Flavours and Fragrances | Market report preview 04.2023

THE MOST UPDATED FINANCIAL PUBLICATION ON THE WORLD OF CHEMISTRY
MARKET REPORT
FLAVOURS & FRAGRANCES
APRIL 2023

HEDIONE / METHYL DIHYDROJASMONATE (MDJ)
Methyl dihydrojasmonate (MDJ) is a liquid with a typical
fruity, jasmine-like blossom odour. The molecule was
discovered in the 60s by the company Firmenich and
then commercialized as Hedione. MDJ has become an
important support element in modern formulas. It gives
brightness and floral volume to fragrances, as well as
being very persistent. Some fragrances contain very high
percentage of hedione, up to 30%. MDJ can be obtained
by condensation of 2-pentyl-2-cyclopenten-1-one with
methylmalonate, followed by hydrolysis, decarboxylation
and methylation. This results in a 9:1 mixture of trans- and
cis isomers. The yearly global market size is estimated to
be 20’000 Metric Tons. Demand and supply are currently
in balance and prices around 15-16 USD/kg, much lower
compared to the high level up to 21-22 USD/kg reached in
summer last year.
ISO E SUPER
As a derivative of turpentine, also the price of ISO E SUPER
slightly dropped from the beginning of this year. Request is
stable. Shouldn’t be further decrease in short future.
LITSEA CUBEBA OIL
The price is still on a
relatively high level. There
are rumors saying that the
price will collapse. But we
see that the current stock
of crude oil is not too large.
We believe that the price will
adjust slowly but shouldn’t
be big drops before the new
harvest season.
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ECONOMIC INSIGHTS
In partnership with USI, Università della Svizzera Italiana
Persisting bottlenecks affecting global
value chains together with rising energy
prices contributed to an increase
in average price levels. Moreover,
economic uncertainties related to the
Russian invasion of Ukraine have
exacerbated the precariousness of a
stable recovery triggering global ripple
effects through commodity markets,
trade, financial flows, and displaced
people. In the last quarter of 2022, the
average inflation rate among OECD
countries was 1.52% relative to the
previous quarter, and 10.13% relative
to the previous year. Switzerland
and China stand out as (relatively)
low inflation countries. The OECD
economic outlook expects annual
inflation to decrease sharply in the
coming quarters, due to the tightening
of monetary policy by the ECB
and the Fed. The OECD economic
outlook expects annual inflation of
OECD countries to gradually decline
throughout 2023, reaching 5.5%
towards the end of the year, and to
decrease to 5% by the end of 2024.
10

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