SUSTAINABLE AGRICULTURE AND FOOD PRODUCTION

Aromatic plant oil extracts for perfumes, cosmetics and food

Aromatic plant oil extracts for perfumes, cosmetics and food

Market

Final Products

Oil extracts

Required Inputs

Aromatic plants

Competing Products

Low competition
Imported extracted oils

Potential for Export

High

Process

Complexity – Type of Process

Simple – thermal process

Technology

Mixing, evaporation and distillation

Equipment and Material

Oil extraction unit

Human Resources

Manual labor, chemists and quality engineers

Business Linkage

Forward Linkage

Food and cosmetics industry

Local/Regional/Nationwide

Local market- Upper Egypt region

Backward Linkage

Farmers

Supporting Entities

Equipment suppliers, testing facilities, packaging material suppliers

Competitive Edge

Provide high-quality oils at competitive cost due to high availability of supply and low transportation cost

Economic Features

Revenue Stream

Sales of extracted oils

CAPEX

Consists of the cost of machinery with an average of 10.8M EGP

Note: This CAPEX represents the indicative investment size, however, this investment opportunity can grow in implementation to a larger-sized investment.

Investment Size

Medium (between 5-50M EGP)

Considerations

Key Challenge

Mass production, marketing and sales services, access to high-quality suppliers, meeting product specification and standardization

Advantages

High profit margin and value-addition

Potential Pathways to Growth

Production of higher value-added feedstock as natural alternatives to synthetic antioxidants and preservatives, production of packaged and branded consumer products

General Impact

Environmental

Reduces waste of herbal and aromatic plants, processing material close to the field reduces emissions in transportation 

Social

Increases returns on agricultural produce, high innovation opportunity, creates job opportunities

Impact on Sub-market(s), Cluster(s) and Value Chain(s)

Relevant sub-market

Intermediary to industries (food, pharmaceutical, wood and paper)

Lies within the following
value chain/cluster(s)

Medical/aromatic plants and herbs, food processing and packaging

Impact

Promotes value-addition to medical/aromatic plant and herb production

* Source of the information: The above figures were updated by Chemonics Egypt for UNIDO in 2023

Studies

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