As mature markets in the United States and Europe face a treacherous economic environment, flavor and fragrance companies have set their sights on new areas for growth over the next five years, mainly emerging markets. Market research firm Global Industry Analysts Inc., for instance, predicts that global perfume and fragrance sales will climb to $36 billion by 2017, marked by steady growth in Asia-Pacific, Eastern Europe and Latin America.
The top F&F industry players based on sales—Givaudan, Firmenich, IFF, Symrise, Takasago, Mane SA, Sensient, Frutarom, T. Hasegawa and Robertet—have all cited Latin America, Asia, the Middle East, Africa and Eastern Europe among their most rapidly growing markets.
“We see the emerging markets as being the growth driver for the next five years,” says Gilles Andrier, Givaudan’s CEO. “Today we have 43% of sales in emerging markets. We have an objective to reach 50% in the next five years.”