2016 World Flavors & Fragrances Market Research Report

Global demand to rise 4.4% annually through 2016

Worldwide market demand for flavors and fragrances — including flavor blends, fragrance blends, essential oils, and aroma chemicals — will rise 4.4 percent annually through 2016, reaching $26.5 billion. Increasing packaged food manufacturing, especially of convenience products that require higher flavor usage, will drive fast growth in developing countries. Rising personal consumption expenditures in these emerging economies will also stimulate toiletry and cleaner shipments, which will contribute to healthy growth in fragrance blends. Increasing global interest in products that promote health benefits will also drive demand in both the food and beverage and cosmetics and toiletry markets, as masking flavors and fragrances are employed in conjunction with antioxidants and vitamins to reduce off-tastes and off-odors. Furthermore, efforts in developed countries to reduce calories, salt, and fat in foods will increase demand for flavors to improve the taste of those products.

Consumer trends favoring higher value products

Globally, there has been a rising interest in natural, organic, and more expensive products across a number of consumer markets, including food and beverages and toiletries and cleaners. Industry efforts to meet this demand will drive increased value consumption of nearly all types of flavors and fragrances, with the exception of aroma chemicals, which will be replaced by essential oils in certain product categories.

Food & beverage market to benefit from urbanization & health concerns

Rapidly rising incomes and urbanization in developing countries is spurring interest in convenient packaged foods and fast food, which will also boost growth in the food and beverage market, as packaged goods require high flavoring loadings to preserve taste in the face of large-scale manufacturing. This will lead to particularly fast growth in countries such as China and India in the Asia/ Pacific region, as well as countries in Central and South America. In developed countries, food and beverage flavor and fragrance demand will benefit from increasing customer interest in vitamincontaining foods, which require flavors to mask the unpleasant taste of these ingredients, and growing concerns about obesity. Government programs to reduce calories, fats, and sodium in foods will favor healthier alternatives that generally require more flavors to preserve good taste. However, the long term impact of this effort will depend on consumer acceptance.

Health concerns to also drive toiletry/cleaner uses

Health concerns will also drive growth in the toiletry and cleaner market. Cosmeceuticals
and anti-aging cream, popular among the expanding older segments of the population in developed countries, contain additives with off-odors that must be masked by fragrances. However, increasing consumer interest in fragrancefree products, as well as limited opportunities in the cleaner market, will limit even faster advances. While demand in developed countries is relatively mature, the continued recovery in cosmetics and toiletry shipments from the 2009 global economic recession will improve consumption of fragrances in areas such as Western Europe and North America.

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Report Details:

Published: Oct 2012

No. of pages: 388

Price: Single User License: US$ 6100