Wellesley, Mass, Jan. 19, 2017 (GLOBE NEWSWIRE) -- Changing consumer preferences, increasing health concerns and a growing trend among customers to purchase products with natural ingredients are driving demand in the market for flavors and fragrances. BCC Research reveals in its new report that these key factors have spurred market players to launch a variety of new and innovative products to better position themselves in the global market.
The global market for flavors and fragrances is expected to increase from $27.1 billion in 2016 to $37.0 billion in 2021, growing at a five-year compound annual growth rate (CAGR) of 6.4%. The North American market should reach $8.1 billion and $11.0 billion in 2016 and 2021, respectively, reflecting a five-year CAGR of 6.3%. The western European market should reach $10.9 billion in 2021, up from nearly $7.9 billion in 2016, at a five-year CAGR of 6.6%.
Changing consumer preferences, increasing health concerns and a growing trend among customers to purchase products with natural ingredients are driving demand in the market for flavors and fragrances. Regulatory authorities in different countries are taking initiatives to set standards and regulations for the promotion of safe and healthy products, which also is driving demand.
Globally, fragrances are gaining importance with the increasing consumer demand for convenience food and personal care products, due to a rise in per capita income and sufficient disposable income. An increase in awareness of good hygiene is creating big demand for personal care products. The fragrance market, typically driven by demand from the food processing industry, also is seeing growth in the personal care and consumer products industries.
Rising health concerns also are reshaping the market. Consumers, becoming more aware of potential health risks related to synthetic ingredients in food, have started demanding natural-flavored products.
Although the growing demand for natural products will continue, synthetic products are unlikely to lose significant market share. Synthetic products offer major advantages, such as the ability to be produced in controlled quantities and consistent standards of quality in modern factories. In contrast, natural products are produced in conditions in which the soil characteristics, climatic zones and rainfall conditions can vary from one region to another. In many cases, it is also feasible to produce synthetic materials using alternative, eco-friendlier raw materials.
"Changing consumer lifestyle, significant technological advances, and increasing demand from emerging economies are impacting the market,” says BCC Research analyst Natraj Pandal. "The market's also facing challenges such as the high cost of migration from synthetic to natural sources, lack of transparency in flavor and fragrance patent protection laws, and concerns related to synthetic products as some chemicals are associated with health issues."
Global Markets for Flavors and Fragrances (CHM034E) analyzes the consumption of flavors and fragrances in different end-use sectors, recent technology developments, and projected demand for key flavor and fragrance ingredients such as essential oils and aroma chemicals. Global market drivers and trends, with data from 2015, estimates for 2016, and projections of CAGRs through 2021 also are provided.
About BCC Research
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