Global Flavor and Fragrance Market Report
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1 Global Flavor and Fragrance Market Report
2 Executive Summary The flavor and fragrances (F&F) industry involves companies that develop and supply a variety of flavor and fragrance ingredients and components to food and beverages, perfume, cosmetics, food industries as well as to the suppliers of household products. All F&F companies need to adhere to stringent supervisory, regulatory and environmental standards. The demand for consumer products using flavors and fragrances has been stimulated and broadened by changing social habits and economic growth, especially in emerging markets. In the emerging markets, strong GDP growth and a significant expansion of the middleclass consumer are expanding the demand for better-flavored and fragranced consumer products. Companies are developing new formulas for flavors and fragrances to meet changing consumer preferences and customer needs. During the year 2011, the F&F market growth was driven by currency fluctuations and rising raw materials prices. Many companies have intentionally reduced their spending on R&D in order to compensate for the increase in raw material prices. The F&F market is highly competitive. The industry has witnessed consolidation over the past few years as the share held by the topten companies has consistently declined from 2007 to Givaudan is the market leader. Other prominent market players include Fermenich, IFF, Symrise, Takasago, Mane SA, Sensient Flavors, T.Hasewaga and Frutarom. The report provides an in-depth analysis of the global flavor and fragrances market. The various drivers and the challenges faced by the market are discussed in detail. The competitive aspect of the market is also highlighted and the key players are profiled with their strategies for this market. By combining SPSS Inc. s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.
3 Global Flavor & Fragrance Market Is being Driven by Changing Social Habits and Economic Growth in Emerging Markets. Global Flavors and Fragrance Market Size, The global flavor and fragrance market remained almost flat in 2011, recording a marginal decline to US$,,,,,, billion from US$,,,,,,, billion in the previous year of Demand for consumer products using flavors and fragrances has been stimulated and broadened by changing social habits and economic growth, especially in the emerging economies of Asia, Central and South America, Eastern Europe and Africa. The F&F market is characterized by high entry barriers. The flavor and fragrance segment accounted for approximately,,,,,,% and,,,,,,,, % respectively in EAME (Europe, Africa and Middle East) share of,,,,,,, % in region had a market Segmentation of Global Flavor and Fragrance Market, 2011 Global Flavor & Fragrance Market Split by Geography, 2011 EAME North America Asia/Pacific Latin America Flavors Fragrances Fine Ingredients
4 US$ Billion The Industry was Accompanied by Currency Fluctuations and Rising Raw Material Prices Global Flavor Market Size, The global market for flavors almost remained flat in 2011 as compared to 2010 at US$,,,,,, billion. Developed countries are projected to witness a moderate growth in the demand for flavor products, while a rapid growth in the demand for the same is expected to come from emerging markets. The performance of global fragrance market remained stable and reached US$,,,,,, billion in There is a growing demand for food and beverage products containing natural ingredients and offering dietary values. Demand of savory flavors in convenience food is on a rapid rise since the past few years. Competitive Landscape of Flavor and Fragrance Industry, 2011 Global Fragrance Market Size, Givaudan Firmenich IFF Symrise Takasago Mane SA Sensient Flavours T. Hasewaga Frutarom Robertet Others
5 GDP Growth, Demand for Better-flavored Products and Rising Middle Class will Drive F&F Market Market Forecast of Global F&F Industry, 2011A-2015F 2011A 2012F 2013F 2014F 2015F The overall flavor and fragrance market is forecasted to grow at a CAGR of,,,,,,,% over the years 2011 to 2015 to finally reach US$,,,,,,, billion by the end of this period. The past few years have witnessed consolidation in the global industry as the leading ten companies share of the overall flavor and fragrance market reached,,,,,,,% in 2011 from,,,,,,,,,,% and,,,,,,,,,,,,,,,,,,,% in 2010 and 2007, respectively. During the year 2011, the F&F market growth was driven by currency fluctuations and rising raw materials prices. Many companies have intentionally reduced their spending on R&D in order to compensate for the increase in raw material prices.
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