Updated: Dec 19, 2021
The global flavour and fragrance market was worth US$ 27.9 billion in 2018
Flavors and fragrances are substances that are used to enhance the overall aesthetic value of a product by altering its smell and taste. Flavors are majorly used in the foods, beverages, dairy and confectionary industries, whereas, fragrances are used for providing fine smells in body care, home care and cosmetic products. Taste and smell are among the key determinants for the appeal of the product. The possibilities of flavours and fragrances are endless, ranging from floral, musky to warm and woody.
They are usually prepared using natural/artificial chemicals and essential oils to deliver a specific flavour and to enhance the existing ones. The key end-users of the flavours industry include beverages, dairy, confectionary, meat, snacks, healthcare, bakery, etc. On the other hand, some of the key end-users of the fragrances industry include cosmetics and toiletries, soap and detergents, household cleaners and air fresheners, etc.
A key driver of the global flavours and fragrances market is the strong growth in the food and beverage industry. Catalysed by a rising global population and increasing urbanization rates, the demand of processed foods and beverages has been witnessing a continuous growth creating a positive impact on the growth of the market.
Moreover, driven by rising incomes, changing lifestyle and increasing consciousness towards physical appearance, the market for personal care products has also been witnessing a strong growth creating a strong demand for flavours and fragrances. Other major factors driving the market include emerging markets, rising demand for organic and natural products, growing young population, etc.
Looking forward, the publisher expects the market to grow at a CAGR of around 4% during 2019-2024, reaching a value of US$ 35.1 billion by 2024.