Output, sales scale, market structure and enterprise analysis of flavors and fragrances in China

I. Overview

1. Definition

Spice is a chemical substance that can be smelled by the sense of smell or tasted by the sense of smell. It is mainly used to prepare flavors for flavoring products, or directly as food additives. Essence is a mixture of spices and corresponding accessories with a specific aroma or aroma, and is generally used for consumption of products after flavoring.

2. Classification

From the perspective of source, spices can be mainly divided into two categories: natural spices and synthetic spices, and natural spices can be divided into three types: plant-based natural spices, natural monomeric spices and animal-based natural spices. Flavors can be divided into food flavors, daily chemical flavors, tobacco flavors and other flavors according to their applications.

2. Industry Chain Analysis

1. Industrial chain

The upstream main body of the flavor and fragrance industry industry chain is spice plant planting, spice animal breeding, petrochemical, coal chemical and other industries; the midstream is the production and supply of flavor and fragrance; the downstream is mainly used in food, daily chemical, tobacco, medicine, feed, cosmetics and other fields .

2. Downstream analysis

From the perspective of industry application, in the global flavor and fragrance market, food flavors and fragrances account for about 56%, and daily-use flavors and fragrances account for about 44%. Among them, food flavors are mainly used in the beverage industry, dairy products and cigarette industries, with market shares of 34%, 13% and 22% respectively; daily-use flavors and fragrances are mainly used in the soap detergent market, cosmetics market and high-end perfume market. The market shares accounted for 32%, 27%, and 17% respectively.

3. Global Status

1. Global scale

With the development of the global economy, especially the economic development of developed countries, the living standards continue to improve, and people's requirements for the quality of food and daily necessities are getting higher and higher, which promotes the rapid growth of the flavor and fragrance industry. According to data, the global flavor and fragrance industry market will reach US$29.1 billion in 2021, a year-on-year increase of 2.5%.

2. Regional distribution

From the perspective of market distribution, the global flavor and fragrance industry market is mainly concentrated in more developed regions such as Asia, the Americas and Europe, while the markets in other regions are relatively small. Specifically, in the global flavor and fragrance market in 2020, Asia will account for the highest proportion, reaching 40%, followed by Central America, North America and Western Europe, accounting for 25% and 16% respectively.

4. Current situation in China

1. Output

With the development of China's economy and the improvement of people's living standards, the demand and supply of spices and flavors in my country have grown in both directions, and the scale of the industry has grown rapidly. The industry has made great progress in terms of product quantity, technological innovation, production scale and management system, becoming a minority. One of the countries that can compete with developed countries in the production of flavors and fragrances. According to data, the output of flavors and fragrances in my country will reach 20.27 million tons in 2021, a year-on-year increase of 4.5%.

2. Sales scale

From the perspective of industry sales scale, thanks to the continuous increase in downstream demand, the sales scale of my country's flavor and fragrance industry has also continued to grow in recent years. According to data, the sales volume of my country's flavor and fragrance industry will reach 51.13 billion yuan in 2020, a year-on-year increase of 2.5%.

5. Relevant Policies

As an industry with high technological content, strong support and high correlation with other industries in the national economy, the development of the fragrance and fragrance industry has always attracted the attention of relevant state departments. In recent years, in order to standardize and promote the development of the industry, relevant state departments have successively A series of relevant policies have been introduced to provide a good policy environment for the development of the industry.

6. Development Trend

1. Policies are favorable to the development of the industry

The flavor and fragrance industry is an industry with high technological content, strong matching and high correlation with other industries in the national economy. It is an important raw material supporting industry for the flavor and fragrance, daily chemical, food and beverage industries. Consumption is closely related. The overall development level of the flavor and fragrance industry is an important symbol reflecting the level of national economic and technological development. The National Development and Reform Commission's "Industrial Structure Adjustment Guidance Catalog (2019 Edition)" includes "natural food additives, natural flavors, new technology development and production" in the light industry industry encouragement catalog. The "Thirteenth Five-Year Plan" National Food Safety Plan of the State Council adheres to the strictest standards, the strictest supervision, the most severe penalties, and the most serious accountability, comprehensively implements the food safety strategy, promotes the construction of a modern food safety governance system, and promotes food safety. Industrial development, promoting the construction of a healthy China will play a positive role in promoting the healthy and standardized development of the food and food additive industry.

2. The high-end market has great potential

At present, most of the fragrance and fragrance companies in my country are small and medium-sized enterprises. Compared with multinational companies, there is a certain gap in R&D investment and the number of fragrance formulation talents. The flavor and fragrance industry has many varieties, and the core link lies in chemical production technology. On the whole, due to the large differences in the production technology of various products, the industrial concentration is very low. In the short term, the pattern of low industry concentration and concentration in the middle and low-end market will continue. However, in the long run, flavor and fragrance products will be updated at a faster rate, and there will be higher requirements for corporate research and development. Industrialization and large-scale enterprises will have great potential. With strong competitive advantages, as the global production of flavors and fragrances gradually shifts from developed countries to developing countries, Chinese flavors and fragrances enterprises will face huge opportunities. In the future, the product structure will develop from "single type" to "composite type", from low end market to high-end market.

3. Emerging markets have become the driving force for industry development

Due to the asynchronous development of the global economy, the market conditions of flavors and fragrances in different regions are also different. In Western Europe, North America and other regions that are the first to develop, the food and daily chemical industries have entered a highly developed stage, with a wide variety of products, high per capita co

nsumption, and insufficient growth momentum. Although Asia, Africa, Eastern Europe and other regions started relatively late, they developed rapidly. With the increase of population and per capita income, the demand for food and daily chemical products is increasing, which drives the development of flavor and fragrance industry. Therefore, emerging markets have become the main driving force for the development of the global flavor and fragrance market. In addition, consumers in different regions have different taste preferences for flavor and fragrance products due to environmental, cultural and historical reasons. Local flavor and fragrance manufacturers in emerging markets can rely on the understanding of local consumers' taste preferences to launch more market-friendly formulas, which may seize development opportunities and change the flavor and fragrance market structure to a certain extent.