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The flavors and fragrances market size is estimated to grow at a CAGR of 6.3% between 2022 and 2027. The market size is forecast to increase by USD 12,392.54 million. The growth of the market depends on several factors such as the increasing number of new product launches, the rising demand for personal care and food flavoring products, and the increase in disposable income.
This flavors and fragrances market report extensively covers market segmentation by type (fragrances and flavors), product (formulated flavors and fragrances, aroma chemicals, and essential oils), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increase in disposable income is driving growth in the flavors and fragrances market. The increasing expenditure on food and personal care products because of the rise in disposable income, is likely to drive the growth of the global flavors and fragrances market during the forecast period. With the increase in disposable income, households have more money to either save or spend on products that are not strictly essential, such as flavors and fragrances.
However, the strong consumer base and high disposable incomes of North America and Europe make it an appealing market for fragrance products. The ability for consumers in North America to purchase power to indulge in luxury and premium fragrances results in increased demand in the whole market. Therefore, the increase in disposable income will significantly drive the global flavors and fragrances market during the forecast period.
The growing investments in the flavors and fragrances market is primary trend in the market. New technologies are being used by a number of local and global players in the global vendors for Spices and Fragrances to develop improved varieties of Natural and synthetical flavors so as to gain stability. These vendors are increasingly engaging in several R&D activities to introduce innovations and technological advances. Such activities will increase the demand for flavors and fragrances globally, which will drive the growth of the global flavors and fragrances market.
Moreover, In order to preserve the taste that is derived from natural ingredients, particularly fruits, manufacturers are developing advanced methods of flavor extraction. Some of the popular technologies include supercritical carbon dioxide technology, solid-liquid extraction, high-power ultrasound, and supercritical fluid extraction. Innovations and technological advances are emerging as a popular trend, which can help accelerate the growth momentum of the global flavors and fragrances market during the forecast period.
The threat of counterfeit products is a major challenge in the flavors and fragrances market. At the same time, increasing demand for flavor and fragrance products resulted in an increase in the influx of counterfeit products into the market Counterfeiting refers to the branding and sales of unauthorized products, which represents a major challenge for genuine vendors of flavors and fragrances. The manufacture of counterfeiting spices and perfumes is carried out on the basis of low-cost, non-standard materials.
However, due to their low cost, which affects the brand image and sales of the company, most consumers are unable to distinguish between originals and counterfeits and buy them. Hence, vendors across the world are taking active measures to stop counterfeiting. Moreover, with the increasing digitization and growth in e-commerce platforms, the penetration of counterfeit products is likely to increase, which will act as a challenge for the global flavors and fragrances market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Flavors and Fragrances Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Archer Daniels Midland Co. - The company offers flavors and fragrances such as mint and vanilla flavors.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The fragrances segment is estimated to witness significant growth during the forecast period. The dominance of key vendors is likely to drive the demand for fragrances during the forecast period. The vendor's objective is to increase its presence in the world market for flavors and fragrances by adopting Organic and Inorganic growth strategies, such as product launches and acquisitions, and partnerships.
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The fragrances segment was the largest segment and was valued at USD 15,448.34 million in 2017. The fragrances segment is expected to grow during the forecast period, owing to the rising demand from end-users such as manufacturers of fine fragrances, cosmetics and toiletries, soaps and detergents, household cleaners, and air fresheners. Also, the global demand for household cleaners and air fresheners is driven by increased awareness about hygiene, as well as increasing per capita income.
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The flavors and fragrances market in APAC is expected to grow during the forecast period. Factors such as the presence of a huge consumer base, rising working women population, growing demand for international cuisines, and penetration of key vendors into the region are attributed to the high growth of the market in the region.
Moreover, the rapid development in the economies of countries such as China, India, and Indonesia has resulted in an increasing proportion of the middle-class population in APAC. The growing demand for flavor and fragrance is being driven by middle-class families who seek to improve their lifestyle standards, which leads to more consumption of home care products and personal care products. Such factors will increase the market growth during the forecast period.
The outbreak of the COVID-19 pandemic negatively impacted the growth of vendors of flavors and fragrances in 2020 due to the temporary shutdown of manufacturing sites of various chemicals and offices, labor shortages, and additional expenses on sanitizers. However, the initiation of vaccination drives conducted by the governments and the resumption of manufacturing facilities stabilized the growth of the flavors and fragrances market in APAC in the first half of 2021. In 2022, owing to rising hygiene awareness and the increased disposable incomes of consumers, the market in focus recovered. As consumers are more concerned about their physical appearance, the demand for personal care products is expected to grow significantly, fueling the growth of the regional flavors and fragrances market during the forecast period.
The flavors and fragrances market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Flavors And Fragrances Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.3% |
Market growth 2023-2027 |
USD 12,392.54 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.53 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 44% |
Key countries |
US, China, Japan, Germany, and Italy |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AARAV Flavors and Fragrances Pvt. Ltd., Alpha Aromatics Inc., Archer Daniels Midland Co., BASF SE, Ernesto Ventos SA, Firmenich SA, Givaudan SA, Huabao International Holdings Ltd., International Flavors and Fragrances Inc., Kerry Group Plc, McCormick and Co. Inc., Ogawa and Co. Ltd., Robertet SA, S H Kelkar and Co. Ltd., Sensient Technologies Corp., Solvay SA, Symrise AG, T. Hasegawa Co. Ltd., Takasago International Corp., and V. Mane Fils |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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