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Essential Oils: Prospects for Supplier Consolidation

Contact Author Gueric Boucard, Texarome, Inc.
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This is only an excerpt of the full article that appeared in P&F Magazine. The full content is not currently available online.
In “The F&F Horizon: 2009 and Beyond,” a number of F&F experts discussed their views on the state and future of the industry from the vantage point of formulation to raw materials to the marketplace. (Perfumer & Flavorist magazine, January 2009, Page 45.) In this week’s edition of P&Fnow, we present the first of several extended commentaries from our panel of experts and industry voices.

Read previous insights here, and look for more expert opinions in the January 28 edition of the newsletter. Gueric Boucard's comments, presented here, were submitted following a call for feedback in the January 2009 issue. We similarly encourage readers of this analysis to send us their thoughts at jallured@allured.com.

Large and small essential oil distillers, wherever they are, produce so-called "strategic raw materials" for the F&F industry. Yet they may not survive under the weight of such lofty goals of consumer protection as the REACH regulations, nor the high moral demands for "green" and "sustainable" operations, especially in a world where the operating capital needed to run small businesses in developed countries is instead migrating to the financial market "casinos." Meanwhile, the yo-yoing price of energy (a high-cost item for distillers) is at the whim of foreign cartels and local utility monopolists.

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