Trusting in China: Symrise gears up for ‘next boom’ in fine fragrance market

By Amanda Lim contact

- Last updated on GMT

Symrise is expecting to see growth in China’s fine fragrance market. ©Symrise
Symrise is expecting to see growth in China’s fine fragrance market. ©Symrise

Related tags: Symrise, China, Fragrance

Flavour and fragrance group Symrise is expecting to see growth in China’s fine fragrance market as younger consumers and local players stir up the category.

The supplier recently unveiled a new flavours and fragrance production site in Nantong, China, via a live video conference.

The €50m facility was the company’s biggest individual investment to date and is the firm’s second fragrance production site in China.

“This is a world-class facility with best in class safety and environment management systems and a world-class quality-control lab with proprietary IT system with enabled automation to ensure quality in every batch,” said ​Jeff Yao, VP Scent & Care, North East Asia, Symrise,

He noted that the new location would allow for further expansion if needed.

“The facility was built on a chemical industry zone, as we are keeping long-term viability in mind. We have required government approvals already in place and can [easily] expand capacity.”

This expansion highlights the company’s confidence in the Chinese market.

The company believes it is just a matter of time before the world’s second-largest economy surpasses the US to become the largest economy globally.

“The celebratory and partially virtual opening of our plant in Nantong demonstrates our trust in the Chinese market, and we are consciously committing ourselves to the world’s strongest growth region,” ​said CEO Dr. Heinz-Jürgen Bertram.

Currently, the Chinese market is the third strongest revenue generating market for Symrise, following the US and Germany.

Furthering growth in China

Yao told CosmeticsDesign-Asia​ that the firm is anticipating growth for its fragrance business in China this year. “This is why we invested our largest project globally here in Nantong.”

He added this growth will be driven by higher perfume usage by locals, with higher penetration of the fine fragrance category.

In particular, the company is eyeing opportunities among blossoming local players in the market which are attracting the attention of younger consumers.

“These younger consumers, such as millennials, are the key to the future,”​ said Yao.

He added that the company is expecting a permanent shift in consumer behaviour in terms of shopping habits.

“Consumers are moving to online shopping and they are paying more attention to active ingredients. They are always looking for new concepts and innovations and Symrise is working closely with its clients to bring more innovative ideas to the market.”

For the short term, Yao said the firm hopes to concentrate on recovering from the COVID-19 pandemic.

“For 2020, we hope to recover from the COVID-19 effect and prepare for the next boom – a big wave of new product launches in the market.”

Moving forward, Bertram noted that the firm will be “keeping a close eye” ​on the progression of the COVID-19 situation in China.

“From these observations, we enacted measures and were successful in keeping our entire business running and opening our plant as planned. Ultimately, we want to reliably serve our customers in China and grow with them.

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