PUBLISHER: The Business Research Company | PRODUCT CODE: 1436285
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436285
Flavors and fragrances are aromatic products used to impart distinctive taste or scent to various consumer products, including food and beverages, personal care products, home care products, and pharmaceuticals. Flavors enhance, add, or change the taste of the base product, while fragrances provide a pleasant scent to a person's body.
The primary categories of flavors and fragrances consist of flavors and fragrances themselves. Flavors are composed of ingredients that involve a mixture of spices, herbs, taste components, and are employed in foods to enhance or enhance their tastes. These flavors, available in both liquid and dry forms, find applications in a diverse range of industries, including food and beverages, cosmetics and personal care, pharmaceuticals, home and floor care, fine fragrances, and other related sectors. The utilization of flavors and fragrances contributes to enhancing the sensory experience across various products in these industries.
The flavors and fragrances market research report is one of a series of new reports from The Business Research Company that provides flavors and fragrances market statistics, including flavors and fragrances industry global market size, regional shares, competitors with a flavors and fragrances market share, detailed flavors and fragrances market segments, market trends and opportunities, and any further data you may need to thrive in the flavors and fragrances industry. This flavors and fragrances market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The flavors and fragrances market size has grown steadily in recent years. It will grow from $33.24 billion in 2023 to $34.86 billion in 2024 at a compound annual growth rate (CAGR) of 4.9%. The growth observed in the historic period can be attributed to consumer preferences for natural ingredients, innovations in product formulations, the globalization of the food and beverage industry, a shift toward health and wellness products, and an increased demand for personal care products.
The flavors and fragrances market size is expected to see strong growth in the next few years. It will grow to $42.82 billion in 2028 at a compound annual growth rate (CAGR) of 5.3%. The anticipated growth in the forecast period can be attributed to the increasing demand for clean label and transparency, the rise in plant-based and alternative products, ongoing trends in customization and personalization, a heightened focus on mental well-being and mood enhancement, and a commitment to sustainable and ethical sourcing. Major trends expected during this period include advancements in encapsulation technologies, technological innovations in extraction, a continued emphasis on health and wellness, further progress in extraction methods, and a rise in personalization within the fragrance industry.
The flavors and fragrances market is experiencing growth driven by the increasing consumer preference for convenience foods. Convenience foods refer to processed food products that require minimal preparation before consumption, encompassing ready-to-eat items, packaged foods, and preserved foods. The rising popularity of convenience foods is expected to drive the demand for flavors and fragrances, as these components play a crucial role in enhancing the taste and extending the shelf life of such products. For instance, as of May 2022, the International Food Information Council, a non-profit organization based in the United States, reported a noteworthy shift in consumer behavior. In 2022, a significant 73% of adults disclosed snacking at least once a day, marking a substantial increase of 15% from the 58% reported in the previous year (2021). This indicates a growing reliance on convenience foods and, consequently, an increased demand for flavors and fragrances as essential ingredients to enhance the overall taste and appeal of these products. The trend towards convenience food consumption is expected to contribute to the growth of the flavors and fragrances market during the forecast period.
The flavors and fragrances market is anticipated to be propelled by the growth of the beauty and personal care industry. The beauty and personal care sector encompasses a diverse array of products and services designed to enhance or maintain an individual's appearance, hygiene, and overall well-being. Flavors and fragrances play a crucial role in this industry, contributing sensory appeal to cosmetic and personal care products. For instance, as of December 2023, data from Helplama, a US-based customer support service provider, indicated that the beauty industry achieved a revenue of $528.60 billion in 2022, reflecting a growth rate of 4.96% compared to the previous year (2021). This robust growth in the beauty and personal care industry underscores the significance of flavors and fragrances in cosmetic formulations, as these elements contribute to the overall sensory experience of beauty and personal care products. The expansion of the beauty and personal care industry is, therefore, driving the demand for flavors and fragrances, fostering growth in the market during the forecast period.
The prevailing trend gaining prominence in the flavors and fragrances market is the increasing utilization of natural ingredients in manufacturing. Natural flavors and fragrances are derived from ingredients of natural origin and do not contain artificial constituents. Companies within the flavors and fragrances market are concentrating on developing innovative products using natural elements, providing multifunctional properties to meet the demands of end-customers and enhance their market standing. For example, in July 2021, International Flavors & Fragrances, Inc., a USA-based manufacturer of flavors and fragrances, introduced GUARDIAN Chelox 30 C in North America. This product is a cost-effective, natural flavor with multifunctional properties, representing the company's commitment to meeting consumer demands for natural ingredients and their desire for versatile and functional flavor solutions. This shift toward natural ingredients aligns with the increasing consumer preference for clean-label products and reflects the industry's response to evolving market trends.
Major companies in the flavors and fragrances market are actively engaged in the development of innovative solutions, including the implementation of AI-enabled platforms. An AI-enabled platform refers to a technology infrastructure or software system that incorporates artificial intelligence (AI) capabilities to enhance functionality, decision-making processes, or interactions with users. For example, in June 2021, Firmenich, a Switzerland-based fragrance and taste company, announced the launch of the 'scentmate' AI-enabled platform. This platform is designed to facilitate and simplify the co-creation process, ensuring successful fragrance solutions for entrepreneurs and independent brands. The platform streamlines the digital briefing process, allowing customers to specify relevant parameters and receive optimal fragrance solutions suggested by perfumers. This innovative approach significantly reduces the time required for the process, transforming it from weeks into a matter of minutes. The adoption of AI-enabled platforms by major companies reflects their commitment to leveraging advanced technologies to enhance efficiency and offer more personalized solutions in the flavors and fragrances industry.
In February 2021, International Flavors & Fragrances Inc. (IFF), a United States-based corporation, completed a merger with DuPont's Nutrition & Biosciences division for a total of $26.2 billion. This strategic merger aimed to bring together IFF's expertise in food flavors and fragrances with DuPont's knowledge in probiotics, enzymes, and food protection. DuPont, formed through the merger of Dow Chemical and E. I. du Pont de Nemours and Company, is a USA-based company engaged in the manufacturing and distribution of industrial chemicals, synthetic fibers, petroleum-based fuels and lubricants, as well as various other products. The combined entity resulting from this merger is expected to leverage the strengths of both companies, creating a comprehensive portfolio that spans various aspects of the food, flavors, and biosciences industries.
Major companies operating in the flavors and fragrances market report are International Flavors & Fragrances Inc., Kerry Group plc, Givaudan SA, Firmenich International SA, Symrise AG, Azelis Group, Robertet SA, Sensient Technologies Corporation, Takasago International Corporation, Huabao International Holdings Limited, T. Hasegawa Co. Ltd., Frutarom Industries Ltd., Mane SA, Treatt plc, Keva Flavours Pvt Ltd, CPL Aromas Ltd., Berje Inc., Bell Flavors & Fragrances Inc., Alpha Aromatics, Comax Flavors, Vigon International Inc., Lebermuth Company Inc., Synerzine Inc., Fleurchem Inc., Nactis Flavours SAS, Tastepoint by IFF, Aromatech Group, MCI Miritz Citrus Ingredients GmbH, Lluch Essence S.L., International Taste Solutions Ltd.
Asia-Pacific was the largest region in the flavors and fragrances market in 2023 and is expected to be the fastest-growing region in the forecast period. The regions covered in the flavors and fragrances market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the flavors and fragrances market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The flavors and fragrances market consists of sales of concentrates, flavors extracts, flavorings, and syrups. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Flavors and Fragrances Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on flavors and fragrances market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for flavors and fragrances ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The flavors and fragrances market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.