Gum turpentine

Gum Turpentine Global Market Outlook:

• The global production in 2021 was forecasted to reach 325,000 MT. However, due to COVID-19-related challenges, tapping reduced and supply shortened. However, supply situation is expected to witness an increase in the coming

• The key factors driving the growth include burgeoning demand from the F&F industry, increased awareness toward the use of natural products

CHALLENGES/OPPORTUNITIES

• Challenges: Lower production, labor shortage, fall in crude prices leading to fall in rosin demand, speculation and hoarding.

• Opportunities: Increase in demand from F&F, automobiles, etc.

Porter's Analysis on Gum Turpentine

Supplier Power

• Suppliers to fragrance houses have low power, as this industry is fragmented

• Increase in regulation cost, coupled with erratic supplies of natural ingredients, involves a huge cost in mechanizing and accumulating inventory, which will eventually reduce the profit margins of fragrance houses

Barriers to New Entrants

• Technical capabilities and access to raw materials are the key risks for new entrants in the fragrance industry

• Complying several government regulations on safety and sustainability also prevent new entrants to sustain in the market in the long term

Intensity of Rivalry

• The fragrance industry is highly consolidated with the top 10 fragrance houses, which hold around 80 percent of the total supply

• High competition, coupled with maturing markets, is intensifying the rivalry

• Suppliers are attempting to achieve competitive advantage through technological innovation

Threat of Substitutes

• Switching cost will be high, as most fragrances are formulae patented by FMCG clients

• As the personal care fragrance industry is highly dominated by synthetic ingredients, threat of substitution from natural products is low

Buyer Power

• Consumer companies have to completely depend on unique fragrances manufactured by fragrance houses

• Quality and sustained supplies remain the key factors, which reduces switching among suppliers

Sustainability Initiatives : Gum Turpentine

Energy

Vigons electricity usage

• The majority of Vigon facility lighting is also now LED

• Cooling towers used in production are being converted from air cooler to glycol cooling towers, which will be more energy efficient, stable, and allow for higher capacity

• All forklifts and warehouse vehicles are electric, and we have two EV chargers available for free use by employees and visitors

Water use efficiency

Growing conservation of water to sustainably produce gum turpentine

• The importance of using water efficiently has become a growing priority, it can reduce environmental footprint to improve the efficiency of the manufacturing processes where it is used, but also reduces yielded waste water

• In our restrooms, we have replaced conventional fixtures with waterless versions, saving in excess of 80,000 gallons of water annually

Natural Gas usage

Optimizing natural gas usage

• A new, more efficient natural gas emergency backup generator will replace our current propane generator and will help to power the administration building as well as manufacturing.

• The manufacturing HVAC is undergoing an update, which includes a new burner for efficient heating and cooling, as well as more frequent air change