The report cites that market could be hindered by the threat of counterfeit products and stringent regulations and guidelines.
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According to a report from Technavio, the flavors and fragrances market is expected to increase at a CAGR of 5.64% and register at $10.44 billion between 2021 and 2026. While positive growth is fueled by new product launches, the report cites that market could be hindered by the threat of counterfeit products and stringent regulations and guidelines.
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Highlights of the report include:
- Successful new product launches help vendors increase their revenue and aid in expanding their market share, particularly due to the many options available and thus bringing in new and varied consumers.
- The market is expected to grow during the forecast period, owing to the increasing demand for fragrances and flavors in the food and beverage and cosmetic industries, rapid urbanization and new product launches.
- Vendors are investing in organic and inorganic growth strategies, such as the expansion of production plants and the acquisition of local companies, to increase their productivity and strengthen their market positions.
- Consumers across the world have become conscious of the quality of consumable products. Hence, the competition in the global flavors and fragrances market is likely to shift from pricing to quality and brand reputation. This makes it difficult for new market players to enter the global flavors and fragrances market.
- Based on the functionality, the fragrances segment is expected to create more revenue in the market. The segment is driven by the rising demand from end-users such as manufacturers of fine fragrances, cosmetics and toiletries, soaps and detergents, household cleaners and air fresheners.
- In terms of region, APAC will emerge as the dominant region, occupying 41% of the global market share. The regional market is driven by the presence of a huge consumer base, rising working women population, growing demand for international cuisines and penetration of key vendors.
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