Flavors and Fragrances

Flavors and Fragrances

US demand to approach $7 billion in 2017
Demand for flavors and fragrances in the US is forecast to approach $7 billion in 2017 as the result of favorable wellness, demographic, and macroeconomic trends. Consumer demand for more flavorful foods, as well as unique high-value flavors, will fortify strong growth in flavor blends, the largest product type. Demand for fragrance blends will rise at a more modest pace, impacted by slower growth in cosmetic and toiletry shipments and weakness in environmental fragrance goods. Essential oils will rise at an above average pace, reflecting greater consumer preference for natural goods. The same trend will also benefit natural aroma chemicals, though aroma chemicals overall will continue to post only modest advances.

Cleaning ‘experience’ to promote fragrance gains
The cosmetics and toiletries market suffered from slow growth during the recession-impacted 2007-2012 period, during which consumers were less likely to purchase discretionary items such as perfumes and colognes, skin care products, and cosmetics. As growth in this large market accelerates somewhat, fragrance blend demand will post respectable gains -- though still below average -- during the forecast period. Fragrance blend demand in cleaning products will grow the fastest through 2017, driven by innovation. Producers are continuing to promote the notion of a cleaning “experience” -- feeling relaxed, invigorated, or transported -- through fragrance in dishwashing detergents and general purpose cleaners. Similar efforts to promote fragrance based experiences will also support above-average growth in body washes.

Essential oils, natural extracts to benefit from focus on wellness
From 2002 to 2012, consumer interest in natural items -- including beverages, food, cosmetics and toiletries, and even cleaning products -- rose relatively quickly, as rising attention to wellness encouraged some to avoid end products containing artificial flavors or fragrances. This trend is expected to continue, benefitting demand for essential oils and natural extracts as more manufacturers present naturally flavored or scented versions of their retail items. Going forward, demand growth in essential oils and natural extracts for flavor and fragrance applications will be nearly as fast as growth in flavor blends, though from a smaller base. The pace of growth will moderate slightly as price increases slow to a more sustainable pace following recent rapid gains.

Natural, synthetic aromas to register stronger growth While increases in aroma chemical demand will trail other product types, natural aroma chemical sales will accelerate through 2017 to a near average pace due to their ability to afford a “clean” label in food, beverage, and some cosmetic and toiletry applications. Increases in synthetic aroma chemical demand will also improve, though the pace will remain below average. Synthetic aromas will continue to be the preferred solution in soaps and body washes as well as laundry detergents due to the high volume nature of these markets and the need for low material cost and product consistency.


