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Demand for Flavors & Fragrances to Reach $5.3 Billion
Posted: February 11, 2009
The Freedonia Group, Inc. forecasts demand for flavors and fragrances in the U.S. to grow 3.7% per year to reach $5.3 billion in 2012. Increasing consumer interest in natural ingredients, which are generally more expensive than their synthetic counterparts, will support value gains, according to Freedonia's new Flavors & Fragrances study. Also, trends toward more complex and exotic flavors and scents will boost demand for new flavor and fragrance blends.
Through 2012, the cosmetic and toiletry market will continue to record the most rapid advances. Skin care products are expected to provide strong opportunities for growth, reflecting expansion of the skin care industry itself, as middle-aged baby boomers and older adults seek antiaging products and manufacturers continue to target growth segments with products designed for use by men, teenagers and infants. Fragrances will continue to play an important role in product differentiation, aiding demand growth.
Environmental fragrance goods will also experience healthy gains through 2012, driven by advances in aromatherapy and household applications, as well as consumer desires for more sophisticated fragrance combinations. Candles and a host of innovative air freshener products designed to control offensive odors or simply provide a pleasant smell in the home and other living and working areas will spur demand for fragrances. Increasingly, these products being used to create a certain ambiance through scent and provide additional benefits—such as stress relief, relaxation or energy boosting, in addition to masking unpleasant smells.
Despite relatively slow growth, food will remain the largest market for flavors and fragrances, based on the widespread application of flavor materials in processed food, dairy and bakery products, candy and confectioneries, and other items. The further expansion of fortified food—as well as beverages—will provide opportunities, since flavors are often used to cover up the off-tastes of vitamins, minerals, antioxidants and other added ingredients. Although beverage flavor demand will grow slowly, good opportunities remain in sports and other specialty drink markets.
Additional information is available from The Freedonia Group.