Flavors and Fragrances Market

Analysis from GMI Research finds that the Flavors and Fragrances Market earned revenues of USD 39.2 billion in 2022 and estimated to touch USD 56.2 billion in 2030 will grow at a CAGR of 4.6% from 2023-2030.

Major Flavors and Fragrances Market Drivers

The global flavors and fragrances market is witnessing significant growth due to a rapid rise in demand for personal care products, a change in the living standards of individuals, an increase in disposable income, and the introduction of organic products. The introduction of new processing technology and the high growth of organically processed flavors and fragrances are developing business opportunities, leading to the addition of new expansions in the sales funnel. In addition, the considerable increase in demand for luxury and personalized cosmetic products, and growing urbanization are presenting a positive impact on growth of global flavors and fragrances market size.

The growth in demand and utilization of packaged foods among the new generation globally is estimated to be the foremost drivers of global flavors and fragrances market growth. Continuous population growth coupled with growing disposable income in developing nations and a rise in hygiene concerns is predicted to increase end-user demand for personal care. Moreover, in both developing and developed nations, it is predicted that the maintenance of busy and hygienic lifestyle patterns will lead to growth in the demand for processed and ready-to-eat food and beverages, growing the flavors and fragrance market demand around the globe.

Market players in the market are increasingly manufacturing new fragrances in the market which are getting popular shortly. These players focus on adding exotic and mild fragrances in perfumes for working individuals. The ongoing increase in the number of working individuals in governmental and corporate offices is also accepting a considerable number of fragrances. Also, the growing restaurants, food outlets, and food courts or buses are adding new flavors to their food products. New and innovative alternatives in cooking patterns are also leading the demand for fragrances and flavors. The change in preferences for perfumes and personal care products and the growth in demand for natural fragrances are attributed to the global market growth. For instance, in 2019, Givaudan announced the launch of Sensityl, an active ingredient in cosmetic products that proposes health and beauty benefits for the end-users. Therefore, the development of perfumes or fragrances will further aid in growth of fragrance market revenue.

Small and medium enterprises in FMCG industries are introducing different consumables which are also boosting the market growth of fragrances and flavors globally. Besides the demand for consumables, the number of working females is growing which in turn increases in sales of portable cosmetics. In addition, the flavor’s application is found in the pharmaceutical industry in chewable tablets, syrups, suspensions, and gums. The bitterness of medicines can be reduced by adding flavors and spreads a favorable therapeutic effect. Thus, the growth in pharmaceutical industry demand shall lead to the development and expansion of the global market. Although, the high growth in the fast-food industry is projected to boost the growth for flavors market.

The global flavors and fragrances market forecast predicted additional factors boost the market. One of these factors is a significant rise in ready-eat food that comprises added fragrances and flavors to give them the needed taste. The rising demand for room fresheners and automobiles while powering aromatherapy is developing the flavors and fragrance market value.

Intense competition among market players and the emphasis on introducing innovative flavoring combinations propel heavy investments in research and development activities. In addition, the shortage of proper regulations results in significant pricing irregularities around different products. The wide price range, from a few dollars to hundreds per liter, relying on the company and product grade, significantly impacts the market growth and restraints the potential end-consumers from adopting superior products for their manufacturing procedures. Whereas, growing need for vegan and meat substitute goods, along with considerable growth in the willingness of customers to spend more on green or plant-based food goods, is aligning the bar for development in vegan meat dishes around the globe. In 2021, a DuPont study discovered that over 75% of customers around the Asia Pacific region were willing to spend a comparable amount on plant-based meat substitutes as they would on conventional meat products. The increase in demand for processed foods boosted the food flavor industry, wherein vegan flavors or plant-based are usually utilized, as these ingredients are favored for their perceived low-salt, low-fat, and low-carbohydrate content.

By Product, the natural segment dominated the market

The growth of the natural segment is accredited to a continuous rise in product usage in different applications including pharmaceutical, aromatherapy, and natural or organic cosmetics. Moreover, increase in concerns concerning side effects of artificial and chemical flavors is predicted to lead to the natural segment growth globally. A surge in investments in different research and development activities of natural fragrance mixtures is predicted to foster the global industry. Also, the producers of fine fragrances use natural products to result in a better quality of their goods, which is the prime cause for the high growth of the natural fragrance segment.

By Product, the Aroma Chemical segment is predicted to witness the fastest growth

Aroma chemical is predicted to observe steady growth in the forecast period as it has different applications including food and beverages, essential oils, and perfumes. Whereas, in the invention of fragrances and flavors, the Aroma chemicals play an important role that is operated in the food industry to introduce a flavor and fascinate the product. These chemicals are grouped into different other chemicals including aldehydes, phenols, alcohols, esters, and many others.

Food & Beverage sub-segment led the global market growth

The growth of food & beverage sub-segment is accredited due to an increase in understanding of healthy eating. The considerable rise in universal demand for food & beverages such as baked goods, soft drinks, staple food, snack foods, and other caffeinated drinks is also aiding in fostering the segment growth globally. In addition, the usage of flavors has broadened, expanding from sweets and savories to specialized applications like hot soups and beverages, and tobacco products. The significant consumption of flavors by the food and beverage market stands as a key factor fostering the market growth globally.

