Indian Fragrances and Flavours Industry Fears Losing its Ground to China
News Desk, News Nation 360: The Indian fragrances and flavours industry is considered one of the fastest-growing industries globally and a significant competitor to China in terms of exports. However, due to the temporary lockdown in the country, the Indian industry is fearing to lose its ground to China as the latter is currently operating in full swing while we are still in the lockdown. Although the fragrance and flavours products are treated in the essential category, as almost all products in the food processing industry, as well as hygiene and cleaning products like sanitizers and hand-wash, use them for providing better colour, taste and smell, the production and supply of products are currently disrupted due to the ongoing lockdown. Fragrances and flavours are used in food, pharma, detergents, condoms, shampoos, soap, paste, agarbattis, perfumes, deodorants and many more. The Indian Fragrances and Flavours industry is currently suffering heavily due to the extended lockdown in the country. Their supply chains are completely disrupted, and the production has been badly hit due to the pandemic Corona Virus spread across India. Rishabh Kothari, President, Fragrances & Flavours Association of India (FAFAI) told their palette is very large. They are one of the biggest exporters and importers of ingredients. Due to the prevailing logistics issues in the country, as
inter-state transportation is either restricted or difficult, there is a substantial impact on their industry. If the situation is not improved quickly, there will be a huge economic cost for them. China will benefit from the situation as they may lose some of its global customers to the neighbouring country which will result in a significant business loss and market share for them. The pandemic is difficult to accurately estimate the total quantum of losses, but he feels that production has been hit to an extent of 80% and exports and imports too have been similarly impacted. The growth of the industry, which was growing at over 10%, is likely to become negative both due to the lockdown during the pandemic and the consequent likely drop in demand for consumer products and processed foods in the rest of the year. According to the Ministry of Micro, Small and Medium Enterprises, Government of India, the Indian Fragrances and Flavours industry size is estimated at around $500 million which is growing at 11% per annum while the global fragrance and flavour industry is valued at $24 billion. With its rich diversity of flora and fauna, Indian fragrances and flavours industry is projected to grow exponentially in the coming years due to increasing demand for personal care products, brand awareness, growing demand from the middle class due to rising disposable incomes and products now being available at affordable price points.
Pic : Courtesy
Report : Anustup Kundu