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Flavors and Fragrances Market - Forecasts from 2022 to 2027

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  • 138 Pages
  • July 2022
  • Region: Global
  • Knowledge Sourcing Intelligence LLP
  • ID: 5649020
The flavor and fragrance market was evaluated at US$26.878 billion for the year 2020, growing at a CAGR of 4.25% to reach the market size of US$35.971 billion by the year 2027. Lactones, acids, esters, ketones, alcohol, and aldehydes are responsible for taste and fragrance. They are compounds added to a product to improve its value by changing the solute's qualities, such as creating a pleasant odour or adding sweet, sour, tangy, and other flavour profiles. Natural and synthetic compounds, as well as essential oils such as vanilla pods, citrus fruits, beaver's castor, and deers' musk, are used to make them. Plant and animal-based ingredients are used to develop natural analogs for these items. Synthetic esters, on the other hand, are used to make synthetic essences and flavorings by mixing them with alcohol, glycerol, or propylene glycol. Flavors are employed as flavor enhancers in bakeries, snacks, dairy products, and other foods and beverages. Fragrances, on the other hand, are utilized mostly in consumer products such as body care, oral care, and home care to mask undesirable odors in the surroundings.

The rapidly expanding cosmetic business is the primary driver of market expansion. The demand for fragrances, toiletries, cosmetics, soaps, and detergents increased as developing economies became more modern. Furthermore, a surge in demand for natural scents is driven by a growing preference for organic materials in the personal care sector. They are thought to be healthier, safer, and more therapeutic to consume. Because of their features, such as long-lasting and intense perfume, synthetic fragrances are becoming more popular.

Furthermore, the growing usage of flavors in the pharmaceutical business is a contributing factor to market expansion. Syrups, suspensions, chewable pills, gums, and other products contain inactive components. The extra flavour masks the medicine's bitter taste, making it more palatable while still providing a therapeutic benefit. As a result of the increased demand from the pharmaceutical industry, this market will continue to rise.

To keep ahead of the competition in the global market, large corporations are focusing on embracing new technology. Givaudan, for example, announced the acquisition of Myrissi in April 2021, a creator of a patented Al technology capable of converting fragrances into colour palettes and pictures to captivate consumers and forecast their emotional responses. The acquisition will allow the company to expand its Al-based fragrance development capabilities. As a result of these initiatives, strong rivalry among key leaders has emerged, promoting the market growth.

However, the lack of effective rules has resulted in significant pricing irregularities for the bulk of products. Depending on the firm, some grades of these items might cost anywhere from a few dollars per litre to hundreds of dollars per litre. This aspect has a significant impact on market growth and discourages potential end-users from using high-quality items in their manufacturing processes.

During the projection period, the flavours segment is expected to grow at a significant CAGR. Flavours appeal both to the senses of taste and smell, which is one of the main reasons for their bigger market share than scents. They enhance the flavour of various meals and beverages, including dairy, sodas, savory & snack items, and sweets. They are chemicals that disguise the product's natural flavor and give it a more appealing and appealing flavor. Milk, for example, has a rather bland flavor. Nonetheless, dairy product makers add tastes like rose, saffron, and cardamom to milk and milk products, giving them a different scent and taste. Flavours can also be found in medications and cosmetics. Many pharmaceutical goods are bitter owing to the substances used in their preparation. It's tough to sell these unpleasant syrups and powders, especially to children. As a result, pharmaceutical companies are increasingly employing tastes to change the taste of their drugs to make them more appealing, creating opportunities for market participants.

Based on raw materials, aroma chemicals are anticipated to dominate the market with the highest revenue share. This can be ascribed to rising utilization in industries such as pharmaceuticals, food and drinks, perfumeries, and wine. Increasing research spending on fragrance compound development is also projected to benefit the industry. Aroma chemicals are synthetic scents utilized in various applications, including essential oils, food and beverages, perfumes, and more. Aroma chemicals are essential in producing scents and flavors used in the food business to improve the product's attractiveness and flavor. Phenols, aldehydes, alcohols, esters, and other compounds are among the substances categorized.

Food and beverage will continue to be the most popular application during the predicted period. Flavors are commonly employed in food and beverage processing to give food materials a pleasing taste and fragrance. Furthermore, flavor applications have evolved beyond sweets and savory foods to include specialty applications such as hot beverages, soups, and tobacco products. The food and beverage industry's large-scale consumption of flavors will be the primary driver of market expansion.

The Asia Pacific is expected to take the lead in terms of market share. This is due to a shift in consumer preferences toward nutritional and healthy foods and beverages in the world's most populous countries, such as India and China. Asian flavors and perfumes are becoming increasingly popular in Europe and North America. Indonesia, India, China, and Vietnam are Asia-most Pacific's important food flavor markets. Several industrial enterprises in the Asia Pacific area are focusing on expanding their businesses and investing in R&D facilities.

Recent Development

Solvay introduced Eugenol Synth for fragrance applications in January 2021, with odor qualities similar to those found in cloves.

IFF launched a novel Dubai Taste Creation Center in the United Arab Emirates in October 2020 to better serve its customers' particular demands and accelerate growth in the Middle Eastern and African, Turkish, and Indian markets. Snack foods, beverages, savory, sweet, and dairy products will benefit from the new lab's creation and application capabilities. ?

