A new report from US market research company Freedonia estimates that the market will increase by a steady 3.5 per cent over the next three years, on the back of more expensive natural ingredients, complex flavours and a strong growth in low fat and low carbohydrate foods and beverages that will spur demand for flavours and fragrances to enhance tastes.
The growing trend towards fortified foods - ongoing on both sides of the Atlantic - will also present opportunities for flavours and fragrance companies that can supply ingredients to enhance the sensory appeal of the products while masking the unappealing taste and aroma of vitamins, minerals, and other active ingredients.
Freedonia predicts that flavour blends, spurred by increasing consumer interest in good-tasting foods, will also see above-average gains on the back of a 3.3 per cent annual growth, reaching $1.6bn by 2007.
Aroma chemicals are expected to see modest growth through 2007, as they continue to face pricing pressures and competition from blends.
Food will still be the largest market for flavours and fragrances up to 2007, based on the widespread application of flavour materials in processed and convenience foods, bakery and dairy products, sweets and confectionery, and snack foods. Processed foods and bakery products are expected to see the fastest gains in the food market through 2007.
Leading players in the US flavours industry today include US company International Flavours and Fragrances (IFF) and Swiss firm Givaudan.