Flavors & Fragrances Ingredient Market - Forecast(2024 - 2030)

Report Code: FBR 0435 Report Format: PDF + Excel

Flavors & Fragrances Ingredients Market Overview                       

Flavors & 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. 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.

Flavors & Fragrances Ingredients Market Report Coverage

The report: “Flavors & Fragrances Ingredients Market – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Flavors & Fragrances Ingredients Market.
By Ingredients Type: Natural and Synthetic.
By Form: Liquid, Powder, Spray Dry and Paste.
By Applications: Beverage, Bakery & Confectionery, Savory Foods, Tobacco, Pet Food and Animal Products, Oral Care, Air Care, Household Care, Personal Care and fine Fragrance.
By Geography: North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan, India, South Korea, Australia and Others), South America(Brazil, Argentina and Others) and RoW (Middle East and Africa).

Key Takeaways

  • Factors such as the change in taste and lifestyle of consumer increases the trend of ready-to-eat products which increases the opportunities to manufacturers to develop new innovations to meet consumer demand and drive the growth of the market during the forecast period 2021-2026.
  • The increasing consumer preference towards new-flavored products with different colors, rising demand of processed food and beverages and rising popularity in flavoring food increases the demand of flavor and fragrances ingredient market and is poised to be the major driving factor for the market’s growth.
Global Humanized Mouse Model Market, By Form 2020(%)

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Flavors & Fragrances Ingredients Market Segment Analysis - By Ingredients Type

In 2020, synthetic ingredients type market accounted for major share. This is owing to manufacturers who are shifting their focus 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.
On the other hand, natural ingredients segment of flavors & fragrances ingredients market is projected to be the fastest growing at a CAGR of 4.4% during 2021-2026. This is owing to the growth in the coming years and is projected to be driven by a rapid shift towards natural products, especially in developed countries. Also, owing to the growing demand for exotic essential oils in natural cosmetics, aromatherapy, and pharmaceuticals, among other things, the use of natural essential oils is increasing.

Flavors & Fragrances Ingredients Market Segment Analysis - By Application Type 

Beverages segment dominated the flavors & fragrances ingredients market in 2020. This owes towards the growing demand of consumers who require specific health benefits ranging from detoxification and relaxation drinks to immunity promoting and mood and concentration enhancing are the major factors that are driving the growth of the flavors & fragrances Ingredients market. The demand for flavors is largely owing to the rising demand for soft drinks, energy drinks, and other beverages. Moreover, the market for flavors for drinks is also driven by aspirational purchases of multinational drink brands.
However, bakery and confectionery segment is set to be the fastest growing segment and the segment is projected to grow at a CAGR of 4.3% during the forecast period 2021-2026. This is owing to the rapid urbanization, ready to on go products, the growth of the availability of convenience products, combined with increasing health issues contribute to the growth of the industry.

Flavors & Fragrances Ingredients Market Segment Analysis – By Geography

In 2020, the Asia-Pacific dominated flavors & fragrances ingredients market in terms of revenue with a market share of 39.9%. This is owing to the 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 network is 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.
However, Europe flavors & fragrances ingredients market is projected to be the fastest growing CAGR during the forecast period 2021-2026. This is owing to the growing demand for pharmaceutical, energy drinks and nutraceutical flavors and fragrances contribute to the fastest growing region in the industry.

Flavors & Fragrances Ingredients Market Drivers

Rising Demand Of Flavors In Food and Beverage Industry:

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%). The U.S has strict regulations on flavors used in alcoholic beverages. For instance, the manufacturers must submit a TBB form and 5154.1 or register the formulas online and submit formulas electronically to the NPL when selling flavors to producers of alcohol beverages, regardless of whether those flavors contain alcohol, disclosing the composition of the flavor. This authorization would eventually result in providing a better quality of products to its customers which in turn is contributing to its market growth. 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.

Flavors & Fragrances Ingredients Market Challenges

Stringent Regulations Associated With Side Effects of Synthetic Fragrances:

Stringent government regulation associated with flavor and fragrances serves as a major setback for the growth of the flavors & fragrances ingredients market during the forecast period 2021-2026. Side effects associated with the usage of synthetic fragrances are a significant factor hampering the growth of this market in the upcoming years. For instance, synthetic fragrances used in personal care products and room fresheners can lead to allergic disease such as asthma and multiple chemical sensitivity. Moreover, the Environmental Working Group (EWG) researchers found that more than 75 percent of products listing the ingredient “fragrance” contained phthalates which have been shown to disrupt hormone activity, reduce sperm counts and cause reproductive malformation and also have been linked to liver and breast cancer, diabetes and obesity. Hence, the side-effects associated with these synthetic fragrances is a vital factor hampering its market growth in the upcoming years.

Flavors & Fragrances Ingredients Market Industry Outlook

Product Launches, Merger & Acquisition, joint ventures, and R&D activities are key strategies adopted by the players in the Flavors & Fragrances Ingredients Market Industry. Flavors & Fragrances Ingredients Market top 10 companies include Givaudan, Firmenich, International Flavors & Fragrances Inc., Symrise, Mane SA, Huabao international Holdings Limited, Takasago, Sensient Flavors, Robertet SA, T. Hasegawa and among others.

Acquisitions/Product Launches:

  • In November 2020, Symrise has signed a purchase agreement with Sensient Technologies Corporation to acquire its aroma chemicals activities. These comprise a wide range of aroma molecules from natural and renewable sources, including citrus by-products.
  • 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.
  • In March 2020, International Flavors and Fragrancies (IFF) has signed an agreement with Evolva, the Swiss biotech company  to further develop and expand commercialization of vanillin.

