Global Flavours and Fragrances Market Key Insights:
- Industry Analysis & Outlook 2019-2024
The global flavours and fragrances market is expected to attain nearly USD 27.5 billion in 2018. It is projected to grow further in the coming years, growing at CAGR of 5% in the forecast period of 2019-2024. In 2024, the industry is estimated to reach USD 36.5 billion.
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While consumers are increasingly demanding natural flavours and fragrances, the higher costs of natural products are proving to be a hindrance. Thus, in the fragrance sector, synthetic scents are being preferred due to their lower cost. Nature identical flavouring agents are also proving to be more popular than natural or artificial flavouring agents, and currently dominate the flavour segment. According to form, liquid form dominates the flavour Industry. Flavours find the majority of their application in the beverage and dairy segments, which together account for over half the applications of the product. The industry is aided by the rising demand for RTD and low-calorie beverages. As consumers are moving away from carbonated drinks, the flavoured milk segment is witnessing a growth, further aiding the flavour industry. Soap, detergents, toiletries, and cosmetics, on the other hand, account for over 55% of the fragrance applications.
Europe is the largest flavours and fragrances industry. It accounts for over a quarter of the industry. Germany is the leading market in the region, representing over a fifth of the regional market. Western European economies like the UK and France are the other significant regional markets on the continent. In the coming years, the emerging Eastern European economies are expected to witness a healthy growth. North America and the Asia Pacific are also major players in the industry. While the industry is being driven by the rising demand for low-carbohydrate and low-fat food and beverages in North America, in the Asia Pacific, the industry is being propelled forward due to the increased consumption of scented personal care products, especially in India and China.
Properties and Applications
Flavour and fragrance are felt by the taste and olfactory senses of the body. While flavour refers to the specific taste of the substance, fragrance refers to the pleasant perfume of a product. They can both be infused into various food and non-food products. Fragrances are available in synthetic and natural types. Natural fragrances are further divided into:
They find their applications in soap and detergents, cosmetics and toiletries, fine fragrances, and household cleaners and air fresheners, among others. Flavours, on the other hand, find their applications in beverage, dairy and frozen desserts, savouries and snacks, and bakery and confectionery sectors, among others. They are available in liquid and dry forms, and by flavouring agents are divided into:
- Nature Identical Flavouring Substance
- Artificial Flavouring Substance
- Natural Flavour
The EMR report gives an overview of the regional markets like North America, LATAM, Middle East and Africa, Europe, and the Asia Pacific.
The global Flavours & Fragrances is being driven by the rising population and rapid urbanisation. The increasing disposable incomes combined with the rise in the middle-class population are further driving the industry. The growing awareness of hygiene and cleanliness through marketing campaigns and advertisements is also expected to aid the industry. The rising trend towards natural products is driving the growth of the natural or organic flavours and fragrances. As manufacturers and consumers are becoming more environmentally conscious, major players in the industries are investing in creating a sustainable supply chain. With consumers willing to experiment with new fragrances and flavours, the industry is witnessing a further growth. The industry is being propelled forward by the rising population of younger consumers, especially in the emerging nations, who are defining and changing the consumption patterns.
The industry is expected to witness a robust growth in the coming years, particularly in the emerging economies. With the growth in the spending power of consumers in the emerging economies, cosmetics, toiletries, perfumes, and soaps and detergents are seeing an upsurge in their demand. The growing demand for personal care products, especially those targeting the masses, in the developing economies is aiding the fragrance segment growth. The segment is also witnessing an increase in the more mature markets like North America and Europe due to the increasing demand for premium personal care products. The rising innovations in the segment are providing further impetus for its growth. The flavours segment is being aided by the shift towards low-calorie foods and beverages, which require additional enhancements to their flavours. With busier lifestyles, the demand for convenient foods like RTD beverage and ready-to-drink has been rising, aiding the segment growth. The segment is also being driven by the rising consumption and production of processed foods in developing economies.
The report gives a detailed analysis of the following key players in the global flavour and fragrance market, covering their market share, capacity, and latest developments like plant turnarounds, mergers and acquisitions, and capacity expansions:
- Givaudan SA
- Firmenich SA
- International Flavors & Fragrances, Inc.
- Symrise AG
- WILD Flavors, Inc.
- Takasago International Corp
- Mane SA
- Sensient Technologies Corp.
- Robertet Group
- T. Hasegawa Co., Ltd.
- Kerry Group
The EMR report gives a comprehensive assessment of the market based on Porter’s Five Forces model, along with a SWOT analysis.