IAL Consultants predict slow growth through 2020 with a projected rebound in 2021.
In 2019, the global flavors and fragrances market increased 3.8% reaching a total value of $31.5 billion, according to IAL Consultants.
Related: Aroma Chemicals Market to Reach $8.41 Billion by 2027.
The increase was lower than it had been in 2018 due in part to challenges in South America.
Key factors among the findings:
- The 2020 forecast growth for flavors alone is 1.6%
- The 2020 forecast growth for fragrances is only 0.8%
- Recovery in 2021 has been predicted with growth rates returning to normal rates closer to 4%.
- IAL has forecast a reduced growth rate of 1.2% for the global F&F market in 2020, reflecting the impact of COVID-19 on the industry.
- Vietnam, India, Bangladesh and Indonesia had the fastest growing markets in 2019.
- Decreases were seen in the markets of Venezuela, Argentina and Iran.
- The largest growth rates are expected to come from the Asia-Pacific market with a CAGR of 4.8%.
- For flavor, the largest end-use markets are beverages at a 34% market share and dairy with 12%.
- For fragrance, the larges end-use markets are soaps and detergents with a 32% share and cosmetics and toiletries at 30%.
