Recognized worldwide for its expertise in natural and responsible formulation, French fragrance house TechnicoFlor is strengthening its presence in Asia with the opening of two new factories - in China and Indonesia - as well as the creation of a new subsidiary in Vietnam and new offices in Bangkok. Its ambition is to support the development of local brands to serve a buoyant market with specific consumer trends.
TechnicoFlor points out that the Asian perfume markets have experienced unprecedented growth in recent years, thanks to the emergence of the middle classes and changes in the population's behavior. While the "old-timers" didn't use perfume and used to give perfumes as gifts, the younger generations are following Western trends and are more inclined to buy scented products.
As an example, market research company Mintel forecasts annual growth of 13.4 % between 2023 and 2027, reaching sales of 22 billion yuan ($3.05 billion) in China. Southeast Asia outside China is also a booming market. Indonesia, the largest country in this region, is of great interest to the perfume industry, due to its demographics and customs.
While Indonesians prefer detergents, the Vietnamese market is dominated by candles, deodorants and hair care products. Thailand and South Korea focus on cosmetics. This diverse Asian market calls for great adaptability in production.
A new production center in Beautéville, China
With offices and laboratories in Shanghai, TechnicoFlor has been present in China for over 20 years, and has now opened a brand-new production plant in Beautéville, China. The French company prides itself on being the only European compounding house based in this "Cosmetic Valley", which brings together cosmetics companies, packaging suppliers and fragrance manufacturers.
Its new 9,000 m2 plant meets the latest local standards (treated water and air emissions, separate storage for flammable products, solar panels and, soon, electric terminals for recharging cars) and is equipped with almost 1,000 raw materials. This production site will enable Technicoflor to meet the needs of a broad portfolio of Chinese customers and, in time, those of major Western accounts established locally. "While Western brands have been present in China for a long time, in recent years there has been enormous growth in the number of local brands requiring fragrances for a variety of applications: eau de toilette, candles, home fragrances, shower gels and cosmetics.explains Matthieu Prat, Managing Director of TechnicoFlor China. TechnicoFlor China aims to achieve sales of around 5.9 million euros and double-digit growth by 2024.
A stronger presence in Southeast Asia
TechnicoFlor is also stepping up its presence in Southeast Asia. Established in Indonesia since 2021, the group has inaugurated a 2,000 m2 Halal-certified plant in the Karawaci area (a district of the city of Tangerang, on the outskirts of Jakarta). The new site employs around thirty people and offers a range of 450 raw materials. The aim is to achieve sales of $5 million by the end of 2026 and $10 million by 2028.
The fragrance house has also set up a subsidiary in Vietnam in 2023 and is preparing to open new offices in Bangkok. "The Indonesian market represents half the population of Asia excluding China. Indonesians are among the world's biggest consumers of fragrances, notably because they like highly dosed perfumes, explains Jérémy Akoum, Managing Director of TechnicoFlor Indonesia. But each country has its own specific characteristics. In South Korea, for example, dosages are very low, and many products are declared "fragrance free", whereas in Thailand and Vietnam, the dosage of hygiene products is higher than European standards, because culturally, these countries use more scented body care products than eau de toilette".
After China Beauty Expo in Shanghai from May 20 to 22, then Indonesia Cosmetic Ingrédient in Jakarta from May 29 to 31, TechnicoFlor will be present at In-Cosmetics Asia in Bangkok from November 5 to 7, 2024.
Photo: Inauguration of @TechnicoFlor plant in Indonesia.
