Most Popular in:
US F&F Demand to Approach $7 Billion in 2017
Posted: August 29, 2013
Demand for flavors and fragrances in the United States is forecast to approach $7 billion in 2017 as the result of favorable wellness, demographic, and macroeconomic trends, according to market researcher Freedonia.
According to a report, consumer demand for more flavorful foods, as well as unique high-value flavors, will fortify strong growth in flavor blends, the largest product type.
Demand for fragrance blends will rise at a more modest pace, impacted by slower growth in cosmetic and toiletry shipments and weakness in environmental fragrance goods. Producers, it said, are continuing to promote the notion of a cleaning “experience," feeling relaxed, invigorated, or transported, through fragrance in dishwashing detergents and general purpose cleaners. Similar efforts to promote fragrance based experiences will also support above-average growth in body washes.
Going forward, the report said demand growth in essential oils and natural extracts for flavor and fragrance applications will be nearly as fast as growth in flavor blends, though from a smaller base. The pace of growth will moderate slightly as price increases slow to a more sustainable pace following recent rapid gains. Essential oils will rise at an above average pace, reflecting greater consumer preference for natural goods.
While increases in aroma chemical demand will trail other product types, Freedonia predicts natural aroma chemical sales will accelerate through 2017 to a near average pace due to their ability to afford a “clean” label in food, beverage, and some cosmetic and toiletry applications. Increases in synthetic aroma chemical demand will also improve, though the pace will remain below average. Synthetic aromas will continue to be the preferred solution in soaps and body washes as well as laundry detergents due to the high volume nature of these markets and the need for low material cost and product consistency.