This report profiles the leading players in the global flavor and fragrance industry. Flavor is the sensory notion of a food or other substance, and is determined mainly by the sense of taste. Flavor companies produce and sell flavor compounds as well as flavor delivery technology that is used in foods and beverages. Hence, flavors are sold primarily to the food and beverage industries for use in a wide range of consumer products, including soft drinks, confectionery, bakery goods, desserts and prepared foods. Fragrances are designed to emit a pleasant aroma and are mostly used consumer products such as soaps, detergents, cosmetic creams, lotions and powders, lipsticks, after shave lotions, deodorants, hair preparations, candles, air fresheners and all purpose cleaners.
This report analyzes global flavor and fragrance industry in terms of market size (based of value), key drivers and resistors, industry trends and competitive positioning of the top 10 players in the global flavor and fragrance market. It includes profiles of the top ten companies in the industry and also involves brief write-up on other major players in the industry. The top 10 companies in the global flavor and fragrance industry were assessed on following parameters:
Each company’s financial performance in the global flavor and fragrances market;
Each company’s growth strategies and major acquisitions and divestments in this market;
Key partnerships and alliances formed by these companies;
Business-related strengths and weaknesses of these companies, and insights into the opportunities and threats facing them.
Key Benefits of this report
- Learn from the strategies of the global flavor and fragrance companies to target future growth markets effectively, avoid their mistakes, replicate their successes and learn of the threats they face.
- Benchmark your performance against the leading flavor and fragrance companies by comprehending their strategies.
- Understand the major issues affecting the global flavor and fragrance market.
- Predict the key growth areas in the global flavor and fragrance market arising from the change in consumers’ preferences and global recession.
- Save time, money and resources on analyzing the performance of the key flavor and fragrance companies using this report.
Key findings from this report
The global flavor and fragrance market was valued at approximately $16bn in 2008. Business Insights anticipates that the value of global flavor and fragrance market will grow at a CAGR of 2.5% during 2008–13 to reach a total value of approximately $18bn in 2013.
Acquisitions have been ongoing in the industry for some years now creating a distinct two tier industry structure. The top ten players accounted for about 90.3% of the total market size in 2008 and smaller companies operating in niche and often domestic markets represent the remaining share.
Increasing demand for consumer products in emerging markets supported by rising disposable income will primarily drive demand for flavor and fragrance. Demand for differentiated products in developed markets such as natural and functional products will further increase consumption of flavor and fragrance as they serve as a key component to building product differentiation.
The limited market size coupled with the consolidated nature of the industry sets high barriers to entry in the industry. Substantial capital investment and R&D expenses as well as significant investment in quality assurance system further elevate barriers to entry.
T.Hasegawa was the only company among the top 10 players that registered a decline in CAGR of 2.3% during 2004–08. Shift in customer preference in end consumer products market in Japan swayed demand away from related flavor and fragrance, adversely impacting the financial performance of T.Hasegawa during 2004–08.
Burgeoning aging population in developed nations such as the US and Japan is driving the trend towards healthy lifestyle. In response to this trend, major flavor and fragrance companies are investing in the development of R&D capabilities in the field of natural ingredients applicable mostly in food and beverages, and cosmetic industries.
Key questions answered by this report
- What was the market size of the global flavor and fragrance industry by value in 2008?
- What will be the market size of the global flavor and fragrance industry during 2008-13?
- What are the trends in the global flavor and fragrance industry?
- Which geographies are expected to be the frontrunners in flavor and fragrance consumption through 2009-10?
- Who are the top 10 players in the market?
- What are the growth strategies of the top 10 companies?
- What are the strengths of the top 10 players in the global flavor and fragrance industry?
- What are the weaknesses of the top 10 players?
- What are the growth opportunities for the global top 10 flavor and fragrance companies?
- What are the problems faced by the global flavor and fragrance companies in the industry?