Symrise targets global beverage flavours growth
in order to re-establish itself as a leading force in the global
beverage flavours market.
The Nördlingen production facility, which specialises in the development and manufacture of flavourings and raw materials, will be expanded in order to meet growing demand - and growing competition - within this specific flavour sector.
Operations at the firm's Würzburger Straße site have now been closed down and a state-of-the-art pilot plant for the extraction and distillation of flavourings will be built instead in Nördlingen's Anton Jaumann industrial park.
Symrise believes that the establishment of the new pilot plant will create perfect conditions for developing and manufacturing innovative beverage flavourings to the standards demanded by the industry.
The expansion projects are scheduled for completion in December 2006.
The development comes at a time when the flavour industry as a whole is looking at new ways of increasing margins in what is becoming an increasingly competitive sector.
The market for flavours has, historically, been dominated by suppliers from the US, Japan and Western Europe - in particular, France, the UK, Germany and Switzerland. However these traditional flavour production areas could begin to lose market share to developing areas of the world as the product range and demand expands.
According to a recent report from Freedonia, China leads the way in spurring growth in Asia Pacific, a region slated to advance at about 7.3 per cent, year on year, until 2008. This compares to Western Europe and the US with 3.7 and 3.3 per cent growth respectively.
Globally, the flavours and fragrances industry is estimated at about €14.8 billion, of which the top five players account for 40 per cent of the market. Swiss firm Givaudan continues to lead the industry with an estimated 13.5 per cent slice of the market in 2003, followed by US International Flavours & Fragrances with an 11.7 per cent share.
Firmenich, equity-owned Symrise and ICI-owned flavours company Quest International are slated to have about 9.8, 9 and 6.1 per cent of the market respectively.
Symrise reported sales of €1.14 million in 2004, and controls over 40 registered patents.
