International Cosmetic Ingredients Giants Target China Market
- Chaileedo Press
- Mar 13, 2023
- 2 min read
The second phase of the additional investment project at Symrise Flavor & Fragrances (Nantong) Co., Ltd was recently opened and put into operation. Just a day earlier, BASF announced that it had invested in a new citral plant at its integrated site in Zhanjiang, China.
International cosmetic ingredients giants are increasing their presence in China and accelerating local production.
It is understood that Symrise has already set up two plants in China. The one is in Pudong, Shanghai and the other is in Nantong, Jiangsu, for the production of cosmetic flavours, food flavours and fragrances. The project opened for production is the second phase of the Nantong plant, which means that the second phase adds production units to the original Nantong plant.
According to Lao Shuquan, Director of Symrise's cosmetic ingredients department in China, the second phase of the Nantong plant has an investment of approximately 50 million yuan ($7.2 million), covers an area of 3,700 square metres and has an annual production capacity of 6,000 tonnes. The Nantong plant is currently capable of producing functional ingredients, botanical actives and other ingredients. The plant aims to meet the domestic supply of efficacious ingredients in China and address the strong demand in the local market. It is also an important step in Symrise's vertical integration of the supply chain to enhance its competitiveness.
Regarding its next development plan in China, Symrise said it would continue to increase its presence in the Chinese market and provide more support to local brands and customers. It would also provide more comprehensive and precise services to brands. At the same time, it would use its role as a driving force to improve industry regulations and lead the development of higher quality and standardised cosmetic ingredients.
The day before the opening of Symrise's Nantong plant, BASF announced that it had invested in a new citral plant at its integrated site in Zhanjiang, China. Upon completion of the investment in the citral plant at the Zhanjiang site in China, BASF's annual production capacity for citral will increase to 118,000 tonnes.
BASF is also known to have established a plant in Jinshan, Shanghai and the integration site in Nanjing in 2017 and 2000 respectively. One of the plant in Jinshan, Shanghai is dedicated to the production of oils and waxes for skin care, hair care, sun care and other products.
Another ingredient giant, Swiss flavour and fragrance giant Givaudan, has also long established its world's largest plant in Changzhou, Jiangsu Province, China, which was officially opened in October 2020 with an annual production capacity of 38,000 tonnes of flavours and fragrances. The plant will produce a wide range of products such as daily flavours, dental flavours and microencapsulated flavours to serve customers in China and the Asia Pacific region.
These ingredients giants making great moves in China show that there is a trend for them to increase their presence in China and localize their production. As one industry source said: "The main reason for the ingredient giants to increase their local production in China is that this market will become the world's leading beauty market. In the future, I believe the ingredient giants will pay more and more attention to the Chinese market and do better services."
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