Flavor and Fragrance Market Projected to Reach $37.5 Billion by 2031

Asia-Pacific is the fastest growing region over the forecast period, driven largely by population growth and increased middle class spending.
Asia-Pacific is the fastest growing region over the forecast period, driven largely by population growth and increased middle class spending.
Trionorejo at Adobe Stock

The global flavor and fragrance market is expected to grow at a compound annual growth rate of 3% from 2025 to 2031, according to a new report from Valuates Reports. 

According to the report, the market was valued at $30.58 billion in 2024 and is expected to reach $37.5 billion by the end of the forecast period. The growth in the market is largely being driven by demand for natural, sustainable, and diverse ingredient solutions. 

“The flavor and fragrance sales market continues to experience robust growth, driven by evolving consumer preferences, product innovation and sectoral expansion across food, personal care and wellness industries,” the report states. “The strategic role of sensory elements in product success is pushing companies to invest in R&D and create immersive consumer experiences. With increasing cross-industry applications and support from digital retail models, the market shows no sign of slowing down.”

Asia-Pacific is the fastest growing region over the forecast period, driven largely by population growth and increased middle class spending. In particular, countries such as China, India and Indonesia are experiencing a rapid expansion in both the processed food and cosmetics sectors. North America and Europe continue to dominate the market due to their well-established markets and strong R&D infrastructure. 

The growing health consciousness among consumers is influencing the global F&F market, driving demand for natural and clean-label flavors and fragrances. Consumers are seeking products made with essential oils, botanical extracts and organic compounds rather than synthetic ingredients. Further, regulatory support for these ingredients has helped speed up adoption, leading manufacturers to reformulate their offerings to align with the demand.

Another aspect driving the growth of the flavor and fragrance market is the concept of premiumization. Consumers are seeking high-quality, multi-sensory experiences, such as high-end perfumes, gourmet foods and signature beverages. The report also notes that “sensory branding,” such as leveraging scents in retail spaces or personalized flavor experiences, is influencing buying behavior as well. 

The food and beverage industry is the largest contributor to the flavor and fragrance market as consumers look for tasty, aromatic and indulgent eating experiences. 

“Flavors are integral in developing appealing products, particularly in snacks, confectioneries, bakery and beverages,” the report states. “Changing lifestyles and the rapid urbanization trend have elevated the demand for processed and convenience foods, intensifying the need for diverse flavoring options.”

Following closely behind is the personal care industry, which is seeing an increased demand for scented products.

“The growing demand for scented personal hygiene products like deodorants, body sprays and shampoos, particularly among young populations, is a major growth driver,” the report notes. “Additionally, the psychological impact of fragrances such as stress relief or mood enhancement is being leveraged in wellness and aromatherapy products.”
 

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