According to research from Markets and Markets, the flavors and fragrances market is projected to reach $37.3 billion by 2026, growing at a CAGR of 5.1% between 2021 and 2026.
The report covers the flavors and fragrances market based on grade, end-use industry and region.
Highlights of the report include:
- The demand for natural ingredients is mainly due to stringent regulations related to the use of synthetic flavors and fragrances and growing awareness among the population about health and wellness are driving the demand for natural ingredients.
- The bakery industry is expected to grow at the highest rate in the flavor market during the forecast period. The changing lifestyle, growing working-class population and rising demand for gluten-free bakery products are the major factors contributing to the growth of the bakery segment. Taste innovations in products such as croissants, scones and cakes are also driving the market.
- Fine fragrances is expected to grow at the highest rate in the fragrance market during the forecast period. The rising penetration of research laboratories and innovation centers for fragrances in developing countries such as China, India, Thailand and South Korea is the major reason for the high demand for fine fragrances.
- APAC was the largest flavors and fragrances market in 2020. The changing lifestyle and high economic growth of emerging economies such as China, India, Vietnam and Indonesia have fueled the demand for flavors and fragrances in this region. In addition, the rapidly growing food and beverage and cosmetic and homecare industries continue to fuel the growth of the flavors and fragrances market in the region.