This is only an excerpt of the full article that appeared in P&F Magazine. The full content is not currently available online.In “The F&F Horizon: 2009 and Beyond,” a number of F&F experts discussed their views on the state and future of the industry from the vantage point of formulation to raw materials to the marketplace. (Perfumer & Flavorist magazine, January 2009, Page 45.) In this week’s edition of P&Fnow, we present the first of several extended commentaries from our panel of experts and industry voices.
Current economic conditions and our customers’ instinct to safeguard themselves through the current recession will have the greatest impact on the flavor industry in the months to come. Frugality will be the key driver. And frugality, or maybe better said, fiscal discipline, for those companies with access to capital suggests that our customers will be limiting their new product introductions since the investments needed to market those products are far riskier than investing in the marketing of existing products that have a proven track record in the marketplace. And if new product introductions are limited, it stands to reason that so too are the opportunities to supply new flavors. The alternative growth opportunities for the flavor industry during this economic downturn will be driven by an ability to provide an economic benefit to customers rather than an ability to provide on-trend flavor profiles or unique delivery systems for those flavor profiles.