News

IAL: flavours, fragrances market will grow 4.9%/year

8 Aug 2018

IAL Consultants has published the eleventh edition of its report on the global markets for Flavours & Fragrances, which saw 4.6% growth last year and i forecast to grow by 4.9%/year through 2022.

IAL Consultants has published the eleventh edition of its report on the global markets for Flavours & Fragrances. The new study updates and expands upon the information included in its previous study published in 2016, with analysis of top-line market volumes for the first time and the addition of three new countries (Slovenia, Bangladesh and Myanmar). The data is also available in IAL’s online database format, enabling the manipulation and output of data. The information contained within this report is based upon an extensive programme of interviews throughout the industry. The report contains market value data by end-use application, with 2017 as the base year and market forecasts provided to 2022.

The global flavours and fragrances market continues to show good rates of growth across the various regions, IAL notes. The total global market reached US$28.2 billion in 2017, an increase of 4.6% compared to the previous year, and is expected to grow at an average annual rate of 4.9% p.a. to reach approximately US$36 billion in 2022. Of the total world market, flavours account for approximately 56% and fragrances for the remaining 44%.

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

While the West European and North American markets are quite mature, IAL says, there is still potential for growth as consumers develop more sophisticated tastes and preferences. There is still plenty of opportunity for growth in the CEE, MEA and Asia Pacific regions, particularly in parts of Africa and Asia where access to processed foods and consumer goods is still growing. The fastest growth rates in the medium term are expected in Asia-Pacific.

The beverages sector was the largest global end-use market for flavours in 2017 with a share of 33%, followed by the dairy industry at 13%.

The soap and detergents industry is the largest user of fragrances in the global market at 33% share, followed by the cosmetics and toiletries sector at 29%.

Givaudan, IFF, Firmenich and Symrise continue to occupy the top four positions in the global flavours and fragrances market, according to IAL, with their combined sales of compound flavours and fragrances in 2017 representing around 44% of the global market. IFF’s intended acquisition of Frutarom, which IAL currently ranks as no. 7 in the world F&F market, could pose a threat to Givaudan’s leading position, IAL believes.