Industry Analysis & Industry Trends
The Fragrance and Essence Manufacturing industry is capital and technology intensive. Technology development, especially patent technology, is critical for enterprises in this industry. Top international players currently invest an average of 10% of their industry revenue in technology and product development, while Chinese enterprises tend to invest a much lower proportion in R&D. Most Chinese enterprises in this industry are small in scale with very limited patent technology. In the next five years, R&D investment by Chinese enterprises is expected to increase as competition becomes more intense and firms look at ways of gaining a competitive advantage in the market. Some enterprises will also begin to shift their focus to the medium and high-end markets.... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Fragrance and Essence Manufacturing industry has a low concentration level. This is primarily because the industry is still developing, with most top manufacturers having a history of 20 years or less. The top four companies are forecast to account for 16.2% of industry revenue in 2011.
Barriers to enter this industry are low. Small firms can survive or even prosper by providing low-cost fragrances and essences to domestic and international markets. Some firms are medium or large enterprises. However, their main products may not be fragrances or essences, but are often other products. For example, China Jianzhong Nuclear Fuel Co., Ltd., whose core business is nuclear fuel elements, also produces fragrances and essences... purchase to read more