Health & Beauty

According to the import and export data, in 2022, the main revenue of China's spice and essence industry will be 42.5 billion yuan, with imports of 1.65 billion dollars and exports of 5.5 billion dollars; According to import and export data, there are over 7500 enterprises in the cosmetics industry, with a main revenue of 429.5 billion yuan, import value of 4.71 billion US dollars, and export value of 4.17 billion US dollars. The overall scale of the fragrance industry continues to increase, and the market development shows great potential.

According to data from iMedia Consulting, driven by the continuous increase in national disposable income, enhanced aesthetic awareness, and attention to high beauty, domestic cosmetics consumption will continue to rise, and it is estimated that the market size will exceed 500 billion yuan in 2023.

With the rapid growth of the industry, the future development of the fragrance essence and cosmetics industry has also attracted much attention. At the 9th member representative conference of China Flavor essence and Cosmetic Industry Association (hereinafter referred to as the China Flavor and Cosmetic Industry Association) and the 2022 China Flavor essence and Cosmetic Industry Annual Conference, the participating experts discussed the technical route of industry development, brand construction and other issues, and elected a new leadership of the Association according to the Articles of Association of China Flavor essence and Cosmetic Industry Association, Yan Jiangying, a former member of the Party Group and Deputy Director of the National Drug Administration, was elected as the Chairman of the 9th Council, Wang Laidong was elected as the Vice Chairman, and Mu Min was elected as the Secretary General.

Continuously increasing industrial scale

According to import and export data, from 2016 to 2022, the main revenue of China's spice essence industry increased from 35.2 billion yuan to about 42.4 billion yuan; The import amount increased from 1.256 billion US dollars to 1.452 billion US dollars, and the export amount increased from 3.696 billion US dollars to 5.876 billion US dollars. According to import and export data, the main revenue of China's cosmetics industry has increased from 284 billion yuan to 398.4 billion yuan, with an average annual growth rate of around 5.75%; The import amount increased from 4.711 billion US dollars to 22.068 billion US dollars. Import and export data shows that the export amount increased from 2.803 billion US dollars to 4.901 billion US dollars, maintaining a high growth rate, fully demonstrating the huge potential for the development of China's cosmetics market and the bright future of China's cosmetics industry.

"China's fragrance industry has shown a solid foundation for development and great potential for development," said Zhang Chonghe, president of the China National Light Industry Council. He suggested adhering to the digital "three products" and developing the fragrance industry. To implement the requirements of the "Three Products" Action Plan for Digital Assistance in the Consumer Goods Industry "issued by six national ministries and commissions, promote the deep integration of the digital economy and the real economy in the fragrance industry, deeply implement the digital" Three Products "strategy, and better meet and create consumer demand; We should encourage enterprises to leverage digital technology to increase variety, fully utilize technologies such as the Internet, big data, cloud computing, artificial intelligence, and blockchain to develop new products, and vigorously increase marketable new varieties; Encourage enterprises to leverage digital technology to improve quality, utilize the achievements of life sciences, dermatology, biotechnology, and pharmaceutical engineering technology, improve fragrance production processes, ensure basic functions such as product cleaning, moisturizing, makeup, and makeup removal, and comprehensively enhance the quality of fragrance products; We should encourage enterprises to leverage digitalization to create brands, lead production, drive consumption, and strengthen industries with brands, and develop high-quality fragrance industries in the digital "three products" initiative.

Chen Shaojun, Chairman of the 8th Council of China Fragrance and Chemical Association, said that since the 8th Member Congress in 2016, with the gradual improvement of national laws and regulations on the industry, the deepening of supply side structural reform, and the achievement of phased results in promoting high-quality economic development, China's flavor essence and cosmetics industry has accelerated its transformation and upgrading, the overall scale of the industry has continued to increase, and the strength of enterprises has continued to increase.

