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

Rhea-AI Summary

Bon Natural Life (BON) has signed a 36-month non-exclusive distribution agreement with Tianjin Merrill-Youli Trading Co. worth up to $18 million for marketing Ambroxide products in Asia-Pacific. The partnership focuses on the industrial fabric fragrance sector, with Ambroxide being a synthetic, cruelty-free alternative to natural ambergris. The market for Ambroxide is expected to grow by over 25% annually for the next five years. Bon has also developed a biosynthetic alternative to Sclareol, the key ingredient in Ambroxide production, with plans to scale production from thousands to tens of thousands of tons yearly. This technological breakthrough is expected to reduce costs and improve efficiency, positioning Bon to expand beyond perfumery into the larger textile fragrance market.

Positive

• New distribution agreement worth up to $18 million over 36 months
• Market for Ambroxide expected to grow by over 25% annually for next 5 years
• Breakthrough in biosynthetic Sclareol production technology to reduce costs
• Planned production scale-up from thousands to tens of thousands of tons annually

Negative

• None.

Insights

Fragrance Industry Analyst

BON secures $18M distribution deal for Ambroxide, with new biosynthetic technology poised to capture growing fabric fragrance market.

Bon Natural Life's new distribution agreement with Tianjin Merrill-Youli represents a strategic expansion into the Asia-Pacific fragrance market, particularly the industrial fabric fragrance sector. The $18 million contract over 36 months provides a meaningful revenue stream for a company of BON's size.

The deal's focus on Ambroxide is particularly significant. This synthetic molecule has been transitioning from traditional perfumery into the much larger industrial fabric fragrance market, which the company notes is experiencing rapid growth of over 25% annually. This market shift from thousands to tens of thousands of tons in production volume signals a substantial scaling opportunity.

What makes this announcement even more consequential is BON's technological breakthrough in developing a biosynthetic alternative to Sclareol, the key natural ingredient in Ambroxide production. This innovation, in development since 2023, addresses both production capacity and cost efficiency simultaneously. The ability to scale production capacity to match the growing market demand while reducing costs creates a compelling competitive advantage.

The non-exclusive nature of the distribution agreement does allow BON to pursue additional partnerships, which could further expand market reach. However, it also means Merrill-Youli may distribute competing products. The cruelty-free positioning of synthetic Ambroxide (versus natural ambergris from sperm whales) aligns with growing consumer and industrial preferences for sustainable ingredients, creating another market advantage beyond pure economics.

XI’AN, China, June 16, 2025 (GLOBE NEWSWIRE) -- Bon Natural Life Limited (Nasdaq: BON) (“Bon” or the “Company”), a leading bio-ingredient solutions provider for natural, health, and personal care industries, today announced a non-exclusive sales distribution agreement with Tianjin Merrill-Youli Trading Co., Ltd., a prominent Asia-Pacific fragrance chemical distributor (“Merrill-Youli”). The term of the agreement is 36 months with a total contract value of up to US$18 million. Pursuant to the agreement, Merrill-Youli will market, sell and distribute Bon’s Ambroxide and related natural fragrance compounds in the Asia-Pacific region. Merrill-Youli will primarily target the industrial fabric fragrance sector.

Ambroxide is a synthetic molecule used in perfumery to create ambergris notes and act as a fixative. It’s a cruelty-free alternative to the natural ambergris, which is derived from sperm whales. Ambroxide is known for its velvety, woody, and ambery scent with animalic, creamy, and mineral facets and has long been a staple in perfumery. In recent years, Ambroxide has rapidly expanded into the much larger fabric fragrance market, thanks to its strong performance, lower production costs, and reliable supply. Manufacturing has scaled up dramatically—from thousands to tens of thousands of tons—and the market is expected to grow by over 25% each year for the next five years.

Bon believes this partnership will help capitalize a leading position in Ambroxide products leveraging Merrill-Youli’s established market presence in fragrance chemicals. The collaboration aims to accelerate adoption of Bon’s Ambroxide line across Asia-Pacific fragrance markets, particularly in fabric applications. Bon plans to use its advanced Ambroxide technology to boost sales growth, increase profits in its fragrance chemicals business, and deliver greater value to its shareholders.

Additionally, Bon has made a breakthrough in developing a biosynthetic alternative to Sclareol—the key natural ingredient used to produce Ambroxide. After starting the project in 2023, the Company has now confirmed that the technology is on track for commercial launch. Production capacity is now expected to scale rapidly, from thousands to tens of thousands of tons per year, and the new process also offers cost savings, enhancing overall efficiency and profitability.

Bon believes this will further strengthen its competitive position and will open the door to expanding beyond perfumery into the much larger textile fragrance market—a rapidly growing industry with significant scale and untapped potential.

About Bon Natural Life Limited ("BON")

BON is a Cayman Islands company engaged in the business of natural, health, and personal care industries. For more information, please visit the Company’s website at http://www.bnlus.com.

For more information, please contact:

Cindy Liu | IR
Email: bonnatural@appchem.cn

Safe Harbor Statement

This press release contains certain statements that may include "forward-looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

FAQ

What is the value of BON's distribution agreement with Tianjin Merrill-Youli Trading?

The distribution agreement is worth up to US$18 million over a 36-month term

What is the expected growth rate for BON's Ambroxide market?

The Ambroxide market is expected to grow by over 25% annually for the next five years

What technological breakthrough has BON achieved in Ambroxide production?

BON has developed a biosynthetic alternative to Sclareol, the key ingredient in Ambroxide production, which will reduce costs and improve efficiency

How much does BON plan to increase its Ambroxide production capacity?

BON plans to scale production from thousands to tens of thousands of tons per year

What is the main target market for BON's Ambroxide distribution agreement?

The agreement primarily targets the industrial fabric fragrance sector in the Asia-Pacific region