US demand to reach $4.4 billion in 2009
Demand for flavors and fragrances in the US is forecast to increase 3.2 percent per year to $4.4 billion in 2009. Gains will be supported by an increased consumer interest in more complex and authentic flavors and fragrances. The continued popularity in natural ingredients will also boost demand, since these materials are typically more expensive. Healthy gains in anti-aging skin care products, tooth whitening dentifrices and fortified foods will also present opportunities for flavors and fragrances that can enhance the sensory appeal of these products while masking the unappealing taste and aroma of vitamins, minerals, bleaches and other active ingredients. Furthermore, new product introductions and technology advances will continue to boost demand.
Although formulated products use only a small amount of flavors and fragrances in volume terms, these ingredients continue to grow in importance as a marketing tool, since many consumer purchases and repurchases are based on sensory (e.g., taste and smell) appeal. Nevertheless, pricing will remain a key component of the purchase decision for manufacturers. Despite market share losses to natural ingredients, less expensive synthetic flavors and fragrances will continue to dominate demand.
Environmental fragrance goods to grow the fastest
Environmental fragrance goods will experience above-average gains through 2009, driven by strong advances in aromatherapy and household applications, and consumer desires for more complex and exotic fragrances. Various innovative air freshener products designed to control offensive odors in the home and other living and working areas will spur demand for fragrances. Candles experienced rapid gains during most of the 1990s, however, in recent years, candle use has slowed as consumers continue to be enticed by advancements in air freshener and deodorizer products. Nevertheless, candles will provide opportunities for fragrances as more complex and authentic fragrances are required.
Cosmetics and toiletries will also see aboveaverage growth through 2009. Skin care products are expected to provide the best opportunities for growth in this market, reflecting expansion of the skin care market itself, and the rising popularity of antiaging products which generally require more fragrance to mask unpleasant odors from active ingredients.
Food to remain largest market
Food will remain the largest market for flavors and fragrances through 2009, based on the widespread application of flavor materials in processed and convenience foods, bakery and dairy products, candy and confections, and snack foods. Growing demand for more authentic tastes will spur demand in this market. In addition, the further expansion of fortified foods, particularly in the dairy, and candy and confection segments, will provide opportunities, since flavors are often used to cover up the off-tastes of vitamins and minerals.
Study coverage
This new Freedonia industry study, Flavors & Fragrances, which study provides historical demand data (1994, 1999, 2004) and forecasts to 2009 and 2014 by product and market. The study also considers market environment indicators, evaluates company market share and profiles 33 industry competitors including Firmenich, Givaudan, International Flavors & Fragrances, Quest, Sensient and Symrise.
TABLE OF CONTENTS
INTRODUCTION
I. EXECUTIVE SUMMARY
II. MARKET ENVIRONMENT
- General
- Macroeconomic Outlook
- Consumer Spending Outlook
- Demographics
- Historical Market Trends
- Pricing Issues
- Environmental & Regulatory Issues
- Fragrances
- Flavors
- International Activity
- Foreign Trade
- Exports
- Imports
III. MARKETS
- General
- Food
- Industry Overview
- Flavors Demand
- Processed Foods
- Dairy Products
- Bakery Products
- Candy & Confectionery Products
- Other Foods
- Cosmetics & Toiletries
- Industry Overview
- Flavors & Fragrances Demand
- Perfumes & Colognes
- Skin Care Products
- Personal Soaps
- Other Cosmetics & Toiletries
- Detergents & Cleaners
- Industry Overview
- Fragrances Demand
- Laundry Detergents
- Polishes & Sanitation Goods
- Dishwashing Detergents & Other Cleaners
- Environmental Fragrance Goods
- Industry Overview
- Fragrances Demand
- Air Fresheners & Deodorizers
- Candles
- Potpourri & Other Environmental Fragrance Goods
- Beverages
- Industry Overview
- Flavors Demand
- Carbonated Soft Drinks
- Other Beverages
- Other Markets
IV. PRODUCTS
- General
- Flavor Blends
- Fruity
- Savory
- Cheese & Other Dairy
- Meat
- Other
- Fragrance Blends
- Product Characteristics
- New Applications
- Essential Oils & Natural Extracts
- Citrus Oils
- Lemon Oil
- Orange Oil
- Other Citrus Oils
- Mint Oils
- Peppermint Oil
- Spearmint & Other Mint Oils
- Other Essential Oils & Natural Extracts
- Aroma Chemicals
- Demand by Class
- Synthetic
- Natural
- Demand by Type
- Terpenoids
- Benzenoids
- Musks & Others
V. INDUSTRY STRUCTURE
- Market Share
- Givaudan
