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5 Experts on Top Flavor and Fragrance Challenges
Posted: July 25, 2007
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Hugo Bovill, CEO of Treatt plc, says, “The biggest challenge facing the flavor and fragrance industry in the next 12 months will be the increased raw material costs due to the climate changes caused by global warming and the required REACH legislation from the EU.” Maubert concurs, and Hughes adds that costs will also climb “due to competitive crops, climate changes and petroleum-related issues.”
“Consolidation is both a danger and a chance,” says Storp. “Monopoly reduces choice, and these big conglomerates become very powerful and can rule whole markets. On the other hand … size and creativity clash. You can’t maneuver such a big machine quickly and efficiently.” Bovill agrees that continued consolidation could be a challenge, but Storp explains that while larger companies will dominate certain markets, smaller entities will find opportunities in smaller, emerging regions such as Asia, Latin America and the Middle East. “There are many opportunities to explore,” he says.
Hughes sees all of this consolidation dovetailing with the changing way client companies do business. He notes “limited new product introductions by consumer packaged goods [companies] due to a high failure rate as well as the significant expense of creating new brands” as particular obstacles for the industry. In this environment, Maubert has a very clear formula for success: “The industry must continue to focus on those areas that our clients most depend upon us to deliver, which are creative flavor and fragrance compounds that will help them win in the marketplace. And in this age of growing food safety concerns, the industry must also maintain a clear commitment to delivering only the most consistent and quality products.”