Flavors And Fragrances Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Form (Natural, Synthetic), By Type (Flavors, Fragrance), By Raw Materials (Essential Oils, Aroma Chemicals, Others), By Application (Food & Beverages, Pharmaceutical, Cosmetic and Personal care, Household Care, Others), And By Geography - Forecasts From 2023 To 2028

The flavor and fragrances market is predicted to grow at a CAGR of 4.95% from US$30.323 billion in 2021 to US$42.532 billion by 2028.

Population expansion and rising disposable income in emerging nations like China and India are driving the demand for personal care and cosmetic products. Additionally, it is projected that the hectic lifestyle patterns maintained in both developed and emerging nations will continue boosting the demand for processed foods & beverages, hence augmenting the need for flavors. However, the rising cost of raw materials due to supply chain difficulties has impacted the market. For instance, on March 17, 2022, Intercontinental Flavours & Perfumes Inc. announced that it would implement extensive pricing hikes for flavors & fragrance solutions.

Drivers:

• Rising preference for convenience foods

The flavors and fragrances market growth is being driven by consumers' rising preference for convenience foods which takes less time to prepare. Flavors and fragrances are frequently used in convenience food items to improve their taste and shelf life. Growing hectic lifestyle coupled with an increase in the working women population has boosted the demand for convenience food products.

A study published in the Current Journal of Applied Science and Technology in March 2020 claims that the majority of working women—roughly 41.7%—spent more than 30% of their entire food budget on convenience foods, while only 55% of non-working women—or 55%—spent more than 10%—indicating that working women use convenience foods more frequently. Therefore, it is anticipated that demand for flavors and fragrances will expand during the projection period due to consumers' growing preference for convenience foods.

• The growing rate of urbanization

Urbanization has led to the expansion of the food and beverage industry, creating a demand for flavors and fragrances. Fast-casual chains like Chipotle have capitalized on urban consumers' preference for bold and distinctive flavors, incorporating fragrant ingredients like cilantro, lime, and smoky spices to enhance the taste experience in their urban-centric menus.

Market Developments:

• In June 2022, BASF Aroma Ingredients introduced Virtual Aroma Assistants, a new digital platform that makes it easier to browse BASF's array of Aroma Ingredients. The new Virtual Aroma Assistants demonstrate their commitment to meeting customer demand for environmentally friendly products, technological advancements, and streamlined procedures.
• Additionally, International Flavors & Fragrances Inc announced its merger with DuPont's Nutrition & Biosciences for $26.2 billion in February 2021, which has enabled the company to combine the probiotics, enzymes, and food protection capabilities of Dupont with its food flavors and fragrances business.
• International Flavors & Fragrances, Inc., a flavor and fragrance producer with headquarters in the USA, introduced GUARDIAN Chelox 30 C in North America in July 2021. It is a reasonably priced, all-natural flavor with multiple uses.
• Additionally, in July 2021, Sensient Solutions Corporation acquired Flavour Solutions, Inc., which offers flavors and fragrance solutions to the beverage, food, and nutraceutical markets.

These developments are acting as an additional driving factor for the flavors and fragrances market growth.

Food & beverages is a key segment. 

By application, the flavors and fragrances market can be divided into food & beverages, pharmaceutical, cosmetic, and personal care, household care, and others. The flavors and fragrances market is estimated to grow significantly due to the increased usage of flavor enhancers in food products such as dairy products, snacks, bakeries, etc. Flavors and fragrances are used in bakeries to increase the stability of product aroma and add flavors that are demanded by customers. The rise in demand for packaged and convenience food products due to changing lifestyles has also increased the demand for flavors and fragrances.

Flavors and fragrances also find applicability in beverage processing, where they enhance the stimulating effects of soft drinks & energy drinks. The increase in demand for ready-to-drink beverages is expected to boost the demand for flavors and fragrances to produce these beverages. Coca-Cola is considered one of the largest beverage manufacturers in the world, and the company uses flavors and fragrances in almost all its offerings to enhance the quality and taste of its products and increase their stimulating effects. The company has seen a growth in its net operating revenues of almost 7% from 2021 to 2022.

Regional Insights.

North America is fueled by the rising popularity of organic and clean-label products, expanding applications in various industries, including food and beverages and personal care, coupled with the growing preference for sensory experiences among consumers. Simultaneously, the European market is expected to hold a significant share fueled by the increasing demand for natural and sustainable ingredients, rising disposable income, the influence of global culinary trends, and the expanding use of fragrances in personal care and household products. The Asia Pacific region is projected to be propelled by a rising population, urbanization, changing consumer lifestyles, and the growing demand for convenience foods and personal care products.

North American Market Insight:

The regional market has been further segmented into the United States, Canada, and Mexico. The USA holds the largest share of this market owing to the strong consumer preference for unique and innovative taste experiences, the increasing demand for natural and clean-label products, and the expanding food and beverage industry.

