The global flavors and fragrances ingredients market will highly benefit from the food & beverage and personal care industry in the upcoming years. Chemically derived essential oils have been the predominant ingredients that are used in the production of fragrances and flavors. However, this is set to change ever since the advent and embracement of organic produce trend amongst the population of all demographics. The increasing demand for natural ingredients in the production of both flavors and fragrances will disrupt the market in the upcoming forecast period. Production with natural ingredients is being readily adopted by key market players of the flavors and fragrances ingredients market and will see innovative developments during the forecast period.
Additionally, the rising preference for ready-to-eat and fresh food items will further positively drive the growth of this market. Owing to rapidly increasing disposable income, consumers are gravitating towards convenience foods in which flavors and fragrances form an essential component for elevating customer interest. During the forecast period 2019-2025, the flavors and fragrances ingredients market will grow with a CAGR of 6%. In 2018, the market earned a revenue of $28 billion globally. Further, natural products have been estimated as the most promising segment of the market and will grow with a CAGR of 5.8% during the forecast period 2019-2025.
North America Taking the Lead in the Flavours and Fragrances Ingredients Market
According to IndustryARC’s research, North America has emerged as the geographical leader of the flavors and fragrances ingredients market. In 2018, the region held a share of 35% out of the total revenue earned by the market globally. Approximately 160 million people are employed in the United States of America alone, generating a high demand for flavors and fragrances ingredients owing to a steady increase in disposable income. A high percentage of the working class lacks time to pursue a proper fitness routine which renders them with packaged foods that are specifically meant for maintaining fitness. Food products such as protein bars and yogurts increase the demand for flavors, thus helping the market in attaining growth. Chobani is a yogurt brand that has been using flavors to innovate and create different types of yogurts. Some of their products include Greek yogurt with nut butter, fruit-flavored yogurt, yogurt with minimal sugar, etc. These products are available in a variety of flavors including mango, clingstone peach, honey pistachio, and others that are becoming increasingly popular amongst consumers. These innovations help the flavors, and fragrances ingredients market is gaining demand. Another factor that has further contributed to the growth of this market in the region is efficient distribution channels. The fragrances ingredients market growth has been largely dependent on distributors who in bridging the gap between fragrances manufacturers and consumers. Their role has been indispensable in assuring the growth of the flavors and fragrances ingredients market in the North American region.
Trends and Drivers Impacting the Global Flavours Ingredients Market
The industry of food and beverage is extremely susceptible to change and constantly undergoes noticeable developments. Further, with the advent of globalization, consumers can experience a variety of flavors that is increasing international demand for unique flavors. Companies across the world are increasingly adopting the trend for manufacturing distinct flavors that can be exported to countries that do not produce them locally. Based on the trade map estimated and calculated by the International Trade Centre, essentials oils used for manufacturing flavors for the food and beverage industry worth $16.88 billion were imported by different countries across the world in 2018. This value is reflective of the increasing demand for food flavorings across the world that will positively impact the flavors ingredients market in the forecast period. Some of the trends that have emerged from the growth of this market are:-
· Berry Flavour- Though production of berries has largely been limited to countries with a relatively colder climate, a growing taste for berry flavor is increasingly adopted by tropical countries as well. Cafes across the world are using this flavor for adding in smoothies and healthy bowls.
Moreover, the packaged foods industry has also generated a demand for this flavor from nutrition bars and packaged shakes.
· Mediterranean- The Mediterranean region has predominantly made use of herbs and aromatics in their food recipes. This trend is being adopted in the South-east Asian, Pacific, and American regions. Owing to migration and accessibility to international flavors, herb-based flavors are being increasingly imported throughout the world. According to the International Taste Solutions, the demand for olive oil, dates, and pistachios will noticeably rise in the world in the coming years. The demand for these exotic flavors will mostly be dependent on the growth of bakeries and confectionary items.
Innovations and Drivers Impacting the Fragrances Ingredients Market
The demand for fragrances ingredients market will largely get derived from the cosmetics industry and the essential oils market. The essential oils market will benefit tremendously from the rising interest in alternative medicine, especially in Western countries. According to IndustryARC, the essential oils market will grow with a CAGR of 9% during the forecast period of 2019-2025. The essential oils market and fragrances ingredients market share a symbiotic relationship with each other where the growth of one benefits the other. As per the International Trade Centre’s Trade Map, perfumes worth $19.8 billion were imported by different countries across the world. This value is reflective of the rising demand for fragrances as people across the world delve more into personal care with an increase in disposable income. Some of the trends and innovations that have emerged from this demand are-
· Fragrance for Hair- Though hair care has been conventionally limited to oils and sprays, people are now using fragrance and perfumes for bettering the smell of their hair. One of the prime examples of this trend is Jimmy Choo Fever, which is made specifically for hair.
· Perfume Pens- Perfume pens are one of the latest innovations in the fragrance industry. These are mostly meant for people who are traveling and need perfume on the go. Ever since their advent and prominent marketing carried out by social media influencers, these pens have generated a high demand for the fragrances ingredients market.
Flavors and Fragrances Ingredients Market: Competitive Landscape
The key market players of this market will contribute to the growth by investing financial and technological resources on products that could elevate the sales. The companies ahead of the curve in the flavors and fragrances ingredients market are Givaudan, Firmenich, International Flavors & Fragrances, Symrise, Takasago, Sensient, Mane, Robertet, T.Hasegawa, Frutarom, Bell Flavors & Fragrances, Archer Daniels Midland, Kerry, Ogawa & Co., Ltd., and Huabao, etc.
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