World Flavors & Fragrances Market

• Publication date: October 2012
• Report size: 388 pages

Global demand to rise 4.4% annually through 2016 Worldwide demand for flavors and fragrances -- including flavor blends, fragrance blends, essential oils, and aroma chemicals -- will rise 4.4 percent annually through 2016, reaching $26.5 billion. Increasing packaged food manufacturing, especially of convenience products that require higher flavor usage, will drive fast growth in developing countries. Rising personal consumption exp...

Global demand to rise 4.4% annually through 2016

Worldwide demand for flavors and fragrances -- including flavor blends, fragrance blends, essential oils, and aroma chemicals -- will rise 4.4 percent annually through 2016, reaching $26.5 billion. Increasing packaged food manufacturing, especially of convenience products that require higher flavor usage, will drive fast growth in developing countries. Rising personal consumption expenditures in these emerging economies will also stimulate toiletry and cleaner shipments, which will contribute to healthy growth in fragrance blends. Increasing global interest in products that promote health benefits will also drive demand in both the food and beverage and cosmetics and toiletry markets, as masking flavors and fragrances are employed in conjunction with antioxidants and vitamins to reduce off-tastes and off-odors. Furthermore, efforts in developed countries to reduce calories, salt, and fat in foods will increase demand for flavors to improve the taste of those products.

Consumer trends favoring higher value products

Globally, there has been a rising interest in natural, organic, and more expensive products across a number of consumer markets, including food and beverages and toiletries and cleaners. Industry efforts to meet this demand will drive increased value consumption of nearly all types of flavors and fragrances, with the exception of aroma chemicals, which will be replaced by essential oils in certain product categories.

Food & beverage market to benefit from urbanization & health concerns

Rapidly rising incomes and urbanization in developing countries is spurring interest in convenient packaged foods and fast food, which will also boost growth in the food and beverage market, as packaged goods require high flavoring loadings to preserve taste in the face of large-scale manufacturing. This will lead to particularly fast growth in countries such as China and India in the Asia/ Pacific region, as well as countries in Central and South America. In developed countries, food and beverage flavor and fragrance demand will benefit from increasing customer interest in vitamincontaining foods, which require flavors to mask the unpleasant taste of these ingredients, and growing concerns about obesity. Government programs to reduce calories, fats, and sodium in foods will favor healthier alternatives that generally require more flavors to preserve good taste. However, the long term impact of this effort will depend on consumer acceptance.

Health concerns to also drive toiletry/cleaner uses

Health concerns will also drive growth in the toiletry and cleaner market. Cosmeceuticals and anti-aging cream, popular among the expanding older segments of the population in developed countries, contain additives with off-odors that must be masked by fragrances. However, increasing consumer interest in fragrancefree products, as well as limited opportunities in the cleaner market, will limit even faster advances. While demand in developed countries is relatively mature, the continued recovery in cosmetics and toiletry shipments from the 2009 global economic recession will improve consumption of fragrances in areas such as Western Europe and North America.

Study coverage

Details on these and other key findings are contained in World Flavors & Fragrances. This report presents historical demand data for 2001, 2006 and 2011, as well as forecasts for 2016 and 2021 by product, market, world region and for 18 major countries. The study also considers market environment factors, evaluates company market share, and profiles 37 global competitors such as Firmenich, Givaudan, International Flavors & Fragrances, and Symrise.

