Flavors And Fragrances Industry Overview
The global flavors and fragrances market size is expected to reach USD 34.19 billion by 2030, growing at a CAGR of 4.3% from 2022 to 2030, as per a new report by Grand View Research, Inc. The growth is majorly driven by the mounting demand for natural products and aroma chemicals from the personal care & cosmetics products and food & beverages industries.
The market is expected to acknowledge a remarkable growth during the forecast period owing to increasing demand in application industries such as toiletries, cosmetics, beverages, and food. The increasing use of flavors in the pharmaceutical, dietary supplements, and nutraceutical market is also projected to augment market growth. The health & wellness trend prevailing in the market is expected to magnify the preference for natural flavor ingredients.
Flavors And Fragrances Market Segmentation
Grand View Research has segmented the global flavors and fragrances market report based on product, application, and region:
Based on the Product Insights, the market is segmented into natural and aroma chemical
- Aroma chemicals dominated the market with the highest revenue share of over 64% in 2021. This is attributed to ever-increasing usage in the application industries like pharmaceutical, food & beverages, perfumeries, and wine.
- Increasing research spending on the development of fragrance compounds is also expected to have a positive impact on the market.
- Aroma chemicals are synthetic aromas that are used in many applications such as essential oils, food & beverages, perfumes, and others.
- Aroma chemicals play a crucial role in the manufacturing of fragrances and flavors that are used in the food industry to enhance the appeal and flavor of the product. These chemicals are classified as phenols, aldehydes, alcohols, esters, and other chemicals.
- The use of natural products is on the rise due to the rising demand for exotic essential oils to be used in pharmaceuticals, aromatherapy, and natural cosmetics.
- Advanced countries are demanding fragrances where the odor value of a fragrance is replaced with natural oils. Thus, many exotic essential oils, like, Sandal, Junipers, Rosemary, Lavender, Geranium, etc. are finding usability in multiple new blends.
Based on the Application Insights, the market is segmented into flavors and fragrances
- Fragrances dominated the market with a high revenue share of over 53% in 2021. Its high share is attributable to the increased demand for various fragrances in toiletries such as hand washes, detergents, soaps, personal care products, and cosmetics.
- Fragrance plays an important role in aromatherapy applications, owing to which essential oils, materials, compounds, and aromatic oils demand is likely to be driven in aromatherapy applications.
- Additionally, the growing demand for aromatherapy diffusers is further likely to fuel the market growth in the coming years.
- Flavors are the aromas used in food & beverages. There is a rise in the application of flavors in numerous foods and beverages in commercial as well as domestic applications.
- In addition, feed and feed additive manufacturers are focused on providing palatability solutions to increase feed intake. This is projected to propel the demand for flavors in animal feed applications.
Flavors And Fragrances Regional Outlook
- North America
- Asia Pacific
- Central & South America
- Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
The flavors and fragrances market is fragmented and dominated by large multinational companies. Smaller companies differentiate themselves by creating unique natural fragrances and flavors and as a result, make it difficult for their competitors to imitate and enter the domestic market. The manufacturers are experiencing profit margin problems which have become worse due to the demands of retailers and processors and their private label brands.
Some prominent players in the global flavors and fragrances market include:
- Sensient Technologies Corporation
- Mane SA
- Takasago International Corporation
- Manohar Botanical Extracts Pvt. Ltd.
- Alpha Aromatics
- Ozone Naturals
- Elevance Renewable Sciences, Inc.
- Firmenich SA
- Symrise AG
- Vigon International, Inc.
- BASF SE
- Indo World
- Akay Flavors & Aromatics Pvt. Ltd.
- Ungerer & Company
- Synthite Industries Limited
- Universal Oleoresins
- Flavex Naturextrakte GmbH
- Falcon Essential Oils
- doTERRA International
- Young Living Essential Oils
- Biolandes SAS
- International Flavors and Fragrances, Inc.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.