Flavors & Fragrances Market

Report Overview
The global market for flavors and fragrances had a value of USD 29.15 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 5.4% from 2023 to 2030. The increasing consumption of processed food and personal care products worldwide is expected to drive the demand for flavors and fragrances. The growing disposable income in emerging economies like India and China, along with population growth, is anticipated to boost the demand for personal care and cosmetic products. Additionally, the busy life prevalent in both developing and developed countries is likely to increase the demand for processed foods and beverages, thereby driving the need for flavors.

Due to the cost and limited availability of natural fragrances and flavors, industry players have developed cost-efficient synthetic alternatives. These synthetic products offer advantages such as consistent supply, stable pricing, and lower production costs. Previously, multi-year contracts between dealers were common in the industry, but this practice has become less popular. The increased awareness regarding the negative effects of allopathic medicines and growing interest in the medicinal benefits and therapeutic effects of herbal products are expected to drive the demand for herbal-based products, dietary supplements, and beauty aids derived from botanical extracts. These extracts are used in anti-aging cosmetic products to combat the damage caused by bioflavonoids.
Flavors and fragrances play a crucial role in enhancing the sensory experience and overall appeal of consumer goods, including medical products, beverages, and food. The growing demand for health and wellness foods, ready-to-eat meals, convenience meals, and advancements in technology are expected to further contribute to the growth of the industry.

Product Type Insights
 The natural chemicals segment dominated the industry in 2022, accounting for more than 74.30% of the overall revenue. This is attributed to the increasing usage of natural chemicals in various sectors such as pharmaceuticals, aromatherapy, and natural cosmetics. Additionally, the rise in research expenditure for the development of natural fragrance compounds is expected to have a positive impact on the industry. Aroma chemicals, which are synthetic fragrances, find applications in essential oils, food and beverages, and perfumes.
Aroma chemicals play a vital role in the manufacturing of fragrances and flavors used in the food industry to enhance the taste and appeal of products. These chemicals include phenols, aldehydes, alcohols, esters, and other compounds. There is a growing demand for natural products, especially exotic essential oils used in pharmaceuticals, aromatherapy, and natural cosmetics. Developed countries have a high demand for fragrances that incorporate natural oils, leading to the use of exotic essential oils such as sandalwood, juniper, rosemary, lavender, and geranium in various new blends.

Report Coverage & Deliverables
• Competitive benchmarking
• Historical data and forecasts
• Company revenue shares
• Regional opportunities
• Latest trends and dynamics

Application Insights
In 2022, the fragrances application segment dominated the global industry, accounting for over 53.60% of the overall revenue. This significant share can be attributed to the growing demand for fragrances in toiletries, including hand washes, detergents, soaps, personal care products, and cosmetics. Fragrance also plays a crucial role in aromatherapy applications, driving the demand for essential oils, materials, compounds, and aromatic oils in this sector. Furthermore, the increasing popularity of aromatherapy diffusers is expected to fuel the industry's growth in the future. Flavors, on the other hand, are used in food and beverage products. The application of flavors in various commercial and domestic food and beverage products is on the rise. Additionally, feed and feed additive manufacturers are focusing on enhancing palatability to increase feed intake, driving the demand for flavors in animal feed applications and supporting overall market growth.

Regional Insights
Asia Pacific held the highest share of over 31.40% of the global industry in 2022, making it the dominant region. This can be attributed to changing consumer preferences towards nutritious and healthy foods and beverages, particularly in densely populated countries like India and China. Asian flavors and fragrances have also gained popularity in major regions of Europe and North America. Countries such as Indonesia, India, China, and Vietnam are prominent food flavor markets in the Asia Pacific region. Several manufacturing companies are expanding their businesses and investing in research and development facilities in the Asia Pacific region, attracted by factors such as government subsidies, tax benefits, and high per capita income. Trade agreements such as the Comprehensive Economic & Trade Agreement (CETA) between Canada and the European Union are expected to facilitate trade of essential oils between Europe and North America, presenting growth opportunities for players in the essential oils and floral extracts industry in North America.

Key Companies & Market Share Insights
The industry is characterized by a fragmented market with large-scale multinational companies dominating the sector. Smaller companies differentiate themselves by creating unique natural fragrances and flavors, making it challenging for competitors to imitate and enter the domestic market. Manufacturers are facing profit margin issues, exacerbated by demands from retailers and processors for private label brands. Safety considerations and environmental protection laws are becoming increasingly important in developed countries. Operating costs and investment expenses are also rising each year, making it difficult to obtain clearances for new projects in developed countries. Creativity and innovation are crucial for gaining a competitive edge, leading to the search for new ingredients but resulting in higher processing costs. These factors pose challenges for industry players. Some of the prominent players in the global flavors and fragrances market include • Sensient Technologies Corp.
• Mane SA
• Takasago International Corp.
• Manohar Botanical Extracts Pvt. Ltd.
• Alpha Aromatics
• Ozone Naturals
• Elevance Renewable Sciences, Inc.
• Firmenich SA
• Symrise AG
• Vigon International, Inc.
• BASF SE
• Indo World
• Akay Flavors & Aromatics Pvt. Ltd.
• Ungerer & Company
• Synthite Industries Ltd.
• Universal Oleoresins
• Flavex Naturextrakte GmbH
• Falcon Essential Oils
• doTERRA International
• Young Living Essential Oils
• Biolandes SAS
• International Flavors and Fragrances, Inc.
• Givaudan.

Global Flavors And Fragrances Market Segmentation
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global flavors and fragrances market report on the basis of product, application, and region:
Product Outlook (Revenue, USD Million, 2023 - 2030)
o Natural
o Essential Oils
o Orange Essential Oils
o Corn mint Essential Oils
o Eucalyptus Essential Oils
o Pepper Mint Essential Oils
o Lemon Essential Oils
o Citronella Essential Oils
o Patchouli Essential Oils
o Clove Essential Oils
o Ylang Ylang/Canaga Essential Oils
o Lavender Essential Oils
o Oleoresins
o Paprika Oleoresins
o Black Pepper Oleoresins
o Turmeric Oleoresins
o Ginger Oleoresins
o Others
o Aroma Chemical
o Esters
o Alcohol
o Aldehydes
o Phenol
o Terpenes
o Others
• Application Outlook (Revenue, USD Million, 2023 - 2030)
o Flavors
o Confectionery
o Convenience Food
o Bakery Food
o Dairy Food
o Beverages
o Animal Feed
o Others
o Fragrances
o Fine Fragrances
o Cosmetics & Toiletries
o Soaps & Detergents
o Aromatherapy
o Others
• Regional Outlook (Revenue, USD Million, 2023 - 2030)
o North America
o U.S.
o Canada
o Mexico
o Europe
o Germany
o U.K.
o France
o Spain
o Portugal
o Turkey
o Asia Pacific
o China
o India
o Japan
o SEA
o Indonesia
o Central & South America
o Brazil
o Colombia
o Middle East & Africa
o Saudi Arabia
o Africa Continent