Global Flavors and Fragrances Market 2016-2020
Overview of the global flavors and fragrances market
Technavio’s market research analyst predicts the global flavors and fragrances market to grow at a CAGR of more than 4% during the forecast period. The global flavors and fragrances market predominantly comprises flavor blends, fragrance blends, essential oils, and aroma chemicals. The market is expected to observe healthy growth over the next four years owing to the constant demand from companies that manufacture food products and beverages, perfumes, cosmetics, toiletries, and household products. One of the main factors driving growth in the global flavors and fragrances market is the increasing investments by vendors to increase their production capabilities and expand their distribution networks to attract more consumers. The market players are also making investments to gain access to untapped markets, which offer them greater chances to grow. For instance, in 2016, Parag Milk Foods in India announced its plans to invest around USD1.5 billion in expanding its production capabilities and to extend its business operation to the north and north-east India. Also, with many vendors opting for mergers and acquisitions to increase their global presence, the flavors and fragrances market is likely to witness high growth in the coming years.
Geographically, the Americas accounted for the largest share of the market in 2015. Much of the market’s growth is driven by the increase in consumer awareness about the personal care products and rise in the consumption of convenience food. increasing demand for cosmeceuticals, anti-aging creams, and beauty products among the aging population has boosted the use of fragrances to keep off the intolerable odor of these cosmetic products. Vendors of fragrances are trying to focus on the Hispanic population in the US, as it holds a high growth potential for cosmetic products. The high consumption of packaged food products is a major driving factor in the growth of the flavors market in the Americas.
Competitive landscape and key vendors
The global flavors and fragrances market is characterized by high competition. Firmenich, Givaudan, International Flavors & Fragrances, and Symrise dominate the market and collectively accounted for over 67% of the overall market share in 2015. The fragrances market comprises major and regional fragrance companies, and small and commodity suppliers, while the flavors market includes only the global and local flavor suppliers. To gain access to the emerging market and increase their revenue shares, vendors are aggressively involving in merger and acquisition strategies. Also, to gain a competitive edge over the peers, several players are focusing on creating a strong distribution network.
Leading vendors in the market are -
- International Flavors & Fragrances
Other prominent vendors in the flavors and fragrances market include Frutarom, MANE, Robertet Group, and Sensient Technologies Corporation.
Segmentation by functionality and analysis of the flavors and fragrances market
The fragrances segment led the market during 2015 and occupied the maximum market shares. The constantly surging demand from end-users such as fine fragrances, cosmetics and toiletries, soaps and detergents, and household cleaners and air fresheners manufacturers drive the growth of the fragrances segment. Factors like growing importance for grooming and increasing focus on lifestyles, and the rising awareness of personal appearance, beauty, and hygiene are propelling the growth prospects for the fragrances market.
Segmentation by ingredient and analysis of the flavors and fragrances market
- Formulated flavors and fragrances
- Essential oils
- Aroma chemicals
Formulated flavors and fragrances accounted for the largest market share in 2015 and will dominate the market over the predicted period. These are complex mixtures of aromatic compounds such as natural extracts, essential oils, and aroma chemicals. These formulations are available in several forms, such as liquid and concentrated, depending on their usage. The growing demand from industries such as soup, snacks, dairy, and confectionary will drive the demand for flavor blends owing to innovations.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global flavors and fragrances market?
- What are the key market trends impacting the growth of the global flavors and fragrances market?
- What are the challenges to market growth?
- Who are the key vendors in the global flavors and fragrances market?
- What are the market opportunities and threats faced by the vendors in the global flavors and fragrances market?
- Trending factors influencing the market shares of the Americas, APAC, and EMEA.
- What are the key outcomes of the five forces analysis of the global flavors and fragrances market?
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