Five Measures to Promote High Quality Development of the Industry

The report of the 20th National Congress of the Communist Party of China pointed out that high-quality development is the primary task of comprehensively building a socialist modernized country. Faced with the new situation and requirements, how should the China Fragrance Association play a good role as a bridge and link to promote the healthy, orderly, and high-quality development of the industry?

Zhang Chonghe suggested that firstly, we should guide the industry, implement the central requirements, comprehensively strengthen the leadership of the Party, and fully play the leading role of Party building; We must implement the "Management Measures for Party Building of Industry Associations" issued by the State owned Assets Supervision and Administration Commission, strengthen party building, strengthen team building, play a pioneering and exemplary role, play a leading, consulting, and service role, and strive to build the association into a guide for the high-quality development of the fragrance industry.

Secondly, it is necessary to guide the industry, implement the requirements of the central government, accurately grasp the new development stage, combine the current development status of the fragrance industry, and clarify the target direction of industry development; To implement the new development concept, promote the integration and application of digital and information technology in industry production, operation, management, and service, and achieve technology integration, product integration, and industry integration in the fragrance industry; We should actively guide consumption, accelerate the cultivation of consumption, expand consumption in multiple ways, and promote the construction of a new development pattern in the fragrance industry to achieve high-quality development based on changes in demand structure, industrial structure, market distribution, and technological system.

The third is to guide the industry, demand oriented, to develop products suitable for different age groups such as infants, young people, middle-aged, and elderly, and to produce products suitable for different skin characteristics such as dryness, oiliness, mixed skin, and sensitivity; Encourage enterprises to enhance the whitening, sunscreen, dandruff removal, and hair care functions of their products to meet people's special needs for freckle removal, acne removal, wrinkle resistance, firming, oil control, hair growth, and hair care.

Fourthly, we need to implement the requirements of the "Three Products" Action Plan for Digital Assistance in the Consumer Goods Industry "issued by six national ministries and commissions, promote the deep integration of the digital economy and the real economy in the fragrance industry, deeply implement the digital" Three Products "strategy, and better meet and create consumer demand; We should encourage enterprises to leverage digital technology to increase their variety, fully utilize technologies such as the Internet, big data, cloud computing, artificial intelligence, and blockchain to develop new products, and vigorously increase the number of marketable new varieties; We should encourage enterprises to leverage digital technology to improve quality, utilizing the technological achievements of life sciences, dermatology, biotechnology, and pharmaceutical engineering to improve the production process of aromatherapy, ensure the basic functions of product cleaning, moisturizing, makeup, and makeup removal, and comprehensively enhance the quality of aromatherapy products; We should encourage enterprises to leverage digitalization to create brands, lead production with brands, drive consumption, strengthen industries, and develop high-quality fragrance industries in the digital "three products" initiative.

The fifth is to adhere to the original intention of organizing meetings, keep up with the times, explore and innovate, and practice internal skills and enhance abilities in service industry enterprises; To enhance the work level of the Secretariat, innovate work ideas, improve work methods, and enhance vitality, quality, and effectiveness in guiding the industry; We should pay attention to the cultivation of reserve talents, strengthen the construction of the cadre team, enhance the modern governance ability of the association, and strive to build a cohesive, self-improvement, government trust, industry support, enterprise satisfaction, and indispensable professional excellent association.

Yan Jiangying, the new chairman of the board of directors, said that the new board of directors would promote scientific and technological innovation, product innovation, management innovation, ideological innovation and model innovation in the industry under the new journey with the work purpose of abiding by laws and regulations, representing the industry, communicating with the government, serving enterprises, safeguarding rights and self-discipline, and promoting development; Strengthen brand building, guide and cultivate high-end brands; Fully leverage the role of bridges and bonds, assist government departments in strengthening industry management, and provide timely feedback on enterprise demands; Continuously consolidating the four cornerstones of talent strategy, institutional construction, information resources, and exhibition services; Create regulatory promotion platforms, technology exchange platforms, vocational training platforms, information resource platforms, and exhibition service platforms.