FIC meets DSM-Firmenich: gaining deep insights into how innovative science drives industry growth

“Innovate daily—or fall behind China’s market pace.” Gaining recognition in the Chinese market is no easy feat. During our conversation, Mr. Ramon de Vries, Vice President of the Flavor, Texture & Health Business Group and Head of the Food Flavor Division for DSM-Firmenich Greater China, emphasized the strategic importance of the Chinese market while candidly noting: “In China, we must innovate continuously—daily, monthly, and yearly—to keep up with the market’s pace.” He cited the rapidly evolving “street beverage” sector as an example. Beyond “health,” this trend has surged over the past year. Specifically, alongside coffee beverages, a wave of novel tea-based drinks has emerged. Once these brands achieve chain-scale operations, they swiftly pilot new products; positive market feedback triggers rapid nationwide rollouts—imposing fresh demands and challenges on innovation across the entire value chain and supply chain. Such scale and speed of innovation are unmatched anywhere else globally. Through years of deep engagement in China, DSM-Firmenich has come to recognize that Chinese consumers differ fundamentally from those in any other region. According to DSM-Firmenich’s research on the Chinese market, consumers here not only hold higher expectations for food quality but also possess distinct, deeply rooted preferences and pursuits regarding “flavor.” Ramon shared an industry anecdote with Xiaoshidai: A raw-material supplier seeking entry into China imported ingredients from Europe and conducted blind taste tests simultaneously in New Jersey (USA) and Shanghai. In New Jersey, 99% of participants judged ingredients A and B indistinguishable. In Shanghai, however, 99.9% perceived them as completely different. “This sensitivity underscores how finely tuned Chinese consumers’ palates are—and it reminds us that we must deepen our understanding of them,” he said. To that end, DSM-Firmenich has established a dedicated Sensory & Insights team in China, tasked with evaluating every product and solution across dimensions including color, aroma, and taste—and further segmenting Chinese consumers by geography and age group to truly grasp their needs and aspirations. Ramon added: “From a flavor perspective, each market carries unique expectations and texture preferences. Chinese consumers demand even more sophistication in taste and mouthfeel. Whether it’s food manufacturers preparing for IPOs or enterprises exporting overseas, they choose to partner with DSM-Firmenich because we deliver solutions backed by fully transparent supply chains and compliant with both international and domestic regulatory standards. DSM-Firmenich guarantees premium product quality while meeting Chinese clients’ specific requirements for taste and other flavor attributes.” Today, many of DSM-Firmenich’s “global innovations” originate right here in China. Mr. Ma Rongjun told us that DSM-Firmenich launched its hydrocolloids business first in China—and even established its global headquarters for this business in China. “Our Global Hydrocolloids Innovation Center is located in Tongxiang, Zhejiang Province. Its product portfolio includes hydrocolloids, beneficial bacteria, enzymes, vitamins, and other nutritional ingredients. Regarding hydrocolloids specifically, R&D is conducted in China, and currently 60% of related business activities are tied to the Chinese market. Our strategy is firmly ‘China-based, serving the world.’

Half-year revenue hits RMB 36.2 billion! Raw-materials giant DSM-Firmenich leverages HMOs to drive premiumization of China’s infant formula market

Recently, DSM-Firmenich released its financial results for the first half of fiscal year 2026. During the reporting period, the Group achieved revenues of €4.664 billion (approximately RMB 36.2 billion), representing a 5% year-on-year increase in sales—exceeding the market consensus forecast of €4.63 billion. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) totaled €900 million (approximately RMB 7.025 billion), reflecting a 7% year-on-year rise in profit. Financial data shows that DSM-Firmenich delivered robust growth in both top-line revenue and bottom-line profitability during H1 2026—highlighting strong momentum from its core businesses. Frederik J. van der Velden, CEO of DSM-Firmenich, stated that the company expects full-year comparable sales growth to land near the upper end of its 2026 target range of 2%–4%. Following the successful divestment of its Animal Nutrition & Health business in 2025, DSM-Firmenich now operates three core business segments: Fragrance & Beauty; Flavor, Texture & Health; and Human Nutrition & Care. Fragrance & Beauty The performance leader: H1 revenue of €1.948 billion This segment posted H1 sales of €1.948 billion (approximately RMB 15.2 billion), up 7% year-on-year; adjusted EBITDA reached €424 million (approximately RMB 3.31 billion), up 6% year-on-year. Growth was primarily driven by strong performance in Fine Fragrance and by Popscent—a breakthrough innovation for odor control in laundry products. Meanwhile, DSM-Firmenich continues to ramp up R&D and production capacity in Fragrance & Beauty: it has completed the establishment of its Popscent manufacturing facility in Singapore, its creative lab in Riyadh, and its office-based R&D center in Manhattan; it has also expanded production capacity for fragrance ingredients Helvetolide and Romandolide in France—laying groundwork for future growth. Flavor, Texture & Health Strong Q2 turnaround: H1 revenue of €1.634 billion The Flavor, Texture & Health segment generated H1 revenue of €1.634 billion (approximately RMB 12.75 billion), up 4% year-on-year; adjusted EBITDA rose 3% year-on-year to €321 million (approximately RMB 2.506 billion).

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DSM-Firmenich opened a new integrated office in Jakarta and expanded its Karawang production base to enhance capabilities in flavors, beauty, and food ingredients. The facility utilizes green power and new drying technologies to boost efficiency and reduce carbon emissions.

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