Firmenich Invests in Emerging Markets
The world’s second leading fragrances and flavours company, Firmenich, recently posted record turnover for the year ending June 2010, totalling CHF2,873 million (US$2,873 million), an increase of 8% on 2009 (12% in local currencies). For all of the leading companies in the fragrances and flavours industry, 2009 was a particularly bad year, with sales down as the recession took hold and companies undertook destocking. However, as countries come out of the recession manufacturers and retailers are restocking, and the picture is looking a lot rosier.
Firmenich has been investing in the emerging markets recently as this is where it sees future demand coming from. The company recently increased its presence in India with the opening of a new perfume ingredients factory in Gujarat Province. This will not only give it a stronger position in the local Indian market, but will also give it greater access to the whole of the Asia Pacific market. Asia Pacific accounts for around 33% of global demand for fragrance ingredients, and continues to be one of the strongest performing regions in this category. The biggest end use category for fragrance ingredients in Asia Pacific is home care, and within this laundry care, which accounted for 43% of the total fragrances category in Asia Pacific in 2010.
Meanwhile, in Brazil, the company opened a new perfume and development centre at its São Paulo site, increasing its presence in this country and the Latin American region. The Latin American region only accounted for 14% of global fragrance volumes in 2010, but its annual growth rate is forecast to exceed 3% between 2010 and 2015. The Middle East and Africa is another growth region, and in the early part of 2010 Firmenich opened a new affiliate in Dubai, United Arab Emirates, giving it its first site in the Middle East region despite having been active in the area for some time. The Middle East and Africa region is forecast to see the strongest growth rate over the 2010-2015 period of over 5%.