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The global flavors & fragrances industry size stood at USD 23.35 billion in 2021 and will exhibit compelling gain on the back of strong demand for essential oil, oleoresins and aroma chemicals, according to the "Flavors & Fragrances Industry Data Book, 2023 – 2030," published by Grand View Research. Bullish penetration of fragrances in cosmetics, soaps & detergents, perfumes and toiletries, and the shifting consumer trend for cleaner products will reshape the dynamics in the landscape. With millennials advocating for clean labels, manufacturers are expected to meet consumer expectations through investments in natural flavors.
The food and cosmetics sectors have sought flavor ingredients following the rising footprint of processed and low-calorie food. Besides, burgeoning urbanization and surging disposable income will continue to steer the industry growth. The food & beverage sector will further the investments in flavors & fragrances to keep up with the demand for ready-to-eat and packaged food products.
Soaring customer demand for sustainable products, health foods and rigorous government regulations has underscored the trend for natural ingredients-based products. The bullish footprint of exotic dishes and local cuisines, as well as government regulations on using specific synthetic flavors in food production, has prompted industry players to inject funds into natural flavors. The shifting global trend in the landscape is attributed to the valuation of the natural flavors and fragrances market size at USD 8.51 billion in 2022 and its projected CAGR of 4.6% from 2023 to 2030.
Order your copy of the Free Sample of "Flavors & Fragrances Industry Data Book - Natural Flavors & Fragrances and Aroma Chemicals Market Size, Share, Trends Analysis, And Segment Forecasts, 2023 - 2030" Data Book, published by Grand View Research
End-users have exhibited heightened demand for synthetic ingredients for increased shelf-life and low costs. The consumption of aroma chemicals, including esters and aldehydes, will be pronounced in the food & beverage and perfume industries. Personal care products will continue to be sought among people of all genders, prompting market players to boost the ingredient portfolio and enhance customer experience. The aroma chemicals market size garnered USD 15.6 billion in 2022 and will depict around 3.3% CAGR through 2030.
Some dynamics that are expected to have an overarching influence on the global landscape are highlighted below:
- Heightened awareness regarding personal hygiene and growing footfall of fragrances in cosmetics and toiletries will boost the market share.
- Asia Pacific will account for a significant share of the global market on the back of compelling demand for aroma chemicals in soaps and detergents. Besides, sustainable and natural products will reinforce regional growth.
- Stakeholders are slated to ramp up essential oil projects to solidify their position in the Middle East & Africa. For instance, in March 2023, South Africa and Uganda inked an MoU on essential oils.
The flavors and fragrances industry in North America will witness promising gains, partly due to buoyant demand for the ingredients in food & beverage, consumer, dairy and bakery products. Amidst the popularity of aroma chemicals, the U.S. and Canada will further their penetration in the essential oil portfolio. Additionally, retailers and consumer brands are poised to expand their footprint into confectionery, beverages, consumer products and perfumes. For instance, in April 2023, Bell Flavors & Fragrances launched a new office in Mexico City. The new office will help in the making of tailor-made flavors and fragrances. Well-established players are poised to undergird their geographical footprint to provide customized solutions and boost their brand value.
Amidst the shifting market landscape, forward-looking companies could inject funds into organic and inorganic strategies, such as technological advancements, mergers & acquisitions, product rollouts, innovations and R&D activities. To illustrate, in January 2023, Symrise announced the acquisition of a minority stake in EvodiaBio. The latter has reportedly developed advanced technology to produce sustainable taste products using precision fermentation for the food & beverage industry. Meanwhile, in June 2022, BASF Aroma Ingredients rolled out Virtual Aroma Assistant to foster customer experience and keep up with the demand for sustainable products.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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