Global spice market is picking up

Market participants said in early December that sales from global fragrance and fragrance industries began to rebound, buoyed by rising demand from markets in Asia and Latin America and the imminent closure of downstream customers. Despite this, the market value of global spices and fragrances this year is still unlikely to exceed last year's level.
In the third quarter, global perfumery and flavour manufacturers performed differently, but most companies stated that business began to rebound from the second quarter and this recovery will continue until 2010. In the first nine months of this year, sales revenue of the world's largest fragrance and spice manufacturer, Givaudon Switzerland, fell 4% year-on-year to $3 billion. In local currencies, the company’s sales revenue increased slightly year-on-year in the first nine months of the year, but it increased by less than 1%.
According to Givaudan, the Latin American market experienced the strongest growth in the first nine months of this year, and the company’s revenue growth in the Latin American market saw double-digit increases due to strong growth in demand for beverages, milk and mints. Sales revenue in all markets in Latin America has increased compared to the same period of last year, with Brazil, Mexico, Argentina, and Colombia witnessing even more significant increases. In the Asia-Pacific region where the company’s sales revenue increased by single digits, the growth rates in China, India, and Indonesia were the strongest.
Another major company, International Fragrance, said that its net profit in the third quarter fell by 8% year-on-year to US$53 million; sales revenue fell slightly by 1% year-on-year to US$612.6 million. However, compared with the second quarter, net profit increased by 10% and sales revenue increased by 8%. According to IFF, customer de-stocking activities have been greatly reduced, and demand has started to increase. This is the main reason that prompted the third-quarter business to improve significantly over the previous quarter.
Symrise's third-quarter net profit rose 22% year-on-year to 22 million euros (US$43 million). Sales revenue rose 6% year-on-year to 352 million euros. The South American market is the main growth driver.
According to Heinz-Jürgen Bertelen, CEO of Dexin International, “In the third quarter, the company’s two main businesses have increased sales revenue in all regions of the world. This is the end of the de-stocking of some customers. sign."
Sennheiser, headquartered in Milwaukee, Wisconsin, reported that net profit fell by 5% in the third quarter to 23 million U.S. dollars, and sales revenue also fell 5% year-on-year to US$303 million. The company’s president, Kenneth Manning, said, “Although we have seen some markets begin to recover, they are still generally affected by the economic downturn.”