The global flavors & fragrances market is anticipated to surpass USD 28.6 billion by 2025. The market is predicted to grow at nearly 4.5% CAGR over the forecast period (2014 to 2025). Significant demand from cosmetics, toiletries, foods, and beverages can drive the market expansion.
Flavors & fragrances leave a lasting sensory impression on foods, beverages, and medicines among others. They are available in both natural & synthetic forms. They enhance overall appeal and aesthetic value of numerous products. Synthetic flavors & fragrances are manufactured using essential oils and volatile chemicals. These ingredients enhance the intensity of various fragrances & flavors. Natural fragrances & flavors are considered safe & therapeutic. Popularity of fresh & natural products among consumers is anticipated to fuel the market during the forecast period.
Flavors are extensively used in pharmaceuticals, nutraceuticals, and dietary supplements. Awareness regarding health & wellness encourages preference for natural flavoring ingredients. Fragrances can witness significant rise in consumption. This is attributed to augmented demand for detergents, soaps, cosmetics, toiletries, and perfumes from developing countries.
In-depth research report on global flavors & fragrances market - http://www.grandviewresearch.com/industry-analysis/flavors-fragrances-market
Synthetic fragrances are long-lasting and they also emit stronger scent. Natural fragrances on the other hand, produce inconsistent aromas and have volatile prices. Hence, manufacturers in the market prefer synthetic products.
The worldwide flavors & fragrances market is split into applications, products, and geographies. On the basis of applications, the market is bifurcated into flavors and fragrances. Flavors segment encompasses bakery foods, beverages, confectionary, convenience foods, dairy, and others. These products are used in numerous commercial and domestic foods & beverages. Beverages may exhibit growth at the highest CAGR over the forecast period. Launch of new products for functional beverages and juices can drive the demand.
Fragrances are further categorized into cosmetics & toiletries, fine fragrances, soaps & detergents, and others. Growing investment in new products is anticipated to drive this market segment at the highest CAGR over the coming years. Applications in automotive, home care, hospitality, personal care, and pharmaceuticals can impel this growth.
According to products, the market segments are natural and aroma chemicals. Natural products are further classified into essential oils, oleoresins, and others. Aroma chemicals are further split into esters, alcohol, aldehyde, and phenol, among others. Aroma chemicals may continue holding the largest market share in the years to come. Fragrance industry is expected to emerge as the biggest consumer of aroma chemicals from 2014 to 2025.
Natural flavors & fragrances can be the fastest growing product segment over the forecast period. Essential oils are predicted to dominate this segment till 2025. Applications in aromatherapy, pharmaceuticals, and natural cosmetics may propel this dominance in the next few years. Popularity of natural products in developed countries can positively impact the overall market growth.
As per geographies, the market is fragmented into North America, Europe, Asia Pacific, Central & South America (CSA), and Middle East & Africa (MEA). Asia Pacific is expected to exhibit the highest CAGR owing to availability of raw materials and augmenting demand. North America is projected to grow at a 4.7% CAGR over the coming years. Europe and North America can register a significant growth during the forecast period. Concentration of cosmetic industry in these regions is the key driving factor.
Regulatory authorities such as U.S. Department of Agriculture (USDA), Food & Drug Agency (FDA), and World Health Organization (WHO) have levied certain manufacturing & labeling laws and guidelines. It is mandatory for the manufacturers to follow them. Integration of manufacturing & distribution channels is the key strategy adopted by most market participants to attain approachability. Obtaining certifications like ISO, Kosher, and Halal helps them attain advantage in this highly competitive market.
Pennsylvania-based Yuengling Ice Cream has created a Muggle-themed treat for the Potter-heads. The creamery recently announced their newest flavor called “Butterbeer”. This product is an amalgamation of buttercream and butterscotch ice creams with butterscotch swirl.