According to a new market report published by US-based Lucintel, the future of the flavor and fragrance (F& F) market looks good with opportunities fine fragrance and cosmetic & toiletries industries. The global F&F market is forecast to grow at a CAGR of 3.6% from 2015 to 2020. The major drivers of growth for this market are growth of end use applications, growing urbanization and changing lifestyle.
Aroma chemicals and essential oils are the major raw materials used for making flavor and fragrance compounds. Lucintel predicts that the demand for fragrance is likely to experience the highest growth in the forecast period, supported by growing demand in endues applications. Major end-use application for flavours is beverage, savoury, confectionery and dairy, while for fragrances it is soap & detergents, fine fragrance, cosmetic & toiletries, and household & air care. Lucintel forecasts that diary, savoury, fine fragrance, cosmetics & toiletries, and sops & detergents industries are expected to show above average growth during the forecast period.
Within F&F market, beverage application is likely to remain as the largest segment of flavours, while soap & detergents will be the largest for fragrances. North America is expected to remain the largest market due to growth in end-use applications. Asia pacific and the Rest of the World are expected to witness significant growth because of increase in disposable income and changing lifestyle.
For market expansion, the report suggests innovation and new Product development to enhance the performance of flavours and fragrances. The report further suggests the development of partnerships with customers to create win-win situation and development of better product for the end user. Emerging trends, which have a direct impact on the dynamics of the industry, include increased use of biotic ingredients and capacity expansion by major players in emerging markets.
Givandan, Firmenich, IFF, Symrise, and Takasago are among the major suppliers of in this sector.