South America Flavors & Fragrances Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.75 % |
| Market Concentration | High |
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*Disclaimer: Major Players sorted in no particular order |
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South America Flavors & Fragrances Market Analysis
The South American flavor and fragrance market is projected to register a CAGR of 4.75% over the forecast period.
- The demand for convenience, ready-to-eat meals, and health and wellness foods is increasing in South America. This, along with technological advancements, is expected to drive the growth of the flavor market in the region. As consumers increasingly seek out convenient and healthy food options, the demand for natural food flavors and additives is also rising. This trend is driving innovation and research in the flavor industry to develop new products that meet the changing consumer preferences in South America.
- Furthermore, there is a growing demand for different flavorings, particularly authentic and natural ones, due to a change in lifestyle and increased demand for healthy and natural food flavorings. This, coupled with an increase in research and innovation by manufacturers and the expansion of the food industry, is driving the flavor and fragrance market in South America. Another factor contributing to the market's growth is the clean-label trend, which has now extended to flavorings and extracts.
- Natural herbs and spices are becoming increasingly popular, and consumers are looking for simpler labels with a shorter list of ingredients, which they perceive as an indication that the product is better for them. Finally, the personal care segment has seen a higher demand for fragrances, with Brazil being the major market in the region. This is due to customer inclination towards processed food, beauty, and perfume products.
South America Flavors & Fragrances Market Trends
Rising Demand for Convenience Food Products
- Due to the fast-paced lifestyle of today's generation, there is an increasing trend towards convenience food products, such as instant soups, sauces, noodles, baked goods, and other ready meals. These products are preferred due to their instant nature, which saves preparation time and makes them easy to handle. However, consumers are unwilling to compromise on flavor despite the convenience factor.
- For instance, to cater to this demand, market leader Symrise offers distinct culinary flavors for various products, including soups, bouillons, ready meals, sauces and dressings, processed meat, instant noodles, and alternative protein products. Ready-to-eat products such as instant noodles, ice creams, and soups are highly susceptible to flavor experimentation, and consumers are constantly seeking new and different flavors.
- For example, hot and spicy chicken are among the most popular flavors in instant noodles. In Argentina, per capita expenditure on processed meat is approximately USD 59.5, and meat snacks are the fastest-growing segment in the ready-to-eat category. Flavor innovations are driving growth in this segment, with flavors like whiskey bourbon, Korean barbeque, and rosemary gaining popularity in products such as beef or chicken jerky.
- The growing market for convenience and ready-to-eat meals, as well as health and wellness foods, coupled with technological advancements, is expected to fuel the growth of the flavor and fragrance market in South America.
Brazil Holds a Prominent Market Share in the Market
- As frozen and processed food continues to gain acceptance in Brazil, flavor manufacturers have numerous opportunities to expand their brands and establish deeper connections with consumers. Encapsulated flavoring is a popular trend in the Brazilian market, particularly in bakery, cereal, hot drinks, confectionery, culinary, meat, and savory applications.
- According to the Brazilian Association of Portal Supermarkets, in 2021, meat sales accounted for approximately 12.4 percent of the Brazilian retail market. The Brazilian government's reduction of import duties has incentivized innovation in the food and beverage industry, resulting in a positive impact on food flavor manufacturers worldwide. For instance, the volume of juice imported into Brazil was approximately 1.8 thousand tons in 2022, according to Comex Stat (Brazil).
- In addition to the food and beverage industry, Brazil is also a significant market for fragrances in the beauty and personal care sector. This is due to the population's growing emphasis on personal growth and social living standards.
South America Flavors & Fragrances Industry Overview
South America's flavor and fragrance market is dominated by a few major players who hold a significant share of the market. International Flavors & Fragrances Inc., Symrise AG, Firmenich International SA, Takasago International Corporation, and Sensient Technologies Corporation are the key players in the market. These companies have adopted various strategic approaches such as mergers, expansions, acquisitions, partnerships, and new product development to enhance their brand presence in the market.
To cater to a wider consumer base, companies in the market are focusing on expanding their product offerings by introducing innovative products. This approach helps them to stand out from their competitors and attract more customers. Additionally, companies are investing heavily in research and development to create unique and high-quality products that can satisfy the evolving needs of consumers.
South America Flavors & Fragrances Market Leaders
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International Flavors & Fragrances Inc.