  • INTRODUCTION
  • EXECUTIVE SUMMARY
    • Table FLAVOR & FRAGRANCE DEMAND (million dollars)
  • MARKET ENVIRONMENT
    • General
    • Macroeconomic Outlook
      • Table MACROECONOMIC INDICATORS (billion 2005 dollars)
    • Demographic Trends
      • Table POPULATION & HOUSEHOLDS (million persons)
    • Personal Consumption Expenditures
      • Table PERSONAL CONSUMPTION EXPENDITURES (billion dollars)
    • Historical Market Trends
      • Table FLAVOR & FRAGRANCE MARKET, 2002-2012
    • Pricing Patterns
      • Table FLAVOR & FRAGRANCE PRICING (dollars per pound)
    • Environmental & Regulatory Issues
      • Flavors
      • Fragrances
    • International Activity
    • Foreign Trade
      • Table FLAVOR & FRAGRANCE SUPPLY & DEMAND (million dollars)
      • Imports
      • Exports
  • MARKETS
    • General
      • Table FLAVOR & FRAGRANCE DEMAND BY MARKET (million dollars)
    • Food
      • Industry Overview
        • Table FOOD SHIPMENTS (billion dollars)
      • Flavor Demand
        • Table FOOD: FLAVOR DEMAND (million dollars)
        • Table PROCESSED FOOD: FLAVOR DEMAND (million dollars)
        • Table DAIRY PRODUCTS: FLAVOR DEMAND (million dollars)
        • Table BAKERY PRODUCTS: FLAVOR DEMAND (million dollars)
        • Table CANDY & CONFECTIONERIES: FLAVOR DEMAND (million dollars)
        • Table OTHER FOOD: FLAVOR DEMAND (million dollars)
    • Cosmetics & Toiletries
      • Industry Overview
        • Table COSMETIC & TOILETRY SHIPMENTS (million dollars)
      • Flavor & Fragrance Demand
        • Table COSMETICS & TOILETRIES: FLAVOR & FRAGRANCE DEMAND (million dollars)
        • Table PERFUMES & COLOGNES: FRAGRANCE DEMAND (million dollars)
        • Table SOAPS & BODY WASHES: FRAGRANCE DEMAND (million dollars)
        • Table SKIN CARE PRODUCTS: FRAGRANCE DEMAND (million dollars)
        • Table OTHER COSMETICS & TOILETRIES: FLAVOR & FRAGRANCE DEMAND (million dollars)
    • Cleaning Products
      • Industry Overview
        • Table CLEANING PRODUCT SHIPMENTS (million dollars)
      • Fragrance Demand
        • Table CLEANING PRODUCTS: FRAGRANCE DEMAND (million dollars)
        • Table LAUNDRY DETERGENTS: FRAGRANCE DEMAND (million dollars)
        • Table POLISHES & SANITATION GOODS: FRAGRANCE DEMAND (million dollars)
        • Table DISHWASHING DETERGENTS & OTHER CLEANERS: FRAGRANCE DEMAND (million dollars)
    • Beverages
      • Industry Overview
        • Table BEVERAGE SHIPMENTS
      • Flavor Demand
        • Table BEVERAGES: FLAVOR DEMAND (million dollars)
        • Table CARBONATED SOFT DRINKS: FLAVOR DEMAND (million dollars)
        • Table OTHER BEVERAGES: FLAVOR DEMAND (million dollars)
    • Environmental Fragrance Goods
      • Industry Overview
        • Table ENVIRONMENTAL FRAGRANCE GOODS INDICATORS
      • Fragrance Demand
        • Table ENVIRONMENTAL FRAGRANCE GOODS: FRAGRANCE DEMAND (million dollars)
        • Table AIR FRESHENERS & DEODORIZERS: FRAGRANCE DEMAND (million dollars)
        • Table CANDLES: FRAGRANCE DEMAND (million dollars)
        • Table POTPOURRI & OTHER ENVIRONMENTAL FRAGRANCE GOODS: FRAGRANCE DEMAND (million dollars)
    • Other Markets
      • Table OTHER MARKETS: FLAVOR & FRAGRANCE DEMAND (million dollars)
  • PRODUCTS
    • General
      • Table FLAVOR & FRAGRANCE DEMAND BY PRODUCT (million dollars)
    • Flavor Blends
      • Table FLAVOR BLEND DEMAND (million dollars)
      • Savory
      • Fruity
      • Cheese & Other Dairy
      • Meat
      • Other Flavor Blends
    • Fragrance Blends
      • Table FRAGRANCE BLEND DEMAND (million dollars)
      • Product Characteristics
      • New Applications
    • Essential Oils & Natural Extracts
      • Table ESSENTIAL OIL & NATURAL EXTRACT DEMAND (million dollars)
      • Citrus Oils
        • Table CITRUS OIL DEMAND (million dollars)
        • Table LEMON OIL DEMAND (million dollars)
        • Table ORANGE OIL DEMAND (million dollars)
        • Table OTHER CITRUS OIL DEMAND (million dollars)
      • Mint Oils
        • Table MINT OIL DEMAND (million dollars)
        • Table PEPPERMINT OIL DEMAND (million dollars)
        • Table SPEARMINT & OTHER MINT OIL DEMAND (million dollars)
      • Other Essential Oils & Natural Extracts
        • Table OTHER ESSENTIAL OIL & NATURAL EXTRACT DEMAND (million dollars)
    • Aroma Chemicals
      • Table AROMA CHEMICAL DEMAND (million dollars)
      • Demand by Class
        • Table SYNTHETIC AROMA CHEMICAL DEMAND (million dollars)
        • Table NATURAL AROMA CHEMICAL DEMAND (million dollars)
      • Demand by Type
  • INDUSTRY STRUCTURE
    • General
      • Table US FLAVOR & FRAGRANCE SALES BY COMPANY, 2012 (million dollars)
    • Market Share
    • Mergers & Acquisitions
      • Table SELECTED ACQUISITIONS & DIVESTITURES
    • Competitive Strategies
      • Product Differentiation
      • Market Segmentation
      • Cooperative Agreements
        • Table SELECTED COOPERATIVE AGREEMENTS
    • Research & Development
      • Table R&D SPENDING PATTERNS: SELECTED FLAVOR & FRAGRANCE SUPPLIERS (percent of corporate revenues)
      • Natural Flavors & Fragrances
      • Biotechnology
      • Delivery Systems
    • Production Methods
    • Marketing & Distribution
    • Company Profiles
      • Agilex Flavors & Fragrances Incorporated
      • Aromatech SAS
      • BASF SE
      • Bedoukian Research Incorporated
      • Bell Flavors & Fragrances Incorporated
      • Cargill Incorporated
      • Comax Flavors
      • ConAgra Foods Incorporated
      • Firmenich SA
      • Flavorchem Corporation
      • Givaudan SA
      • Hasegawa (T.) Company Limited
      • ICC Industries Incorporated
      • International Flavors & Fragrances Incorporated
      • Kao Corporation
      • Kerry Group plc
      • Mane (V.) Fils SA
      • McCormick & Company Incorporated
      • Michael (David) & Company
      • Naturex SA
      • Renessenz LLC
      • Robertet SA
      • Royal DSM NV
      • Sensient Technologies Corporation
      • Solvay SA
      • Symrise AG
      • Takasago International Corporation
      • Treatt (RC) plc
      • Ungerer & Company
      • Vigon International Incorporated
      • WILD Flavors GmbH
    • Other Companies Mentioned in Study

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