Strategies of Survival and Success for F&F Middle Market Suppliers

For many middle market flavor and fragrance companies, the landscape is rapidly changing. During the last decade, the industry has seen significant consolidation with the larger flavor and fragrance houses becoming ever more dominant. Gone are the days when the industry was fragmented, with many middle market firms sharing the majority of the worldwide flavor and fragrance market. Today, the largest five firms in the industry—Givaudan, Firmenich, IFF, Symrise and Takasago—supply 57.5% of the $20 billion worldwide flavor and fragrance market. The next five firms—Sensient, Mane, T Hasegewa, Frutarom and Robertet—share another 11.2% of the market. In recent years, these “big boys” have acquired and consolidated many middle market firms with specialized industry experience, and access to clients and technologies to round out their own portfolios. Names such as Manheimer, Noville, Shaw Mudge, Intercontinental Fragrances and Wessel Fragrances have disappeared, just to mention a few.