European Flavours and Fragrances Market Size
|Study Period||2018 - 2028|
|Base Year For Estimation||2022|
|Forecast Data Period||2023 - 2028|
|Historical Data Period||2018 - 2021|
*Disclaimer: Major Players sorted in no particular order
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European Flavours and Fragrances Market Analysis
The Europe Flavors and Fragrances Market was valued at USD 3.87 billion for the current year and is projected to grow at a CAGR of 4.67% over the next five years.
The European market for flavor and fragrances is experiencing growth due to the growing interest of European consumers in novel and exotic flavors, as well as unique and premium fragrances. Additionally, the increasing application of flavors in various industries including confectionery, snacks and sweets, beverages, beauty and personal care, and some multinational industries is supporting its growth. The primary purpose of using fragrance in most products is to mask unpleasant aromas or odors from other active chemical ingredients. However, cosmetic companies also use fragrances to position their brands in certain ways, distinguish their products from others on the market, and appeal to consumers which makes their usage inevitable thus driving the market.
Moreover, there is a growing trend among consumers towards natural and organic food and beverage products as they are perceived to have health benefits. Consumers in the region are increasingly concerned about fragrance allergens. They demand transparency in the ingredients used in fragrance products, leading to increased demand for natural fragrance products such as cosmetics, detergents, household cleaners, etc. This trend promotes the demand for high-value premium and natural additives, expanding the demand for natural food flavors in Europe. For example, according to Organic Trade Association, the organic products market in Germany was valued at USD 6.3 billion in 2021, representing just over 10% of the global demand, contributing significantly to the global organic products market. Such factors are expected to support and boost the market’s growth during the forecast period.
European Flavours and Fragrances Market Trends
Rising Demand for Natural Ingredient Based Products
European consumers are increasingly opting for natural ingredients in their food and personal care products, which is leading manufacturers to shift towards natural ingredients to cater to this growing demand. This trend is driven by concerns regarding the potential side effects of artificial ingredients, as well as stringent regulations against their use in certain applications. Governmental bodies, such as the World Health Organization (WHO), the Food and Drug Administration (FDA), the European Food Safety Authority (EFSA), and the Food Safety and Standards Authority of India (FSSAI), have recognized the potential hazards associated with synthetic or artificial ingredients and have established guidelines for their use in food products. For instance, as of today, the European Union Cosmetics Regulation provides that 25 fragrance ingredients (they were 26 before the ban on Lilial) must be declared on labels when their concentration exceeds: 0.001% in leave-on products; 0.01% in rinse-off products. Such factors are aiding in the increasing popularity of natural flavors for their health benefits and eco-friendly properties.
Moreover, ingredient-conscious consumers are increasingly seeking food products with "clean" labels, i.e., products that are free from additives such as artificial flavors. This demand is driving manufacturers to use clean-label ingredients in their products, which in turn supports their branding and marketing strategies, thus the market as well. Consumers in countries like Germany and France are particularly drawn to positive labeling claims like "clean label" due to their perceived health and wellness benefits. For instance, a consumer survey conducted by the German Federal Institute for Risk Assessment (BfR) in September 2021 found that 55% of Germans try to avoid food additives while purchasing food products. This growing demand for natural and clean-label ingredients is likely to continue driving up the sales of the market in the region.
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Beverages Hold a Significant Share in Application Segment
The European market is experiencing a surge in demand for flavored carbonated beverages, which is driving innovation in the product lines of beverage manufacturers. These innovative products are based on superfruits and tropical fruits that require the addition of flavors to enhance their tastes which is supporting the increasing sales of food flavors in the region. Also, the consumption rate of functional beverages such as energy drinks in the region is also on the rise and almost all of these functional beverages are added with different flavors to enhance consumer’s experience. For instance, according to British Soft Drinks Association, in 2021, consumption of sports and energy drinks in the United Kingdom accounted for about 906 million liters which increased from 836 million liters in 2020. Additionally, consumers are increasingly focused on taste when making purchase decisions, which drives the use of food flavors to enhance the taste of beverages. Similarly, there is a shift in their preferences away from sugary flavors and towards more floral, botanical, and savory flavors, further increasing the demand for innovative flavors among beverage manufacturers and creating more opportunities for the players in the market.
