subject: Reportlinker Adds World Flavors & Fragrances Market [print this page] Global demand to rise 4.3% annually through 2014
Worldwide demand for flavors and fragrances -- including flavor and fragrance blends, as well as essential oils and other natural extracts, and aroma chemicals -- is projected to increase 4.3 percent per year to $23.5 billion in 2014. Overall advances will be stimulated by gains in food and beverage processing activity, which represents by far the largest market segment. Growth in personal income levels and consumer spending will also stimulate demand for flavors and fragrances used in cosmetics and toiletries, a market segment historically concentrated in North America and Western Europe, but now seeing rapid advances in developing regions. The best opportunities for flavors and fragrances will be found in the Asia/Pacific region, which will account for one-third of total value gains between 2009 and 2014.
China, India among best growth opportunities
While the US is by far the world's largest user of flavors and fragrances (accounting for one-quarter of world demand), the fastest growth will occur in developing regions. Asia, Central and South America, Eastern Europe and the Africa/ Mideast region will all outpace the global average. Industrialization trends and aroma chemicals manufacturer increases in living standards will fuel demand for flavors and fragrances in generally underdeveloped end-user manufacturing industries of these regions. Over the forecast period, the Asia/Pacific region will surpass Western Europe to become the second largest regional consumer of flavors and fragrances, behind North America. In particular, China and India will see some of the most rapid growth in both demand and output, as multinational producers continue to establish subsidiaries in these countries in order to meet local demand.
Food and beverages to remain largest market
Food and beverages, which accounted for 47 percent of aggregate demand in 2009, will remain the largest market for flavors and fragrances. This is due to the widespread application of flavor materials in processed food, snacks, soft drinks, candy and confectioneries, and other items such as meat and seafood products, aroma chemicals manufacturer sauces and condiments. The further expansion of fortified food -- as well as beverages -- will provide opportunities, since flavors are often used to cover up the off-tastes of vitamins, minerals, antioxidants and other added ingredients. Trends toward fast food and other convenience-oriented food options (e.g., ready-to-eat meals) will further boost demand, as these highly processed items often require stronger flavor loadings. The toiletry and cleaner segment will also remain an important market. Faster growth is expected for applications in cosmetics and toiletries, while demand in the well-established detergent and cleaner industry will be limited by market maturity, even in developing regions such as Eastern Europe. Skin care products are expected to provide some of the best opportunities, reflecting expansion of the skin care industry itself, as manufacturers continue to target growth segments with products designed for middle-aged and older adults seeking anti-aging solutions. In addition, fragrances will continue to play an important role in product differentiation in the toiletry and cleaner segment, supporting demand for fragrance blends and aroma chemicals manufacturer used in related products.
Study coverage
This new industry study presents historical demand data (1999, 2004 and 2009) plus forecasts for 2014 and 2019 by product (e.g., flavor blends, fragrance blends, essential oils and natural extracts, aroma chemicals), market (e.g., food and beverages, toiletries and cleaners), world region and for 18 countries. The study also considers market environment factors, evaluates company market share and profiles 37 industry competitors.
