The Europe Flavours and Fragrances Market is likely to grow at a CAGR of over 4.5% in the outlook period between 2020 and 2025. The regional market size is foreseen to increased from USD 28 billion in 2019.
Flavors are added to food products to improve or change the existing tastes. Fragrance refers to compounds that are used to add a pleasant odor to food products, cosmetics, and other products like detergents.
Recent Developments
In April 2018, Mane SA opened a new manufacturing site in Colombia with the aim to help the company bolster its position to serve the customers in the Andean region better and capture growth opportunities in fragrances markets.
In October 2017, Givaudan stated its new fragrance creative unit in Mexico. This was done in order to boost the company’s position in the European region and to cater to the local demands.
International Flavours & Fragrances (IFF) as a part of its mergers and acquisitions strategy purchased Frutarom, which is one of the largest manufacturers in the segment. They also opened an ingredients plant in China to strengthen their existing presence in the region.
Drivers and Restraints of Europe Flavours and Fragrances Market
The heavy consumption of cosmetic products in the European region is a driving factor for the fragrance industry whereas growth in the food and beverage industry sparked a growth in the flavors industry. In the European region, there is a major shift towards adopting a plant-based diet, which has triggered a demand for plant-derived flavors and vegan food production.
The dairy alternate industry is also growing in the European region that often requires artificial flavors. This also increases the demand for the flavors industry. The processed food industry in the European region is booming with high demand. This in turn comes with a high demand for exotic flavors. Natural flavors are also in high demand from the health-conscious people who are spreading awareness about the harmful effects of artificial and synthetics food additives.
Flavours and Fragrances market industry in Europe is mainly affected by the volatile price and presence of alternatives. In addition to this, irregular supply for oils in the perfume industry can cause slack in the market growth rate. The trade issues between the USA and China are also likely to affect the European flavors and fragrances market.
Europe Flavours and Fragrances market has been segmented into the following categories.
On the basis of Ingredients
On the basis of End-Use
Natural Flavours accounted for the leading share in the European Fragrance and Flavours market. The growing penetration rate of exotic flavors in the European countries is driving the market in this application. The natural fragrances industry is also growing as it can be extensively applied as perfumes, colognes, and deodorants. This is a cardinal factor driving the fine fragrance industry.
The Natural Fragrance market is segmented into various categories including Essential oils and Natural extracts. The essential oil market segment is expected to lead the market during the forecasted period in terms of overall value. Increased adoption of natural fragrances over synthetic counterparts has triggered the growth of this industry.
The food and beverage industry is a very big market in Europe with an amalgam of local and foreign players. The diversity of European cultures is helping the flavors industry in the region to burgeon.
Geographical overview and regional presence:
Europe is one of the largest markets for flavors and fragrances, and it is also forecasted to register the fastest CAGR during the forecast period. Countries such as Germany, France, and Switzerland are expected to account for the largest share of the market in Europe till 2025. The increasing disposable income & consumption levels and the growing purchasing power of European consumers will help the industry to grow stronger in the country.
Key players in the Flavors and Fragrances market
Firmenich SA
Givaudan SA
Balirom Ltd.
Frutarom Industries Ltd.
KATO FLAVORS & FRAGRANCES S.A.E
Nicola-J Flavours and Fragrances
Europe Flavors and Fragrances Market - Impact of covid-19 pandemic
The Covid-19 global pandemic has affected almost all the economies of the world. The flavors and fragrance industry witnessed a slump in demand during this period. As a result of that, the production has fallen, and the industry witnessed a recession. Many production activities were put on hold during this period, as fragrances were not considered to be essential items and naturally were not given much importance during this time. The European region witnessed hard hit by the coronavirus pandemic and during the early stages of the outbreak. Many manufacturing industries have been shut for some time now, the food and beverage industry also suffered severe consequences and witnessed low demand during this timeframe. The recovery has started in the region, but many experts believe that a second wave might be coming and can disrupt the market once again.
