The current status and development trend of the global fragrance and flavor market in 2021: 4 key points

Data show that the global flavors and fragrances market has grown from USD 24.1 billion in 2015 to USD 28.1 billion in 2019, with a compound annual growth rate of 5.1%. The overall industry is showing a trend of shifting to markets in developing countries, of which the Asian market has the highest growth rate.

Perfume is an organic compound that can feel fragrance by smell or taste. It is also called fragrance raw material. It is mainly used to formulate flavors for flavoring products, or directly use as food additives. Flavor is a mixture with specific aroma or fragrance composed of spices and corresponding auxiliary materials, and is generally used for flavoring products before being consumed. Flavors and flavors are not direct consumer goods in people’s lives, but are added as supporting raw materials to other products. They are widely used in various industries such as food, tobacco, daily chemicals, medicine, feed, cosmetics, textiles and leather. Although small, it is essential to product quality.

The development trend of fragrance and flavor

01The development of the global fragrance and flavor industry is mature and the industry grows steadily

The modern flavor and flavor industry originated in European countries and the United States. After World War II, the United States and Japan developed rapidly in the field of flavors and flavors. Since the 1970s, with the development of the global economy, especially the economic development of developed countries, the standard of living has been continuously improved. People have higher and higher requirements for the quality of food and daily necessities, which has promoted the rapid growth of the fragrance and flavor industry.

02The global fragrance and flavor industry is highly concentrated

At present, Europe, the United States, and Japan have become the world's most advanced fragrance and flavor industry centers. The world's important fragrance and flavor manufacturers are all from the above-mentioned developed countries and regions. Representative companies include Givaudan and Firmenich in Switzerland, and international fragrances in the United States. Fragrance and Senxin, Germany's Dezhixin, France's Man and Robert, and Japan's Takasago and Hasegawa. These major international companies use flavors as their leading products to drive the development of the fragrance industry, while maintaining their leading position by controlling the varieties and technologies of key flavors. From 2013 to 2019, the sales of the top ten fragrance and flavor companies in the world accounted for about 75% of the total global sales, showing a very high market concentration, especially Givaudan, Firmenich, International Fragrance and Fragrance and Dezhixin The four companies have maintained a combined market share of more than 50% in recent years.

03The global flavor and fragrance industry continues to shift to developing countries

The Asian market is the region with the largest consumer demand for fragrances and fragrances in the world, accounting for about 40% of the global market share, followed by the North American and Western European markets. The overall global demand for flavors and flavors is highly consistent with the global economic development trend, that is, the focus of growth has shifted to concentrated regions in developing countries such as Asia and Africa. The flavors and flavors markets in these regions have also become the most potential and fiercely competitive markets.

The changes in market demand have also promoted the simultaneous transfer of production capacity and R&D layout of the world's major flavor and fragrance manufacturers from North America, Western Europe and Japan to emerging markets such as South America, North Africa and Southeast Asia. The rapid development of the Chinese market has attracted many international industry giants to set up factories or establish world-class R&D centers. International industry giants quickly occupy the domestic high-end product market and gradually extend to the mid-end, which brings greater opportunities and challenges to the survival and development of domestic fragrance and flavor enterprises.

04Safe and reliable natural raw materials have become the trend of the flavor and fragrance industry

Since the concept of natural includes multiple meanings such as health and safety, green, and sustainable development, natural products have been sought after by consumers in recent years. The "Global Food and Beverage Industry Trends" report released by the British market research agency Mintel stated that due to the food and beverage product recalls and scandals that have occurred in recent years, consumers around the world are increasingly paying attention to the safety of the food and beverage they buy. Sexuality and reliability have led the global food and beverage industry to produce more products made from natural raw materials.