According to Fortune Business Insights™ The global flavors and fragrances market size is prognosticated to reach USD 38.56 billion by 2026, exhibiting a CAGR of 4.8%by 2026. This is attributable to the rapid growth of the food and beverage industry that propelled the demand for new flavors. This information is published in an upcoming report by Fortune Business Insights™
The flavors and fragrances market size value stood at USD 26.50 billion in 2018 and is prognosticated to reach USD 38.56 billion by 2026, exhibiting a CAGR of 4.8%by 2026.
Drivers –
Increasing Demand from Cosmetic Industry to Drive Market
The prevailing trend of ready-to-eatand convenience food products have propelled companies to introduce innovative flavors into the food and beverage industry. The increasing demand for innovative products from the food and beverage industry is a major factor boosting the flavors and fragrances market growth.In addition to this, there is a rise in demand for scented soaps, detergents, toiletries, and cosmetics, andperfumes, owing to the rise in modernization and the adoption of higher living standards among people. Therefore, the increasing demand from the cosmetic industry will also add impetus to the overall market in the forecast period.
On the other side, synthetic fragrances are gaining popularity on account of their strong aroma and long-lasting properties. Analysts at Fortune Business Insights™ say, “There is a high preference for organic ingredients in the personal care sector. This is further propelling the demand for natural fragrances.” Therefore, the demand for synthetic and organic fragrances are anticipated to expand the flavors and fragrances market in the forecast period.
There is a rise in demand for flavors from the pharmaceutical industry as well. This is owing to the fact that flavors overpower the bitter taste of medicines and make it more edible, thus transmitting a beneficial therapeutic effect. Flavors are utilized as inactive ingredients in pharmaceutical products such as chewable gums and tablets, suspensions, syrups, and others. Therefore, the increasing demand for flavors from the pharmaceutical industry will help the market to grow remarkably in the forecast duration.
Regional Analysis –
Asia Pacific to Emerge as Most Lucrative Market Owing to Increasing Demand from Cosmetic Industry
Europe is holding a significant position in the market on account of the increasing demand for encapsulated flavors and fragrances in liquor-based drinks as well as in cosmetic products in the region. Additionally, the market in North America has reached the maturity phase while this region earned USD 6.41 billion in 2018. Furthermore, Asia Pacific is likely to emerge as the most lucrative market owing to the rise in demand for flavors and fragrances from both the food and cosmetic industries.
Competitive Landscape –
Merger and Acquisition is Major Strategy Adopted by Players
Currently, four key companies, namely Firmenich SA, Symrise AG, International Flavors and Fragrances (IFF), and Givaudan, are collectively holding 50% of the global flavors and fragrances market share.Companies are adopting merger and acquisition strategies to gain a competitive edge in the market. For instance, Firmenich has started the construction of a new plant in China since 2019 and Givaudan acquired more than five companies since 2018.
Key Industry Development in Flavors and Fragrances Market Include:
March 2019 – Firmenich invested USD 75 million in the first phase of opening the largest flavor manufacturing plant in Zhangjiagang Free Trade Zone in China with an annual capacity of 12 KT. This expansion will help to serve consumers in China by introducing a wide range of local flavors in basic products such as tea, noodles, and dairy drinks.
Source: https://www.fortunebusinessinsights.com/flavors-and-fragrances-market-102329