1. Introduction
1.1 Market Definition
1.2 Study Deliverables
1.3 Base Currency, Base Year and Forecast Periods
1.4 General Study Assumptions
2. Research Methodology
2.1 Introduction
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Econometric Modelling
2.2.4 Expert Validation
2.3 Analysis Design
2.4 Study Timeline
3. Overview
3.1 Executive Summary
3.2 Key Inferences
3.3 Epidemology
4. Drivers, Restraints, Opportunities, and Challenges Analysis (DROC)
4.1 Market Drivers
4.2 Market Restraints
4.3 Key Challenges
4.4 Current Opportunities in the Market
5. Market Segmentation
5.1 Ingredients
5.1.1 Introduction
5.1.2 Natural
5.1.3 Synthetic
5.1.4 Y-o-Y Growth Analysis, By Ingredients
5.1.5 Market Attractiveness Analysis, By Ingredients
5.1.6 Market Share Analysis, By Ingredients
5.2 End-Use
5.2.1 Introduction
5.2.2 Beverage
5.2.3 Savoryand Snacks
5.2.4 Bakery
5.2.5 Dairy Products
5.2.6 Confectionery
5.2.7 Consumer Products
5.2.8 Fine Fragnance
5.2.9 Y-o-Y Growth Analysis, By End-Use
5.2.10 Market Attractiveness Analysis, By End-Use
5.2.11 Market Share Analysis, By End-Use
6. Geographical Analysis
6.1 Introduction
6.1.1 Regional Trends
6.1.2 Impact Analysis
6.1.3 Y-o-Y Growth Analysis
6.1.3.1 By Geographical Area
6.1.3.2 By Ingredients
6.1.3.3 By End-Use
6.1.4 Market Attractiveness Analysis
6.1.4.1 By Geographical Area
6.1.4.2 By Ingredients
6.1.4.3 By End-Use
6.1.5 Market Share Analysis
6.1.5.1 By Geographical Area
6.1.5.2 By Ingredients
6.1.5.3 By End-Use
6.3 Europe
6.2.1 Introduction
6.2.2 U.K
6.2.3 Spain
6.2.4 Germany
6.2.5 Italy
6.2.6 France
7. Strategic Analysis
7.1 PESTLE analysis
7.1.1 Political
7.1.2 Economic
7.1.3 Social
7.1.4 Technological
7.1.5 Legal
7.1.6 Environmental
7.2 Porter’s Five analysis
7.2.1 Bargaining Power of Suppliers
7.2.2 Bargaining Power of Consumers
7.2.3 Threat of New Entrants
7.2.4 Threat of Substitute Products and Services
7.2.5 Competitive Rivalry within the Industry
8. Market Leaders' Analysis
8.1 Symrise
8.1.1 Overview
8.1.2 Product Analysis
8.1.3 Financial analysis
8.1.4 Recent Developments
8.1.5 SWOT analysis
8.1.6 Analyst View
8.2 Takasago
8.3 MANE
8.4 Robertat Group
8.5 Firmenich SA
8.6 Givaudan SA
8.7 BASF SE
8.8 Royal DSM NV
8.9 Bedoukian Research
8.10 Aromtech SAS
9. Competitive Landscape
9.1 Market share analysis
9.2 Merger and Acquisition Analysis
9.3 Agreements, collaborations and Joint Ventures
9.4 New Product Launches
10. Market Outlook and Investment Opportunities
Appendix
a) List of Tables
b) List of Figures
Global,Regional and country-level analysis and forecasts of the study market; providing Insights on the major countries/regions in which this industry is blooming and to also identify the regions that are still untapped
Segment-level analysis in terms of by ingredients,by consumer products ,along with market size forecasts and estimations to detect key areas of industry growth in detail
Identification of key drivers, restraints, opportunities, and challenges (DROC) in the market and their impact on shifting market dynamics
Study of the effect of exogenous and endogenous factors that affect the global market; which includes broadly demographic, economics, and political, among other macro-environmental factors presented in an extensive PESTLE Analysis
Study the micro environment factors that determine the overall profitability of an Industry, using Porter’s five forces analysis for analysing the level of competition and business strategy development
A comprehensive list of key market players along with their product portfolio, current strategic interests, key financial information, legal issues, SWOT analysis and analyst overview to study and sustain the market environment
Competitive landscape analysis listing out the mergers, acquisitions, collaborations in the field along with new product launches, comparative financial studies and recent developments in the market by the major companies
An executive summary, abridging the entire report in such a way that decision-making personnel can rapidly become acquainted with background information, concise analysis and main conclusions
Expertly devised analyst overview along with Investment opportunities to provide both individuals and organizations a strong financial foothold in the market
EUROPE Flavors and Fragrances Market By Region, From 2020-2025 ( USD Billion )
EUROPE Flavors and Fragrances Market By Ingredients, From 2020-2025 ( USD Billion )
EUROPE Natural Market By Region, From 2020-2025 ( USD Billion )
EUROPE Synthetic Market By Region, From 2020-2025 ( USD Billion )
EUROPE Flavors and Fragrances Market By End Use, From 2020-2025 ( USD Billion )
EUROPE Beverage Market By Region, From 2020-2025 ( USD Billion )
EUROPE Savory and Snacks Market By Region, From 2020-2025 ( USD Billion )
EUROPE Bakery Market By Region, From 2020-2025 ( USD Billion )
EUROPE Dairy Products Market By Region, From 2020-2025 ( USD Billion )
EUROPE Confectionery Market By Region, From 2020-2025 ( USD Billion )
EUROPE Consumer Products Market By Region, From 2020-2025 ( USD Billion )
EUROPE Fine Fragrances Market By Region, From 2020-2025 ( USD Billion )
