Flavors & Fragrances Market: Current Analysis and Forecast (2021-2027)

Flavors & Fragrances Market: Current Analysis and Forecast (2021-2027)

Global Flavors & Fragrances Market was valued around USD 26 billion in 2020 and is anticipated to grow at a CAGR of ~5% over the forecast period (2021-2027). Rising incomes and urbanization is spurring interest in convenient packed foods and fast foods. This would boost growth of food and beverage industry, as packaged goods require high flavoring loadings to preserve taste which is lost during large-scale manufacturing of food and beverages. Owing to this, the food and beverage industry will continue to remain the key driver of flavor and fragrance market. The flourishing food industry and increasing demand for processed foods would showcase considerable growth rate. For instance, the US foodservice and food retailing industries supplied about USD 1.79 trillion worth of food in 2019. This growth would further drive the widespread use of flavors and fragrance in processed food, snacks, soft drinks, candy and confectioneries, meat and seafood products, and sauces, etc.

Some of the major players operating in the market include Givaudan S.A., Mane S.A., Firmenich S.A., Symrise AG, International Flavors & Fragrances, Inc., Takasago International Corporation, The Archer Daniels Midland Company, DuPont de Nemours Inc., Bell Flavors & Fragrances, T. Hasegawa Co. Ltd. Several M&A’s along with partnerships have been undertaken by these players to boost their presence in different regions.

Insights Presented in the Report

“Amongst ingredient, synthetic ingredient held lucrative market share.”

Based on ingredient, the flavors & fragrances market is segmented into natural and synthetic ingredients. Synthetic flavors and fragrances hold prominent market share owing to its low cost and growing use in various end use industries, such as beverages, packed food products, and home & personal care products. For instance, according to study carried out in 2019 by The International Fragrance Association, synthetic ingredients held market share of 59% of fragrance industry supply chain spend. However, a growing segment of the public prefers natural foods over foods containing artificial additives and are ready to pay premium price for natural foods; therefore, with rising demand for natural foods, natural ingredients flavors and fragrances market is likely to showcase robust growth during the forecast period.

“Amongst application, flavor category held prominent market share in 2020.”

Based on application, flavor category held lucrative market share which includes bakery, beverages, dairy products, and confectionery industries. Significant share of flavor category is due to high demand of bakery products and beverages. For instance, according to Mrs. Bectors Food Specialties Limited DHRP, global biscuit market is anticipated to grow at a CAGR of 6% by 2025. Besides growth in bakery product and beverages, increasing demand of dietary drinks owing to the rising percentage of health-conscious individuals is further propelling the market of flavors.

“Europe represents prominent market share in the Global Flavors & Fragrances Market.”

For a better understanding of the market adoption of flavors & fragrances, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, France, Spain, United Kingdom, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), and Rest of World. Europe held the significant share in the global flavors & fragrances market. The region is known for its rich history and passion for fine fragrances & specializes in integrating perfumery with tradition, research, and creativity. People in the European countries are very selective in choosing scents and are spending a considerable amount of their incomes on fragrances leading to the growth in sales of fragrances in the region. For instance, sales of Symrise AG, which is a major producer of flavors and fragrances in Europe increased by 3.3% in 2020 despite of pandemic.

Furthermore, the presence of well-established players such as Symrise AG, Robertet Group, and Mane S.A. among others in the region is further propelling the growth of the European flavors and fragrances market.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional & country-level analysis of the industry