The Europe Flavours and Fragrances Market was worth US$ 8.44 billion in 2023 and is anticipated to reach a valuation of US$ 10.61 billion by 2029 and it is predicted to register a CAGR of 3.89% during the forecast period 2024-2029.
Flavors are added to food products to improve or change existing tastes. Fragrance refers to compounds that are used to add a pleasant odor to food products, cosmetics, and other products like detergents.
Market Drivers and Restraints:
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 which 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 health-conscious people who are spreading awareness about the harmful effects of artificial and synthetic food additives.
The flavors and Fragrances market industry in Europe is mainly affected by the volatile price and presence of alternatives. In addition to this, an irregular supply of 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.
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2023-2029 |
|
Base Year |
2023 |
|
Forecast Period |
2024-2029 |
|
CAGR |
3.89% |
|
Segments Covered |
By Ingredients, End-Use, and Region. |
|
Various Analyses Covered |
Global, Regional and Country Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
|
Regions Covered |
Germany, Italy, France, United Kingdom |
|
Market Leaders Profiled |
Firmenich SA, Givaudan SA, Balirom Ltd., Frutarom Industries Ltd., KATO FLAVORS & FRAGRANCES S.A.E, Nicola-J Flavours and Fragrances, and Others. |
Market Segmentation:
Natural Flavours accounted for the leading share in the European Fragrance and Flavours market. The growing penetration rate of exotic flavors in Europe countries is driving the market in this application. The natural fragrance 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.
Market Regional Analysis:
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 by 2026. The increasing disposable income & consumption levels and the growing purchasing power of European consumers will help the industry to grow stronger in the country.
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, 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 a hard hit by the coronavirus pandemic during the early stages of the outbreak. Many manufacturing industries have been shut for some time now, and 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.
Market Key Players:
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1400
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region