During the "13th Five Year Plan" period, in the face of international and domestic market challenges, especially the impact of the COVID-19, China's fragrance essence industry has maintained a healthy and sustainable development trend. As China's economic and social development is about to enter the 14th five-year development stage, China Flavor essence and Cosmetics Industry Association organized industry experts to formulate the "14th Five Year Plan" for the development of the fragrance essence industry (hereinafter referred to as the "Development Plan"). The "Development Plan" firmly implements the decisions and deployment of the central government, and further clarifies the "14th Five Year Plan" of the fragrance essence industry by taking scientific and technological development, "three product" development, cluster development, green development, and international development as the main line to promote high-quality development of the industry. The development guiding ideology, objectives and strategic measures during the period created a beautiful development blueprint for the spice essence industry.

The Development Plan pointed out that during the "13th Five Year Plan" period, the scale of China's spice essence market grew steadily. According to incomplete statistics of the Association, in 2020, the domestic spice output will be about 218000 tons, and the sales will be about 16.8 billion yuan; The output of essence is about 317000 tons; The sales revenue is approximately 24 billion yuan. During the "13th Five Year Plan" period, the compound annual growth rate of the industry was 3%. The export of spices and essence fluctuated to some extent, but it maintained a surplus in international trade. The overall operation momentum of the industry is good. The number of enterprises and listed companies with an annual output value of more than 100 million yuan continues to increase, which has overcome the impact of the epidemic on the industry to the maximum extent. At the same time, multiple measures have been taken to accelerate personnel training, actively participate in exhibitions and industry exchanges, improve the strength of domestic flavor essence enterprises, and constantly enhance the international competitiveness of enterprises.

The company's products and production level have steadily improved. During the "13th Five Year Plan" period, the market size of China's flavor essence accounted for about one-fifth of the global market, and China has become the world's leading spice supplier, essence consumer and production base, which has also injected power and vitality into the development of China's flavor essence industry. The domestic flavor essence companies closely follow the world's technology and industry development trend, learn to introduce foreign advanced flavor varieties and production technology, and show a good development trend. At the same time, the development of industrial agglomeration is further strengthened, with a greater emphasis on green, coordinated, and sustainable development, and the degree of internationalization is also continuously increasing. Industry associations have actively played a bridging role, timely listening to the demands of industry enterprises, actively reflecting the voices of industry enterprises to the government, organizing industry information, industry policies, industry technology, and international economic and technological promotion and exchange, organizing industry experts to do a good job in the formulation and revision of relevant national standards, industry standards, and group standards, further strengthening the construction of industry skilled talent teams, and playing a leading role in supervising enterprise self-discipline and promoting industry development.

However, there are still some problems in the entire industry, such as weak research on common foundations and a lack of core competitiveness in the development and application of new products; Intellectual property protection is unfavorable, and low-end disorderly competition; The disorderly expansion and repeated construction of traditional advantageous varieties; High regulatory pressure and lack of scientific and effective regulatory measures; The cost of production and operation has risen, and the efficiency of enterprises has declined; International competition is becoming increasingly fierce, and the impact of "double pressure" is becoming apparent; The standards for some emerging niche application areas are incomplete.

China Fragrance and Chemical Association believes that at present, China's flavor and essence industry is in the transition period of structural adjustment. It has changed from pursuing speed growth to quality growth. Transformation, upgrading and transformation of development mode have become the turning point of the industry. On the one hand, the industry has reached a certain stage of development and is undergoing independent transformation and upgrading; On the other hand, passive adjustments are caused by pressures such as competition and regulation.

The Development Plan points out that the development of the spice essence industry during the "14th Five Year Plan" period should follow the basic principle of implementing the overall layout of China's ecological civilization construction and green development, so that the development of the spice essence industry can be actively integrated into the country's deepening supply side structural reform, integrated into the international and domestic dual cycle strategic link with the creation of a domestic big cycle as the central node, and strive to make the spice essence industry a big player in promoting the high-quality development of the spice essence industry, leverage the development of the big market with the development of the small industry, and make due contributions to the national economic and social development during the "14th Five Year Plan".

The China Fragrance Association believes that the industry needs to follow the following seven principles: adhere to industrial restructuring and improve development quality; Adhere to innovation driven approach and enhance technological level; Adhere to the integration of "two modernizations" and take the path of new industrialization development; Adhere to green and low-carbon development, and take the path of ecological civilization; Persist in adapting to the market and developing green products that meet consumer trends; Adhere to the brand strategy and cultivate more advantageous essence brands; Adhere to industrial safety, build market position and competitive advantage in the industry.

The Development Plan also puts forward the goal for the development of the industry: by 2025, the main business income of China's flavor and essence industry will reach 50 billion yuan, with an average annual growth of more than 2%. The output of essence reached 400000 tons, and the output of spices reached 250000 tons. Continue to improve the product structure, further adjust and optimize the proportion of essence products and flavor products in the industrial output value, and increase the industrial added value. We will promote the rationalization and upgrading of the industrial structure of essence. 

In terms of product quality, the qualified rate of essence production quality has reached more than 98%. At the same time, strengthen the core supporting role of informatization, increase investment in environmental protection facilities and environmental protection transformation, guide flavor essence production enterprises to develop and promote the application of cleaner production technology, and meet the requirements of three wastes treatment and up to standard discharge in the whole industry by the end of the "14th Five Year Plan".

To achieve the above goals, the "Development Plan" has defined the tasks for the development of the "14th Five Year Plan" industry, which are guided by market demand and seizing new trends in products; Build a large-scale production base for natural flavors with enterprises as the main body; Expand the scope of application, strengthen research on new uses and safety; Green process transformation of traditional bulk synthetic spice products and development of new spice varieties; Developing clean production to solve survival crisis and development concerns; Promote the construction of digital and intelligent chemical plants to create manufacturing advantages in the spice essence industry; Promote park based production and integrate the resources of small and micro enterprises in the fragrance essence industry; Optimize the allocation of industrial resources and form a value chain for Chinese enterprises.

The Development Plan also proposed a series of safeguard policies and measures: attach importance to industrial safety and vigorously develop the national essence industry; Develop reasonable and effective export tax rebate policies for raw materials or intermediate products required for some synthetic fragrances; Emphasize technological innovation and increase R&D investment to support policies; Pay attention to standard construction and improve product quality; Emphasize intellectual property rights and increase innovation protection efforts; Pay attention to scientific and effective supervision, and avoid "one size fits all" management; Emphasize the cultivation of professional skilled talents and accelerate the reserve of high-quality talents; Emphasize the role of industry organizations and strengthen the construction of industry platforms.

The relevant person in charge of the China Fragrance and Chemical Association said that the flavor essence industry has a high degree of correlation with downstream industries, high technology content, and very distinctive industry characteristics. The degree of industry development reflects the comprehensive development level of the country and region to a certain extent. During the "14th Five Year Plan" period, China's fragrance essence will continue to deepen transformation and upgrading, and comprehensively improve the quality of industry development driven by technological innovation.