The Role of R&D in Shaping the Future of Mint Derivatives

In an exclusive interview with Industry Outlook Magazine, Krishan Gupta, Director of SBBL Group shares his perspective on how prioritizing R&D efforts can pave the way to sustainable mass production of aromatic chemicals while simultaneously cutting costs on every stage of production while maintaining high quality. He has over 17 years of experience in the realm of aromatic chemicals manufacturing.

The production of synthetic mint derivatives often relies on expensive or scarce raw materials. How can R&D be leveraged to reduce dependency on these resources and make production more economical?

The production of synthetic aroma chemicals typically relies on inexpensive and abundant raw materials. This is important because synthetic aroma chemicals must be priced lower than their natural counterparts to be competitive. The basic idea is that people tend to prefer natural products over synthetic ones, whether it's aroma chemicals or anything else. As a buyer, the first decision you'll often make is to choose natural, and if possible, organic products, because they are perceived as better.

When it comes to synthetic aroma chemicals, they must be made from materials that are not only abundant enough to ensure year-round production but also inexpensive, so they can offer a price advantage over natural aroma chemicals. If synthetic aroma chemicals cannot provide this advantage, consumers will not be inclined to buy them.

Additionally, synthetic aroma chemicals are often purer than natural ones. For example, some natural aroma chemicals contain impurities, whereas synthetic alternatives, like menthol, can achieve up to 100% purity. In contrast, natural aroma chemicals can only reach about 99.6% to 99.7% purity. This is a key distinction.

Synthetic aroma chemicals exist because there is a demand for them, driven by price competition. When a cheaper synthetic substitute matches the quality of a natural product, consumers are more likely to choose it. In markets like India and China, where price sensitivity is higher, it's easier for synthetic aroma chemicals to gain traction. However, in markets like Europe and the US, consumers are often willing to pay extra for natural or organic products, so price isn't as much of a factor.

Synthetic aroma chemical production can have a substantial environmental footprint. What is being done to develop sustainable processes to minimize ecological impact while maintaining product quality?

Strict measures are in place to monitor air and water pollution. For example, the government requires real-time data from industrial chimneys and boilers to be sent to the Central Pollution Control Board (CPCB). Instruments monitor emissions like sulfur oxides and other harmful gases, allowing the government to oversee compliance closely. This has already pushed industries toward more sustainable practices.

However, even natural products have environmental costs. Take menthol, for instance. Producing 1 kg of natural menthol requires around 25 kg of water for the crop. Similarly, rice cultivation demands significant water resources—about 40 kg of water per kilogram of rice. This high water usage has contributed to declining water tables in areas like Chandigarh, prompting discussions about reducing water-intensive crop production. So while natural products are often preferred, their environmental impact, particularly on water resources, needs to be considered.

The key point here isn’t that synthetic products are inherently better or should replace natural ones. Instead, there needs to be a balance between the two. These fill the gap where natural products alone cannot meet global demand. They don’t displace natural products but complement them. The growing population and rising aspirations, as people move up the socioeconomic ladder, mean higher consumption of FMCG products and, consequently, increased demand for aroma chemicals.

In fact, many aroma chemicals are seeing double-digit growth due to this rising consumer demand. Both natural and synthetic products will continue to have their roles. The two must coexist to meet the needs of a growing, evolving market.

Many consumers perceive synthetic aroma chemicals as inferior or unsafe compared to natural alternatives. What is being done to debunk these negative perceptions?

When discussing the potential harm of synthetic products, it’s important to evaluate the entire production process comprehensively. What often makes synthetic compounds harmful are the residual impurities present in the final product. For example, if a compound is manufactured with 98% purity, the focus shouldn’t solely be on the 98%, as it is likely safe. The critical question is: what constitutes the remaining 2%? If those impurities include toxic or hazardous chemicals, they could pose a risk to human health.

To address this, manufacturers must carefully analyze residual impurities, unidentified substances, and the material's organoleptic properties. With thorough checks and modern technology, synthetic products can match the safety and quality of natural ones. However, some companies, in an effort to cut costs, skip these comprehensive evaluations, which I strongly discourage. Rigorous testing and quality control must be non-negotiable.

It’s also essential to differentiate between grades of synthetic products. For example, a fragrance-grade product might pass safety standards for external use but fail as a flavor-grade product intended for ingestion. Unfortunately, there are cases where companies misuse fragrance-grade products in flavor-grade applications to save costs. This practice introduces toxic chemicals into the human food chain, often through animal feed or other indirect routes, creating significant health risks.

While regulatory frameworks and testing technologies exist to ensure safety, lapses occur. Some manufacturers may bypass standards, leading to unsafe products entering the market. This is a systemic challenge that needs constant vigilance and enforcement to ensure consumer safety.

What steps can manufacturers take to reduce wastage and emissions across the four stages of aroma chemical manufacturing: synthesis, distillation, purification, and blending?

Many companies today are adopting what we can call "totalitarian chemistry." In simple terms, this means that whatever waste streams are produced during manufacturing, they’re no longer seen as waste but as opportunities. The market is so competitive now that you can’t afford to just throw waste away. Instead, you need to find ways to work with it and create something of economic value.

This approach means extracting value from every part of the production chain. If you only focus on making a product from point A to point B and ignore what happens to your waste streams, it can hurt your business in the long run. To remain competitive, you need to look at the entire process holistically, ensuring that everything you produce—even what might initially seem like waste—has commercial value.

For instance, these waste streams can sometimes be converted into lower-grade products for different uses. While these might be sold cheaply, they still add value to the chain and contribute to the business’s overall efficiency and profitability. Manufacturers that streamline their operations and maximize the value of every output are the ones likely to succeed.

Now, when it comes to synthetic aroma chemicals, there’s an interesting challenge. These chemicals are designed to mimic natural products, but because they’re synthetic, their impurity profiles are different. Impurities in natural products often contribute to their unique smell and taste, and replicating that 100% through synthetic processes is nearly impossible.

To address this, manufacturers usually blend synthetic aroma chemicals with natural products. For example, they might use 20-30% natural product to provide the foundational aroma and flavor characteristics, and the remaining 60-70% could be synthetic to keep costs manageable. A fully synthetic product might achieve 98% similarity to a natural aroma, but without the exact impurity profile, there will always be subtle differences in smell or taste.

Blending natural and synthetic ingredients allows manufacturers to create a product that closely matches the aroma or flavor of natural alternatives. While the match might not be perfect, this approach strikes a balance between quality, cost-efficiency, and scalability.