THE CONFERENCE PROCEEDINGS - IFEAT

THE FLAVOUR AND FRAGRANCE INDUSTRY IN SRI LANKAThe flavours and fragrance sectors in Sri Lanka have been growing quickly, thanks to rising incomes,the cessation of the civil war and the opening up new markets in the north and eastern regions,changing social and cultural habits, as well as the growth of tourism. Both the food manufacturing andbeverage industries have shown tremendous growth.Flavours and fragrances are used as ingredients for the food industry. Fragrances are also used in thepersonal care industry and the household care industry. These raw materials might be of natural originlike essential oils, which have been discussed earlier, or a composition of synthetic chemicals. Orange,lemon, and lime are the widely used flavours and rose, jasmine are the fragrances that are movingquickly in the market.Tea, carbonated beverages, nutritional drinks, RTS (ready to serve) and concentrated juices, alcohol,confectionaries, cosmetics, detergents and toiletry are the industries which are using considerableamounts of flavours and fragrances. The total trade value of above markets is US$ 1,284 millionduring the last year. The value of flavours and fragrances imported during last year was US$ 25.68million (HS Codes: 3302.10.10; 3302.10.20; 3302. 10.90; 3302.90.00 and Others). The value isprobably higher because ingredients may be included in other code numbers.In 2011, there was an 8.7% growth in the food manufacturing industry compared to 2010. Expandingthe FMCG sector to Northern and Eastern provinces was a major factor behind this growth. Thebeverage manufacturing industry saw a 10.2% growth in 2011 compared to 2010. A key factor was thegrowth of the tourism sector. The value of consumption in various beverage sectors is illustrated in theslide.The total market value of the industries that use flavours and fragrances are listed below.32!"#$%&'("#)"*)+,-"%.$),#/)*.,0.,#12$)• !"#$!%&'$()*+#,!"#$-!.+##/!"#$-!0'$12!"#$3 ! !4567!!!!!89!:/!!!!"#$%&'(")'*%)+,'• !;$+#?! ! ! ! !4567!!!8@A!:/!!!!-."$/"&'• !B*=+CD)/$'!E+C/2?! ! ! ! !4567!!!!!9A!!:/!!!!!!--!• !F"5!G!;)/1#/=+$=#,!H*C1# ! ! !4567!!!!!!8A!:/!!!!!!--!• !I'1)J)'! ! ! ! ! !4567!!!!KKA!:/!!!!012./"'3456'!• ;)/L#1D)/#+M ! ! ! ! !456!!!@NA!:/!• ;)?:#D1? ) ))))) ) ) )456!!!8O9!:/!• E#=#+>#/=?!G!")C'#=+M)))))))) ) ) )456!!!89A!:/!!127