WELLESLEY, Mass.—BCC Research's new technical market research report, Global Markets For Flavors And Fragrances , is projecting fragrances to account for nearly $11.9 billion in 2012 and by 2017, they're slated to reach $15.7 billion, a CAGR of 5.8 percent. In fact, the global combined market of flavor and fragrance was worth an estimated $21.8 billion in 2011; but this figure is projected to exceed $23 billion in 2012 and reach $30.2 billion in 2017, a CAGR of 5.6 percent between 2012 and 2017.
A fragrance that causes a sweet or pleasant smell is a blend of either volatile fragrant plant oils or synthetically derived oils that impart aroma and odor to products. Synthetic aroma chemicals are typically produced by a controlled chemical reaction and may contain a few to several separate chemicals, most of which are derived from petroleum.
There are several trends driving demand in the ingredient markets. Demand for high-end perfumes continues to drive the markets for fragrance ingredients. Demand for ingredients used in fragrances overall also will continue to be driven by ongoing consumer preferences for natural ingredients and rising consumer interest in more complex and authentic fragrances.