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Symrise AG
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Firmenich International SA
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Takasago International Corporation
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Sensient Technologies Corporation
*Disclaimer: Major Players sorted in no particular order
South America Flavors & Fragrances Market News
- July 2022: IFF (International Flavor and Fragrance, Inc.), an industry leader in solutions for food, beverages, health, biosciences, and scent, announced an investment of USD 15.8 million in three of its innovation centers in Latin America. The facilities are located in Brazil, Colombia, and Chile. The sites feature state-of-the-art research, application, sensory labs, and pilot plants and offer customers access to complete product-design capabilities.
- July 2022: Givaudan, Bühler, and Cargill formed a consortium in collaboration with the Food Tech Hub Latam and the Institute of Food Technology (ITAL) to build a food innovation center in the city of Campinas, recognized as Brazils tech powerhouse. The Tropical Food Innovation Lab will be located in ITAL, one of the leading public research institutes in Brazil, in a fully-refurbished 1,300 square meter area. This new hub will be the go-to place in Latin America to connect and develop sustainable food and beverage products.
- June 2021: Kerry announced the opening of its new taste facility in Latin America, which serves mainly Mexico, Central America, the Caribbean, and the Andean region. The new state-of-the-art facility significantly increased Kerry's capacity in the region and further supported customers in delivering local and sustainable taste solutions.
South America Flavors & Fragrances Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Forces Analysis
- 4.3.1 Bargaining Power of Suppliers
- 4.3.2 Bargaining Power of Consumers
- 4.3.3 Threat of New Entrants
- 4.3.4 Threat of Substitute Products
- 4.3.5 Degree of Competition
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Synthetic
- 5.1.2 Natural
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5.2 Application
- 5.2.1 Food
- 5.2.1.1 Savory Food
- 5.2.1.2 Dairy Products
- 5.2.1.3 Bakery and Confectionery
- 5.2.1.4 Meat and Meat Products
- 5.2.1.5 Other Food Products
- 5.2.2 Beverages
- 5.2.3 Beauty and Personal Care
- 5.2.4 Perfumes
- 5.2.5 Other Applications
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5.3 Geography
- 5.3.1 Brazil
- 5.3.2 Argentina
- 5.3.3 Rest of South America
6. COMPETITIVE LANDSCAPE
- 6.1 Strategies adopted by Key players
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Givaudan SA
- 6.3.2 Firmenich International SA
- 6.3.3 International Flavors & Fragrances Inc.
- 6.3.4 Symrise AG
- 6.3.5 The Archer Daniels Midland Company
- 6.3.6 Sensient Technologies Corporation
- 6.3.7 MANE SA
- 6.3.8 Takasago International Corporation
- 6.3.9 Kerry Group PLC
- 6.3.10 Solvay
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
South America Flavors & Fragrances Industry Segmentation
Flavors and fragrances enhance the product's characteristics by providing a pleasant odor or imparting sweet, sour, tangy, and other taste profiles.
South America's flavor and fragrance market is segmented by type, application, and geography. Based on the type, the market is segmented into synthetic and natural. Based on the application, the market is segmented into food, beverages, beauty and personal care, perfumes, and other applications. The food segment is further sub-segmented into savory food, dairy products, bakery and confectionery, meat and meat products, and others. Based on geography, the market is segmented into Brazil, Argentina, and the rest of South America.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Type | Synthetic | |
| Natural | ||
| Application | Food | Savory Food |
| Dairy Products | ||
| Bakery and Confectionery | ||
| Meat and Meat Products | ||
| Other Food Products | ||
| Application | Beverages | |
| Beauty and Personal Care | ||
| Perfumes | ||
| Other Applications | ||
| Geography | Brazil | |
| Argentina | ||
| Rest of South America |
South America Flavors & Fragrances Market Research FAQs
What is the current South America Flavors & Fragrances Market size?
The South America Flavors & Fragrances Market is projected to register a CAGR of 4.75% during the forecast period (2024-2029)
Who are the key players in South America Flavors & Fragrances Market?
International Flavors & Fragrances Inc., Symrise AG, Firmenich International SA, Takasago International Corporation and Sensient Technologies Corporation are the major companies operating in the South America Flavors & Fragrances Market.
What years does this South America Flavors & Fragrances Market cover?
The report covers the South America Flavors & Fragrances Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South America Flavors & Fragrances Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South America Flavors and Fragrances Industry Report
Statistics for the 2024 South America Flavors and Fragrances market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America Flavors and Fragrances analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
