Flavors and Fragrances Market Predicted to Reach US$25 Billion in 2018

07 Nov 2014 --- The global flavors and fragrances market continues to show promising rates of growth after recovering from the effects of the global recession, according to IAL Consultants. The total global market reached US$21.4 billion in 2013, and is expected to grow at an average annual rate of 3.2% p.a. to reach some US$25 billion in 2018. Of the total world market, flavors account for approximately 54% and fragrances for the remaining 46%.

Of the main global regions, the combined flavors and fragrances market is largest in Asia-Pacific, followed by North America and Western Europe.

While the West European and North American markets are mature and quite stable, there is more potential for growth in the CEE (Central & Eastern Europe), MEA (Middle East Africa), South America and Asia Pacific regions, particularly in parts of Africa and Asia where consumers do not yet have ready access to processed foods and consumer goods. Urbanisation and changing lifestyles are also boosting market growth in developing regions.

The beverages sector was the largest global end-use market for flavors in 2013 with a share of 34%, followed by the dairy industry at 13%.

The soap and detergents industry is the largest user of fragrances in the global market at 32% share, followed by the cosmetics and toiletries sector at 27% and fine fragrances at 18%.

Givaudan, IFF, Firmenich and Symrise continue to occupy the top four positions in the global flavors and fragrances market. Their combined sales of compound flavors and fragrances in 2013 represented around 54% of the global market.