Report: Asia-Pacific Region
Set to Surpass Size of Western
European F&F Market
VOL. 35 OCTOBER 2010
Based on the general tenor of flavor and fragrance industry financials through the first
half of this year, it appears that the industry will have a relatively strong 2010. Such
impressions are comforting amidst the general murmur of double-dip recessions and
weakness in the wider job and housing markets. So, too, is a new report from The
Freedonia Group ( www.freedonia.com), which forecasts 4.3% annual increases in the
F&F market, which is expected to total $23.5 billion in 2014.
The report’s authors see accelerating growth rates in all geographic regions, excepting
North America, which will slow from 4.1% growth/year (2004–2009) to 3.4% growth/year
(2009–2014). The fastest rate of growth is expected in the Asia-Pacific region ( 5.3%), led
by China and India, which is increasingly served by multinational producers. This growth
will push the region’s market size to the number two spot, below North America, but
above Western Europe.
What’s fueling overall growth? Aside from gains in the developing world and predicted
gains in personal income around the world, the report notes that flavors will lead, driven
by food and beverage processing activity. Foods and beverages containing functional
ingredients such as vitamins and antioxidants will require both higher flavor loads and
new flavor technologies to mask off tastes. Meanwhile, fragranced cosmetics and toiletries
will move into markets beyond North America and Western Europe, even as categories
such as detergents will face the challenge of maturity.
Look for our interview with one of this report’s analysts next month. In the meantime,
tell us your thoughts. Do these forecasts ring true? Where do you see growth opportunities
for the F&F industry?
Until next issue …
Jeb Gleason-Allured, Editor