• The value of Latin America and
  Caribbean (LAC) exports has shrunk by an estimated interannual rate
  of 1.6% in the first quarter of 2019, according to the
  Inter-American Development Bank (IDB)
  
• The slowdown in LAC foreign
  sales has been partially counteracted by buoyant exports from the
  Caribbean
  
• The Caribbean Export
  Development Agency is committed to promoting the agro-processed food
  and natural ingredient sectors and the creative industries in Europe
  in order to fuel expansion
  

Madrid, 10 July 2019.
- Following two years of uninterrupted growth, goods exports from
Latin America and the Caribbean (LAC) have fallen in the first months
of 2019, due to a decline in the volume of exports as well as a drop
in the prices of raw materials.1
The Caribbean countries - Dominican Republic, Haiti, Jamaica,
Barbados and Suriname - together with Mexico, Ecuador and Costa Rica,
are the only ones to record positive developments from January to
March. However, the slowdown is marked and for this reason the
countries in the region are making a concerted effort to foster their
overseas commercial relationships in order to counter the drop in
demand.

The Caribbean Export
Development Agency (Caribbean Export) in cooperation with the
European Union and the Deutsche Gesellschaft für Internationale
Zusammenarbeit GmbH or GIZ in short is holding the fourth
CARIFORUM-EU business forum from the 26 to the 28 September 2019
in Frankfurt, with the aim of improving commercial

1 Inter-American Development Bank (IDB). “Estimations of commercial trends: Latin America and the Caribbean”

relationships between
fifteen (15) Caribbean countries (CARIFORUM) and Europe, and
increasing awareness of the private sector of business opportunities
in the European market. Caribbean Export has identified the
agro-processed food and natural ingredient industries and the
cultural and creative industries as the sectors with the highest
potential for growth in Europe.

Rum and seasonings,
the Caribbean’s booming products

The Caribbean is
world-famous as the home of rum. Global rum exports have increased by
26.86% over the last three years to reach a value of 1.45 million
euros, and the countries in Latin America and the Caribbean are its
major producers.

In Europe, consumption in
this market is led by Germany and Spain. In Spain, rum consumption
makes up 14% of the spirits market,1
and in 2018 over 68% of global imports of rum came from the European
market.

“Over the last decade,
the production of rum has diversified to include a wide range of
flavours, including apple, pineapple, mango and passionfruit,”
comments Damie Sinanan, Manager for Competitiveness and Export
Promotion at Caribbean Export. “With these changing trends and
increased demand, we hope to see a more diverse range of Caribbean
rum available in the European market.”

In addition, there is a
noticeable increase in imports of spices and seasonings from
developing countries to Europe (97% of the total import volume). This
owes to the healthy lifestyle trends, interest in new flavours and
sustainability. In fact, the global spice market is forecast to grow
by 5.1% from 2017 to 2021, according to Eurostat.

Natural ingredients,
Caribbean treasure

Europe’s love for
natural plant-based ingredients combined with the region’s efforts
to promote sustainability is fueling the demand for natural products,
in different industries such as the cosmetics market.

The Caribbean has an
abundance of naturally grown produce that can be used within the
nutraceutical and natural cosmetics market. Coconuts for example can
be used in a wide range of products including cosmetics and the FMI
reports that the natural cosmetics market is projected to grow at
4.9% volume CAGR through 2027. In 2017, the European cosmetics market
was valued at €77.6 billion, making Europe the largest cosmetics
market in the world and natural cosmetics accounts for around 5% of
total market. Among the European countries, Germany has the largest
market for cosmetic products, valued at €13.6 billion, followed by
France (€11.3 billion), the UK (€11.1 billion), Italy
(€10.1billion) and Spain (€6.8 billion).

Another interesting
segment isgluten-free foods & beverages. Approximately,
Europe accounts for 25% of global gluten free product demand.

“European consumers are
increasingly concerned by their health and diet, which has a positive
impact on the demand for naturally sourced products found in the
Caribbean including those believed to have health benefits,”
explains Sinanan. Wheat based flour contains varying levels of the
protein gluten which has gained significant notoriety over the past
decade due to increasing prevalence of gluten related health
complications and a general switch by consumers to more
health-conscious options across the board. Furthermore, the gluten
free market is expected to grow to the value of €29 billion by
2025.

Potential for growth
of cultural industries

The increase in demand
for Caribbean music is reflected in the huge popularity of festivals
featuring this genre of music in European countries, such as
Summerjam reggae festival in Germany, Ibiza Soca festival in Spain
and Reggae Sun Ska Festival in France, along with many others.

“One of the aims of
this forum is to promote Caribbean cinema and animation as well as
music, and animation in particular as we know that it is one of the
most widely-circulated categories in Europe,” indicates Damie
Sinanan of Caribbean Export.

For more information about the 4th
CARIFORUM-EU Business Forum visit:
http://www.carib-export.com/businessforum/

More information about Caribbean Export
can be found at www.carib-export.com

About
Caribbean Export

Caribbean Export is a
regional export development and trade and investment promotion
organisation of the Forum of Caribbean States (CARIFORUM) currently
executing the Regional Private Sector Programme (RPSDP) funded by the
European Union under the 11th European Development Fund (EDF)
Caribbean Export’s mission is to increase the competitiveness of
Caribbean countries by providing quality export development and trade
and investment promotion services through effective programme
execution and strategic alliances.

1
Annual socio-economic report produced by the Spanish Spirits
Federation (Federación Española de Bebidas Espirituosas, FEBE).