Global Fragrance Industry

TABLE OF CONTENTS

INTRODUCTION xi

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
World Economic Overview 5
Recent Historical Trends 5
World Economic Outlook 7
World Population Outlook 11
World per Capita Gross Domestic Product 13
World Personal Consumption Expenditure Trends 15
World Manufacturing Outlook 17
World Food & Beverage Manufacturing Outlook 19
World Beverage & Soft Drink Outlook 21
World Toiletry & Cleaner Outlook 26
Environmental & Regulatory Issues 29
Flavors 30
Fragrances 33

III. OVERVIEW 36

General 36
Product Overview 36
Flavor Blends 39
Fragrance Blends 42
Essential Oils & Natural Extracts 46
Aroma Chemicals 50
Market Overview 53
Food & Beverages 56
Toiletries & Cleaners 59
Other Markets 62
Regional Overview 65
Demand 66
Per Capita Consumption Trends 68
Production 71
World Trade Outlook 73

IV. NORTH AMERICA 76

General 76
Supply & Demand 78
Markets 81
United States 83
Canada 90
Mexico 96

V. WESTERN EUROPE 103

General 103
Supply & Demand 105
Markets 108
France 110
Germany 116
Italy 122
Netherlands 129
Spain 135
Switzerland 140
United Kingdom 146
Other Western Europe 152

VI. ASIA/PACIFIC 158

General 158
Supply & Demand 160
Markets 163
Australia 164
China 171
India 178
Japan 185
South Korea 192
Taiwan 198
Other Asia/Pacific 204

VII. OTHER REGIONS 212

Central & South America 212
Demand by Type & Market 214
Brazil 216
Other Central & South America 222
Eastern Europe 227
Demand by Type & Market 230
Russia 232
Other Eastern Europe 238
Africa/Mideast 243
Demand by Type & Market 246
Suppliers 248

VIII. INDUSTRY STRUCTURE 250

General 250
Market Share 254
Acquisitions & Divestitures 259
Competitive Strategies 264
Product Differentiation 265
Market Segmentation 266
Cooperative Agreements 267
Research & Development 270
Manufacturing Methods 274
Marketing & Distribution 277
Company Profiles 279
Agilex Flavors & Fragrances Incorporated 280
Aromatech France 281
Aromco, see ICC Industries
BASF SE 283
Bell Flavors & Fragrances Incorporated 285
Belmay Incorporated 287
BIOLANDES SAS 288
Cargill Flavor Systems, see Kerry Group
Cargill Incorporated 290
Charabot, see Robertet
China Flavors & Fragrances Company Limited 291
Cognis, see BASF
ConAgra Foods Incorporated 292
CPL Aromas Limited 293
Dérivés Résiniques et Terpéniques 295
ETOL dd, see ICC Industries
Firmenich SA 297
FlavourCraft, see Kerry Group
Frutarom Industries, see ICC Industries
Givaudan SA 301
Hasegawa (T.) Company Limited 307
Huabao International Holdings Limited 309
ICC Industries Incorporated 311
International Flavors & Fragrances Incorporated 316
Kao Corporation 322
Kerry Group plc 324
Lucta SA 327
LyondellBasell Flavors and Fragrances, see Renessenz
LyondellBasell Industries NV 329
Mane (V.) Fils SA 330
McCormick & Company Incorporated 332
Michael (David) & Company 334
Mylner Indústria E Comércio Limitada, see ICC
Industries
Nagaoka Perfumery Company Limited 336
Ogawa & Company Limited 337
Plantes Aromatiques du Diois, see Robertet
Renessenz LLC 338
Rhodia, see Solvay
Robertet SA 340
Savoury Flavours Holding, see ICC Industries
Sensient Technologies Corporation 343
Soda Aromatic Company Limited 347
Solvay SA 348
Spicetec Flavors & Seasonings, see ConAgra Foods
Symrise AG 351
Takasago International Corporation 356
Todd (AM), see WILD (Rudolf) & Company
Treatt (RC) plc 360
Wanxiang International Limited 362
WILD (Rudolf) GmbH & Company KG 363
ZEON Corporation 366
Additional Companies Mentioned in Study 368

LIST OF TABLES


SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 World Gross Domestic Product by Region 11
2 World Population by Region 13
3 World per Capita Gross Domestic Product by Region 15
4 World Personal Consumption Expenditures 17
5 World Manufacturing Value Added by Region 19
6 World Food & Beverage Manufacturing Value Added by Region 21
7 World Carbonated Soft Drink Consumption by Region 25
8 World Toiletry & Cleaner Shipments by Region & Type 29

