Flavors And Fragrances Market Size, Share, Trends and Forecast by 2025

The global flavors and fragrance market is expected to reach USD 28.65 billion by 2025, according to a new report by Grand View Research, Inc. Flavors & fragrances provide lasting sensory impressions, often determined when subtly applied via food, beverage, medical products, and other substances. These products enhance the overall appeal and aesthetic value of consumer goods.

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Flavors & fragrances are mostly prepared using volatile chemicals and essential oils to deliver a particular flavor or enhance existing flavors. The products are mainly categorized into natural and synthetic. Increasing consumer demand for fresh and natural products has contributed to exponential segment growth.

Rising demand for convenience and ready-to-eat meals, health, and wellness foods, as well as technological advancements, are expected to boost market growth. Rapid industrialization and increasing consumer disposable incomes in emerging economies such as China and India are also projected to foster the global food flavors market over the forecast period.

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Owing to the enormous demand for natural products, many forests have been chopped down to derive minuscule amounts of oil. Several arable lands have also been converted into monoculture farming lands to cultivate a single plant or crop to obtain particular oil. This, in turn, has resulted in limited availability of raw materials for natural products.

Flavors & fragrances manufacturers operate through collaborations with scientists, artists, musicians, writers, and filmmaker to tap into creative minds to expose perfumes to new and constantly evolving creative territories and approaches. Manufacturers also form creative teams that comprise fragrance evaluators, perfumers, and flavorists.

Further key findings from the report suggest:

Aroma chemicals are expected to maintain the largest market share and are likely to account for 64.6% of the revenue generated in 2025.

Increasing research expenditure on developing fragrance compounds is expected to support the demand for aroma chemicals in upcoming years.

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Essential oils are expected to emerge as the largest as well as fastest growing natural product segment.

Orange essential oil demand was valued at USD 1,404.8 million in 2015.

Fragrances application segment is estimated to dominate the market while the valuation of flavors is projected to grow at a CAGR of 4.1% from 2016 to 2025.

Asia Pacific is projected to grow at the highest CAGR on account of availability of the raw material and increasing demand.

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