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The U.S. flavors and fragrances market is projected to reach a valuation of USD 8.43 billion by 2034, growing at a compound annual growth rate (CAGR) of 3.5%

05-30-2025 03:17 PM CET | Chemicals & Materials

Press release from: Polaris Market Research & Consulting

The U.S. flavors and fragrances market is projected to reach

Polaris Market Research analyzes the US flavors and fragrances market to register sustained growth in the coming years. The market was valued at USD 5.99 billion in 2024 and is projected to grow to USD 8.43 billion by 2034. It is anticipated to exhibit a CAGR of 3.5% during 2025-2034.

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Market Introduction

Flavors are aroma compounds used in foods and drinks to enhance or impart taste. Fragrances, on the other hand, are aromatic mixtures used for scent and personal care products. Flavors are typically used in the food and beverage industry to create or enhance the perceived taste. They are often derived from natural sources like plants or animals, or they can be synthetically produced. Flavors are consumed orally and contribute to the overall sensory experience of a food or beverage.

As aromatic mixtures, fragrances are used for their pleasant scent in products like perfumes, cosmetics, detergents, and toiletries. Fragrances are not typically consumed but rather applied externally and appreciated through the sense of smell.

Market Dynamics

Rising Consumer Expenditure: The growing consumer spending on wellness, beauty, and personal grooming is significantly contributing to the US flavors and fragrances market demand. The growing usage of high-performance personal care products like skincare, perfume, and haircare items is fueling the adoption of long-lasting perfume formulations. In addition, customization and demand for multifunctional products are prompting companies to innovate and deliver unique scent profiles.

Growing Sustainability Initiatives: The rising preference for biodegradable and sustainably sourced ingredients is transforming product development across the industry. Manufacturers are making investments and increasingly preferring renewable raw materials and circular production processes to meet sustainability goals. As regulatory scrutiny grows and ethical sourcing becomes a competitive advantage, sustainable innovation is expected to play a key role in driving long-term market expansion.

Market Challenges

Despite strong growth prospects, the U.S. flavors and fragrances market faces several challenges:

Regulatory Complexity and Compliance Costs
The U.S. market is regulated by agencies such as the FDA and EPA, which impose strict standards on ingredient safety, labeling, and environmental impact. Navigating this regulatory landscape requires significant resources, and changes in regulations can disrupt supply chains and delay product launches.

Volatility of Raw Material Prices
Many natural ingredients used in flavors and fragrances, such as essential oils and botanical extracts, are subject to seasonal fluctuations, climatic changes, and geopolitical factors. This volatility affects pricing and supply stability, posing challenges for manufacturers and end users alike.

Increasing Competition and Market Saturation
The market is highly competitive, with numerous domestic and international players vying for market share. Differentiating products through innovation and brand positioning is becoming more difficult as consumers' expectations rise and price sensitivity increases.

Consumer Sensitivities and Allergies
The growing prevalence of allergies and sensitivities to fragrances and additives necessitates careful formulation and transparent labeling. Companies must invest in research and development to create hypoallergenic and dermatologically tested products.

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Market Key Players

The market has the presence of both established players and new entrants. A few of the major market participants include:

Alpha Aromatics
Archer-Daniels-Midland Company
BASF SE
dōTERRA International
Elevance Renewable Sciences, Inc.
International Flavors & Fragrances Inc.
Ungerer & Company
Vigon International, Inc.
Young Living Essential Oils
Market Segmentation

The US flavors and fragrances market segmentation is primarily based on product and application.

By product, the natural segment led the market in 2024. This is primarily due to an increase in demand for botanical and organic inputs across food, beverage, and personal care applications. The need to comply with FDA GRAS guidelines and increased interest in ethically sourced raw materials has also contributed to the segment's leading market position.

Based on application, the flavors segment dominated the market in 2024. The segment's dominance is driven by the ongoing expansion of the processed food and functional beverage sectors. In addition, rising consumer preference for experiential eating has contributed to the largest market share of the segment.

By Product Outlook (Revenue, USD Billion, 2020-2034)

Natural
Essential Oils
Oleoresins
Others
Aroma Chemicals
By Application Outlook (Revenue, USD Billion, 2020-2034)

Flavors
Fragrance
Click here to access the Full Report: https://www.polarismarketresearch.com/industry-analysis/us-flavors-and-fragrances-market

Regional Analysis

Within the U.S., the flavors and fragrances market shows distinct regional dynamics influenced by industrial clusters, consumer demographics, and cultural trends.

West Coast
California, Oregon, and Washington are hubs for natural and organic product development, driven by strong consumer demand for sustainable and health-conscious goods. Silicon Valley and other innovation centers foster startups and R&D investments focused on novel flavor and fragrance technologies.

Northeast
The Northeast, including New York, New Jersey, and Massachusetts, hosts many major flavor and fragrance companies, as well as large food and personal care manufacturers. The region benefits from proximity to key markets and ports facilitating import/export activities.

Midwest
Known as the agricultural heartland, the Midwest supplies many raw materials used in flavors and fragrances. The presence of large food processing companies also creates a strong local demand for flavor ingredients.

South
The southern U.S. region, including Texas and Florida, is rapidly growing due to expanding foodservice and hospitality industries. The diverse population also fuels demand for ethnic and exotic flavors.

US Flavors and Fragrances Industry Updates

February 2025: International Flavors & Fragrances (IFF) revealed plans to strategically expand its Cedar Rapids, Iowa facility. This expansion is designed to meet the rising demand for healthy snack flavors in both the domestic and global markets.

January 2023: IFF introduced its CHOOZIT VINTAGE flavor portfolio in the U.S. and Canadian markets. This innovative solution assists cheddar cheese manufacturers in preventing unwanted flavor alterations throughout the aging process.

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About Polaris Market Research & Consulting, Inc:
Polaris Market Research is a global market research and consulting company. The company specializes in providing exceptional market intelligence and in-depth business research services for PMR's clientele spread across different enterprises. We at Polaris are obliged to serve PMR's diverse customer base present across the industries of healthcare, technology, semiconductors, and chemicals among various other industries present around the world. We strive to provide PMR's customers with updated information on innovative technologies, high-growth markets, emerging business environments, and the latest business-centric applications, thereby helping them always to make informed decisions and leverage new opportunities. Adept with a highly competent, experienced, and extremely qualified team of experts comprising SMEs, analysts, and consultants, we at Polaris endeavor to deliver value-added business solutions to PMR's customers.

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