Dye crops: Yemen's next sustainable investment
Global demand for natural dyes is currently high. Interest in them is daily growing due to the increased public awareness of their natural and sustainable properties. Indeed, the global market for plant dyes is projected to generate revenues of nearly 5 billion U.S. dollars by 2024. It will increase at a CAGR (Compound Annual Growth Rate) of about 11% between 2018 and 2024. By all predictions, the profit potential for the natural plants sector, including plant-based, animal-based, and mineral-based dyes, is staggering. Consequently, Organic Yemen is conducting feasibility studies for international investment clients on growing dye crops for Yemen export.
Brands are turning to plant-based dyes
H&M fashion brand switches to natural dyes
The plant-based segment dominates the total market share by more than two-thirds, increasing at a projected CAGR of 12% between 2019 and 2021. Across cosmetics, textile & leather, pharmaceutical, food & beverage industries, consumer interest in plant-based natural dyes is surging.
Leading brands are already using natural dyes. Stony Creek Colors produces indigo dye for large manufacturers such as Wrangler, Patagonia and J-Crew. Prominent clothing brands such as H&M, Everlane, Eileen Fisher, and Mango today prioritize natural dyes.
Likewise, the demand for naturally produced cosmetics has increased due to the benefits of natural elements. For example, L’Oréal is turning to plant-based hair dyes as natural cosmetics thrive. Natural dye use has also improved in the fields of food coloration and medicines used in traditional therapies and treatments to safeguard people’s health.
What are dye crops?
Pomegranate plant, one of the most common dye crops - Image by: Zrng N Gharib
Dye plants are several, including Indigo, a blue dye derived from leguminous plant leaves whose color range between light blue and deep navy. There is also Madder, a member of the coffee family whose extensive fibrous root system stores the concentrated red colorant. Another dye plant is pomegranate from whose fruit’s tough and leathery rind is used to extract natural dye. Weld is another dye plant, a biennial or annual herb whose upper part, including the seeds and leaves produces various yellow hues.
Drawbacks of synthetic dyes
Jian River turned red after synthetic dyes were accidentally spilled into it - Source: Newsweek
Synthetic dyes have several drawbacks for the environment and personal health. For example, releasing effluent of untreated synthetic dye into the environment makes water bodies unfit for consumption. In India, tests have classified water from the Bandi and Noyyal rivers as unsafe due to dumped synthetic dyes. "Even animals do not drink this water," lamented Charan G., a nearby resident. A more devastating case however dates back to 2011 in northern China when river Jian turned red due to dumps of red synthetic dyes from a local chemical plant. Beyond their negative impact on the environment, some hues from synthetic dyes, including azo dyes, are alleged carcinogens.
Food giants switching from artificial to plant dyes
Owing to several drawbacks of synthetic dyes, leading manufacturers worldwide, including Nestle, Kraft Heinze, and General Mills in the US, have switched from synthetic dyes to natural dyes in their food products. In North America, a veteran company Campbell’s Soup removed artificial colors from all of its products by the end of 2018.
This leaves us with a clear conclusion: natural dyes have a massive investment potential.
Investing in dye crops in Yemen
Yemen has historically produced dye plants, such as Flemingia grahamiana and Indigo, making the growing of dye plants highly feasible. Moreover, the country has a number of climate zones, which allows for diversification and fine-tuning of the dye plants. Yemen is also centrally located between markets in Europe, the Arabian Gulf, and Asia, which are some of the leading consumers of natural dye.
Organic Yemen is therefore collaborating with agriculture extension offices around the country to test the feasibility of growing dye crops in different climate zones of the country. Emphasis is on agriculturally important regions of Ibb and Hadhramawt.
Organic Yemen’s plant dyes investment services
Producing blue pigment from indigo plant
As part of Organic Yemen’s investment portfolio in the production of dye plants, the company will be providing a host of services. These include detailed feasibility studies based on concrete experiments and data. It will also develop the farming and manufacturing infrastructure necessary for cost-effectively producing dye plants. Meanwhile, the company also has the capacity to serve as a contract farmer for large-scale customers and investors.
Yuri & Terra brand for cosmetics
With its high-end retail trademark, Yuri & Tera (Y&T), Organic Yemen already has a cosmetic and personal body care brand. This will be critical in marketing and selling its products. Specifically, Y&T gives organic Yemen the lucrative option to sell the dye crops via retail channels, which potentially brings higher profit margins.
This model has already proved successful for selling cosmetics and products for personal care worldwide using the company’s eCommerce channels. Organic Yemen is looking to leverage its wealth of data instruments, connections with farmers, and the Yemeni government to make dye plants a major economic boom, for farmers, investors, and Yemen as a country.
Dye plants: investment to benefit everyone
Growing natural dye plants is profitable for farmers, and is a lucrative opportunity for Yemen impact investing. It is also environmentally and eco-friendly, making it a sustainable venture. The investment, which is certain to succeed, will also create hundreds of jobs for ordinary Yemeni citizens. The venture is certain to succeed. This is owing to the excellent location for experimental farms courtesy of Yemen’s varied climatic and geographic position.
Organic Yemen is therefore your ideal partner in this lucrative venture. Our expertise, long experience, and full value chain (farming-processing-sales) capabilities guarantee success.