Flavors And Fragrances Market Growth & Trends
The global flavors and fragrances market size is expected to reach USD 44.6 billion by 2030, expanding at a CAGR of 5.4% from 2024 to 2030, according to a new report by Grand View Research, Inc. The growth is majorly driven by the rising demand for natural products and aroma chemicals from the personal care & cosmetics products and food & beverages industries. The global industry for fragrances & flavors is expected to register remarkable growth over the forecast period owing to the increasing product demand in toiletries, cosmetics, beverages, and food application industries. The increasing use of flavors in the pharmaceutical, dietary supplements, and nutraceutical sectors is also projected to augment industry growth.
The health & wellness trend in the industry is expected to magnify the preference for natural flavor ingredients. Growing disposable income levels in emerging economies are also anticipated to augment the product demand for soaps & detergents, perfumes, toiletries, and cosmetics. Natural products are considered therapeutic, healthy, and safe. Manufacturers of natural fragrances often charge a “green premium” on their products. The demand for synthetic ones is also expected to rise, as they emit strong fragrances, offer greater freedom of creativity to manufacturers, and are long-lasting. Moreover, synthetic products are less expensive as compared to natural products.
The COVID-19 pandemic had an adverse impact on the global industry on account of the supply chain disruptions, complete & partial lockdown of manufacturing facilities, and lack of availability of labor as well as raw materials. Countries around the world had to restrict global trade due to which, imports and export were affected. However, since the first half of 2021, countries rapidly adjusted their economies and kept the agriculture and food industries in focus, thus stabilizing the industry growth. New product launches, a growing number of retail stores, and economic prices of convenience food and personal care products are also expected to be highly influential factors contributing to the industry’s growth
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Flavors And Fragrances Market Report
Flavors And Fragrances Market Report Highlights
- The natural product type segment will register the fastest growth rate from 2024 to 2030 owing to a rapid shift from the usage of synthetic and lab-processed products to more natural products, especially in the emerging markets
- The fragrances application segment dominated the global market, due to growing usage in the pharmaceutical, hospitality, home care, and personal care & cosmetics industries
- Asia Pacific will emerge as the largest as well as the fastest-growing region during the forecast period
- The growth is attributed to the increased product demand from the nutraceutical, dietary supplements, pharmaceuticals, and food processing industries
- In addition, changes in consumer preference along with rising demand for exotic flavors are expected to have a positive impact on the regional market.
