Insights into the global fragrance raw material market

In July, the British flavor and fragrance company Treatt released a market report that affected by the continuous spread of the new coronavirus epidemic, the production of flavors and fragrances is facing the challenge of rising costs such as freight and raw material prices.

Ethyl vanillin: supply shortage may continue until the end of the year

Since the beginning of the year, both vanillin and ethyl vanillin prices have risen significantly. The cost of ethyl vanillin has risen by about 25% since the beginning of the year, and the cost of vanillin has increased by about 20%. The rising demand for vanillin in the US market is the main driving force, and many large customers are worried about the trade war and its impact and are beginning to stock up in large quantities. Another reason is that large Indian manufacturers are unable to arrange production and shipment due to the epidemic lockdown measures.

The industry generally believes that the largest manufacturer of ethyl vanillin has increased orders and its production capacity has exceeded its maximum output. There is now a backlog of orders for at least six months. In addition, the factory originally planned to stop production in August for maintenance. The shortage will continue until the end of 2020.


Anisaldehyde: Abnormal production in Europe and India

The recent decline in European production has severely restricted the supply of anisaldehyde. India is also a supplier of anisaldehyde, but due to the severe impact of COVID-19 on cargo transportation/import and export, there is a shortage of supply of this raw material. This situation is expected to continue until the world is unblocked and normal production and transportation resume.

Thiothiazole: Will be further strengthened in the short term

The cost of thiothiazole has risen significantly. The raw material can be used to produce medicines, so prices are rising and supplies are tightening. Many major manufacturers have overhaul plans in July, so the raw material supply will face even greater difficulties. There are signs that the raw material will strengthen further in the short term, and the price has not stabilized yet.

Gum turpentine: insufficient supply of many key raw materials

China's gum turpentine oil extraction has just started, but the turpentine product inquiries have decreased slightly in the past few months, which may be due to the uncertain economic environment caused by COVID-19. It is understood that due to insufficient supply of a variety of key raw materials, demand in the next few months is expected to drive up market prices.

Natural caryophyllene: Indonesian production falls short of expectations

Due to the prolonged rainy season in Indonesia, the production of cloves was lower than expected. COVID-19 has brought great uncertainty to the entire market, and many large caryophyllene consumers have reduced their demand for this raw material. This means that although the production of caryophyllene this year is not as good as expected, the price of the raw material will remain relatively stable because large producers will compete to ship.