Perfume group joins Bill & Melinda Gates Foundation in the ‘toilet revolution’

Firmenich, the world’s largest private company in the fragrance and flavor industry, is setting its sights on the opportunities unleashed by China’s so-called “toilet revolution”, the government-backed campaign that aims to improve the cleanliness and management of toilet facilities across the country.

Firmenich CEO Gilbert Ghostine said the Swiss-based company is thrilled to be part of the new toilet economy.

It is looking to assist sanitation challenges with its breakthrough odor control technologies, and aiming to drive up its business growth in China — already the company’s second-largest market globally.

“The ‘toilet revolution’ is a great initiative because it not only does well for Chinese citizens living in rural areas, but also is very good for the reputation of China, a major tourist destination in the world,” said Ghostine, adding that he was impressed with the progress made since 2015, when the “toilet revolution” was launched.

The odor control technologies, developed by Firmenich in a four-year partnership with the Bill & Melinda Gates Foundation with $13 million funding, will reach low-income consumers in South Africa and Bangladesh before the end of this year.

The company is now approaching Chinese partners to develop commercial solutions for the Chinese market, said Ghostine.

China launched the “toilet revolution” in 2015 and has since built or renovated nearly 60,000 toilets. The Plan for Rural Revitalization (2018-22), issued by the central government in September, aims to achieve an 85 percent prevalence of clean toilets in rural areas by 2020.

Meanwhile another plan, announced by the Ministry of Culture and Tourism, previously known as National Tourism Administration, will see 64,000 toilets built or renovated from 2018 to 2020.

The new toilet economy is estimated to reach up to $200 billion globally, with $62 billion in India alone by 2021, according to the Bill & Melinda Gates Foundation. The revenue potential for clean toilets in China is approximately $3.7 billion by 2030.

However, in China, many of the 600 million people living in rural areas lack access to safe sanitation.

Smell has also been recognized as the biggest barrier preventing people from using toilets. A study by Firmenich in India, supported by the Bill & Melinda Gates Foundation, suggested that close to 50 percent of respondents choose open defecation over toilets due to their bad smells.

To combat the issue, Firmenich has been working with several business partners to embed its technologies into affordable and sustainable hygiene products.

Ghostine said Firmenich is fully ready to embrace the new toilet economy in China. The company already operates three manufacturing facilities in China. A fourth is being constructed in Zhangjiagang, in East China’s Jiangsu Province, at an investment of $80 million and due to be operational early next year.

Firmenich is also the only company in the global fragrance and flavor industry to establish a major R&D facility in China.

Wang Xiaoyu in Beijing contributed to the story.