Flavors & Fragrances Ingredient Market - Forecast(2023 - 2028)

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.

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).

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.

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.

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.

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.

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.

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.

Fruit And Vegetable Ingredients Market - Forecast(2021 - 2026)

Report Code: FBR 0095

Flavored Yogurt Market - Forecast(2021 - 2026)

Report Code: FBR 0019