Givaudan opened a new state-of-the-art scent production facility in Changzhou, China, in October 2020, as part of its 2025 growth strategy. The new facility covers 76,000 square meters and costs roughly US$ 100 million to develop. It intended to significantly expand the company's production output for the personal and home care segments in the Asia Pacific.

COVID-19 Impact

The impact of COVID-19 on the industry was visible during the first few months of market lockdowns, which were followed by supply chain problems, labour shortages, and the entire shutdown of hotels and restaurants, all of which had a detrimental influence on the tastes and fragrance business. Lockdowns and curfews have been enforced in countries worldwide, affecting people's lifestyles, health, and well-being, as well as manufacturing industries. Exporters were facing significant obstacles due to government-imposed import and export restrictions, as well as quarantine and lockout measures. Economies, on the other hand, quickly adjusted their systems to the crisis and ran the agricultural and food sectors during the pandemic, resulting in speedy recovery of industry sales.


By Form

  • Natural
  • Synthetic

By Type

  • Flavors
  • Fragrance

By Raw Materials

  • Essential Oils
  • Aroma Chemicals

By Application

  • Food & Beverages
  • Pharmaceutical
  • Cosmetic and Personal care
  • Household Care

By Geography

  • North America
  • USA
  • Canada
  • Mexico
  • South America
  • Brazil
  • Argentina
  • Europe
  • United Kingdom
  • Germany
  • France
  • Italy
  • Middle East and Africa
  • Saudi Arabia
  • Israel
  • Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Thailand
  • Taiwan
Frequently Asked Questions about the Flavors and Fragrances Market

What is the estimated value of the Flavors and Fragrances Market?

The Flavors and Fragrances Market was estimated to be valued at $26.88 billion in 2020.

What is the growth rate of the Flavors and Fragrances Market?

The growth rate of the Flavors and Fragrances Market is 4.2%, with an estimated value of $35.97 billion by 2027.

What is the forecasted size of the Flavors and Fragrances Market?

The Flavors and Fragrances Market is estimated to be worth $35.97 billion by 2027.

Who are the key companies in the Flavors and Fragrances Market?

Key companies in the Flavors and Fragrances Market include Givaudan, International Flavors and Fragrances (IFF), Symrise AG, Robertet Group, Kerry Group plc, Sensient Technologies, Firmenich SA, Takasago International Corp, T. Hasegawa Co., Ltd. and Mane.

Table of Contents

1. Introduction
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
2.2. Assumptions
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Market Opportunities
4.4. Porter’s Five Forces Analysis
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Power of Buyers
4.4.3. Threat of New Entrants
4.4.4. Threat of Substitutes
4.4.5. Competitive Rivalry in the Industry
4.5. Industry Value Chain Analysis
5. Flavors And Fragrances Market Analysis, by Form
5.1. Introduction
5.2. Natural
5.3. Synthetic
6. Flavors And Fragrances Market Analysis, by Type
6.1. Introduction
6.2. Flavors
6.3. Fragrances
7. Flavors And Fragrances Market Analysis, by Raw Materials
7.1. Introduction
7.2. Essential Oils
7.3. Aroma Chemicals
7.4. Others
8. Flavors And Fragrances Market Analysis, by Application
8.1. Introduction
8.2. Food & Beverages
8.3. Pharmaceutical
8.4. Cosmetic and Personal care
8.5. Household Care
8.6. Others
9. Flavors And Fragrances Market Analysis, by Geography
9.1. Introduction
9.2. North America
9.2.1. USA
9.2.2. Canada
9.2.3. Mexico
9.3. South America
9.3.1. Brazil
9.3.2. Argentina
9.3.3. Others
9.4. Europe
9.4.1. United Kingdom
9.4.2. Germany
9.4.3. France
9.4.4. Italy
9.4.5. Others
9.5. Middle East and Africa
9.5.1. Saudi Arabia
9.5.2. Israel
9.5.3. Others
9.6. Asia Pacific
9.6.1. China
9.6.2. Japan
9.6.3. India
9.6.4. South Korea
9.6.5. Indonesia
9.6.6. Thailand
9.6.7. Taiwan
9.6.8. Others
10. Competitive Environment and Analysis
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. Company Profiles
11.1. Givaudan
11.2. International Flavors and Fragrances (IFF)
11.3. Symrise AG
11.4. Robertet Group
11.5. Kerry Group plc
11.6. Sensient Technologies
11.7. Firmenich SA
11.8. Takasago International Corp
11.9. T. Hasegawa Co., Ltd.
11.10. Mane
11.11. Archer Daniel Midland Company
11.12. Solvay S.A. (Belgium)
11.13. BASF SE

Companies Mentioned

  • Givaudan
  • International Flavors and Fragrances (IFF)
  • Symrise AG
  • Robertet Group
  • Kerry Group plc
  • Sensient Technologies
  • Firmenich SA
  • Takasago International Corp
  • T. Hasegawa Co., Ltd.
  • Mane
  • Archer Daniel Midland Company
  • Solvay