Allylix bags BASF investment

The flavors and fragrance (F&F) market seem to be benefiting from renewable chemicals developments from players such as Amyris, Allylix and Blue Marble Biomaterials…and chemical firms also supplying the F&F market are taking notice.

BASF announced on Monday that its venture capital business has invested $13.5m in Allylix, which BASF said allows them to leverage their aroma chemicals, nutrition and cosmetic chemicals competency. BASF is one of the biggest global producer of aroma chemicals by the way.

According to a study released last year by US accounting firm Marcum LLP and the Samuel Curtis Johnson Graduate School of Management at Cornell University, the market for aroma chemicals and essential oils are [either] both a rapidly expanding market segment [or] and a highly profitable product segment. 

“The highest growth companies in the study, those that experienced over 6% growth year-over-year, generated 20% of their overall revenue from the sale of aroma chemical and essential oils while “low-growth” companies (those with 1-2% growth year-over-year) generated half as much of their revenue from this product segment.”

Meanwhile, US market research firm Freedonia reported that the US market for F&F is forecast to rise 3%/year to $5.5bn in 2014. Among the major product segments, essential oils and natural extracts are projected to achieve the most rapid gains.




                                                                                                                                            
US FLAVORS & FRAGRANCES DEMAND
(million dollars)
% Annual Growth
2004
2009
2014
2004-2009
2009-2014
Flavor & Fragrance Demand
3910
4750
5500
4.0
3.0
Food
1436
1740
1990
3.9
2.7
Cosmetics & Toiletries
980
1270
1500
5.3
3.4
Cleaning Products
500
570
650
2.7
2.7
Environmental Fragrance Goods
397
470
560
3.4
3.6
Beverages
364
430
500
3.4
3.1
Other
233
270
300
3.0
2.1


 © 2011 by The Freedonia Group, Inc.



Back to Allylix, the company said it will soon launch its rare and highly valuable terpene that is structurally related to beta-vetivone, one of the key component of vetiver oil – an essential oil. Beta-vetivone has never been commercialized because it cannot be produced synthetically in a cost-effective process, according to Allylix.

Trademarked Epivone, Allylix’ product is expected to gain annual  revenue between $20m and $200m based on revenues for similar terpene molecules used in fragrance applications.

Allylix expects to start production of Epivone in commercial quantities in the third quarter 2012 in applications such as cologne, hair care and personal care fragrance.





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