The Fragrance and Essence Manufacturing industry has experienced rapid growth in the past five years, mainly driven by expanding domestic demand from downstream food, beverage and tobacco manufacturers. Increased levels of processed food production, household demand and urbanization have shaped the larger domestic market. The large potential market, cheap labor and rich aromatic plant resources have encouraged international firms to enlarge their presence in China and have helped establish China as a major fragrance and essence manufacturing center. Revenue for the industry is expected to total $12.7 billion in 2017, up 5.5% from 2016. Industry revenue has been increasing at annualized rate of 8.5% in the five years through 2017...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 10.9% of industry revenue in 2017.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.

Additional Insights for the Fragrance and Essence Manufacturing Industry

IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fragrance and Essence Manufacturing Industry are

  • Economies of scale
  • Guaranteed supply of key inputs
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Secondary Industry Markets - Manufactures - Food - Food and Beverages and Health Policy - Food Regulations in the Fragrance and Essence Manufacturing industry impact industry performance..

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    What's in this report

    What is the Fragrance and Essence Manufacturing Industry?

    Products of the Fragrance and Essence Manufacturing industry include natural and synthetic spices and essences, which are further segmented into flavors (i.e. essences added to food, beverages, pharmaceuticals, animal feed, tobacco and other products) and fragrances (i.e. essences added to soaps, detergents, cosmetics, toiletries, perfumes, household cleaning products, candles, insecticides and aromatherapy products).

    Industry Products
  • Essential oils
  • Flavor blends and compounds
  • Fragrance blends and compounds
  • Spice oleo resins
  • Concretes and absolutes
  • Synthetic aroma chemicals
  • Industry Activities
  • Essential oil
  • Concrete and absolute
  • Spice oleoresin
  • Synthetic aroma chemical
  • Flavor blend and compound
  • Fragrance blend and compound
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Secondary Industry Markets - Manufactures - Food - Food and Beverages
  • Health Policy - Food Regulations
  • Domestic Goods Prices - Energy Minerals - Crude Oil
  • Domestic Goods Prices - Food and Beverages - Miscellaneous Processed Foods
  • Level of Environmental Protection Legislation

  • Current Performance
    Establishments and employmentInternational tradeDownstream market of Tobacco Manufacturing
  • Chart: Revenue Growth

  • Industry Outlook
    International tradeProduct trends
  • Table: Fragrance and Essence Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fragrance and Essence Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Animal Food Manufacturing
  • Biscuit Production
  • Chocolate & Candy Production
  • Cigarette Manufacturing
  • Soap, Washing Powder and Synthetic Detergent Manufacturing
  • Cosmetic & Personal Care Product Manufacturing
  • Toothpaste and Toothbrush Manufacturing

  • Key Selling Industries
  • Organic Chemical Material Manufacturing

  • Products & Services
  • Essential oils
  • Flavor blends and compounds
  • Fragrance blends and compounds
  • Spice oleo resins
  • Concretes and absolutes
  • Synthetic aroma chemicals
  • Chart: Fragrance and Essence Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Disposable incomes
  • Government health programs
  • Changes in eating habits
  • Fashion and health trends

  • Major Markets
  • Tobacco manufacturers
  • Food and beverage manufacturers
  • Household and personal care chemicals manufacturers
  • Exports
  • Other
  • Chart: Major Market Segmentation for the Fragrance and Essence Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases and depreciation
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Fragrance and Essence Manufacturing

  • Basis of Competition
  • Access to raw materials
  • Inventory management
  • Technology
  • Regulations
  • Price
  • Branding
  • Relationships with downstream industry customers
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fragrance and Essence Manufacturing Industry

  • Industry Globalization
    Huabao International Holdings Limited, Jiaxing Zhonghua Chemical Co., Ltd., Firmenich Aromatics (China) Co., Ltd., International Flavors & Fragrances (China) Co., Ltd., Symrise (Shanghai) Co., Ltd.,
  • Table: Huabao International Holdings Limited - financial performance
  • Table: Jiaxing Zhonghua Chemical Co., Ltd. - financial performance
  • Table: Firmenich Aromatics (China) Co., Ltd. - financial performance
  • Table: International Flavors & Fragrances (China) Co., Ltd. - financial performance
  • Table: Symrise (Shanghai) Co., Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fragrance and Essence Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Fragrance and Essence Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Total Assets (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Essences
  • Complex aroma compositions containing blends of natural or synthetic spices with other supplementary materials, enabling desirable flavors or fragrances to be added to a wide range of products.
  • Flavors
  • Essences added to food, beverages, pharmaceuticals, animal feed, and tobacco to enhance taste and smell.
  • Fragrances
  • Essences added to soaps and detergents, cosmetics and toiletries, fine fragrances, household cleaning products, candles, insecticides and aromatherapy.
  • Vertical Integration
  • Owning different parts of the supply chain, either in the form of forward integration (owning upstream suppliers) or backward integration (owning downstream buyers).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fragrance and Essence Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Fragrance and Essence Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Fragrance and Essence Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Fragrance and Essence Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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