Since the 90s of last century, with the development of economy and the improvement of living standards of countries all over the world, especially in developed countries, people's requirements for food and daily necessities are getting higher and higher, which has promoted the growth of flavor industry. According to the statistics of Leffingwell & Associates, the global flavor market and spice market in 2006 amounted to $18 billion, reaching 24 billion 100 million US dollars in 2015, with a compound annual growth rate of 3.30%. Judging from the consumption of flavors and fragrances consumed by Leffingwell in 2019, the total consumption of flavors and fragrances in the world in 2019 was around us $28 billion 200 million.
At present, the global flavor and fragrance market is mainly concentrated in Europe and the United States and the Asia Pacific region. The demand for other markets is relatively small, but demand in emerging countries has increased rapidly. According to Leffingwell, Asian flavor and fragrance sales ranked first in 2018, while North America ranked second in 5 billion 753 million US dollars and Western Europe ranked third in 4 billion 700 million US dollars in 8 billion 500 million.
In addition, from the perspective of the industry, since the 1990s, the industry's concentration process has been significantly accelerated, the core production enterprises have become increasingly stable, and the market share of the top ten production enterprises has been increasing. At present, the top ten international flavor and fragrance companies are concentrated in Western Europe, the United States and Japan. As the market of western developed countries is becoming increasingly saturated, the world flavor industry is gradually transferring to developing countries in order to further expand the market. China's flavor demand and supply have increased in two directions.
Development of China's flavor industry
The production and development of China's flavor industry is compatible with the development of supporting industries such as food industry, beverage industry, daily chemical industry, etc. the change rapidly in downstream industries has promoted the development of flavor industry, the quality of products has been constantly improved, the varieties have been increasing, the scale of enterprises has been expanding, and the output and sales volume of products have been increasing year by year. At the same time, with the improvement of residents' living standard and the upgrading of consumption structure, consumers are gradually seeking the fashion and novelty of taste when they pursue health, nutrition and hygiene. The market needs more new flavors to satisfy people's increasingly fastidious taste perception, and the market demand will show a rapid growth trend, which will provide the rapid development of China's flavor manufacturing industry. It has broad market space. Judging from the statistics of China's flavor production and sales revenue in recent years, the flavor industry has been increasing rapidly year by year, and the production of flavor has basically adapted to the needs of people's lives and industrial and agricultural production and market. In 2019, the output of flavors and fragrances in China was about 1850 tons.
According to China flavor and fragrance cosmetics industry association, from 2005 to 2015, the market scale of the domestic flavor and fragrance industry continued to grow. In 2005, the annual sales of perfume and flavor products in China amounted to about 13 billion yuan, while the annual sales of flavor and fragrance products in 2010 were about 20 billion yuan, and increased to 33 billion 850 million yuan in 2015. According to the forward-looking estimation, the annual sales of flavor and fragrance products in China in 2019 amounted to about 44 billion 900 million yuan. At the same time, from the geographical distribution, the domestic flavor manufacturing enterprises are mainly concentrated in East China and Southern China. Among them, Guangdong, Zhejiang, Jiangsu, Sichuan, Shanghai and other provinces and cities are developing at a faster pace, and the number of enterprises and sales revenue are among the forefront of the industry. According to statistics, in recent years, the top five places in the field of flavor accumulation in China are five provinces and municipalities such as Guangdong, Henan, Tianjin, Shanghai and Zhejiang, which have become the main competitive areas for flavor manufacturers.
Development trend of China flavor industry
Prospect 1: the world demand for flavors and fragrances will continue to grow. In recent years, the demand for fragrance and fragrance in the world has grown by about 5% annually. In view of the good development of the flavor and fragrance industry, although the development of aromatic industry in most developed countries is relatively slow, the market potential of developing countries is still relatively large, and the food processing and consumer goods manufacturing industry continues to develop, and China's gross national product and personal income level are constantly improving, and international investment is active. These factors will enrich the world's flavor and fragrance demand.
Prospect two: developing countries have broad prospects for development. The supply and demand of flavors and fragrances have long been monopolized by Western Europe, the United States, China and Japan. However, the United States, Germany, France and the United Kingdom, which have mature domestic markets, have to rely on developing countries to expand investment projects and maintain competitiveness. In the global flavor and fragrance market, the three world countries and regions such as Asia, Oceania and South America become the main competitive areas of key enterprises. Demand is strongest in the Asia Pacific region.
Prospect three: grow with each passing day, the international flavor and fragrance enterprises expand to the tobacco flavors and fragrances. With the rapid development of the global tobacco industry, the formation of big brands and the further improvement of tobacco products, the demand for high-quality tobacco flavors and fragrances is increasing. The development space of tobacco flavors and fragrances is being further opened up, and the future international flavor and fragrance enterprises will continue to expand to the field of tobacco flavors and fragrances.