The global Flavors and Fragrances market is projected to reach USD 34.19 billion by 2030, growing at a CAGR of 4.3%
The global flavors and fragrances market revenue reached USD 31.10 billion 2019 and is expected to rise at a CAGR of 4.9% from 2019 to 2025. Increasing use of flavors and fragrances in cosmetics and personal care products with increasing urbanization are few of the significant factors, which are projected to drive the global flavors and fragrances market.
Taste and smell are two of the most sensitive human senses. The nose often detects and distinguishes smell on a level that is difficult to achieve even modern instruments. A multitude of flavors and fragrances can be found in the natural world especially in the higher plants either directly or indirectly. Over time, and with the benefit of many thousands of species of plants from which they are produced, a multitude of such flavors and fragrances have found their way into everyday life through essential oils: food and drink and confectionery; products for personal use such as perfumes, deodorants, shampoos, bath lotions, toilet soaps, toothpastes and mouthwashes; where flavors are added to make the product more attractive or to mask the taste of less pleasant ones; to items used in the home or office or in industry such as air fresheners, laundry soaps, detergents, cleaning agents and the like; to tobacco products; the list is endless..
The number of plant species involved cannot be accurately estimated but must reach several hundred for those oils which are traded and many more for those produced and used locally. They are distributed among numerous botanical families and encompass higher and lower plants, gymnosperms and angiosperms, mono-and di-cotyledons, annuals and perennials, wild and cultivated springs.
Thousands of new species have produced volatile oils in the search for new oils, but for one reason or another (poor yields, poor quality, unfavorable economics, poor markets) they have never reached the point of commercial exploitation. Before the advent of synthetics and the production of certain flavors and fragrances from petrochemicals, virtually all of these materials were obtained from plant sources. A few of them were obtained from animals. Even today, the building blocks of many synthetic compounds have been derived from plants. Turpentine obtained from pine trees is a prime example of this: alpha and beta-pinene do not have a direct flavor and fragrance of their own, but are isolated from appropriate Pinus species and converted into derivatives with a wide range of flavor and fragrance applications.
Flavors and Fragrances Market Scope
|Revenue forecast in 2030
|USD 34.19 billion
|CAGR of 4.3 % during 2020-2030
|by Product, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Sensient Technologies Corporation, Mane SA, Takasago International Corporation, Manohar Botanical Extracts Pvt. Ltd., Alpha Aromatics, Ozone Naturals, Elevance Renewable Sciences, Inc., Firmenich SA, Symrise AG, Vigon International, Inc., BASF SE
Key Segment Of The Flavors and Fragrances Market
Product, (USD Billion)
• Essential Oils
• Orange Essential Oils
• Corn mint Essential Oils
• Eucalyptus Essential Oils
• Pepper Mint Essential Oils
• Lemon Essential Oils
• Citronella Essential Oils
• Patchouli Essential Oils
• Clove Essential Oils
• Ylang Ylang/Cananga Essential Oils
• Lavender Essential Oils
• Paprika Oleoresins
• Black Pepper Oleoresins
• Turmeric Oleoresins
• Ginger Oleoresins
o Aroma Chemical
Application, (USD Billion)
• Convenience Food
• Bakery Food
• Dairy Food
• Animal Feed
• Fine Fragrances
• Cosmetics & Toiletries
• Soaps & Detergents
Regional Overview, (USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and South Africa
The production of vital petroleum is no different from any other agricultural field. Sustainable production depends on the producer being remunerated and at least as attractive as other possibilities. This means that the market for the product must be reasonable.
The harvest of shrubs and wild forests is conceptually attractive, especially when it involves the non-destructive harvest of rapid regrowth of aerial components such as leaves and final branches. However, it is critical that materials should be collected which can be distributed over wide areas, which are likely difficult. An unpredictable and potentially low supply of raw material would be too high for market demand and a further problem would be produced if oil quality uncertainty and dissatisfaction from commonly used biomass were to bring arbors into production as both inputs and outputs are well defined, and as demand can be regulated and changes are made.
It would also be possible to pick and develop the plantation stock to increase the quality and profitability of the oil, there are no options in the use of wild trees. The provision by farmers of individual distillery units of sustainably produced plant material for distillation may be made in various ways, either by some sort of cooperative in which individual producers of plant material contribute to the single distillery or by a single estate feeding a central distillery.
The global flavors and fragrances market has been segmented based on the product, end-use industry region. Based on the product, the global flavors and fragrances market is categorized into natural and aroma segments. Natural segment demand will register significant gains by 2025. Over the projected period, fragrance chemicals are expected to have the largest market share. The bulk of demand is possibly derived from the fragrance industry for these chemical products. The beverages segment demand in 2019 was estimated at USD 10.29 billion. Greater consideration for health and well-being by people of all ages will bring lucrative opportunities for fragrance aroma chemicals. The projected growth of R&D investment will further boost aroma chemicals demand during the predicted period.
The most rapid growth in the natural segment during the forecast period is expected. The rapid shift to natural products is expected to foster growth in the coming years, particularly in developed countries. Essential oils are expected to emerge during the projected timeframe as the fastest rising product segment. Growing demand for exotic essential oils is the use of natural essential oils in natural cosmetics, aromatherapy, and pharmaceuticals, among others. It is anticipated that developing countries will increase the demand for usable scents with enhanced odor value with natural oil.
The global flavors and fragrances market growth is expected to grow in the regions of North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. However, Asia Pacific is expected to witness the fastest growth in the flavors and fragrances market during the forecast period.
Given the availability of raw materials and increasing requirements from various applications industries, Asia Pacific is expected to register a maximum of 5.4% of CAGR over the forecast period. The flavor processing sector as well as the food manufacturing, pharmaceutical and nutritional supplements industries, is expected to be rising. In the coming years, increasing customer taste and demand for exotic scents will likely increase regional demand.
In 2018, the market share of Europe accounted for 41.2% of the total market share. Over the forecast period, the expected CAGR will increase by 4.8%. Due to increased demand for products from personal health, cosmetics, home care, therapies, buccal care and air-cooling products, the fragrance segment is expected to rise. The concentration of cosmetics in these specific regions is expected to show growth in North America and Europe.