In recent years, demand for spices and fragrances has been particularly strong in Asia Pacific (excluding Japan) and is expected to grow at an annual rate of 7.3% in the next few years.
Numerous spices and fragrance companies, including Denmark Danisco, plan to expand their operations in the Asia-Pacific region, where Danisco plans to invest US$3 million in a new spice production facility in Penang, Malaysia, which is expected to be completed and put into operation later this year; International Fragrance & Fragrance Company plans to invest US$29 million in a new spice and flavor plant in Hangzhou, China, and plans to complete production in 2008.
With the rapid economic growth in developing countries, the global demand for spices and fragrances will also continue to grow rapidly. Coupled with the wide application of spices and fragrances, it is expected that the demand for this market in developing countries will increase at an annual average of 4.4. The speed of the rapid growth of the percentage of the market in 2008 will reach 18.6 billion US dollars.
The relevant research report also pointed out that due to factors such as market saturation, mergers of fragrance and fragrance application industries, and prices, the demand for spices and fragrances in Japan, North America and Western Europe and other countries and regions will continue to grow slowly.