The global flavor and fragrance market is projected to grow at a CAGR of 4.9% during the forecast period of (2019-2024)
- By application, the beverage segment is projected to be the largest application segment of the flavor market. It is growing due to the rising demand for soft drinks, energy drinks, and other RTD beverages.
- In the fragrance application, consumer products are projected to be the largest segment. Rise in disposable income and changing the lifestyle of consumers are fuelling the demand for high-end cosmetics, detergents, soaps, perfumes, and other household & personal care products. This, in turn, is contributing to the overall growth of the consumer products segment.
- The spending pattern of consumers in developing countries has been increasing, especially in recent years. This trend is expected to further drive the market in developing nations.
Scope of the Report
Global Flavor and Fragrance Market is segmented by Source (Natural and Synthetic); By Application (Food, Beverages, and Beauty and Personal Care) and Geography.
Key Market Trends
Increase in Demand for Naturally Sourced Flavors and Fragrances
The growth is due to the increasing demand for natural flavors and fragrances in the food & beverage industry. An increase in the production of natural personal care products with essential oils and exotic aroma is likely to drive the product demand during the forecast period. The rising demand for cosmetics with natural fragrances is also a key factor that is expected to drive the market, globally. In order to gain a competitive edge over other players, the leading companies are producing natural flavors and fragrances to strengthen their consumer base across regions. Asia-Pacific is estimated to witness significant growth, owing to increasing quick-service restaurants, such as McDonald's, expanding the cosmetics industry, and high purchasing power and spending of consumers on cosmetics and personal care products.
North America Leads in Global Market
The premiumization trend is highly prevalent in North America and is being leveraged all over the industry in order to maintain consumer interest. Premium versions of the products target consumers who are willing to pay high prices for high-quality ingredients and better flavors and fragrances. The North American market for flavor and fragrance is mature and quite stable. Hence, there is a high potential for transformed growth as the market recovers from the economic downturn. Increasing demand for low-fat and low-carbohydrate food in the region is fuelling the demand for flavors in the food & beverage industry, in order to enhance the taste of products. Also, the high growth of the RTD beverage market is expected to increase the demand for flavors and fragrances in North America. The United States is the largest market in the region, followed by Canada, owing to the high consumption of convenience and processed food.
The global flavor and fragrance market is highly competitive and concentrated, with key players competing for major market share and small regional players catering to smaller regions, to acquire nearly half of the market share. The key players are majorly based in North American and European regions. Key strategies adopted by the players in the market are acquisitions, expansions, innovations, and new product launches.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support