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Symrise AG SWOT and PESTLE Analysis

ID : 52992453| Feb 2023| 18 pages

COMPANY PROFILE -Symrise AG

Business Sector :Materials

Operating Geography :Germany, Europe, Global

About Symrise AG :

Founded in 2003, Symrise AG is a prime producer of flavours and fragrances. It was formed by the merger of two companies based in Holzminden, Germany, namely Bayer subsidiary Haarmann & Reimer (H&R) and Dragoco. Firmenich, Givaudan, International Flavors and Fragrances, Frutarom and Takasago International are some of the major competitors of Symrise. The company is also a member of the European Flavour Association. Symrise supplies fragrances, flavors, food, nutrition and cosmetic ingredients on a global scale. It made a sale of € 3.5 billion in the 2020 fiscal year which made it a leading global provider. More than 100 locations in Europe, Africa, the Middle East, Asia, the United States and Latin America represent the group headquartered in Holzminden, Germany. The bronze award was received by CNP Assurances for Innovation for its #HorsDesCases (Outside the Box) advertising campaign on 1 October 2020, in the 19th Trophées de l’Assurance 2020 event. The acquisition of the Fragrance and Aroma Chemicals business from Sensient was successfully closed by Symrise on 1st April, 2021.
Symrise's Unique Selling Proposition or USP lies in it being one of the world’s leading suppliers of custom fragrance and taste solutions, many of which offer health-promoting or nurturing characteristics. Symrise's mission statement reads "We develop customized fragrance and taste solutions, which often contain health-promoting or nurturing properties. We combine our knowledge of consumers' ever-changing needs with creativity and groundbreaking technologies." While it's vision statement reads "OUR VISION: What drives us forward? We take responsibility seriously, letting our creativity unfurl with a focus on the highest quality along with sustainable processes and products. This makes even the most everyday items a special experience for consumers and their loved ones. In this way, we fulfil our promise of “always inspiring more...” day after day."

Symrise AG Revenue :


€ 3,520 million - FY ending 31st December 2020 (y-o-y growth 2.7%)
€ 3,408 million - FY ending 31st December 2019  

Competitive Analysis of Symrise AG

SWOT
PESTLE
The SWOT analysis for Symrise AG is presented below in a table followed by the detailed analysis report.
StrengthsWeaknesses
1. Strong focus on organic growth beyond market rate
2. Strong global presence spanning over 150 countries.
3. Consistently high and profitable EBITDA margins over the past 15 years
4. Recent acquisitions strengthened position in North America.
5. Leading global producer of nature-identical L-menthol, mint, and vanilla flavors.
1. Weak security system prone to cyber-attacks.
2. Large proportion of raw materials need to be imported.
OpportunitiesThreats
1. Growth in consumer base through diversification and strategic acquisitions
2. Greater commercialization of Scent&Care line to increase profits
3. Expanding business relations with local communities will increase goodwill and lower costs of production
1. Highly fluctuating exchange rates due to COVID-19 pandemic
2. Higher prices compared to worldwide competitors.
3. Strong competition from publicly funded US based biotech companies
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Symrise AG

Strength

1. Strong focus on organic growth beyond market rate: Symrise has always had a strong focus on strengthening their market position and increasing the distance between them and their smaller competitors by gorwing at a rate well above the market rate. The corporate strategy involves growing at a rate of 5-7% per year by increasing offerings and expanding business in emerging markets. In FY20, Symrise reported a total sales of 3,520 million euros and showed organic growth of 2.7%. Due to the COVID-19 pandemic in 2020, the market for grew at about 1% according to estimates by the IAL consultants and Symrise showed stable growth across all three sectors- Flavor, Nutrition and Scent&Care. The coronavirus pandemic did dampen growth rate due to changes in consumer behaviour but the company’s focus remains the same for the year ahead. In 2021, Symrise is going to achieve growth rate beyond the market rate which is expected to be 4%. In the EAME and Asia region, the Savoury business unit showed good growth and in the North America region, Symrise’s product offerings in the Beverages and Savory snacks category drove demand. The Nutrition segment overall reported an organic growth rate of 8.2% in 2020, mainly driven by higher consumer awareness regarding incorporation of healthy and nutritious food in their diets. The Pet Food business has also consistently been showing high growth with more and more younger people opting to have pets instead of having children. Their latest venture in Probiotics, in partnership with the Swedish Probi AB has also shown good and consistent growth due to growing popularity among health-conscious individuals.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

1. Weak security system prone to cyber attacks: Unknown perpetrators hacked into Symrise’s database and caused disruptions in business operations in early 2021. The company was forced to shut down its operations to protect consumer data from being compromised. This short-term shut down of operations and logistical interruptions caused loss in profitability. The company’s sales in January 2021 was slightly below the original outlook owing to the same. Symrise’s fragrances are used by French luxury giants like LVMH and Kerig, so protecting their database against cyberattacks is crucial. The company took the help of cyber forensics experts to include preventive and corrective measures in their IT system to prevent such incidents from reoccurring in the future. Employees were also given training to raise their risk awareness while dealing with sensitive data.

The remaining section of “Weakness” is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threats

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

  • Firmenich
  • Iff
  • Givaudan
  • Sensient
  • Cargill
  • Flavorchem
  • Kerry
  • ADM

Major Brands :

  • Flavor
  • Nutrition (Diana and Probi)
  • Scent and Care (Fragrance, Cosmetic ingredients, Aroma molecules)
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References used in Symrise AG SWOT & PESTLE Analysis Report

1. The power of holistic Symrise AG – Corporate Report action - https://symrise.com/corporatereport/2020/downloads/SYM_corporatereport_2020_EN.pdf
2. Group Management Report 2019 - https://cr2019.symrise.com/sites/default/files/assets/en/07_downloads/SYM_Group-Management-Report_en_2019.pdf
3. Recognition for Symrise’s Supply Chain Management - https://www.symrise.com/newsroom/article/recognition-for-symrises-supply-chain-management/
4. Symrise AG unveils innovation and technology centre SPark in Singapore - http://www.fnbnews.com/Top-News/symrise-ag-unveils-innovation-and-technology-centre-spark-in-singapore-40630
5. Bio-based flavours and fragrances - https://ati.ec.europa.eu/reports/product-watch/bio-based-flavours-and-fragrances
The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Symrise AG SWOT and PESTLE analysis has been conducted by Anangsha Saha and reviewed by senior analysts from Barakaat Consulting.

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