Market Survey on Flavors Industry in China

--- A preliminary research

Released Date: June 2006

Importance:

Copyright by Guangzhou CCM Chemicals Co., Ltd. Suggest for reading instead of copying or downloading. Any distribution or citation of this article for whatever use is forbidden.

This report was drafted in 2001. Please click here for the main content of the update report. Visitors are requested to Contact Us by email or directly to the below address for the update report. Thank you.

Researched & Prepared by:

Guangzhou CCM Chemicals Co., Ltd.

Guangzhou, P. R. China

Updated in September 2001

Copyright by Guangzhou CCM Chemicals Co., Ltd. (P. R. China)

Any publication, distribution or copying of the content in this report is prohibited.

Website: http://www.cnchemicals.com

Email: econtact@cnchemicals.com

Tel: +86-20-3876-8926

Fax: +86-20-3876-8956

Content

Methodology 5

Difination & Explanation 6

Executive Summary 8

Map of location of provinces in China 9

Review on Flavor History in China 10

Overall Situation of flavor & fragrance Industry in the Recent Years 15

Geological Distribution of Flavors Production in China 17

Situation of Natural Flavors in Brief 21

Situation of Synthetic Flavors in Brief 24

Foreign Involvement in the flavor & fragrance Industry in China 26

Research Institute of Flavors in China 27

Government Management on Flavors Industry in China 29

Government Target & Plan for Flavors Industry 31

Conclusion & Suggestion 33

Appendix I: Introduction to Major Flavor Manufacturers in China

Shanghai Flavors General Factory 34

Guangzhou Baihua Flavor Co. Ltd. 34

Shanghai Xin Hua Flavor Factory 35

Shanghai Peacock Fragrance & Flavor Co. Ltd. 36

Tianjin Flavor Factory 36

Shandong Tengzhou Wutong Flavors Co. Ltd. 37

Zhejiang Hangzhou Flavors Factory 38

Appendix II: Situation of Major Flavors in China

Natural Flavors 39

Essential Oil 39

- Mint oil 39

- Eucalyptus oil 40

- litsea cubeba oil 40

- Citronella oil 41

- Aniseed star oil 41

- Cassia Oil 42

- Camphor Oil 42

- Other essential oils 43

Concrete & Absolute 44

- Jasmine concrete & absolute 44

- Jasminum Grandiflorum concrete & absolute 44

- Other concretes & absolutes 44

Tincture 45

Musk tincture 45

Other tincturers 45

Synthetic Flavors 46

1. Hydrocarbon Chemicals 46

Alpha Pinene & Beta Pinene 46

Isoprene 46

2. Alcohol Flavors 46

Phenyl Ethyl Alcohol 46

Terpineol 47

Menthol 47

Linalool 48

Benzyl Alcohol 48

3. Aldehyde Flavors 49

Vanillin and Ethyl vanillin 49

Heliotropin 50

Citral 50

Lilial 50

4. Acetone Flavors 50

Synthetic Camphor 51

Acetophenone 51

Acetyl Cedrene 51

Ionone & methylionone 51

5. Carboxylic Acid Flavors 52

Lactic Acid 52

Phenylacetic Acid 52

6. Ester Flavors 53

Benzyl Acetate 53

Benzyl Benzoate 53

20 Linalyl Acetate 53

Salicylate series 53

7. Lactone Flavors 53

Coumarin 53

8. Phenol Flavors 54

Guaiacol 54

Maltol & Ethyl Maltol 54

9. Ether Flavors 54

Cedryl methyl ether 54

Anisole 54

10. Musk Flavors 55

Musk xylol 55

Musk Ketone 55

Musk Ambrette 55

11. Nitrile Flavors, Sulfurous Flavors and heterocyclic Flavors 55

Nitrile series 55

Mercaptan series 55

Sulfide series 56

Furan series 56

Pyrrole series 56

Pyridine series 56

Pyrazine series 57

Tiazole series 57

Appendix III. The Brief Introduction to Foreign Companies in China

IFF 58

Givaudan 58

Rodia 59

Firmenich 59

Quest 60

Takassago 60

H & R Cosfra 60

Dragoco 60

Melchers 61

Methodology

…… (Omitted)

Definition & Explanation:

Rate: 1USD=8.27RMB

Classification of flavors

In this report, we classify the flavors into natural flavors and synthetic flavors. The natural flavors contain animal flavors and plants flavors. We focus on plant flavors. In presenting the report, we systematize both the animal flavors and plant flavors by the forms of final products. And the dicussion is undertaken along this rout. The raw materials for natural flavors, like spice, are excluded from the present report.

The synthetic flavors contain isolates, each of which is separated from natural flavor(s) by chemical processing and containing a single compound, like menthol, and chemical synthetic flavors, which are made by the chemical reaction of petrochemicals, like phenyl ethyl alcohol. In presenting the report, we systematize both the isolates and the chemical synthetic flavors by the chemical functional group. And the discussion is undertaken along this rout. The classification has been shown in the following figure.

Figure 1. Classification of flavors

The production of synthetic flavors

Synthetic chemicals have many applications and most of them are consumed in more fields than as flavors. In this report, the productions of synthetic flavors refer to the quantities of synthetic chemicals that are used for flavor purpose only. The quantities for other purposes are not included in the calculation. E.g. the linalool made by acetyl acetone method is for vitamin E purpose and thus is excluded from our discussion.

Actual production

Unless otherwise stated, the actual production of each specific flavor is estimated on base of the situation in year 2000.

Major manufacturers

For each specific flavor, there may be many manufacturers in China. Usually we do not list them, according to the principle of the present service. However we select some major flavor manufacturers and introduce the situation in details.

Import & Export Situation of Flavors

According to the original schedule, the import & export situation of all flavors is summarized and presented in a separte part. But in preparing the report, we found some information will overlap in the later paragraph. So we introduce the import & export situation in the discussion on specific flavor items in appendix II. In addition, during the discussion import & export situation of specific flavor items, we only focus those flavors that have separate HS codes.

Fragrance

In order to better understand the flavors industry, some situation of fragrance has been revealed in the parts of: History, Current Production Situation and Foreign Involvement.

Foreign:

In this report, foreign means anything or any activity outside Mainland P. R. China. E.g., foreign countries mean countries except Mainland China.

Ownership:

State owned:

The whole asset of a factory/company is invested and owned by the local/central government.

Private owned:

The whole asset of a factory/company is invested and owned by individual person. The owner has his/her own right to the management of the factory/company.

Joint venture:

A company invested by foreign company (companies) and Chinese company (companies). The two or more cooperate partners share the profit on mutual benefit. The Chinese partner maybe an individual or a state owned unit.

Local governments

Local governments usually refer to provinces, counties, etc. that are u