Moreover, flavors are essential for beverage manufacturers to deliver palatability and target specific consumer groups, and their use in non-alcoholic beverages like carbonated drinks, coffee and tea, flavored water, and energy drinks is boosting the sales of the market. Furthermore, consumers in the region are increasingly embracing premium positioned, craft, and artisan beverages that offer unique flavor experiences. Craft brewing in Europe has expanded the application of a variety of flavorings for a wide range of beers, with accents like blue juniper berries, blueberry fruit powder, dark sweet cherry powder, Kerry natural blackberry flavoring, Kerry natural flavoring, and others commonly used to add complexity and uniqueness to beer styles. Such factors are expected to boost the usage of flavors in the beverage category, thus the market’s growth during the forecast period.
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European Flavours and Fragrances Industry Overview
The European flavor and fragrance market is dominated by a few key players who hold a significant market share. These players include Givaudan, Firmenich SA, International Flavors & Fragrances, Symrise AG, and Sensient Technologies, among others. To stay competitive, these prominent companies are focusing on developing innovative products by targeting new formulations for natural food flavors as well as fragrances. They are also investing heavily in research and development (R&D) activities and adopting various strategies such as expansion, acquisition, and partnerships. In addition to R&D, key players in the market follow strict guidelines in terms of production to maintain their market position. They also enter into long-term agreement partnerships with their clients. Overall, players in the European flavor and fragrance market are keen on constantly innovating and adapting to stay ahead.
European Flavours and Fragrances Market Leaders
International Flavors & Fragrances
Sensient Technologies Corporation
*Disclaimer: Major Players sorted in no particular order
European Flavours and Fragrances Market News
- In March 2023, International Flavors & Fragrances expanded its innovation capabilities in Brabrand, Denmark, with two new flavor labs. The new lab is a hub for application development, research, and ingredient and flavor creation. The company claimed that the expansion will enable regional and local manufacturers to partner with flavorists and develop new solutions for the bakery, snacks, beverages, dairy, bars and confectionery, and culinary end markets.
- In November 2022, Givaudan, a manufacturer of fragrance and beauty, entered into a fragrance and oral care flavor design program with MoodScentz. The MoodScentz+ help develop tailored solutions to cater to the changing needs of consumers. It allows oral care flavorists and perfumers to manufacture products that positively enhance emotions.
- In December 2021, Firmenich SA announced the launch of Magical Botanical flavors. The new flavor is designed around botanical ingredients and culinary herbs and is known for its healing and immunity-supporting properties. The new flavor can be used for a wide variety of applications, including savory food and beverage, sweet goods, and others.
European Flavours and Fragrances Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Food Flavors
5.3.1 Food Flavors
188.8.131.52 Dairy Products
184.108.40.206 Meat and Meat Products
220.127.116.11 Soups, Pastas, and Noodles
18.104.22.168.1 Alcoholic Beverages
22.214.171.124.2 Non-alcoholic Beverages
126.96.36.199 Other Applications
188.8.131.52 Cosmetic and Toiletries
184.108.40.206 Household Cleaners and Air Fresheners
220.127.116.11 Fine Fragrances
18.104.22.168 Soaps and Detergents
22.214.171.124 Other Fragrances
5.4.1 United Kingdom
5.4.7 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Strategies adopted by Key players
6.2 Market Share Analysis
6.3 Company Profiles
6.3.2 Firmenich SA
6.3.3 International Flavors & Fragrances Inc
6.3.4 Symrise AG
6.3.5 Sensient Technologies Corporation
6.3.6 European Flavours & Fragrances PLC
6.3.7 Nactarome SPA
6.3.8 Kerry Group PLC
6.3.9 Corbion N.V.
6.3.10 BASF SE
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
European Flavours and Fragrances Market Research FAQs
What is the study period of this market?
The Europe Flavors & Fragrances Market is studied from 2018 - 2028.
What is the growth rate of Europe Flavors & Fragrances Market?
The Europe Flavors & Fragrances Market is growing at a CAGR of 4.67% over the next 5 years.
Who are the key players in Europe Flavors & Fragrances Market?
Givaudan, Firmenich SA, International Flavors & Fragrances, Symrise AG, Sensient Technologies Corporation are the major companies operating in Europe Flavors & Fragrances Market.
European Flavours and Fragrances Industry Report
Statistics for the 2023 Europe Flavors & Fragrances market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Flavors & Fragrances analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.