Bergamot takes its name from an Italian city which lies in Lombardy, the place where the bergamot essential oil was originally sold. Bergamot oil was traditionally used in the folk medicine for a number of years to treat general illness and stress. Due to its unique ability to be both uplifting and calming, it is widely used to help deal with anxiety and sadness. Apart from the medical uses, the oil is also used as a flavoring agent for black tea, earl grey tea to be precise. The total category spend on the global bergamot oil market stood at $370.9 billion during 2017. (SpendEdge – Procurement Market Intelligence Report) Analysts estimate positive growth prospects for the market, attributing to the growth in the aromatherapy market. Additionally, there has also been a significant increase in the application of spa and massage-based oils in the hospitality sector. Bergamot oil has been in demand primarily because it acts as mood enhancing and skincare agent. However, buyers in the bergamot essential oils market have a tough time assessing supplier capabilities and avoiding adulterated products. So what are the supplier selection criteria in the global bergamot oil market?
One of the easiest ways to assess suppliers is to look for major international and safety certifications. Such certifications act as qualifiers to determine the supplier’s effort in meeting the quality and safety standards. Certificate of Food Safety Management System (ISO:22000: 2005), Food safety certifications (SGF and SGS), Certificate of Quality Management System (ISO 9001:2008), Certificate of BRC Global Standard for Food Safety (July 2012), Organic product certifications, and Kosher and Halal certifications are some certifications to look out for to qualify capable suppliers.
Suppliers distribution and logistics network
About 80% of the global production of bergamot oil is concentrated in Calabria region of Italy. The supplier’s logistics and distribution capabilities are tested because of this factor, making the commercial movement of their products across worldwide market a challenging task. As a result, buyers will have to rate and benchmark suppliers based on their global delivery points and warehousing capabilities.
Packaging and labeling requirements
The buyers of bergamot oil hail from a diverse range of industries including cosmetics, healthcare, personal care, and F&B. Each of the industry will have particular packaging and labeling requirements. Dropper bottles, mini vials with sprayers, glass roll-on bottles, and diffuser bottles are few of the packaging options available to the suppliers. Buyers should thoroughly examine if the supplier can provide the desired option along with their expertise in packaging and prevailing labeling laws.
Suppliers investment capabilities
A high level of vertical integration is seen in the bergamot oil market as suppliers own a network of bergamot plantations and also produce, process, and distribute the oil. As a result, suppliers often gain a high level of visibility across the supply chain to gain relevant insights to cut down on the operational expenses. Additionally, a majority of the suppliers also sell their own brands of such oil. Identifying and selecting such suppliers often fetches the best market rates.
A host of labor laws and regulations have to be considered by the supplier to ensure legal compliance in any manufacturing sector. Buyers failure to identify non-compliance of the suppliers might lead them to trouble by hampering their brand and hefty fines. As a result, buyers have to assess the existing safety and security measures in the crushing and refining units of the suppliers. Additionally, they must also ensure that suppliers comply along with the prevailing labor laws, safety and security measures, and maintain an acceptable working condition. This can be assessed by having third-party assessments of bergamot oil production plants before engagement.
Read more about the supplier selection criteria in the bergamot essential oil market along with supply market insights, pricing models, category management, key suppliers, and procurement challenges in SpendEdge’s upcoming report on the global bergamot oil market.