By Region, Asia Pacific region holds the largest market share for the global market

The Asia Pacific region market growth is attributed to changing preferences of the customers, increase in disposable income, and significant development in developing nations including India, China, Indonesia, and Vietnam. Consumers of both developed and developing nations are shifting their preferences towards healthy and vegan meat alternatives. It is predicted that China registered the largest share in the Asia Pacific flavors and fragrances market because of sensory development goods to produce food and cosmetics around the country. Moreover, growth in acceptance of Western food habits in emerging nations turns in higher demand for ready-to-eat goods, and increasing consumption of baked goods, frozen food goods, cereals, and others is anticipated to lead the APAC flavors and fragrance market growth. Although, in India, MANE KANCOR launched its largest manufacturing unit to consolidate mass production in a single unit to confirm effective management, which further resulted in introduction of indirect and direct employment for many individuals.

By Region, North America region is the speediest-rising market for flavors and fragrance market

North America region is anticipated to observe fastest growth due to growing regional health awareness. The regional growth is attributed to the reconstruction and development of the food and beverages industry. In addition, the high rise in the need for cosmetics, along with the rise in consumer disposable income is aiding the North American flavors and fragrances market growth. The market players in North America are planning to expand their businesses by adopting different strategies of collaborations and partnerships to grasp the new consumer base and develop the portfolio globally which will increase the requirement for flavors and fragrance market.

Top Market Players

Various notable players operating in the market include International Flavors & Fragrances Inc., Kerry Group PLC, Archer Daniels Midland Company, BASF SE, Givaudan SA, Robertet SA, Symrise AG, Mane Group, Sensient Technologies Corporation, Takasago International Corp., Firmenich SA. AG among others.

Key Developments

• • In 2023, Robertet Group announced an acquisition of Aroma Esencial to increase the manufacture of high-quality components to fulfill the growing needs of consumers and to consolidate its competitive advantage.
  • In 2023, Young Living announced a new launch of products and returning favorites to bring the strength of nature into a great number of households with developed products that its customers enjoy.
  • In 2023, dōTERRA inaugurated Rose Distillery around Bulgaria to promote rose essential oil right in the center of the Rose Valley and support the requirements for rose oil.
  • In 2023, BASF announced an expansion of aroma chemicals across Germany and China to aid the rising demand for aroma chemicals from a market of flavor and fragrance.
  • In 2023, Symrise inaugurated Little Red House to get closer to its customers by providing them with a collaborative experience.
  • In 2023, Firmenich International SA joined hands with DSM to become a trendsetter in the reinvention, manufacturing, and merging of essential flavors, nutrients, and fragrances.
  • In 2023, BASF Aroma Ingredients launched two new natural products to expand its natural flavor portfolio and address growing market demands.
  • In 2023, Firmenich Launched a Next Generation of Orange Liquids to gain a similar orange taste or flavor at an outstanding economic benefit to clients and allow sustained supply.
  • In 2022, IIF announced an investment of nearly USD 30 million to expand its local presence around Singapore to develop accessibility to clients in the Asia region.
  • In 2022, MANE Japan inaugurated a new head office in Tokyo to provide a better service experience to its customers.

Segments covered in the Report:

The Global Flavors and Fragrances Market has been segmented on the basis of Product and Application. Based on the Product the market is segmented into Natural and Aroma Chemical. Based on the Application the market is segmented into Flavors and Fragrances. The Flavors segment is further segmented into Food & Beverages, Pharmaceuticals, Others. The Fragrances segment is further segmented into Fine Fragrances, Cosmetics & Personal Care, Home & Floor Care, Others.

Market Segmentation

Global Flavors and Fragrances Market by Product

• • Natural
  • Aroma Chemical

Global Flavors and Fragrances Market by Application

• • Flavors
    • Food & Beverages
    • Pharmaceuticals
    • Others
  • Fragrances
    • Fine Fragrances
    • Cosmetics & Personal Care
    • Home & Floor Care
    • Others

Global Flavors and Fragrances Market by Region

• • North America Global Flavors and Fragrances Market (Option 1: As a part of the free 25% customization)

    • By Product
    • By Application
    • US Market All-Up
    • Canada Market All-Up

  • Europe Global Flavors and Fragrances Market (Option 2: As a part of the free 25% customization)

    • By Product
    • By Application
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Global Flavors and Fragrances Market (Option 3: As a part of the free 25% customization)

    • By Product
    • By Application
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Global Flavors and Fragrances Market (Option 4: As a part of the free 25% customization)

    • By Product
    • By Application
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Global Flavors and Fragrances Leading Market Players (Option 5: As a part of the free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • International Flavors & Fragrances Inc.
  • Kerry Group PLC
  • Archer Daniels Midland Company
  • BASF SE
  • Givaudan SA
  • Robertet SA
  • Symrise AG
  • Mane Group
  • Sensient Technologies Corporation
  • Takasago International Corp.
  • Firmenich SA