India is the second-largest producer of essential oils, contributing to the global market valued at approximately $8.0 billion. The country plays a significant role in the global fragrance and flavours industry, with its contribution reaching around $500 million. The sector is poised for rapid growth, driven by an 11% CAGR, fuelled by increasing demand for natural and organic ingredients and strong support from the Government of India through initiatives like the Aroma Mission.

The Fragrance & Flavour Development Centre (FFDC) in Kannauj, established by the Indian Government in collaboration with UNDP and UNIDO has been pioneering research and development efforts that has benefited farmers, enhancing productivity and profitability in the sector. Notable innovations, such as FFDC Kannauj’s partnership with MCX for forward trading, have increased farmer profits by 20-30%. India has also emerged as the global leader in menthol mint production, with an annual output of 40,000 tons, further solidifying its position in the global fragrance and flavour market.