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US Demand for Flavours & Fragrances to Exceed $7 Billion in 2017

The US market for flavours and fragrances is forecast to advance 4.6% per year to $7.1 billion in 2017.  Flavour blends, the largest segment, are expected to achieve healthy gains during this period.  Essential oils and natural extracts, a smaller segment, are expected to post the fastest growth.  Additionally, trends toward more complex and exotic flavours and scents will boost demand for new flavour and fragrance blends. These and other trends are presented in Flavours & Fragrances, a new study from The Freedonia Group, Inc., a industry market research firm.

Advances in flavour blends will be propelled by continued growth in the popularity of nutritionally supplemented functional foods, as well as reduced-sodium foods and reduced-sugar beverages, which require higher flavour loadings to improve taste.  Along with growing demand for healthier foods, consumers are also showing greater interest in natural foods, so the use of natural flavours – which tend to be more expensive than their artificial counterparts – will become more widespread, boosting value gains.

From 2002 to 2012, consumer interest in natural items – including food, beverages, cosmetics and toiletries, and even cleaning products – rose relatively quickly and demand for essential oils and natural extracts continue to will benefit as more markets offer naturally flavoured or scented versions of their retail items. Going forward, demand growth in oils and extracts for flavour and fragrance applications will outpace that in flavour and fragrance blends, though from a smaller base.  Demand growth in aroma chemicals for use in the flavour and fragrance industry has lagged that of other products and will continue to do so.  However, advances in natural aroma chemicals will remain above average through 2017.  

Flavours & Fragrances (published 08/2013, 285 pages) is available for $5100 from The Freedonia Group, Inc., Cleveland, OH, USA, www.freedoniagroup.com

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