops). The seeds are then consumed plain or combined with other foods (e.g. yoghurt, salads or oatmeal). Chia seeds are rarely used in the European food service sector. Within the food manufacturing industry, chia seeds are only used for bakery products, breakfast cereals and fruit, nut & seed mixes (up to 10% of the product content). EU legislation still restricts the use of chia seeds in other large-scale industries. Both retailers and industries source chia seeds through traders. A small amount of chia seeds is also processed by crushing into chia seed oil, which is also sold mostly by niche retailers. Due to the low volumes commanded by the chia seed market, there is no evident clustering of trade hubs or processing industries; most imports are carried out directly by specialised importers. Processing industry (ind. crushers) EU/EFTA market segments Food manufacturers Retailers Packaging Food service Considerations for action: Traders are certainly the most suitable entry point for chia seeds, since the exported volumes are generally small and are directed to a very specific niche market. When approaching a trader, make sure to provide them with the appropriate product documentation (composition, properties) and be realistic about the volumes you can deliver. Meet specific quality requirements when targeting the consumer market: uniformity in colour and shape (whole seeds) and a high purity level are key. Comply with sustainability standards required by your specific segment and stay up-to-date on developments in this respect. For examples of various uses and applications of chia seeds you can visit the websites of Wellnessmania and Burgerbread. Market segments Chia seeds are mostly used in the food market, where it can be segmented into consumer market and food processing industry, as explained in the section above. Figure 2 describes the main uses of chia seeds in Europe within these two segments. Chia seeds can be further segmented into commodity and speciality. However, chia seeds are not traded as a commodity, thus a distinction within the speciality segment could be made between conventional and certified chia seeds Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer CBI Product Factsheet: Chia seeds in the EU and EFTA (as mentioned in Figure 2). The main certification standards applicable to chia seeds are described under the ‘Non-legislative requirements’ section of this factsheet. Figure 2: Segmentation of chia seeds in the EU and EFTA Food market segmentation Consumer market (packaging): To be consumed plain or mixed with yogurt, oatmeal, salads, etc Food manufacturing: Bakery only (novel food restriction) Commodity N/A Chia seeds are not traded as a commodity Speciality Chia seeds are considered as speciality seeds, either conventional or certified. Certification scheme: organic, fair trade, organic plus Interesting Sources For information on the latest market developments in the oilseeds sector, visit The Public Ledger: publicledger.agra-net.com/oils For information on novel food and legislative developments, visit the European Commission’s website: ec.europa.eu/food/food/biotechnology/novelfood/index_en.htm Novel Food and Novel Food Ingredients (European Commission): ec.europa.eu/food/food/biotechnology/novelfood/index_en.htm This survey was compiled for CBI by ProFound – Advisers In Development in collaboration with CBI expert Joost Pierrot Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
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