The international giants of flavors and fragrances accelerate their layout in the Chinese market, and local enterprises urgently need to "cultivate themselves"

At present, the global flavor and fragrance market is monopolized by the top 10 giant companies, including Givaudan Roure of Switzerland, IFF of the United States, Symrise of Germany, and Firmenich of Switzerland.

Flavor is an organic compound that can sense fragrance by smell or taste, also known as fragrance raw material

The export advantage of spices is obvious

From the current point of view, there are nearly 6,000 varieties of spices in the world, and most of them have an annual output of less than 100 tons.

In recent years, China's flavor and fragrance industry has made great progress in terms of product quantity, technological innovation, production scale and management system, and has gradually achieved a rapid and stable development pattern with rapid growth in foreign trade exports

Spice products take a long time to develop and invest a lot of money, and often have high risks.

In developing countries and regions, China is one of the few countries that can compete with developed countries in the production of flavors and fragrances, and has formed a core competitive advantage in the field of some bulk flavors and fragrances

Flavor manufacturing needs to form synergistic effects

It is worth noting that China's flavor industry is still relatively backward compared with some developed countries

The upstream industrial chain of China's flavor and fragrance industry is spice planting and production, the midstream is flavor production, and the downstream is application industries such as daily chemicals, food and tobacco

Compared with the production chain of flavors and fragrances in developed countries, the planting and production of spices in China have not been scaled and standardized, so the gross profit level is relatively low

At the same time, because the flavor enterprises in developed countries also deploy the flavor business, they have stronger synergistic effect, which in turn increases the technical barriers of the flavor industry

The production chain of flavors and fragrances in China has not yet formed a synergistic effect, the industry has low added value and serious homogenization, and it is still in the stage of exporting to foreign countries relying on raw material processing

Market still has room for improvement

Although developed countries continue to transfer the flavor and fragrance industry to China, the production links undertaken by China are mainly raw material-intensive, resource-consuming and environmental-polluting

In recent years, the sales of global flavors and fragrances have continued to grow

　　In the future, with the enhancement of consumer brand awareness and the advancement of technology, the industry concentration will increase significantly

"Outstanding" with regional cultural characteristics

　　From the perspective of the geographical distribution of consumption in the global flavor and fragrance market, Asia has the highest proportion of consumption, while China's per capita flavor consumption is relatively low

　　At present, there is still a certain gap between China's edible flavor and essence industry in terms of technology research and development, product innovation and the international advanced level

　　Since it is difficult to break through the blockade of leading technologies in a short period of time, the industry can cut in from the subdivision field, give full play to its own unique advantages, and may achieve corner overtaking in the future
.
For example, in the field of daily chemical flavors, the unique product osmanthus flavor is discovered, and in the field of food flavors, salty flavors are discovered
.
Enterprises should seize the characteristics of such products, keenly explore China's unique culture and living habits, create more localized products, and break through the siege with localized advantages
.

　　In the long run, China's flavor and fragrance enterprises need to open up their production chains and improve their product innovation capabilities through technology research and development, industrial chain integration, etc.
, so as to have higher investment value in the fierce market competition
.

　　(Comprehensive arrangement by Yang Xiaojing)

"China Food News" (06 edition on August 30, 2021)

(Editor-in-charge: Yang Xiaojing)