The global flavor and fragrance market in the epidemic: pain points&reflection

Can Bulgarian roses be harvested this summer? What is the harvest of mint, lavender, vetiver and orange blossom grown in other parts of the world?

This is the main problem that currently disturbs suppliers of flavors and fragrances, because the new coronary pneumonia pandemic threatens the selection and transportation of key fragrance raw materials in the coming months. But the most important question is when the demand for high-end perfumes that are highly dependent on travel retail will rebound.

Jonathan Warr, senior vice president of research and development, compliance affairs and quality control at Takasago Perfume Industry Co., Ltd., said: "For us and the entire industry, there is no doubt that the biggest impact is the decline in demand for high-end perfumes.

Givaudan Chief Purchasing and Sustainability Officer William Musaltz (Willem Mutsaerts) said that weak demand means that in the short term "material pressure becomes less".

At the same time, as consumer demand for natural ingredients such as citrus, mint, patchouli and lavender rose, the home furnishing and personal care business of flavor and fragrance suppliers increased; sales of edible flavor raw materials were strong.

Many governments have listed flavors and fragrances as key industries, so most suppliers ’global factories remain in operation.

Dominique Roques, vice president of Firmenich ’s natural product partnership and communications, said: “Fortunately, most of the business can be maintained normally. But in the Indian market, although the factory can be operated, exports and transportation The logistics situation is still relatively complicated. "

This will affect the supply of raw materials such as mint. At least one million farmers in India grow mint, which is processed in thousands of small distillation plants across the country before being shipped abroad. It is reported that the supply of Iso E Super in India has been exhausted.

In addition, as the first country affected by the epidemic, China's supply chain slowed down, which once affected the delivery of cedar-derived products.

As far as the overall fragrance raw material market is concerned, Rox said: "As of now, sales and demand have not changed much compared to previous years. Because the contract signed one year ago is still being executed."

Musaltz pointed out: "The industry has been discussing, we should pay attention to the purchase of raw materials, because the number of field growers is reduced, the operation is limited, everything becomes more difficult."

It is difficult to predict the impact of the epidemic on consumer behavior. Suppliers' demand for high-end perfumes is becoming increasingly uncertain.

But fortunately, in the past decade, flavor and fragrance suppliers and farmers and other partners have established sustainable ways to obtain natural fragrance raw materials, which greatly enhances the stability of the entire supply chain during the epidemic and beyond.