A COMPETITIVE SURVEY OF FLAVOR AND FRAGRANCE MARKETS

TABLE OF CONTENTS

INTRODUCTION

• Scope of the Report i
• Definitions and Terms ii
• Sources ii
• Statistical Methodology iii

CHAPTER I EXECUTIVE SUMMARY

• Overview 1
• Historical Review 3
• Long-Term Outlook 5

CHAPTER II MARKET ENVIRONMENT

• Overview 10
• Economic Environment 11
• Demographic Trends 13
• Flavor End-Use Markets 17
• Nutraceuticals 20
• Sweeteners 26
• Meatless Meals 26
• Vegetables and Grains 27
• Spices 28
• Fragrance End-Use Markets 28
• Technology and Innovation 34
• Encapsulation 35
• Liposomes 36
• Spray Drying 36
• Supercritical Fluid Extraction 37
• Spinning Cone Column 37
• Biotechnology 38
• Packaging 41
• Modified Atmosphere Packaging 43
• Retort Packaging 43
• Aseptic Packaging 44
• Interactive Packaging 45
• Microwave Cooking 47
• Processing Technology 47
• Legislative and Regulatory Environment 49
• Food Additives 49
• Warning Labels 53
• Dietary Supplements 53
• Meat and Poultry Products 56
• Legislative and Regulatory Environment (cont' d.)
• Food Safety 56
• Cosmetics 57
• International Trade 59

CHAPTER III ESSENTIAL OILS

• Overview 64
• Extraction Methods 66
• Steam Distillation 66
• Expression 67
• Solvent Extraction 67
• Supercritical Fluid Extraction 69
• U.S. Essential Oil Production 70
• Citrus Oils 71
• Mint Oils 72
• Other Oils 74
• The Market for Essential Oils 76
• Consumption, by End-Use 78
• Imports 81
• Exports 87
• Market Competition 93

CHAPTER IV AROMA CHEMICALS

• Overview 95
• Terpenes 97
• Benzyl Alcohol 99
• Musk Chemicals 99
• U.S. Aroma Chemical Production 100
• The Market for Aroma Chemicals 102
• Consumption, by End-Use 104
• Imports 107
• Exports 109

CHAPTER V FLAVOR BLENDS AND COMPOUNDS

• Overview 111
• U.S. Flavor Blend and Compound Production 113
• The Market for Flavor Blends and Compounds 115
• Natural vs. Synthetic 116
• Imports 119
• Exports 120

CHAPTER VI OTHER FLAVOR MATERIALS

• Overview 122
• Acidulants 125
• Citric Acid 126
• Phosphoric Acid 127
• Malic Acid 128
• Fumaric Acid 128
• Lactic Acid 129
• Other Acidulants 129
• The Market for Acidulants 130
• Manufacturers of Acidulants 132
• Flavor Enhancers 133
• Monosodium Glutamate 134
• Hydrolyzed Proteins 136
• Yeast Extracts 137
• Nucleotides 137
• Other Flavor Enhancers 139
• The Market for Flavor Enhancers 139
• Manufacturers of Flavor Enhancers 141
• Spices 142
• Traditional Spices Derived from Tropical Plants 144
• Spices Derived from Herbs 147
• Spices Derived from Seeds 147
• Dehydrated Vegetables 150
• The Market for Spices 151
• Spice Oleoresins 155
• The Market for Spice Oleoresins 157
• Manufacturers of Spices 159
• Non-Nutritive Sweeteners 159
• Saccharin and Cyclamate 161
• Aspartame 165
• Acesulfame K 168
• Sucralose 170
• Alitame 171
• Neotame 172
• The Market for Non-Nutritive Sweeteners 173
• Manufacturers of Non-Nutritive Sweeteners 176
• Competitive Issues 177

CHAPTER VII FRAGRANCE BLENDS AND COMPOUNDS

• Overview 180
• The Market for Fragrance Blends and Compounds 181
• Shipments 182
• Consumption 183
• Imports 186
• Exports 187

