Flavors and Fragrances Market Size (2023-2030)

The global Flavors and Fragrances Market was estimated to be worth USD 27 Billion in 2022 & is projected to reach market value of USD 40.20 Billion by 2030, growing at a fast compound annual growth rate (CAGR) of 5.1% during the forecast period 2023-2030.

Industry Overview:

The flavors and fragrances market consists of aromatic products used to provide a unique taste or fragrance to different consumer products such as food and beverages, personal care products, pharmaceuticals, home care products, and others. These are used to enrich, add, or alter the taste of the base product, whereas fragrance is a desirable and pleasant scent to a person’s body.

The market primarily consists of sales of esters, carboxylic acid, solvents, and surfactants. The major segment includes flavors and fragrances. The flavors consist of ingredients made by a mixture of spices, herbs, and taste components, and are used in foods to intensify or extemporize various flavors into the dish. These flavors and fragrances may be available in various forms and are used in several industries.

Impact of COVID-19 on the Flavors and Fragrances Market:

The global flavors and fragrances market faced a sharp impact due to the advent of COVID-19. Supply chain disruption due to travel restrictions, social distancing norms, and shut-down of manufacturing and production facilities were some of the major issues that slowed down food and fragrances market revenue growth. Additionally, the loss of smell and taste has posed a serious threat to the key companies operating in the market to develop solutions and products to address the problem. However, situations have improved vastly post-pandemic, and more investment funds and developments are being observed in this market expanding the growth.

Market Drivers:

The rising preference and adoption of packaged convenience food are boosting demand for flavours and fragrances globally.

The growing preference of people toward packaged and convenience foods is fuelling the flavors and fragrances market. Convenience foods are processed food products that take less preparation time prior to consumption. They consist of ready-to-eat food products, packaged foods, and preserved foods. The rising preference change towards convenience foods is likely to increase the demand for food flavors and fragrances, as they are widely used to enhance the taste and longevity of the products. Therefore, the increase in consumer preference for packaged food is anticipated to boost the market growth during the outlook period.

The increasing application in the pharmaceutical and cosmetic sectors is fuelling market expansion.

Usually, infants and children prefer flavored pharmaceutical treatments and formulations. Aromatherapy or essential oil therapy is another widely used medical application where flavors and fragrances are extensively used. Additionally, the beauty and cosmetic sectors are also using flavors and fragrances. They help to cover unpleasant odors caused by fatty acids, oils, and surfactants, which are generally found in cosmetic compositions. Apart from this, the rise in demand for natural or organic flavors and fragrances is another major factor augmenting market revenue growth.

Market Restraints:

The high processing cost of natural fragrances and flavours may hinder market growth.

Natural fragrances and flavors have processing costs that are very high due to their limited resources. Therefore, several industry players have developed cost-efficient alternatives. But the high demand for natural fragrances and flavours owing to the awareness levels among consumers regarding the products is affecting the market size and hindering the expansion rate.

FLAVOURS AND FRAGRANCES MARKET REPORT COVERAGE:

Market Segments:

This research report on the global Flavors and Fragrances Market has been segmented based on Product Type, Source, End Use, and Region.

Flavors and Fragrances Market - By Product Type

• Natural Flavours and Fragrance
  • Essential Oil
    • Orange Essential Oils
    • Corn Mint Essential Oils
    • Eucalyptus Essential Oil
    • Pepper Mint essential oil
    • Lemon essential oils

• Oleoresins
  • Paprika oleoresins
  • Black pepper oleoresins
  • Turmeric oleoresins 
  • Ginger oleoresins
• Others

• Aroma Chemicals
  • Esters 
  • Alcohol
  • Aldehyde
  • Phenol
  • Others

In 2022, the natural flavours and fragrances segment dominated the industry and accounted for the highest share of the global market revenue. This may be attributed to the ever-growing product usage in several application verticals such as pharmaceuticals, aromatherapy, and cosmetics industry. Furthermore, increasing investments and spending for the development of natural fragrance compounds is anticipated to have a positive outlook on the overall industry.

Flavors and Fragrances Market – By Source

• Natural Ingredients
• Synthetic Ingredients

In 2022, the natural ingredients segment held the highest market share due to more people focussing on natural ingredient products and the awareness among them. Natural Ingredient Flavours and Fragrances usually contain no to very less additives which makes them a safe and clean product to use thereby, resulting in rapid segment growth.

Flavors and Fragrances Market – By End Use

• Flavors
  • Beverages
  • Savoury & Snacks
  • Dairy Products
  • Bakery
  • Confectionery
  • Others (Animal Feeds, Tobacco) 
• Fragrances
  • Cosmetics and Toiletries 
  • Soap and Detergents
  • Fine Fragrances
  • Others (Aromatherapy, Candles, insecticides)

In 2022, the fragrance end-use segment dominated the global industry and accounted for the largest share of the global flavours and fragrances revenue. Such a high share of this segment may be attributed to the rising demand for various fragrances in toiletries, such as hand washes, soaps, personal care products, and the cosmetics industry. Furthermore, fragrance plays an integral role in aromatherapy applications, due to which essential oils and aromatic oils demand is predicted to be driven in several aromatherapy applications.

Additionally, the increasing focus of feed and feed additive manufacturers on providing palatability solutions to increase feed intake is projected to fuel the demand for flavors in various animal feed applications augmenting the overall market growth.

Flavors and Fragrances Market – By Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East and Africa

Asia Pacific dominated the global industry in 2022 and accounted for the largest share of the global market revenue. This is attributed to the shift in choices of consumers towards healthy foods and beverage options in countries like India and China. Therefore, multiple manufacturing companies are aiming for the expansion of their business and investments in R&D facilities in the Asia Pacific region.

Other factors, such as government subsidies, tax benefits, and high per capita income, are also attracting global companies to expand and start their operation in the region. This is further intended to boost the trade of essential oils between Europe and North America, thereby providing a remarkable growth opportunity for the industry players in North America.

Major Key Players in the Market:

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.

Market Insights and Developments:

• In February 2021, International Flavors & Fragrances Inc., a US-based corporation, collaborated with DuPont’s Nutrition & Biosciences.