In the year 2008, business environment for the Flavor and Fragrance (F&F) industry was difficult mostly because of the increasingly severe financial and economic crisis in the second half of the year and rise in raw material prices. In this difficult business environment, the ordering behavior of the customers of the F&F industry was more conservative with ongoing destocking having an additional negative effect on the F&F industry.
But the F&F industry did not lose completely because of these factors. On the positive side, the rapidly growing markets of Asia and Eastern Europe contributed to the overall growth of the industry, albeit at a slower rate.
The global economic downturn continued in the first quarter of 2009 and this weakness is expected to continue for the whole year. However, the F&F industry is expected to remain stable, unlike other industries as this industry caters mainly to the food and beverage sectors, pharmaceuticals and home and personal care markets, which are less cyclical than other industries. The global F&F industry is expected to remain stable in 2009 and 2010, but will grow again in the subsequent years.
However, in the event that the economic environment does not improve and the destocking trend is prolonged, negative growth in the Flavors & Fragrances industry is possible. But, as eating, drinking, personal hygiene and household hygiene are basic necessities, the general economic downturn as a crisis does not threaten the survival of the F&F industry. It is expected that F&F players supplying to the luxury segment will continue to be under pressure.
Further, the flavor segment is expected to continue its dominance in the F&F industry mainly because of the increasing consumption of fast food, snacks and soft drinks in the developing countries.
The report titled “Global Flavor and Fragrance Industry: An Analysis” assesses the market opportunities and challenges of the flavor and fragrance industry and analyzes the market. The report focuses on the characteristics and growth drivers of each of the three segments of the market - flavor, fragrance and fine ingredients. Further, within the context of the slowdown and rising raw material prices, the performance and strategies of the three leading (Tier I) players - Givaudan, Firmenich, IFF and Symrise has been analyzed.
Further, we have predicted the future growth of the flavor and fragrance industry by combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings. 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.
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