The global flavors and fragrances market size was valued at USD 25.89 billion in 2021. The market is projected to grow from USD 26.54 billion in 2022 to USD 36.49 billion by 2027, exhibiting a CAGR of 4.7% during the forecast period.
Flavors and fragrances are made from lactones, acids, esters, ketones, alcohol, and aldehydes. They are substances added to enhance the value of a product by modifying the characteristics of the solute, such as providing a pleasant odor or imparting sweet, sour, tangy, and other taste profiles. The preparation of these sensory improvement products involves a rigorous process. Personal care is a significant application segment, owing to increase in demand for deodorants, perfumes, soaps, creams, talcum powders, and hair oils. Rise in demand for car and room fresheners and increase in popularity of aromatherapy are also expected to drive growth of the market for fragrance ingredients. The hospitality sector is also experiencing a growth in demand for fragrances to create a pleasant atmosphere. Fragrances are widely approved for industrial use, such as ambience fragrances for consumer durables and personal care accessories, which was an unexplored category previously. In addition, owing to growth in disposable income, more local consumers, especially young consumers, opt for quality goods. In the wake of the global pandemic, a greater focus on hygiene products has driven the market for new and creative fragrances used in products such as hand washes, sanitizers, and floor cleaners.Large-scale companies are focusing on adopting new technologies to stay ahead of the competition in the global market. For instance, in April 2021, Givaudan announced the acquisition of Myrissi, a developer of a patented AI technology capable of rendering fragrances into color pallets and imagery to attract the consumer and predict the end consumer’s emotional response. The acquisition helped the company to expand its AI-based capabilities in developing novel fragrances.
Drivers: Growth in Pharmaceuticals and Cosmetics Industries
The constantly expanding cosmetic sector is a driving element in the growth of the Market.The demand for perfumes, cosmetics, toiletries, soaps, and detergents increased as developing economies became more modern. Further, a rising preference for organic ingredients in the personal care industry drives up demand for natural fragrances as they are perceived to be safer, healthier, and therapeutic when consumed. The demand for synthetic perfumes is also rising as a result of their strong and long-lasting fragrance qualities. The manufacturers of fragrances are adopting innovative to satisfy consumer desire for distinctive fragrances in cosmetics. For instance, Sensityl, an active cosmetic ingredient that serves the consumer benefits for both beauty and health, was introduced by Givaudan in 2019. So, innovation in fragrances will also aid in the growth of the flavours and fragrances market.
The increasing use of flavors in the pharmaceutical industry is also an attribute to market growth. The flavors are inactive ingredients in syrups, suspensions, chewable tablets, gums, and others. The added flavor overcomes the bitter taste of medicine, makes it more edible, and transmits a beneficial therapeutic effect. Hence the rise in demand from the pharmaceutical industry shall further lead to Growth of the Flavors and Fragrances Market.
Restraints: Allergies associated with artificial flavors, chemicals and preservatives
Allergies to artificial flavours, chemicals, and preservatives are the main concerns limiting the Flavours and Fragrances Market.
Despite the availability of numerous natural colours derived from foods like beets, carrots, and other vegetables, many manufacturers prefer to utilise artificial tastes since they are more readily available and substantially less expensive than natural flavours.
Artificial flavours and colours, however, may pose health risks, particularly for young people. Several consumers also suffer from allergies to the plant based ingredients used to produce dairy and meat substitutes. In contrast to sulfites, which are used to preserve dried fruit, canned products, and wines and may induce an asthma attack in certain people, certain artificial tastes and fragrances employed by manufacturers to preserve food may cause severe allergies in consumers. Consequently, the use of artificial colours and tastes in food prevents the Market from Growth.
Opportunities: Development of Regional and Novel Flavors and Fragrances Market
Strong growth in the food & beverage industry led to the innovation of new flavors. Changes in taste and preferences of consumers coupled with the trend of the ready-to-eat product led to an opportunity for the manufacturer to come up with innovations to meet consumer demand. For instance, recently, the company Ben & Jerry's launched its new ice-cream flavor called Netflix & Chill'd, a vegan version of traditional peanut butter ice cream. Asia Pacific is the fastest-growing region in terms of consumer spending on eating out. The growth of Flavors and Fragrances Market is attributed to the availability of food & beverages in shopping malls, selling foods through an online platform, and similar factors. Furthermore, many companies are researching the development of new flavors based on traditional food products.
Key Segments of Flavors and Fragrances Market are:
Flavors and Fragrances Market by Type:
Flavors and Fragrances Market by Application:
On the basis of Geography, the Global Flavors and Fragrances Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. The Asia Pacific is expected to hold the largest market share in the forecast period owing to the rapid industrial growth.
Forecast Period 2022 to 2027 CAGR
CAGR of 4.7% during the review period (2022 to 2027).
Firmenich, Givaudan, International Flavors & Fragrances, Symrise, Takasago, International Flavors＆Fragrances, MANE, Robertet Group, Sensient Technologies Corporation.
2017 to 2021
2022 to 2027
Number of Pages
Yes, the report can be customized as per your needs
Key Benefits of Purchasing Flavors and Fragrances Market Reports from Industry Data Analytics:
What is the study period of Flavors and Fragrances Market?
The Flavors and Fragrances Market is studied from 2017 - 2027.
What is the growth rate of Flavors and Fragrances Market?
The Flavors and Fragrances Market is growing at a CAGR of 4.7% over the next 6 years.
Which are the top companies in the Flavors and Fragrances Market?
The top companies are Firmenich SA, Frutarom Industries Ltd., Givaudan International SA, Huabao International Holdings Limited, Kerry Group, PLC, Robertet SA, S H Kelkar and Company Limited, Sensient Technologies Corporation, Symrise AG and International Flavors & Fragrances, Inc
All our reports are custom made to your company needs to a certain extent, we do provide 5 free consulting hours along with purchase of each report, and this will allow you to request any additional data to customize the report as your needs.
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