In 2027, the global flavor and fragrance market will reach $35.91 billion, with daily chemical flavors dominating

According to the latest report released by the market research organization Allied Market Research, the global flavor and fragrance industry in 2019 is about 28.19 billion U.S. dollars and is expected to reach 35.91 billion U.S. dollars by 2027, with a compound annual growth rate of 4.7% from 2021 to 2027.

Drivers, constraints and development opportunities:

Increasing consumer demand for ready-to-eat meals and fast food, the launch of new edible flavor products, the influx of a large amount of R&D investment, and the high demand for commercialized production of clean label/green product flavors in European countries are the three key factors driving the growth of the global Flavors and Fragrances market. Driving factors. On the contrary, the possible allergic reactions caused by artificial flavors, chemicals and preservatives have hindered market growth to a certain extent. However, due to the gradual increase in consumer health awareness, the use of natural flavors has become an emerging trend, bringing multiple opportunities for many industry participants.

Impact of Covid-19

The outbreak of the epidemic has led to chaos in the supply chain, scarce workers, and even complete closure of hotels and restaurants, which has had an impact on the global flavors and fragrances market. In addition, government agencies around the world impose import and export restrictions on commodities and a number of blockade measures are the main challenges faced by exporters during the pandemic.

By 2027, the fragrance market will still dominate

Divided by category, the daily chemical fragrance segment accounted for more than three-fifths of the global flavor and fragrance market in 2019, and is expected to occupy a dominant position by the end of 2027. Due to increased market demand for deodorants, perfumes, soaps, creams, talcum powders and hair oils, the fragrance market will also achieve the fastest compound annual growth rate of 5.0% throughout the forecast period.

Leading synthetic fragrance

Synthetic Fragrances accounted for nearly two-thirds of the global flavors and fragrances market revenue in 2019, and are expected to continue to Lead by 2027. In terms of ingredients, they are generally more flexible than natural flavors and fragrances, and natural varieties are limited to floral, musk and herbs. Synthetic fragrances can be produced in single-molecule laboratories and blended with essential oils to produce a variety of fragrances. These advantages have promoted the growth of this market segment. On the other hand, due to the rising demand for clean label products in the global market, the natural fragrance market will grow at the fastest compound annual growth rate of 5.4% between 2021-2027.

The Asia-Pacific region has the highest revenue, followed by North America

By region, the Asia-Pacific region accounted for the main market share in 2019, accounting for about one-third of the global flavors and fragrances market, followed by North America. During the forecast period, the Asia-Pacific region will usher in the fastest compound annual growth rate of 6.6%. Increasing purchasing power of the Asia-Pacific population, changing eating habits, expanding urbanization, lack of a regulatory framework, a strong customer base, increasing personal pressure, and a preference for American food have driven market growth.