CHAPTER VIII INDUSTRY STRUCTURE

• Overview 190
• Research and Development 191
• Manufacturing 198
• Marketing 199
• Distribution 202
• Industry Activity 203
• International Activity 207
• Company Profiles 209
• Ajinomoto Co., Inc. 210
• A.M. Todd Group 212
• Archer Daniels Midland Company 213
• Ashland Inc. 215
• BASF AG 217
• Bayer AG 218
• Bell Flavors & Fragrances, Inc 221
• Burns, Philp & Company Limited 222
• Celanese AG 224
• Chr. Hansen Group 226
• Croda International Plc 227
• Danisco A/S 229
• Degussa AG 231
• Dragoco Gerberding & Co. AG 233
• DSM N.V. 234
• Elementis plc 236
• Firmenich SA 238
• Givaudan SA 239
• Griffith Laboratories 240
• Hauser, Inc. 241
• Imperial Chemical Industries PLC 242
• International Flavors & Fragrances Inc. 243
• Johnson & Johnson 246
• McCormick & Company, Inc 247
• Merisant Company 249
• Millennium Chemicals Inc. 251
• The NutraSweet Company 252
• Rhodia SA 254
• Sensient Technologies Corporation 255
• T. Hasegawa Co., Ltd. 257
• Takasago International Corporation 258
• Takeda Chemical Industries, Ltd. 259
• Tate & Lyle PLC 261
• Technology Flavors & Fragrances, Inc. 262
• Ungerer & Company 264
• Virginia Dare Extract Co., Inc 265
• The Wild Group 265

CHAPTER IX FLAVOR END-USE MARKETS

• Overview 267
• Processed Meat, Poultry, and Seafood 275
• Flavor Materials Consumption in Processed Meat, Poultry, and Seafood 276
• Dairy Products 279
• Flavor Materials Consumption in Dairy Products 280
• Baked Goods 284
• Flavor Materials Consumption in Baked Goods 285
• Soft Drinks 289
• Flavor Materials Consumption in Soft Drinks 292
• Processed Fruits and Vegetables 299
• Flavor Materials Consumption in Processed Fruits and Vegetables 300
• Cereals and Grains 304
• Flavor Materials Consumption in Cereals and Grains 305
• Alcoholic Beverages 308
• Flavor Materials Consumption in Alcoholic Beverages 310
• Sauces, Dressings, and Oils 312
• Flavor Materials Consumption in Sauces, Dressings, and Oils 313
• Other Processed Foods 317
• Flavor Materials Consumption in Other Processed Foods 318

CHAPTER X FRAGRANCE END-USE MARKETS

• Overview 334
• Toilet Preparations 338
• Fragrance Materials Consumption in Toilet Preparations 341
• Soaps and Detergents 344
• Fragrance Materials Consumption in Soaps and Detergents 348
• Polishes and Cleaners 351
• Fragrance Materials Consumption in Polishes and Cleaners 353