SECTION III -- OVERVIEW
1 World Flavor & Fragrance Demand by Product 38
2 World Flavor Blend Demand by Region 41
3 World Fragrance Blend Demand by Region 45
4 World Essential Oil & Natural Extract Demand by Region 49
5 World Aroma Chemical Demand by Region 52
6 World Flavor & Fragrance Demand by Market 55
7 World Food & Beverage Market for Flavors by Region 58
8 World Toiletry & Cleaner Market for Fragrances by Region 61
9 Other Markets for Flavors & Fragrances by Region 64
10 World Flavor & Fragrance Demand by Region 67
11 World Flavor & Fragrance Production by Region 72
12 World Net Exports of Flavors & Fragrances by Region 75

SECTION IV -- NORTH AMERICA

1 North America: Flavor & Fragrance Market Environment 78
2 North America: Flavor & Fragrance Supply & Demand 80
3 North America: Flavor & Fragrance Markets 82
4 United States: Flavor & Fragrance Market Environment 85
5 United States: Flavor & Fragrance Supply & Demand 87
6 United States: Flavor & Fragrance Markets 89
7 Canada: Flavor & Fragrance Market Enviornment 92
8 Canada: Flavor & Fragrance Supply & Demand 94
9 Canada: Flavor & Fragrance Markets 95
10 Mexico: Flavor & Fragrance Market Environment 98
11 Mexico: Flavor & Fragrance Supply & Demand 100
12 Mexico: Flavor & Fragrance Markets 101

SECTION V -- WESTERN EUROPE

1 Western Europe: Flavor & Fragrance Market Environment 105
2 Western Europe: Flavor & Fragrance Supply & Demand 107
3 Western Europe: Flavor & Fragrance Markets 110
4 France: Flavor & Fragrance Market Environment 112
5 France: Flavor & Fragrance Supply & Demand 114
6 France: Flavor & Fragrance Markets 115
7 Germany: Flavor & Fragrance Market Environment 118
8 Germany: Flavor & Fragrance Supply & Demand 120
9 Germany: Flavor & Fragrance Markets 121
10 Italy: Flavor & Fragrance Market Environment 124
11 Italy: Flavor & Fragrance Supply & Demand 126
12 Italy: Flavor & Fragrance Markets 128
13 Netherlands: Flavor & Fragrance Market Environment 131
14 Netherlands: Flavor & Fragrance Supply & Demand 132
15 Netherlands: Flavor & Fragrance Markets 134
16 Spain: Flavor & Fragrance Market Environment 137
17 Spain: Flavor & Fragrance Supply & Demand 138
18 Spain: Flavor & Fragrance Markets 139
19 Switzerland: Flavor & Fragrance Market Environment 142
20 Switzerland: Flavor & Fragrance Supply & Demand 143
21 Switzerland: Flavor & Fragrance Markets 145
22 United Kingdom: Flavor & Fragrance Market Environment 148
23 United Kingdom: Flavor & Fragrance Supply & Demand 149
24 United Kingdom: Flavor & Fragrance Markets 151
25 Other Western Europe: Flavor & Fragrance
Market Environment 154
26 Other Western Europe: Flavor & Fragrance
Supply & Demand 155
27 Other Western Europe: Flavor & Fragrance Markets 156


