Namibian Marula Oil

The marula tree is found throughout Southern Africa. Marula oil is rich in antioxidants and oleic acid, essential components for the preservation of healthy skin. These characteristics, as well as the exceptional chemical stability, make marula oil ideal for producing cosmetics. Additionally, marula and other African plant extracts and oils have qualities that make them ideal ingredients for fortified foods, so-called “cosmeceuticals”, and other health care products.

One of the two buyers/processors in Namibia is a cooperative that represents about 4,500 women producers.

Companies are marketing natural ingredients in their products more than ever before. A Namibian cooperative supplies The Body Shop, one of the most well-known all-natural cosmetics companies, with Namibian marula oil, which the company uses in almost all of its make-up. The Body Shop attests that marula is “an amazing natural moisturiser” and advertises marula’s long history within Namibian culture and production by a women’s cooperative. The profiled use of unique raw ingredients by the retailer raises the retail value of products such as lipsticks, foundations, blush and eye shadow.

The Body Shop is one of the few companies that have started to identify the specific natural product used in their personal care lines. This differentiates their products from the thousands of others that simply advertise as using ‘all-natural ingredients’. This kind of promotion appeals to consumers seeking out new products with unique stories behind them. The Body Shop has clearly capitalised on the distinct social and cultural aspect of marula, as well as it being a natural product.

The natural ingredients contribute to the intangible value of these products. The retail price for a small unit of shimmering eye shadow from The Body Shop that contains marula oil sells for four times more than the eye shadow sold in chain supermarkets. Marula oil is also used as a massage oil, with prices in line with other premium massage oils, and sells for much more than non-distinct massage oils. Premium massage oils earn a higher retail price due to the natural essential oils in them.

Currently, producers are receiving $2.35 per kilogram for marula oil. The exporting sector collects $23.45 per kilogram for the same oil, which has a wholesale price of $131.25 per kilogram. The average equivalent retail price for pure marula oil is $262.50 per kilogram.

While marula producers are well organised and have even patented a by-product of marula, Marulene, there is still potential for marula producers to consolidate and refine the positioning of their product in retail. As there is clearly a niche market for this unique oil, marula oil producers could generate more than the current income levels of $22,000 if business strategies with IP were in place to popularise the ingredient, expand its usage, and ensure that Southern African producers, using traditional techniques, were the only recognised suppliers with no synthetic simulations being acceptable. This type of IP strategy could triple export earnings. Further earnings might also follow with the expansion of its use in premium branded products.

Strategies could be applied to a number of distinctive products in this sector, producing export income gains for producers in several parts of Africa. The export income gains could total many millions from a range of African natural products.

As the popularity of marula and other natural ingredients begins to rise, small companies based in Africa have expressed their need to assert intellectual property protection. Due to the informality of the trade, retailers are often able to reap the benefits of using the name ‘marula’ in their products, while the producers are virtually forgotten. A business strategy that may focus around certification and distribution aspects could be employed to protect African producers from future misuse of their products.

Value chain analysis will be available here shortly.

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http://www.thebodyshop.com

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