HS Code:
Odoriferous or flavoring compounds, classified under HS Code 3302, encompass mixtures of odoriferous substances and mixtures (including alcoholic solutions) with a basis of one or more of these substances, used as raw materials in industries such as perfumery, food, and beverages. This category includes essential oils, resinoids, and synthetic aromatic compounds that are critical for creating fragrances, flavors, and aromas in consumer products like perfumes, cosmetics, and processed foods.
Total Trade Volume
USD 20.5 billion
Data from 2022
Source
United Nations Comtrade Database
USD 4.2 billion
20.5% of total trade
Increasing
USD 3.8 billion
18.5% of total trade
Stable
USD 2.5 billion
12.2% of total trade
Increasing
USD 1.9 billion
9.3% of total trade
Stable
USD 1.3 billion
6.3% of total trade
Increasing
Average Rate
5.6%
Highest Rate
12% (imposed by certain developing countries)
Lowest Rate
0% (under free trade agreements like EU-US trade pacts)
Rising demand for natural and organic flavoring compounds
Increased production and trade of essential oils and plant-based extracts, particularly from developing countries with abundant natural resources.
2021-2022
Growth in synthetic flavoring compounds for cost efficiency
Boosted trade in chemically synthesized aroma compounds, especially in markets with high demand for low-cost consumer goods.
2020-2022
Sustainability and ethical sourcing practices
Shift towards sustainably sourced raw materials, influencing trade patterns with stricter compliance requirements for exporters.
2022
The European Union introduced stricter regulations on the use of synthetic flavoring compounds in food products, mandating detailed safety assessments and labeling requirements.
January 2023
Increased compliance costs for exporters to the EU, potentially reducing trade volumes from non-compliant suppliers.
The United States reduced tariffs on certain odoriferous compounds imported from China as part of ongoing trade negotiations, aiming to balance trade deficits.
March 2023
Expected increase in imports from China, benefiting US manufacturers reliant on cost-effective raw materials.
India launched a policy to promote the export of essential oils and natural flavoring compounds, providing subsidies and market access support to domestic producers.
June 2022
Strengthened Indiaโs position in the global market, with a projected rise in trade volume by 10% over the next two years.