Consumers in the US are seeking novel and exciting flavor profiles, driving the need for a wide range of flavors and fragrances in food and beverage products. This includes the demand for exotic fruits, fusion flavors, and unconventional combinations to cater to evolving consumer preferences. The growing urban population in the United States has led to an increased demand for diverse flavors and fragrances. For example, the rise of multicultural urban communities has created a market for unique ethnic flavors and fragrances, such as Mexican spices or Middle Eastern oud-based perfumes, to cater to specific cultural preferences.

Flavors And Fragrances Market Scope:

 

Report Metric	Details
Market Size Value in 2021	US$30.323 billion
Market Size Value in 2028	US$42.532 billion
Growth Rate	CAGR of 4.95% from 2021 to 2028
Base Year	2021
Forecast Period	2023 – 2028
Forecast Unit (Value)	USD Billion
Segments Covered	Form, Type, Raw Materials, Application, and Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	Givaudan, International Flavors and Fragrances (IFF), Symrise AG, Robertet Group, Sensient Technologies, DSM, Takasago International Corp, T. Hasegawa Co., Ltd., Mane, Archer Daniel Midland Company, Solvay S.A. (Belgium), BASF SE
Customization Scope	Free report customization with purchase

 

Market Segmentation:

• By Form
  • Natural
  • Synthetic
• By Type
  • Flavors
  • Fragrance
• By Raw Materials
  • Essential Oils
  • Aroma Chemicals
  • Others
• By Application
  • Food & Beverages
  • Pharmaceutical
  • Cosmetic and Personal care
  • Household Care
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Taiwan
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.3.6. Industry Value Chain Analysis

5. FLAVOR AND FRAGRANCES MARKET BY FORM

5.1. Introduction

5.2. Natural

5.3. Synthetic

6. FLAVOR AND FRAGRANCES MARKET BY TYPE

6.1. Introduction

6.2. Flavors

6.3. Fragrances

7. FLAVOR AND FRAGRANCES MARKET BY RAW MATERIAL

7.1. Introduction

7.2. Essential Oils

7.3. Aroma Chemicals

7.4. Others

8. FLAVOR AND FRAGRANCES MARKET BY APPLICATION

8.1. Introduction

8.2. Food & Beverages

8.3. Pharmaceutical

8.4. Cosmetic and Personal care

8.5. Household Care

8.6. Others

9. FLAVOR AND FRAGRANCES MARKET BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. By Form

9.2.2. By Type

9.2.3. By Raw Material

9.2.4. By Application

9.2.5. By Country

9.2.5.1. USA

9.2.5.2. Canada

9.2.5.3. Mexico

9.3. South America

9.3.1. By Form

9.3.2. By Type

9.3.3. By Raw Material

9.3.4. By Application

9.3.5. By Country

9.3.5.1. Brazil

9.3.5.2. Argentina

9.3.5.3. Others

9.4. Europe

9.4.1. By Form

9.4.2. By Type

9.4.3. By Raw Material

9.4.4. By Application

9.4.5. By Country

9.4.5.1. United Kingdom

9.4.5.2. Germany

9.4.5.3. France

9.4.5.4. Italy

9.4.5.5. Others

9.5. Middle East and Africa

9.5.1. By Form

9.5.2. By Type

9.5.3. By Raw Material

9.5.4. By Application

9.5.5. By Country

9.5.5.1. Saudi Arabia

9.5.5.2. Israel

9.5.5.3. Others

9.6. Asia Pacific

9.6.1. By Form

9.6.2. By Type

9.6.3. By Raw Material

9.6.4. By Application

9.6.5. By Country

9.6.5.1. China

9.6.5.2. Japan

9.6.5.3. India

9.6.5.4. South Korea

9.6.5.5. Indonesia

9.6.5.6. Thailand

9.6.5.7. Taiwan

9.6.5.8. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Emerging Players and Market Lucrativeness

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Vendor Competitiveness Matrix

11. COMPANY PROFILES

11.1. Givaudan

11.2. International Flavors and Fragrances (IFF)

11.3. Symrise AG

11.4. Robertet Group

11.5. Sensient Technologies

11.6. DSM

11.7. Takasago International Corp

11.8. T. Hasegawa Co., Ltd.

11.9. Mane

11.10. Archer Daniel Midland Company

11.11. Solvay S.A. (Belgium)

11.12. BASF SE 

Givaudan

International Flavors and Fragrances (IFF)

Symrise AG

Robertet Group

Sensient Technologies

DSM

Takasago International Corp

T. Hasegawa Co., Ltd.

Mane

Archer Daniel Midland Company

Solvay S.A. (Belgium)

BASF SE