Flavors and Fragrances:
Ingredients and raw materials used in the formulations of flavors and fragrances (such as essential oils, aroma chemicals, oleoresins, botanical extracts, natural ingredients, citrus concentrates, etc.), flavor and fragrance formulations, blends, and related products and services
Flavors & fragrances are among the most important drivers of decision-making by end customers, and hence they play an integral part in consumer goods and packaged foods. Flavors are primarily used in beverages, confectionary, dairy products, baked goods, and savory foods. Fragrances are primarily used in fine fragrances, beauty care products, toiletries, soaps and detergents, household goods, and air care products. Beverages are the largest users of flavor ingredients while cosmetics and toiletries are the largest users of fragrance ingredients.
The flavors & fragrances industry is highly region-specific, technical and specialized. It is part of the larger set of ingredients industry, which consists of companies that supply products such as cosmetic ingredients, preservatives, seasonings, enzymes, fortified products and other food ingredients, etc. Major players in the flavors & fragrances space include Givaudan, Firmenich, International Flavors & Fragrances, Symrise, Takasago, Wild Flavors, BASF, Sensient Flavors, Frutarom, Bedoukian Research, Aromatech, Sigma-Aldrich, and Bell Flavors & Fragrances.
The flavors & fragrances industry is relatively resilient to business cycles. It has experienced rapid growth in the last few years and the trend is expected to continue, fueled by heightened consumer awareness and consumption levels in the emerging markets looking to catch up to the developed markets. The sector is primarily driven by demand from companies engaged in the manufacturing of food and beverages, perfumes, cosmetics, and household products. Those companies are in turn largely driven by rapidly evolving consumer preferences, resulting in significant ongoing technological advances (new and innovative products, migration from synthetic to natural sources, ‘free-from’ products, etc.) in the flavor & fragrance landscape, and increased demand from developing and emerging economies.
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