LIST OF TABLES

Table I-1 Flavor and Fragrance Shipments 6

Table I-2 Flavor and Fragrance Consumption 7

Table I-3 Flavor Materials Consumption, by End-Use 8

Table I-4 Fragrance Materials Consumption, by End-Use 9

Table II-1 Economic Environment 12

Table II-2 U.S. Demographic Trends 15

Table II-3 U.S. Population Distribution, by Age Group 16

Table II-4 Flavor and Fragrance End-Use Industry Analysis 33

Table II-5 Value of U.S. Exports of Flavor and Fragrance Materials, by Type 61

Table II-6 Value of U.S. Imports of Flavor and Fragrance Materials, by Type 62

Table III-1 Essential Oil Families/Representative Oils 66

Table III-2 U.S. Essential Oil Shipments, by Type 75

Table III-3 U.S. Essential Oil Consumption: Value 77

Table III-4 U.S. Essential Oil Consumption: Volume 78

Table III-5 U.S. Essential Oil End-Use Markets: Value 79

Table III-6 U.S. Essential Oil End-Use Markets: Volume 80

Table III-7 U.S. Essential Oil Imports, by Type: Value 83

Table III-8 U.S. Essential Oil Imports, by Type: Volume 84

Table III-9 U.S. Essential Oil Imports, by Type: Average Prices 85

Table III-10 Top Ten U.S. Import Sources for Essential Oils: Value 86

Table III-11 Top Ten U.S. Import Sources for Essential Oils: Volume 87

Table III-12 U.S. Essential Oil Exports, by Type: Value 89

Table III-13 U.S. Essential Oil Exports, by Type: Volume 90

Table III-14 U.S. Essential Oil Exports, by Type: Average Prices 91

Table III-15 Top Ten U.S. Export Destinations for Essential Oils: Value 92

Table III-16 Top Ten U.S. Export Destinations for Essential Oils: Volume 93

Table IV-1 Types of Aroma Chemicals 100

Table IV-2 U.S. Aroma Chemical Shipments 102

Table IV-3 U.S. Aroma Chemical Consumption: Value 103

Table IV-4 U.S. Aroma Chemical Consumption: Volume 104

Table IV-5 U.S. Aroma Chemical End-Use Markets: Value 106

Table IV-6 U.S. Aroma Chemical End-Use Markets: Volume 107

Table IV-7 U.S. Aroma Chemical Imports 108

Table IV-8 U.S. Aroma Chemical Exports 110

Table V-1 U.S. Flavor Blend and Compound Shipments 114

Table V-2 U.S. Flavor Blend and Compound Consumption: Value 115

Table V-3 U.S. Flavor Blend and Compound Consumption: Volume 116

Table V-4 U.S. Shipments of Flavor Blends and Compounds, Natural vs. Synthetic 118

Table V-5 U.S. Flavor Blend and Compound Imports 120

Table V-6 U.S. Flavor Blend and Compound Exports 121

Table VI-1 Other Flavor Materials Consumption, by Type 124

Table VI-2 U.S. Acidulant Consumption, by Type 131

Table VI-3 U.S. Flavor Enhancer Consumption, by Type 140

Table VI-4 U.S. Spice Consumption 154

Table VI-5 U.S. Spice Oleoresin Consumption 157

Table VI-6 U.S. Spice Oleoresin Imports, by Type 158

Table VI-7 U.S. Non-Nutritive Sweetener Consumption, by Type 175

Table VII-1 U.S. Fragrance Blend and Compound Shipments 182

Table VII-2 U.S. Fragrance Blend and Compound Consumption: Value 184

Table VII-3 U.S. Fragrance Blend and Compound Consumption: Volume 185

Table VII-4 U.S. Fragrance Blend and Compound Consumption and Pricing 185

Table VII-5 U.S. Fragrance Blend and Compound Imports 186

Table VII-6 U.S. Fragrance Blend and Compound Exports 188

Table VIII-1 Top Ten Flavor and Fragrance Companies Worldwide 191

Table IX-1 Processed Food Shipments, by Type 269

Table IX-2 Consumption of Flavor Materials, by Type 271

Table IX-3 Flavor Materials Consumption, by End-Use 273

Table IX-4 Processed Meat, Poultry, and Seafood: Flavor Materials Consumption, by Type 278

Table IX-5 Dairy Products: Flavor Materials Consumption, by Type 283

Table IX-6 Baked Goods: Flavor Materials Consumption, by Type 288

Table IX-7 Soft Drinks: Flavor Materials Consumption, by Type 298

Table IX-8 Processed Fruits and Vegetables: Flavor Materials Consumption, by Type 303

Table IX-9 Cereals and Grains: Flavor Materials Consumption, by Type 307

Table IX-10 Alcoholic Beverages: Flavor Materials Consumption, by Type 311

Table IX-11 Sauces, Dressings, and Oils: Flavor Materials Consumption, by Type 316

Table IX-12 Other Processed Foods: Flavor Materials Consumption, by Type 320

Table IX-13 Flavoring Agents Consumption, by End-Use: Value 322

Table IX-14 Acidulant Consumption, by End-Use: Value 324

Table IX-15 Non-Nutritive Sweetener Consumption, by End-Use: Value 326

Table IX-16 Flavoring Agents Consumption, by End-Use: Volume 328

Table IX-17 Acidulant Consumption, by End-Use: Volume 330

Table IX-18 Non-Nutritive Sweetener Consumption, by End-Use: Volume 332

Table X-1 Shipments of Soaps, Cleaners, and Toilet Goods 335

Table X-2 Consumption of Fragrance Materials, by Type 336

Table X-3 Fragrance Materials Consumption, by End-Use 337

Table X-4 Consumption of Fragrance Materials in Toilet Preparations 344

Table X-5 Consumption of Fragrance Materials in Soaps and Detergents 351

Table X-6 Consumption of Fragrance Materials in Polishes and Cleaners 354