Bon Natural Life Announces Distribution Agreement with Tianjin Merrill-Youli Trading Co., Ltd.

Core Insights - Bon Natural Life Limited has entered a non-exclusive sales distribution agreement with Tianjin Merrill-Youli Trading Co., Ltd. for a total contract value of up to US$18 million over 36 months [1] - The agreement focuses on marketing, selling, and distributing Bon's Ambroxide and related natural fragrance compounds in the Asia-Pacific region, primarily targeting the industrial fabric fragrance sector [1] Group 1: Product and Market Overview - Ambroxide is a synthetic molecule used in perfumery, known for its velvety, woody, and ambery scent, and serves as a cruelty-free alternative to natural ambergris [2] - The market for Ambroxide is expected to grow by over 25% each year for the next five years, with manufacturing scaling from thousands to tens of thousands of tons [2] Group 2: Strategic Partnership and Growth - The partnership with Merrill-Youli is expected to enhance Bon's market position in Ambroxide products and accelerate adoption in the Asia-Pacific fragrance markets [3] - Bon aims to leverage its advanced Ambroxide technology to boost sales growth and increase profitability in its fragrance chemicals business [3] Group 3: Innovation and Future Prospects - Bon has developed a biosynthetic alternative to Sclareol, a key natural ingredient for producing Ambroxide, with commercial launch expected soon [4] - The new production process is anticipated to scale rapidly and offer cost savings, enhancing overall efficiency and profitability [4] - This innovation is expected to strengthen Bon's competitive position and facilitate expansion into the larger textile fragrance market [5]