Relevant Reports:

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1. Flavors &  Fragrances Ingredients Market- Market Overview
    1.1 Definitions and Scope
2. Flavors &  Fragrances Ingredients Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends by Ingredient
    2.3 Key trends by Form
    2.4 Key trends by Application
    2.5 Key trends by Geography
3. Flavors &  Fragrances Ingredients Market – Market Landscape
    3.1 Market Share Analysis- Key Companies
    3.2 Product Benchmarking- Key Companies
    3.3 Financial Analysis - Key Companies
    3.4 Patent Analysis - Key Companies
    3.5 Pricing Analysis
4. Flavors &  Fragrances Ingredients Market- Startup companies Scenario Premium (Premium)
    4.1 Key startup company Analysis by
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Application Analysis
        4.1.4 Venture Capital and Funding Scenario
5. Flavors &  Fragrances Ingredients Market- Industry Market Entry Scenario Premium (Premium)
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing business index
    5.3 Case Studies of successful ventures
6. Flavors &  Fragrances Ingredients Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints/Challenges
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power Of Suppliers
        6.3.2 Bargaining Powers Of Customers
        6.3.3 Threat Of New Entrants
        6.3.4 Rivalry Among Existing Players
        6.3.5 Threat Of Substitutes 
7. Flavors &  Fragrances Ingredients Market- Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Market Life Cycle
8. Flavours & Fragrances Ingredients Market – By Ingredients
    8.1 Natural
        8.1.1 Essential Oils
   Pepper Mint
        8.1.2 Oleoresins
        8.1.3 Others
    8.2 Synthetic
        8.2.1 Esters
   Ethyl acetate
       Benzyl acetate
       Ethyl benzoate
       Methyl decanoate
        8.2.2 Alcohol
   Lauryl alcohol
        8.2.3 Aldehyde
        8.2.4 Phenol
        8.2.5 Others
9. Flavours & Fragrances Ingredients Market- By Form
    9.1 Liquid
    9.2 Powder
    9.3 Spray Dry
    9.4 Paste
10. Flavours & Fragrances Ingredients Market- By Application
    10.1 Beverage
        10.1.1 Alcoholic Beverages 
        10.1.2 Carbonated Drinks
        10.1.3 Drink Mixers
        10.1.4 Nutraceuticals Drinks
        10.1.5 Others
    10.2 Bakery & Confectionery
        10.2.1 Breads
        10.2.2 Cakes
        10.2.3 Cereal
        10.2.4 Chocolate
        10.2.5 Coatings
        10.2.6 Gummies
        10.2.7 Dairy
        10.2.8 Others
    10.3 Savory Food
        10.3.1 Dressings
        10.3.2 Frozen Foods
        10.3.3 Seafood
        10.3.4 Snacks
        10.3.5 Others
    10.4 Tobacco
        10.4.1 Cigarettes
        10.4.2 Pipe Tobacco
        10.4.3 Others
    10.5 Pet Food and Animal Products 
        10.5.1 Animal Feed
        10.5.2 Medicines
        10.5.3 Pet Foods
        10.5.4 Treats
    10.6 Oral Care 
        10.6.1 Mints
        10.6.2 Mouthwash
        10.6.3 Toothpaste
        10.6.4 Others
    10.7 Air Care
        10.7.1 Air Fresheners
        10.7.2 Candles
        10.7.3 Others
    10.8 Household Care
        10.8.1 Soaps
        10.8.2 Laundry Detergents and Softeners
        10.8.3 Surface Cleaners
    10.9 Personal Care 
        10.9.1 Bath Care
        10.9.2 Hair Care
        10.9.3 Skin Care
        10.9.4 Sun Care
    10.10 Fine Fragrance 
        10.10.1 Men
        10.10.2 Women
        10.10.3 Tween and Teen Fragrances
        10.10.4 Unisex Fragrances
11. Flavors &  Fragrances Ingredients Market - By Geography (Market Size -$Million/$Billion)
    11.1 North America
        11.1.1 U.S.
        11.1.2 Canada
        11.1.3 Mexico
    11.2 Europe
        11.2.1 U.K.
        11.2.2 Germany
        11.2.3 France
        11.2.4 Italy
        11.2.5 Spain
        11.2.6 Rest of Europe
    11.3 Asia-Pacific
        11.3.1 China
        11.3.2 Japan
        11.3.3 South Korea
        11.3.4 India
        11.3.5 Australia & New Zealand
        11.3.6 Rest of APAC
    11.4 Rest of the World
        11.4.1 Middle East
        11.4.2 Africa
        11.4.3 South America
12. Flavors &  Fragrances Ingredients Market – Entropy
13. Flavors &  Fragrances Ingredients Market - Industry / Segment Competition landscape Premium (Premium)
    13.1 Market Share Analysis
        13.1.1 Market Share by Country- Key companies
        13.1.2 Market Share by Region- Key companies
        13.1.3 Market Share at Global Level- Key companies
        13.1.4 Best Practices for Companies
14. Flavors &  Fragrances Ingredients Market - Key Company List by Country Premium (Premium)
15. Flavors &  Fragrances Ingredients Market Company Analysis
    15.1 Company Revenue, Products, M&A, Developments
    15.2 Company 1
    15.3 Company 2
    15.4 Company 3
    15.5 Company 4
    15.6 Company 5
    15.7 Company 6
    15.8 Company 7
    15.9 Company 8
    15.10 Company 9
    15.11 Company 10 and more
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