Huajing Industry Research Institute released the "Simple Analysis Report of China's Flavor and Fragrance Industry"

1. Overview of the spice and flavor industry
1. Definition of spice and essence: Spice is the collective name of spice (sometimes called fragrant raw material) and essence. In a narrow sense, a spice is a substance that can be smelled by the sense of smell or tasted by the sense of taste; an essence is a kind of artificially formulated containing more than two or even dozens of species (sometimes also contains suitable or carrier) , a mixture with a certain aroma.
2. Classification
Spices can be divided into natural fragrances and synthetic fragrances. Natural fragrances refer to certain physiological organs and secretions of animals or plants that contain fragrance ingredients, as well as those containing hair that are processed and extracted from these tissues or secretions. There are about 2,000 kinds of natural fragrances, of which 200 are commonly used. Animal fragrances are no longer used due to environmental and safety factors. Synthetic fragrances are varieties of fragrances synthesized through artificial chemical routes, and there are usually 500-600 kinds of fragrances used in fragrance.
spice classification

3. Industrial chain
The spice and essence industry is an industry with high technology content, strong matching and high correlation with other industries in the national economy. Fragrance is mainly used in the production of various flavors. According to the application field, flavors can be divided into three main types: edible flavors, daily flavors and other flavors. Its products are widely used in toiletries, cosmetics, tobacco, medicine, paper, and food manufacturing. Wait for the fragrance.
Fragrance industry industry chain

2. Market Status
1. Output
my country has already become one of the most important fragrance suppliers in the world, an important market with a large proportion of the global fragrance and fragrance industry, and one of the important focus areas for global fragrance and fragrance research and development, new technologies and new products. my country, together with the Middle East, Southeast Asia and other regions, has become the most important driving force for the development of the global industry. In 2021, the output of flavors and fragrances in my country will be 2,027 tons, a year-on-year increase of 4.48%, and the output of flavors and fragrances will increase steadily.

2. Sales
The flavor and fragrance industry is an important raw material supporting industry for the food, daily chemicals, tobacco, medicine, feed and other industries in the national economy. It is closely related to the improvement of residents' living standards, the development of the food and beverage industry, and the promotion of domestic demand and consumption. In 2020, my country's flavor and fragrance market sales The amount was 51.13 billion yuan, a year-on-year increase of 2.5%. The industry is in a period of structural transformation, and the growth rate of the market scale has slowed down.

3. Number of authorized patents
According to the company's data, from 2019 to 2021, my country's fragrance and flavor industry actively carried out product research and development and production technology innovation, and the number of authorized patents in the industry as a whole increased rapidly. The number of authorized patents in 2019 was 169, twice that of 2018. my country's traditional flavor and fragrance industry model has been unable to meet the changing and diverse needs of consumers, and the industry as a whole has begun to develop in the direction of high quality.

3. Demand-side analysis
1. Market segment sales
The fragrances produced in my country are mainly used in the daily chemical industry such as cosmetics and detergents closely related to people's lives and in the food manufacturing industry. With the rapid development of downstream industries and the continuous expansion of application fields, in a long period of time in the future The consumption of chemical flavors will continue to grow steadily. Due to the increasing attention of consumers to food health and safety, social supervision on the use of flavors and other additives in the food manufacturing industry has become more stringent, and the market size of the food flavor industry has increased. slow down. In 2020, the market sales of my country's food flavor industry will be 33.26 billion yuan, and the sales of daily chemical flavors, tobacco flavors and other flavors will be 8.14 billion yuan, 7.82 billion yuan, and 1.9 billion yuan, respectively.

2. Daily chemical market analysis
The improvement of residents' living standards and the upgrading of consumption structure also provide a broad market space for the development of the industry. The data shows that the compound annual growth rate of China's perfume market between 2015 and 2020 reached 14.9%, from 5.4 billion yuan in 2015 to 10.9 billion yuan in 2020, and the market size has doubled in five years. The Chinese perfume market is developing rapidly , It is expected that the sales of the perfume market will reach 13.6 billion yuan in 2021. As an important raw material for perfume manufacturing, the market demand will continue to rise in the future.

Since the outbreak of the epidemic, wearing a mask has become a semi-mandatory requirement. Many consumers believe that "makeup is meaningless to a certain extent", and the sales of lipstick-like makeup products have declined significantly; due to the emphasis on olfactory experience, perfume has replaced lipstick as a consumer. An important category for improving happiness. Perfume can be divided into five main types: strong perfume, perfume, eau de toilette, cologne water, and toilet water according to the concentration of essence. Among them, the essence concentration of strong perfume is as high as 20~25%, and the concentration of toilet water is lower, and the concentration range is 1.5~3%.

3. Tobacco flavor market size
my country is currently the world's largest tobacco producer and consumer, with a smoking population of more than 300 million. The total cigarette production and tobacco consumption account for more than 30% of the world's total. Tobacco flavor manufacturers such as Huabao Flavor and Bolton Flavor have strengthened the application research of tobacco flavor in heat-not-burn tobacco products. In response to the development of the electronic cigarette market, they have carried out the research and development of core technologies such as flavors for atomized electronic cigarettes, so as to stabilize the use of cigarettes. Fragrance market share. Affected by national policies, my country's tobacco consumption has declined as a whole, and the growth rate of the market size of the tobacco flavor industry has slowed down. The market size is expected to reach 8.05 billion yuan in 2021.

4. Competitive Landscape
1. Number of companies
There are many small and medium-sized enterprises in the industry as a whole, and the competition in the low-end market is chaotic. The main listed companies include Huabao, Givaudan, Aipu, and Bolton. As of July 1, 2021, according to the company's data, there are currently 38,765 enterprises in the flavor and fragrance industry in my country, of which 413 have been newly established in the past year, and 10,511 have been established for more than 10 years.

2. Analysis of key enterprises
Huabao Flavors Co., Ltd. has a core integrated industrial chain, with upstream raw material extraction centers in Guangdong, Yunnan and Botswana in southern Africa, production bases in Yunnan, Guangdong, Jiangxi, Fujian and Hong Kong, and production bases in Germany. There are overseas R&D centers in Holzminden, Singapore, etc., as well as a national-level enterprise technology center in Shanghai, and R&D branches in Guangdong, Yunnan, Fujian and other places.
In 2021, the total operating income of Huabao's flavor business is 1.94 billion yuan, of which the operating income of edible flavors is 1.7 billion yuan, accounting for 87.81% of the operating income of flavors. With the expansion of the fragrance product business, the operating income of daily fragrance products was 105 million yuan, accounting for 5.42%, a year-on-year increase of 11.13%.

Flavor formula is the technical core of flavor production. As a leading enterprise of flavor and fragrance in China, we carry out high-investment and continuous research on upstream and downstream technologies of the industrial chain and industry-related technologies, which can timely meet customers' various needs for flavor products and maintain the company's market. The share continues to strengthen the competitiveness of enterprises. In 2021, Huabao will invest 164 million yuan in research and development, accounting for 7.53% of its operating income.

5. Development Trend
Affected by the increasingly saturated market in developed countries, the slowdown in demand growth, and the strong growth in developing countries and regions, the world's major flavor and fragrance companies have gradually shifted their production bases to developing countries and regions. China's flavor and fragrance market accounts for about one-fifth of the global market, and has become the world's most important flavor supplier, flavor consumer and production base. This has also injected power and vitality into the development of my country's flavor and fragrance industry. Domestic flavor and fragrance enterprises It should keep up with the development trend of world science and technology and industry, pay attention to the research and development of green production technology, and continuously strengthen the competitiveness and influence of enterprises.

The Huajing Industry Research Institute has conducted an in-depth analysis of the development status of China's flavor and fragrance industry, the upstream and downstream industry chains, the competition pattern and key enterprises, so as to minimize the investment risks and operating costs of enterprises, and improve the competitiveness of enterprises; and use a variety of Data analysis technology can predict the development trend of the industry, so that enterprises can seize market opportunities in time; for more details, please pay attention to the "2022-2027 China Fragrance Industry Development Monitoring and Investment Direction Research Report" published by Huajing Industry Research Institute ".