SECTION VI -- ASIA/PACIFIC

1 Asia/Pacific: Flavor & Fragrance Market Environment 160
2 Asia/Pacific: Flavor & Fragrance Supply & Demand 162
3 Asia/Pacific: Flavor & Fragrance Markets 164
4 Australia: Flavor & Fragrance Market Environment 167
5 Australia: Flavor & Fragrance Supply & Demand 168
6 Australia: Flavor & Fragrance Markets 170
7 China: Flavor & Fragrance Market Environment 173
8 China: Flavor & Fragrance Supply & Demand 175
9 China: Flavor & Fragrance Markets 177
10 India: Flavor & Fragrance Market Environment 180
11 India: Flavor & Fragrance Supply & Demand 182
12 India: Flavor & Fragrance Markets 184
13 Japan: Flavor & Fragrance Market Environment 187
14 Japan: Flavor & Fragrance Supply & Demand 189
15 Japan: Flavor & Fragrance Markets 191
16 South Korea: Flavor & Fragrance Market Environment 194
17 South Korea: Flavor & Fragrance Supply & Demand 196
18 South Korea: Flavor & Fragrance Markets 197
19 Taiwan: Flavor & Fragrance Market Environment 200
20 Taiwan: Flavor & Fragrance Supply & Demand 202
21 Taiwan: Flavor & Fragrance Markets 203
22 Other Asia/Pacific: Flavor & Fragrance Market Environment 206
23 Other Asia/Pacific: Flavor & Fragrance Supply & Demand 208
24 Other Asia/Pacific: Flavor & Fragrance Markets 210

SECTION VII -- OTHER REGIONS

1 Central & South America: Flavor & Fragrance Market
Environment 214
2 Central & South America: Flavor & Fragrance Demand
by Type & Market 216
3 Brazil: Flavor & Fragrance Market Environment 219
4 Brazil: Flavor & Fragrance Demand by Type & Market 221
5 Other Central & South America: Flavor & Fragrance Market
Environment 224
6 Other Central & South America: Flavor & Fragrance Demand
by Type & Market 226
7 Eastern Europe: Flavor & Fragrance Market Environment 230
8 Eastern Europe: Flavor & Fragrance Demand
by Type & Market 232
9 Russia: Flavor & Fragrance Market Environment 235
10 Russia: Flavor & Fragrance Demand by Type & Market 237
11 Other Eastern Europe: Flavor & Fragrance
Market Environment 240
12 Other Eastern Europe: Flavor & Fragrance Demand
by Type & Market 242
13 Africa/Mideast: Flavor & Fragrance Market Environment 246
14 Africa/Mideast: Flavor & Fragrance Demand
by Type & Market 248

SECTION VIII -- INDUSTRY STRUCTURE

1 World Flavor & Fragrance Sales by Company, 2011 251
2 Selected Acquisitions & Divestitures 262
3 Selected Cooperative Agreements 269
4 R&D Spending Patterns: Selected Flavor
& Fragrance Suppliers 274

LIST OF CHARTS

SECTION III -- OVERVIEW

1 World Flavor & Fragrance Demand by Product, 2011 38
2 World Flavor Blend Demand by Region, 2011 42
3 World Fragrance Blend Demand by Region, 2011 46
4 World Essential Oil & Natural Extract Demand
by Region, 2011 50
5 World Aroma Chemical Demand by Region, 2011 53
6 World Flavor & Fragrance Demand by Market, 2011 55
7 World Food & Beverage Market for Flavors by Region, 2011 59
8 World Toiletry & Cleaner Market for Fragrances
by Region, 2011 62
9 Other Markets for Flavors & Fragrances by Region, 2011 65
10 World Flavor & Fragrance Demand by Region, 2011 68
11 Flavor & Fragrance Demand per Capita/ Personal Consumption
Expenditures per Capita Relationship, 2011 70
12 World Flavor & Fragrance Production by Region, 2011 73
SECTION IV -- NORTH AMERICA
1 North America: Flavor & Fragrance Demand
by Country, 2011 81
SECTION V -- WESTERN EUROPE
1 Western Europe: Flavor & Fragrance Demand
by Country, 2011 108
SECTION VI -- ASIA/PACIFIC
1 Asia/Pacific: Flavor & Fragrance Demand by Country, 2011 163
SECTION VIII -- INDUSTRY STRUCTURE
1 World Flavor & Fragrance Market Share, 2011 254