US demand to reach $4.4 billion in 2009
Demand for flavors and fragrances in the US is forecast to increase 3.2 percent per year to $4.4 billion in 2009. Gains will be supported by an increased consumer interest in more complex and authentic flavors and fragrances. The continued popularity in natural ingredients will also boost demand, since these materials are typically more expensive. Healthy gains in anti-aging skin care products, tooth whitening dentifrices and fortified foods will also present opportunities for flavors and fragrances that can enhance the sensory appeal of these products while masking the unappealing taste and aroma of vitamins, minerals, bleaches and other active ingredients. Furthermore, new product introductions and technology advances will continue to boost demand.
Although formulated products use only a small amount of flavors and fragrances in volume terms, these ingredients continue to grow in importance as a marketing tool, since many consumer purchases and repurchases are based on sensory
(e.g., taste and smell) appeal. Nevertheless, pricing will remain a key component of the purchase decision for manufacturers. Despite market share losses to natural ingredients, less expensive synthetic flavors and fragrances will continue to dominate demand.
Environmental fragrance goods to grow the fastest
Environmental fragrance goods will experience above-average gains through 2009, driven by strong advances in aromatherapy and household applications, and consumer desires for more complex and exotic fragrances. Various innovative air freshener products designed to control offensive odors in the home and other living and working areas will spur demand for fragrances. Candles experienced rapid gains during most of the 1990s, however, in recent years, candle use has slowed as consumers continue to be enticed by advancements in air freshener and deodorizer products. Nevertheless, candles will provide opportunities for fragrances as more complex and authentic fragrances are required.
Cosmetics and toiletries will also see aboveaverage growth through 2009. Skin care products are expected to provide the best opportunities for growth in this market, reflecting expansion of the skin care market itself, and the rising popularity of antiaging products which generally require more fragrance to mask unpleasant odors from active ingredients.
Food to remain largest market
Food will remain the largest market for flavors and fragrances through 2009, based on the widespread application of flavor materials in processed and convenience foods, bakery and dairy products, candy and confections, and snack foods. Growing demand for more authentic tastes will spur demand in this market. In addition, the further expansion of fortified foods, particularly in the dairy, and candy and confection segments, will provide opportunities, since flavors are often used to cover up the off-tastes of vitamins and minerals.
Study coverage
This new Freedonia industry study, Flavors & Fragrances, which study provides historical demand data (1994, 1999, 2004) and forecasts to 2009 and 2014 by product and market. The study also considers market environment indicators, evaluates company market share and profiles 33 industry competitors including Firmenich, Givaudan, International Flavors & Fragrances, Quest, Sensient and Symrise.
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