The growth of the flavor and fragrance market mainly comes from the Asian market. "
This is the 50th original article of Vitality Capital
Analyst) Rexi
core content
1. Cosmetics and skin care companies pay more and more attention to adding fragrance. Flavors and fragrances can increase the use value and economic benefits of products.
2. The flavor and fragrance industry presents a pattern of "four supers and many strong". What is the competitive strength of Chinese local enterprises?
3. How does Coase, a leading listed company in the local segment, achieve breakthroughs in the market dominated by giants?
Scent, more soul: why flavors and fragrances are so important
Chanel's Camellia series, Jurlique Rose series, MFK Oud series, Nanfa Manor, Fragrance Glei...In recent years, as consumers have become more and more particular about fragrance, cosmetics and skin care companies have also paid more attention to adding fragrance. Flavors and fragrances affect the use value and economic benefits of flavored products, and also bring more innovative breakthroughs to the cosmetics industry and products.
In fact, the fragrance in daily chemical products such as cosmetics is produced by the flavors and fragrances added to them. Among the more than 200 varieties of 15 major categories of daily chemical products, although only a slight amount of 0.1%-2% of fragrance and flavor (perfume is larger, about 5%-20%), it is very important to the product.
Spice and fragrance are inseparable. Perfume is a compound that can bring fragrance. After being blended by the perfumer, the essence can be obtained, which can be applied to end consumer products and become a "beautifier" for the sense of smell. According to the source, fragrances are divided into natural fragrances and synthetic fragrances. According to different usage scenarios, flavors can also be divided into edible flavors, daily chemical flavors and tobacco flavors.
The basic function of flavors and fragrances is to add fragrance and deodorize, which has become the most important reason for being added to beauty products and daily chemicals. There are many raw materials for daily chemical products, some of which inevitably have pungent odors, and flavors and fragrances play a role in masking the pungent odor.
Another function is to cater to the preferences of consumers, produce pleasant odors, and improve product quality. From the perspective of consumer psychology, the effect expressed by a cosmetic with a charming fragrance makes the product fuller and more connotative, and can even show that you have an outstanding temperament and a sense of luxury.
In addition, flavors and fragrances also have the effect of sensory cue. According to relevant studies, different flavors and fragrances can completely change the consumer's acceptance of products. For example, consumers will come to the conclusion that the soothing ability of anti-allergic creams with high-end flavors is much higher than that of the same material. An anti-allergic cream with low-end fragrance.
Based on the above reasons, it is not surprising that more and more popular products featuring aromas have emerged recently.
Competitive landscape: the international leader monopolizes, the domestic industry concentration is low
Generally speaking, large cosmetics companies will allocate a special department to be responsible for the fragrance blending of products, while small and medium-sized cosmetics companies generally do not have the ability to adjust fragrances, and often purchase the flavors prepared by fragrance and fragrance companies to add and use.
In recent years, the global flavor and fragrance market has grown steadily. In 2020, due to the impact of the new crown epidemic, the production of hand sanitizers and synthetic detergents have increased significantly, which will also stimulate the demand for daily chemical fragrances.
According to data from Leffingwell, the total global consumption of flavors and fragrances in 2019 was about 28.2 billion US dollars. From a regional perspective, the growth of the flavor and fragrance market mainly comes from the Asian market. Among them, China will continue to grow at a high growth rate of 6.4%, and the growth rate of other parts of Asia is expected to be 4.8%.