Natural Flavors & Fragrances

Report Overview

Increasing consumer demand for natural products, driven by health concerns about artificial ingredients and a desire for transparency in labeling, will have a strong impact on demand for natural flavors and fragrances in the US.

Essential oils & natural extracts to remain the largest segment

Essential oils and natural extracts will remain the largest natural flavor and fragrance product segment in 2020. Demand for essential oils will be driven by growing consumer desire for cleaning products and environmental fragrance goods with natural ingredients, spurred by concerns regarding exposure to synthetic chemicals. However, stronger growth will be restrained by declining carbonated soft drink production, one of the largest markets for essential oils and natural extracts in 2015. Continuing interest in foods with exotic or ethnic flavors will help drive demand for natural flavor blends, which are forecast to register the fastest gains.

Consumer preferences for natural products to fortify the food market

Growing consumer demand for food products with “clean” labels, as well as products that are free from additives such as artificial flavors, will help the food market maintain the leading position as the largest natural flavor and fragrance market in 2020.

“Free-from” cleaning products to stimulate growth

The natural ingredients movement has also had an impact on the cleaning product market -- where consumers are turning more often to goods without artificial fragrances or dyes -- as well as the cosmetics and toiletries market. This demand for “free-from” formulations will help drive above average demand growth for natural fragrances in laundry and dishwashing detergents, polishes and sanitation goods, and other cleaners.

Study coverage

Natural Flavors & Fragrances presents historical demand data (2005, 2010 and 2015) plus forecasts (2020 and 2025) by market (food, cosmetics and toiletries, beverages, environmental fragrance goods, cleaning products, other) and product (essential oils and natural extracts, natural flavor blends, natural aroma chemicals).