Exporting turmeric starch – opportunities and challenges
Turmeric starch products are extracted from fresh turmeric roots. The product is widely used in the fields of healthcare and beauty. In many Eastern and Western medicines, turmeric starch is considered a truly good medicinal herb for users. So if you export turmeric starch, what are the current opportunities and challenges? Let’s join Viet Linh, one of the leading businesses in the field of exporting spices to the international market, to present the opportunities and challenges of the industry.
1. Learn about the turmeric starch export market
Turmeric starch has been one of the key product lines of the food processing industry in Vietnam. According to data from the General Department of Customs, Vietnam’s turmeric starch export turnover reached 9.8 million USD in the first 9 months of 2023, an increase of 15% over the same period in 2022. Main turmeric starch export markets of Vietnam are America, Japan, Korea, Taiwan and European countries.
Exporting turmeric starch not only brings economic benefits to businesses and workers, but it also contributes to promoting Vietnam’s image in the world. Currently, turmeric starch has been and is a product imbued with the cultural identity and traditions of Vietnamese people, which is also considered as a meaningful gift from nature.
2. Advantages of exporting turmeric starch for Vietnamese businesses
Vietnamese businesses have a series of competitive advantages to export turmeric starch to the international market with several key notes:
2.1 Possesses abundant raw material resources
According to statistics, in Vietnam there is an area of turmeric growing up to 50,000 hectares. Turmeric is suitable for temperate climates, moist soil and is available at the beginning of the rainy season. Normally in the North, turmeric is grown from February to April and November to December in the Southern regions. These are all golden times to help turmeric plants grow well with high curcumin content, from 3-5%; which are much higher than other turmeric growing areas.
2.2. Competitive price
Vietnam is a developing country, so production and labor costs are lower than in advanced countries. Furthermore, the large planting area optimizes production costs, so the price of Vietnamese turmeric starch is highly competitive compared to other international exporters. According to research, the price ranges of Vietnamese turmeric starch are from 2,000-2,500 USD/ton, while India’s turmeric starch export price is 3,000-3,500 USD/ton.
2.3 High quality
Professional turmeric starch production facilities always produce according to a closed process from selecting varieties, planting, harvesting, pre-processing, processing to packaging and exporting. Vietnamese businesses also strictly apply international standards for food quality and safety such as ISO, HACCP, GMP…
In addition, Vietnamese turmeric starch has a beautiful color, pleasant aroma, no bitter taste, and does not contain impurities or preservative chemicals. It contributes to maintaining the curcumin content in turmeric, an active ingredient with many health and beauty benefits.
2.4. Product diversity
Vietnamese turmeric starch not only has one traditional yellow color but also has many different types with different colors and usages. Depending on the type of turmeric root, there is yellow, black, red or white turmeric starch.
Each type of turmeric starch can be used for different purposes, such as taking as supplement nutrition, beautifying the skin, treating diseases or seasoning dishes. In addition, turmeric starch is also combined with other ingredients to create new products, such as turmeric powder pills, turmeric powder lotion or turmeric powder shower gel, etc.
3. Learn about the turmeric starch export market
Turmeric starch exports have been of high value, however, to sustainably develop this export industry, businesses require a clear understanding of market needs and product consumption trends. Below is some relevant information about the turmeric starch export market
3.1 Key markets of Vietnamese turmeric starch
Vietnam’s turmeric starch export markets are mainly countries in Asia, North America and Europe. Countries like the US, India, China, and Europe are key regions with high demand for this product. These markets all have high demand for turmeric starch due to good awareness of the benefits of this product for health and beauty.
In addition, emerging markets such as the Middle East, Africa and Latin America also have great potential for turmeric due to increased population, income and interest in natural and organic products
3.2. Assessment of market needs and trends
Currently, there is an increasing demand for natural organic products. Therefore, the use of natural spices such as turmeric in dishes and sauces is very popular. Especially in countries like India, the Middle East or the West, they often use turmeric to color many dishes. In addition, the product is also applied in many industries such as pharmaceuticals, cosmetics and food processing.
E-commerce is a channel to reach potential customers and save costs for businesses exporting turmeric starch. E-commerce platforms such as Amazon, Alibaba and eBay allow businesses to export turmeric starch to new markets and expand their business reach.
These platforms foster the competitiveness of turmeric starch exporting businesses by being able to quickly update market trends, customer needs and competitors’ strategies.
3.3 Challenges and competition when exporting turmeric starch
The turmeric starch market is becoming increasingly competitive over time. The global turmeric market is projected to expand at a CAGR of 6.5% during the forecast period. India, Bangladesh, Sri Lanka, Pakistan and Indonesia are the major markets in the turmeric starch market.
India is the world’s leading producer, supplier and exporter of turmeric. The biggest obstacle for small-scale manufacturers and local traders is competing with large-scale businesses that have access to superior technology, logistics and distribution channels. This causes price fluctuations and leaves small-scale producers unable to meet demand.
Therefore, Vietnam needs to improve the brand recognition and image of turmeric starch in the world. Vietnamese businesses need to focus on promoting e-commerce to effectively promote trade for this product.
4. Conclusion
Turmeric starch is a product with many health and beauty benefits, therefore it is in high demand around the world. Currently, Vietnam has been one of the leading countries in the field of exporting turmeric starch to the international market. Vietnamese businesses need to make changes in the coming time to maintain this position.
Viet Linh has been one of the businesses providing large quantities of pure turmeric starch in Vietnam to the international market. If your businesses are looking for a source of turmeric starch for export, please contact us:
- Address: LK07-C14 Ministry of National Defense, Bui Xuong Trach Street, Hoang Mai District, Hanoi, Vietnam
- Phone: 0345.128.188
- Fax: (02).432.099.006
- Email: sales@vietlinhagrimex.vn
