Flavors and Fragrances Ingredient market size in 2020 generated a revenue of $30,071 million growing at a CAGR of 3.7% during the forecast period 2021-2026.
The Flavors and Fragrances Ingredients Market growth rate is attributed to the growing demand for smoked flavors. Smokey flavors are increasingly being used in snack foods, meats, seasonings, sauces, cheeses, honey and salt which increase the demand in dessert, beverage, soups and various other sweet and savory applications that increases the opportunities for the growth of this market. In addition, change in taste and lifestyle of consumers increases the trend of ready-to-eat products which increases the opportunities to manufacturers to develop new innovations, to meet consumer demand that increases the opportunity for the growth of this market. Flavors and fragrances are substances used to improve a product's overall cosmetic appeal by altering its taste and smell. Flavors are aromas found in edible foods and beverages, while fragrances are aromatic mixtures used in items for personal care. It is composed of esters, acids, alcohol, ketones, lactones and aldehydes. Rapid urbanization, increased availability of disposable income for purchasing products, and growing demand for flavor ingredients across food and beverage applications are contributing to the growth of this industry. Increased sanitary and hygiene awareness has also contributed to an increase in the use of perfumes and deodorants, further fuelling the growth of the product.
Furthermore, an increasing demand in the food and beverage industry for various types of flavors to improve the taste of drinks such as smoothies, milkshakes and juices is driving the market for flavor and fragrance ingredients. Apart from this, the rising consumption of non-alcoholic beverages in the U.S. is a vital factor contributing to the market growth. For instance, according to the Centers for Disease Control and Prevention, water accounted for 51.2% of total non-alcoholic beverage consumption among adults on a day in 2015-2018, followed by coffee (14.9%), sweetened beverage (10.2%), tea (8.7%), fruit beverages (5.6%), milk (5.5%) and diet beverages (3.8%). Investments in developing countries for enhancing the food and beverage industry with high nutritional content are witnessing a significant growth. Major players in different regions are adopting different strategies such as launching new products in order to meet with the customer’s demand which in turn is contributing to the propelled product demand. On the other hand, stringent government regulation associated with flavor and fragrances serves as a major setback for the growth of the flavors and fragrances ingredients market during the forecast period 2021-2026.
Asia-Pacific is the major region dominating the Flavors and Fragrances Ingredients Market owing to a steady rise in the population's disposable income in the region. Rising consumption of these products in different flavors leads to higher demand for certain ingredients for flavor and fragrance. Efficient distribution networks are another factor that has further contributed to this market's growth in the region. Manufacturers have been working to advance their technology, as well as their products quality. This has been a significant catalyst of business innovation.
Also, synthetic ingredients in 2020 accounted for the largest market segment. This owes towards the long lasting, emanate strong fragrance, and offer greater freedom of creativity to manufacturers. In contrast to natural variants, synthetic fragrances are less costly. Highly influential factors contributing to the growth of the fragrance industry are anticipated to be growing numbers of retail outlets, new product releases, and economic prices for personal care goods. Synthetic chemicals in artificial flavors are usually cheaper to make. They may also be safer since they have been thoroughly tested and used. However, the vanillin compound is responsible for both the fragrance and the taste of vanilla. The market for synthetic flavors and fragrances is expanding and growing rapidly, owing to the growing global population with rising disposable incomes. Moreover, rapid development in industrialization across the globe has led to a massive increase in the production of flavored or synthesized products such as processed foods and beverages, soaps, personal care products, detergents, household cleaners, and oral hygiene products etc.
Talk to one of our sales representative about the full report by providing your details in the link below:
Flavors and Fragrances Ingredients Market Growth Drivers:
· Rising Demand of Flavors in Bakery and Confectionary Industry
The market for Flavors and Fragrances Ingredients is anticipated to rise at a rapid pace during the forecast period 2021-2026. This is owing rising demand of flavors in bakery and confectionary industry to provide aroma, taste and sensate components to make the products more desirable is a vital factor contributing to its market growth. Moreover, the rising demand among consumers for various product with versatile taste and flavors have compelled manufacturers to come up with a variety of products which in turn is fostering the market growth. For instance, in May 2020, Pandy Foods AB launched two jelly confectionaries varieties and three flavors of lentil chips. In addition, the company is set to launch another new lentil chip flavors in order to strengthen the product range with a whole new type of confectionary product. According to the American Bakery Association, sales in the U.S. bakery aisle jumped an unprecedented 62.3% over the week ending March 15,2020, with IRI finding a sales increase of 44.3% for cookies and crackers alone.
· Mergers & Acquisitions in Flavor and Fragrances Ingredients Industry, with an aim to develop new products
Major Flavor and Fragrance Industry manufacturers are pursing strategies such as mergers, acquisition and other strategic alliances to strengthen their foothold in the market. Using such means, they are also expanding their business. Focus on research and development is necessary as they produce innovative and cost-effective products for different industry. In November 2019, Neptune Wellness Solutions Inc., a health and wellness company focused on extraction, purification and formulation of cannabinoids entered into an agreement with International Flavors & Fragrances Inc., to co-develop hemp-derived CBD products for the mass retail and health & wellness market. In addition, under this strategic product development partnership, IFF will leverage its intellectual property for taste, scent and nutrition to provide essential oils and product development resources. Neptune will leverage its proprietary cold ethanol and extraction processes and formulation to deliver high quality, full and broad spectrum extracts for the development of hemp derived products infused with essential oils, cosmetics, personal care and home care markets. The rising number of merger and acquisition by the key players in order to expand their product portfolio is a vital factor contributing to its market growth. For instance, in November 2020 Croda International Inc., acquired Iberchem, a global fragrance and flavors company for $970million. Under this development, the primary goal is to provide full service offering to costumers in consumer care markets and a compelling platform to grow the combined business in the years ahead.
Symrise AG has signed a purchase agreement with Sensient Technologies Corporation to acquire their fragrance and aroma chemicals activities. This acquisition will help Symrise to strengthen its backward integration and broaden its leadership position as a supplier of fragrance ingredients which has demanded in personal and home care products.
The Major Players in this Market Include:
The major companies in the Flavors and Fragrances Ingredients market include Givaudan, Firmenich, International Flavors & Fragrances Inc., Symrise, Mane SA, Huabao international Holdings Limited, Takasago, Sensient Flavors, Robertet SA, T. Hasegawa. In March 2020, Symrise AG has signed a purchase agreement with Sensient Technologies Corporation to acquire their fragrance and aroma chemicals activities. This acquisition will help Symrise to strengthen its backward integration and broaden its leadership position as a supplier of fragrance ingredients which has demanded in personal and home care products.
Although there has been product withdrawals and low demand for the product, companies are conducting research and development for the perfecting the products. Manufacturers are rooting for the comeback of flavors and fragrances ingredients with effective products. There are the major factors set to buoy the flavors and fragrances ingredients market during 2021-2026.
To request for a quote, provide your details in the below link: