Flavors And Fragrances Industry

The global flavors and fragrances market size was estimated at USD 30.61 billion in 2023 and is anticipated to grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2030. The market is anticipated to be driven by rising demand and consumption of processed food and personal care & cosmetic products globally. Rising disposable income in emerging economies like India and China coupled with population growth, is expected to augment demand for personal care and cosmetic products in industry. In addition, busy lifestyle pattern upheld in developing as well as developed countries is anticipated to augment demand for processed foods & beverages, thereby increasing demand for flavors.

Natural fragrances and flavors are costly due to their processing; and because of limited resources, industry players have developed cost-efficient synthetic alternatives. These products have advantages of regular supply, steady pricing, and lower production costs. In past years, there used to exist an arrangement in which dealers would have a multi-year contract with other dealers.

Gather more insights about the market drivers, restrains and growth of the Global Flavors And Fragrances market

Flavors And Fragrances Market Segments Highlights:

Market Concentration & Characteristics

The industry is fragmented and dominated by large-scale multinational companies. Smaller companies differentiate themselves by creating unique natural fragrances and flavors, and as a result, make it difficult for their competitors to imitate and enter domestic market. The manufacturers are experiencing profit margin problems, which have become worse due to demands of retailers and processors and their private label brands. Safety considerations and environmental protection laws are becoming vital in most developed countries.

Product Insights

In terms of product, the natural chemicals segment dominated the industry in 2023 with the maximum revenue share of more than 74.5%. This is attributed to ever-increasing product usage in various application industries such as pharmaceuticals, aromatherapy, and natural cosmetics. Furthermore, increasing research spending for development of natural fragrance compounds is expected to have a positive impact on overall industry. Aroma chemicals are synthetic aromas, which are used in many applications, such as essential oils, food & beverages, and perfumes.

Application Insights

The fragrances application segment dominated the global industry in 2023 with the maximum revenue share of more than 51.9%. The large share of this segment can be attributed to increased demand for various fragrances in toiletries, such as hand washes, detergents, soaps, personal care products, and cosmetics. Furthermore, fragrance plays an important role in aromatherapy applications, owing to which essential oils, materials, compounds, and aromatic oils demand is likely to be driven in aromatherapy applications.

Regional Insights

Asia Pacific dominated global industry in 2023 with the largest revenue share of more than 32.0%. This large share is attributed to shift in choices of consumers towards nutritional and healthy foods and beverages in most populated countries like India and China. Asian flavors and fragrances have also gained popularity in major regions of Europe, Middle East and North America. Indonesia, India, China, and Vietnam are among the prominent food flavor markets in Asia Pacific region. Multiple manufacturing companies are focusing on expansion of their business and investments in R&D facilities in the Asia Pacific region.

Browse through Grand View Research's Food Additives & Nutricosmetics Industry Research Reports.

1. The global specialty ingredients market size was valued at USD 142.5 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 6.1% from 2024 to 2030.

2. The global meat flavors market size was estimated at USD 3.68 billion in 2023 and is expected to grow at a CAGR of 5.8% from 2024 to 2030. The demand for meat flavors is rising, driven by significant shifts in consumer preferences and broader industry trends.

Key Flavors And Fragrances Company Insights

Some of the key players includesGivaudan,Young Living Essential Oils, and dōTERRA International

1. Givaudan manufactures and sells fragrances and flavors. The company offers a range of fragrances for fabric, personal care, hair and skin care, household care products. It has a wide network of suppliers for its production facilities with 185 locations worldwide, and 79 production sites.

2. Young Living Essential Oils is engaged in manufacturing natural oils and chemicals. The company operates through offices and production units located in Australia, Europe, the U.S., Canada, Japan, and Singapore along with farms located in the U.S., Ecuador, Canada, France, and Oman.

Key Flavors And Fragrances Companies:

The following are the leading companies in the flavors and fragrances market. These companies collectively hold the largest market share and dictate industry trends. Financials, strategy maps & products of these flavors and fragrances companies are analyzed to map the supply network.

1. Sensient Technologies Corp.

2. Mane SA

3. Takasago International Corp.

4. Manohar Botanical Extracts Pvt. Ltd.

5. Alpha Aromatics

6. Ozone Naturals

7. Elevance Renewable Sciences, Inc.

8. Firmenich SA

9. Symrise AG

10. Vigon International, Inc.

11. BASF SE

12. Indo World

13. Akay Flavors & Aromatics Pvt. Ltd.

14. Ungerer & Company

15. Synthite Industries Ltd.

16. Universal Oleoresins

17. Flavex Naturextrakte GmbH

18. Falcon Essential Oils

19. doTERRA International

20. Young Living Essential Oils

21. Biolandes SAS

22. International Flavors and Fragrances, Inc.

23. Givaudan

Segments Covered in the Report

Grand View Research has segmented the global flavors and fragrances market based on product, application, and region:

Flavors And Fragrances Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

1. Natural

   1. Essential Oils

   2. Oleoresins

   3. Others

2. Aroma Chemicals

   1. Esters

   2. Alcohol

   3. Aldehydes

   4. Phenol

   5. Terpenes

   6. Others

Flavors And Fragrances Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

1. Flavors

   1. Esters

   2. Alcohol

   3. Aldehydes

   4. Phenol

   5. Terpenes

   6. Others

2. Fragrances

   1. Esters

   2. Alcohol

   3. Aldehydes

   4. Phenol

   5. Terpenes

   6. Others

Flavors And Fragrances Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

1. North America

   1. US

   2. Canada

   3. Mexico

2. Europe

   1. Germany

   2. UK

   3. France

   4. Spain

   5. Italy

   6. Russia

   7. Portugal

   8. Turkey

3. Asia Pacific

   1. China

   2. China

   3. India

   4. Japan

   5. SEA

   6. Indonesia

   7. Bangladesh

   8. Philippines

   9. Australia

4. Central & South America

   1. Brazil

   2. Columbia

   3. Argentina

5. Middle East & Africa

   1. Saudi Arbia

   2. Iran

   3. Africa Continent

Recent Developments

Key companies are adopting several organic and inorganic growth strategies, such as capacity expansion, mergers & acquisitions, and joint ventures, to maintain and expand their market share.

1. In January 2023 Symrise AG invested in Ignite Venture Studio. It is B2C startup ventures in the personal care sector. Symrise has invested in Ignite Venture Studio to drive product innovations in fragrance and cosmetic ingredients.

2. In December 2022, -Symrise had partnered with Norwest Ingredients for comprehensive sustainability assessment of peppermint and spearmint raw materials.

3. In December 2022, Mane Group has opened two new facilities in India. The first site is located at MANE KANCOR Angamaly, Kerala; the second is at MANE KANCOR Byadgi, Karnataka

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