The North America Flavours and Fragrances Market is expected to grow at a CAGR of over 6% in the outlook period between 2023-2028.
The flavor is added to force products to impart a characteristic taste in the food and beverage industry. The fragrance includes elements that can add a pleasant odor to various products in the food industry, personal care, and others like detergents.
Market Drivers and Restraints:
The heavy consumption of cosmetic products in the North American region is a driving factor for the fragrance industry whereas growth in the food and beverage industry has promoted the development in the expansion of the flavours business. The processed food industry in the North American 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, which is coupled with increasing awareness about the harmful effects of synthetic food additives.
North America Flavours and Fragrances market industry is mainly limited by fluctuations in price and the rising availability of substitutes. In addition to this, an irregular supply for oils in the perfume industry can cause slack in the market growth rate.
Market Segmentation:
Natural segment by ingredient is segmented into various categories like essential oils and natural extracts. In addition, they are further segmented into personal care, household care, and fine fragrances. The essential oil market segment is likely to dominate the regional market over the envisioned period in terms of value. Increased adoption of natural fragrances over synthetic counterparts has triggered the growth of this segment. Synthetic chemicals are usually cheaper than natural ones hence they are widely used in different applications. The rising popularity of authentic aromas in the hospitality segment is driving the growth of the fragrance industry.
By Application, the fine fragrances sector is the largest industry of Fragrances and Flavours. The growing penetration rate of exotic flavors as in North American countries is driving the market in this application.
Market Regional Analysis:
North America accounted for 24.0% of the market share in 2019. It is projected to further grow at a CAGR of 2.9% over the forecast period. The fragrance segment is forecasted to grow owing to increased demand for products from personal care, cosmetics, home care, therapy, oral care, and air freshener products. North America is expected to register significant growth owing to the concentration of cosmetics industries in this area.
The flavors and fragrances market in the United States is a huge market as the consumers in the country are willingly trying new food products, which shows the liking of US consumers for ethnic flavors and dishes. The diverse populations are rising in the country, which has led to the emergence of ethnic new flavors profiles.
The Covid-19 global pandemic has had an impact on almost all the economies of the world. The flavors and fragrance industry witnessed a slump in demand during this period. 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. The North American region, Especially the USA is hard hit by the pandemic, and 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 period.
Market Key Players:
Market Recent Developments:
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