2016-05-06 09:39:55

Demand for Flavors & Fragrances To Exceed $26 Billion in 2020

2016-05-06 09:39:55

The Freedonia Group's new study reveals that the global demand for flavors and fragrances will exceed $26.3 billion in 2020. And, the market is forecast to grow 3.9 percent per year, until then. The Flavors & Fragrances category includes flavor blends, fragrance blends, essential oils and natural extracts, and aroma chemicals. 

Freedonia's study also shows that consumers want more natural products, which affects packaging - since consumers are looking for a higher level of transparency in labeling on the products that they are purchasing. This demand is being driven, in part, by health concerns regarding artificial ingredients - and this will impact demand.

The full report is presented in Freedonia's new study, World Flavors & Fragrances.

Key Market Drivers 

The demand for natural and organic products in mature markets, combined with increased spending by consumers in developing markets, will both contribute to market growth.   

The team at Freedonia explains that the growth in demand for flavors and fragrances will be limited in mature markets. These markets include North America, Western Europe, and Japan.
However, the strongest driver of growth in these markets and other developed countries will be growing consumer interest in natural and organic products, which will drive demand for essential oils and natural extracts.

In the developing economies of the Asia/Pacific and Africa/Mideast regions, we can expect to see more robust gains in the demand for flavors and fragrances. In these areas, a growing middle class and increases in personal spending will drive demand for fragrance-containing cosmetics and toiletries.