The scope of our recent study on the "Fermented Flavor and Fragrance Ingredients Market Forecast to 2030 - Global Analysis - by Type and Distribution Channel" includes the factors fueling the fermented flavor and fragrance ingredients market growth, revenue estimation, and forecast, market share analysis, and the identification of significant market players and their key developments.
The fermented flavor and fragrance ingredients market size is expected to grow from US$ 1.34 billion in 2022 to US$ 2.68 billion by 2030; it is expected to register a CAGR of 9.0% from 2022 to 2030.
Global fermented flavor and fragrance manufacturers are investing significantly in strategic development initiatives such as product innovation, merger & acquisition, partnerships, production capacity scaleup, and expansion of their businesses to attract consumers and enhance their market position. With increasing sustainability concerns and rising demand for natural and clean-label products from consumers, end-use industries are adopting natural and sustainable ingredients. Thus, manufacturers are constantly investing and innovating in the area of fermented flavor and fragrances. For instance, in April 2023, Insempra, a biology-powered company, launched its first functional ingredient, a biotechnologically produced, 100% natural "alpha-Ionone" flavor and fragrance ingredient for food and cosmetic applications. The flavor is produced via fermentation. The company also partnered with a leading natural aroma ingredients manufacturer and distributor, "Axxence Aromatic GmbH" to market its products to food and cosmetic manufacturers worldwide. Such product launches and partnerships by key market players aid in boosting the market across the globe.
To cite another instance, in May 2023, Evolva signed a multi-year agreement with an undisclosed contract manufacturing organization (CMO) to supply vanillin made by precision fermentation for use in fragrances. Such partnerships influence to increase the production capacity of the company to produce fermented flavor and fragrances. Moreover, in December 2022, Danish aroma company EvodiaBio secured US$ 6.4 million in funding for its sustainable aroma production for food and beverages. The company produces aromas for beer through precision fermentation methods. The company also claimed that this tech solution reduces water and CO2 emissions by over 90%. Thus, constant initiatives by the key players to extend their domestic reach and gain a competitive edge positively driving the market growth.
In Asia Pacific, consumer preference for natural ingredients is significantly growing. Many consumers believe natural ingredients are healthier, safer, and better for the environment than their synthetic counterparts. The demand for products free of artificial or chemically processed ingredients, including synthetic flavors, fragrances, colors, and sweeteners, is growing. The growing consumer preference for natural ingredients among food & beverages, cosmetics, personal care, home care, and personal care product industries is boosting the demand for fermented flavor and fragrances.
Developed and developing countries such as Japan, China, South Korea, Australia, and India witness growth in urbanization, coupled with the rising middle-class population, offering several opportunities for the market players, as consumers are willing to pay higher prices for clean-label products. The region reports increased demand for naturally derived products and rising sustainability concerns are upsurging the demand for microbial-based flavors and fragrances.
Moreover, the beauty industry in Asia Pacific has been growing rapidly, but concerns about sustainability have also surged. The industry has started to pay extra attention to these concerns, with many companies adopting sustainable sourcing and manufacturing practices to improve their products' performance and lessen their environmental impact. Simultaneously, consumers demand more sustainable practices, and companies respond by providing greener products and promoting ethical practices. These factors are expected to drive the market growth in the region.
Based on type, the fermented flavor and fragrance ingredients market is divided into fruity, floral, woody, blends, and others. The fruity segment holds a significant share of the global fermented flavor and fragrance ingredients market. with rising sustainability concerns along with increasing demand for fruity flavor and fragrance through natural sources, manufacturers are currently developing innovative natural processes such as fermentation with the help of microbes to obtain fruity flavors and fragrances. For instance, Clostridium butyricum (Bacteria) is used to produce apple and pineapple flavors, Yarrowia lipolytica (yeast) is used to produce peach flavor, and Pseudomonas sp. (Bacteria) is used to produce citrus-type fragrances with the help of lipase enzyme.Many manufacturers are involved in the manufacturing of fermented fruity flavors and fragrances. For instance, Valencene-a citrus flavor ingredient-is traditionally extracted from the orange peel, which is neither sustainable nor economical. Thus, Evolva manufactures Valencene using a patented fermentation process.
The market is segmented into five main regions-North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America. In terms of revenue, Europe dominated the fermented flavor and fragrance ingredients market share. The fermented flavor and fragrance ingredients market in Europe is significantly growing owing to increasing demand for clean-label consumer goods across the region. This has led to increased demand for natural ingredients among end-use industries, including food & beverages, cosmetics, and personal care. Thus, manufacturers in the region are launching various fermented flavor and fragrances. For instance, in July 2020, BASF Nutrition & Health (a German multinational organization) and Isobionics (a Netherland-based company) launched their first fermented flavor, Isobionics Santalol,' which gives woody fragrance to the end products. This newly launched fragrance in BASF's portfolio is a convincing alternative to sandalwood oil. Such product innovations in the region to cater to the increasing demand among end users are expected to drive the market growth. Moreover, corporate and consumer's rising concerns about the sustainability and environmental impact of certain flavor & fragrance ingredients such as vanilla, sandalwood, and agarwood boost the demand for fermented flavor and fragrances.
Global Fermented Flavor and Fragrance Ingredients Market Breakdown - by Region
The report includes the segmentation of the global fermented flavor and fragrance ingredients market as follows:
The global fermented flavor and fragrance ingredients market is segmented based on type and application. Based on type, the market is segmented into fruity, floral, woody, blends, and others. Based on application, the market is segmented into food and beverages, personal care products, cosmetics, and others. The personal care segment hold significant share in the global fermented flavor and fragrance ingredients market. The adoption of 'clean label' and 'natural' products is increasing worldwide. Thus, personal care manufacturers demand ingredients free from any synthetic chemical and considered natural. This has led to the increasing use of fermented flavor and fragrances as 'natural' additives while manufacturing personal care products. Products with fermented ingredients promise better skin barrier support, skincare absorption, sustainability, and clean label claims. Floral, fruity, sandalwood, and vanilla are the major fermented flavor and fragrances used in this industry.
By geography, the market is broadly segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. The North America market is further segmented into the US, Canada, and Mexico. The fermented flavor and fragrance ingredients market in Europe is sub-segmented into Germany, France, the UK, Italy, Spain, and the Rest of Europe. The Asia Pacific fermented flavor and fragrance ingredients market is further categorized into China, India, Japan, Australia, South Korea, and the Rest of Asia Pacific. The market in the Middle East & Africa is further segmented into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. The South & Central America market is further categorized into Brazil, Argentina, and the Rest of South & Central America.
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