Essence refers to substances with aromatic smell. Most cakes and biscuits can use spices and essence to improve or enhance the aroma and fragrance. These essence and spices are called flavoring agents or flavoring agents. Spices can be divided into natural spices and artificial spices according to their different sources. Natural flavors include both animal and plant-based flavors, with plant-based flavors mainly used in food production. In 2021, the output of essence and spice in China will be 2027 tons, down 4.5% year on year.

Output and growth rate of essence and fragrance in China from 2016 to 2021

China Flavor essence and Cosmetic Industry Association

Food flavoring is a complex project. It is not only a simple combination of several essence, but also involves many factors such as whether the essence can be integrated with the food base, whether it can be acid resistant, whether it can be heat resistant, and whether it can maintain stability in the process of sterilization and preservation of products. In addition, since the source and purity of essence are different from each other, the amount of the same essence in the same product varies greatly, so attention should be paid to its use.

In 2021, the import quantity of mixed spices and spice containing mixtures for China's food and beverage industry was 10706.88 tons, a year-on-year increase of 15.96%; The export volume of mixed spices and spice containing mixtures used in the food and beverage industry was 11135.15 tons, a year-on-year increase of 0.31%; The import quantity of industrial mixed spices and spice based mixtures was 11055.75 tons, a year-on-year increase of 4.99%; The export quantity of industrial mixed spices and spice based mixtures was 30613.64 tons, a year-on-year decrease of 0.96%.

Import and export quantity of essence and spice in China from 2016 to 2021

Compiled by Chinese Customs and Zhiyan Consulting

According to Chinese customs data, the import amount of mixed spices and spice containing mixtures for China's food and beverage industry in 2021 was 243.102 million US dollars, a year-on-year increase of 28.2%; The import amount of mixed spices and spice containing mixtures used in China's food and beverage industry was 109.2256 million US dollars, a year-on-year increase of 17.8%; The import amount of industrial mixed spices and spice based mixtures was 218.649 million US dollars, a year-on-year increase of 1.3%; The export value of industrial mixed spices and spice based mixtures was 344.312 million US dollars, a year-on-year increase of 20.4%.

Import and export amount of essence and spice in China from 2016 to 2021

Compiled by Chinese Customs and Zhiyan Consulting

Relevant report: Analysis Report on Development Trends and Investment Planning of China's essence and Fragrance Industry from 2022 to 2028 issued by Zhiyan Consulting

The main business of Aipu Flavor Group Co., Ltd. is the R&D, manufacturing and sales of spices, essence and food ingredients; And food ingredient trade. The main products include spices (including synthetic spices and natural spices), essence (including edible essence and daily essence), food ingredients (mainly including industrial chocolate and jam), and the distribution of food ingredients such as milk fat products (mainly including butter, cheese, light cream, etc.), cocoa, chocolate products, fruit products, etc. of internationally renowned brands.

In the first three quarters of 2021, Aipu Flavor Group Co., Ltd. had a revenue of 2.513 billion yuan; The operating cost of Aipu Flavor Group Co., Ltd. is 2.29 billion yuan; The gross profit margin of Aipu Flavor Group Co., Ltd. is 17.02%.

Operating revenue, operating costs, and gross profit margin of Aipu Flavor Group Co., Ltd. from 2016 to 2021

Company annual report and intelligent research consulting compilation

Aipu Flavor Group Co., Ltd.'s products are widely used in various fields such as food and beverage, daily chemical, etc., and play an irreplaceable role in people's daily lives. In 2020, the operating income of essence and spice manufacturing of Aipu Flavor Group Co., Ltd. was 754116093.21 yuan, and the operating cost was 467068462.53 yuan; The gross profit margin is 38.06%.

2017-2020 Operating revenue, operating cost and gross profit margin of essence and spice manufacturing of Aipu Flavor Group Co., Ltd

Company annual report and intelligent research consulting compilation

In 2020, the operating income of essence of Aipu Flavor Group Co., Ltd. was 515760990.31 yuan, down 5% year on year; The spice revenue of Aipu Flavor Group Co., Ltd. was 238355102.9 yuan, a year-on-year increase of 6.34%.

2017-2020 Operating revenue of essence and fragrance of Aipu Flavor Group Co., Ltd

Company annual report and intelligent research consulting compilation

In 2020, the operating cost of essence of Aipu Flavor Group Co., Ltd. was 289811407.82 yuan, and the gross profit rate was 43.81%; The spice operating cost of Aipu Flavor Group Co., Ltd. is 177257054.71 yuan, with a gross profit margin of 25.63%.

2017-2020 Operating cost and gross profit margin of essence and spice of Aipu Flavor Group Co., Ltd

Company annual report and intelligent research consulting compilation

In 2020, the output of essence of Aipu Flavor Group Co., Ltd. will be 9135 tons; The spice production is 1167 tons; The sales volume of essence of Aipu Flavor Group Co., Ltd. is 9253 tons; The sales volume of spices is 1135 tons.

Essence and fragrance industry is an industry with high technology content, strong supporting ability and high correlation with other industries in the national economy. It is an important raw material supporting industry in essence and fragrance, daily chemicals, food and beverage industries, and is closely related to the improvement of residents' living standards and the promotion of domestic demand and consumption. The overall development level of the essence and fragrance industry is an important symbol of the national economic and technological development level.

The State Council's "Thirteenth Five Year Plan for National Food Safety" adheres to the strictest standards, regulations, punishments, and accountability, comprehensively implements the food safety strategy, promotes the construction of a modern governance system for food safety, promotes the development of the food industry, and plays a positive role in promoting the healthy and standardized development of the food and food additive industry in China.

Development trend of essence and fragrance industry