- International Flavors & Fragrances
- Firmenich
- Quest
- Symrise
- Sensient
- Kerry Group
- Other Significant Participants
- Merger & Acquisition Activity
- Competitive Strategies
- Product Differentiation
- Market Segmentation
- Cooperative Agreements
- Research & Development
- Natural Flavors & Fragrances
- Biotechnology
- Delivery Systems
- Digital Technology
- Production Methods
- Marketing & Distribution
COMPANY PROFILES
- AromaTech, see FFG Industries Incorporated
- BASF AG
- Bell Flavors & Fragrances Incorporated
- Belmay Incorporated
- Chr. Hansen A/S
- Chr. Hansen Holding A/S
- ConAgra Foods Incorporated
- Danisco A/S
- Degussa AG
- DSM NV
- FFG Industries Incorporated
- Firmenich SA
- Flavor & Fragrance Group Holdings Incorporated, see
- FFG Industries Incorporated
- Flavorchem Corporation
- Flavurence Corporation, see Kerry Group plc
- Fragrance Resources International SA
- Frutarom Industries Limited, see ICC Industries
- Givaudan SA
- ICC Industries Incorporated
- Imperial Chemical Industries plc
- International Bioflavors Incorporated, see Givaudan
- International Flavors & Fragrances Incorporated
- International Fragrance and Technology Incorporated,
- see FFG Industries Incorporated
- Jordan Industries Incorporated
- Kao Corporation
- Kerry Group plc
- Key Essentials Incorporated, see FFG Industries
- Lubrizol Corporation
- Lyondell Chemical Company
- Manheimer (J.) Incorporated, see Kerry Group plc
- Mastertaste Incorporated, see Kerry Group plc
- McCormick & Company Incorporated
- Michael (David) & Company Incorporated
- Millennium Chemicals Incorporated, see Lyondell
- Chemical Company
- Noveon Kalama Incorporated, see Lubrizol Corporation
- Noville Incorporated, see Firmenich SA
- Orchidia Fragrances, see Flavorchem Corporation
- Polarome International Incorporated
- Quest International NV, see Imperial Chemical
- Industries
- Rhodia SA
- Sensient Technologies Corporation
- Spicery Shoppe, see Flavorchem Corporation
- Symrise GmbH & Company KG
- Takasago International Corporation
- Todd (AM) Company
- Ungerer & Company
- Vigon International Incorporated
- WILD (Rudolf) GmbH & Company KG
- Zink & Triest Company Incorporated, see Todd
- (AM) Company
- Other Companies Mentioned in Study
LIST OF TABLES
SECTION I -- EXECUTIVE SUMMARY
- Summary Table
SECTION II -- MARKET ENVIRONMENT
- 1 Macroeconomic Environment
- 2 Consumer Spending
- 3 Residential Population
- 4 Flavors & Fragrances Market, 1994-2004
- 5 Flavors & Fragrances Pricing
- 6 Flavors & Fragrances Supply & Demand
SECTION III -- MARKETS
- 1 Flavors & Fragrances Demand by Market
- 2 Food Shipments
- 3 Foods: Flavors Demand
- 4 Processed Foods: Flavors Demand
- 5 Dairy Products: Flavors Demand
- 6 Bakery Products: Flavors Demand
- 7 Candy & Confectionery Products: Flavors Demand
- 8 Other Foods: Flavors Demand
- 9 Cosmetics & Toiletries Shipments
- 10 Cosmetic & Toiletries: Flavors & Fragrances Demand
- 11 Perfumes & Colognes: Fragrances Demand
- 12 Skin Care Products: Fragrances Demand
- 13 Personal Soaps: Fragrances Demand
- 14 Other Cosmetics & Toiletries: Flavors & Fragrances Demand
- 15 Detergent & Cleaner Shipments
- 16 Detergents & Cleaners: Fragrances Demand
- 17 Laundry Detergents: Fragrances Demand
- 18 Polishes & Sanitation Goods: Fragrances Demand
- 19 Dishwashing Detergents & Other Cleaners:
- Fragrances Demand
- 20 Environmental Fragrance Goods Indicators
- 21 Environmental Fragrance Goods: Fragrances Demand
- 22 Air Fresheners & Deodorizers: Fragrances Demand
- 23 Candles: Fragrances Demand
- 24 Potpourri & Other Environmental Fragrance
- Goods: Fragrances Demand
- 25 Beverage Shipments
- 26 Beverages: Flavors Demand
- 27 Carbonated Soft Drinks: Flavors Demand
- 28 Other Beverages: Flavors Demand
- 29 Other Markets: Flavors & Fragrances Demand
SECTION IV -- PRODUCTS
- 1 Flavors & Fragrances Demand by Product
- 2 Flavor Blends Demand
- 3 Fragrance Blends Demand
- 4 Essential Oils & Natural Extracts Demand
- 5 Citrus Oils Demand
- 6 Lemon Oil Demand
- 7 Orange Oil Demand
- 8 Other Citrus Oils Demand
- 9 Mint Oils Demand
- 10 Peppermint Oil Demand
- 11 Spearmint & Other Mint Oils Demand
- 12 Other Essential Oils & Natural Extracts Demand
- 13 Aroma Chemicals Demand
- 14 Synthetic Aroma Chemicals Demand
- 15 Natural Aroma Chemicals Demand
SECTION V -- INDUSTRY STRUCTURE
- 1 US Flavor & Fragrance Sales by Company, 2004
- 2 Selected Acquisitions & Divestitures
- 3 Selected Cooperative Agreements
- 4 R&D Spending Patterns: Selected Flavors
- & Fragrances Suppliers
LIST OF CHARTS
SECTION II -- MARKET ENVIRONMENT
- 1 Flavors & Fragrances Market Growth, 1994-2004
- 2 World Flavors & Fragrances Demand, 2004
- 3 US Flavors & Fragrances Exports by Destination, 2004
- 4 US Flavors & Fragrances Imports by Origin, 2004
SECTION IV -- PRODUCTS
- 1 Flavors & Fragrances Demand by Product, 2004
- 2 Flavor Blends Demand by Type, 2004
SECTION V -- INDUSTRY STRUCTURE
- 1 US Flavor & Fragrance Sales by Company, 2004
