03 October, 2019
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.
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.
The research methodology adopted for the report included:
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:
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