Growth in the different flavor and fragrance markets will rise roughly in line with the global average,
with demand in the cosmetics and toiletries market making the most rapid advances.
World demand to rise 4.4%
annually through 2016
Flavor and fragrance demand is forecast
to increase 4.4 percent per annum to
$26.5 billion in 2016. Growth in the
different markets (e.g., foods and
beverages, toiletries and cleaners) will
all rise roughly in line with the global
average, with demand in the cosmetics
and toiletries market making the most
rapid advances. Across all markets,
increasing consumer interest in natural
products will drive value demand going
forward, as these flavor and fragrance
ingredients tend to be more expensive.
Rising production of processed foods,
due in large part to growth in incomes in
developing countries, will bolster flavor
consumption given that processed foods
require the use of more flavor to maintain
good taste. Growing affluence in
emerging economies will also benefit
demand in the toiletry and cleaner
market, as more individuals will be able
to afford these fragrance-containing
goods.
Developing markets to
realize most robust gains
Going forward, the most robust gains in
demand for flavors and fragrances will
be realized in the developing economies
of the Asia/Pacific region, Central and
South America, and the Africa/Mideast
region. Eastern Europe will exhibit
growth in line with the global average but
still significantly faster than developed
areas. Rising personal consumption
expenditures in emerging economies will
spur faster advances in these countries.
China and India will exhibit particularly
rapid advances, boosting consumption of
flavors and fragrances in the Asia/Pacific
region. As developing regions continue
to capture an increasing share of the
global market, leading flavor and fragrance
producers will continue to make
investments in these areas. Though the
fastest growth will be experienced in
developing countries, industrialized
countries will continue to account for the
majority of demand, with the US alone
accounting for 26 percent of total
demand in 2016. Other countries with a
significant share of the market include
Japan, China, France, Germany, and
India.
Demographic trends to
drive food/beverage market
Support for the largest market, food and
beverages, will arise from growing
urbanization, rising incomes, and
increasing interest in Western foods and
lifestyle. These trends will lead to
increased output of processed and
convenience foods. Furthermore,
developing regions will see the fastest
advances in the consumption of carbonated
beverages, one of the leading
outlets for flavors. In developed countries,
demand for flavors will be supported
by government campaigns for
foods with lower sodium, calorie, and fat
content that requre more flavorings to
make these healthier products palatable.
Study Scope
This study analyzes the $21.3 billion world flavor and fragrance industry. It presents historical demand data for the years 2001, 2006 and 2011, and forecasts for 2016 and 2021 by product (flavor blends, fragrance blends, essential oils and natural extracts, aroma chemicals), market (e.g., food and beverages, toiletries and cleaners), world region, and for 18 major countries.
The study also considers market environment factors, details industry structure, evaluates company market share and profiles 37 industry players, including Givaudan, Firmenich, and International Flavors and Fragrances.
