RALEIGH, North Carolina, October 3, 2019 - The global flavors and fragrances (F&F) market is estimated to be growing at a CAGR of 6-7 percent until 2022, according to Beroe Inc., a procurement intelligence firm. The top agro-based fragrances in the market are natural & synthetic menthol, natural & synthetic vanillin, GT & CST, with menthol having the largest market size in terms of volume.

Developing countries in APAC, Central & South America, Africa, and the Middle East are expected to show the most robust market growth for fragrances, while Eastern EU is expected to show growth significantly faster than developed areas. India is the largest producer and exporter of menthol, but China is the largest producer and exporter of vanillin and GT.

https://www.beroeinc.com/category-intelligence/natural-fragrances-market/

Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com

The market for natural fragrances is driven by rapidly rising incomes, urbanization, and increasing demand for processed foods across the world. The health benefits of natural fragrances are the most sought after in the end-use industries by the health-conscious population. Unpredictable weather and the evolving climate are the major deciding factors of the supply available each year, irrespective of the increasing demand, posing a challenge to the growth of the market.

Development of drought/pest/disease resistant, and high-yield potential varieties of natural fragrances, especially mint, are new trends in the market. Manufacturers have started exploring new and innovative raw material sources, such as yeast-based flavors and fragrances for the food industry. Rise in multi-functional compounds can be foreseen, due to increasing demand for health and wellness products.

Key Findings:

• Fragrance industry is highly consolidated with the top 10 fragrance houses hold around 80 percent of the total supply. Top global suppliers include Givaudan, Firmenich, IFF, Symrise and Takasago.
• Though the detergent and cleaner market look matured even in the developing economies, the focus on product differentiation in toiletry and cleaner segment will help in sustaining the demand for fragrance blends and aroma chemicals.
• Global procurement is a better option, as this would safeguard against regional supply disruptions that may result due to natural calamities or political instability. Engaging in multiple supplier sourcing helps in mitigating risk to a large extent.
• There are high initial and R&D costs in the F&F business. The majority of leading players spend about 10 percent of their annual turnover on R&D.
• More than 50 percent of the F&F companies are vertically integrated (from farmer/processor to flavors), who have their own manufacturing units regionally.

The research methodology adopted for the report included:

• Experts with twenty years of domain experience
• Interaction with buyers
• Inputs from supply chain partners

Raw materials account for a major portion of the cost of natural fragrances, representing 64 percent of the cost for menthol, 54 for vanillin, and 43 percent for turpentine. Increase in regulation cost, coupled with erratic supplies of natural ingredients, involves huge cost in mechanizing and accumulating inventory, which will eventually reduce the profit margins of fragrance houses.

The report also includes:

Market Analysis:

• Global Flavor and Fragrance Market -Overview
• Market Dynamics
• Flavor & Fragrance Industry Structure

Menthol Market Analysis:

• Value Chain Analysis
• Production Trends
• Price Analysis
• End-use Industry Analysis
• Global Trade Dynamics 
• Cost Structure Analysis

Vanillin Market Analysis: 

• Value Chain Analysis
• Production Trends
• Price Analysis
• End-use Industry Analysis
• Global Trade Dynamics 
• Cost Structure Analysis

Turpentine Market Analysis:

• Value Chain Analysis
• Production Trends
• Price Analysis
• End-use Industry Analysis
• Global Trade Dynamics 
• Cost Structure Analysis

Industry Analysis:

• Porter’s Five Forces Analysis
• Innovations/Technology Trends

Procurement Insights

• Procurement Strategy - Best Practices

Supplier Analysis: 

• Comprehensive Supplier List
• Profiling of Key Players
  • Givaudan
  • Firmenich
  • IFF
  • Symrise
  • Takasago

About Beroe Inc.:

Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.

To learn more about Beroe Inc., please visit: http://www.beroeinc.com

Media Contact:
Debobrata Hembram
debobrata.hembram@beroe-inc.com