The increase should run at about 3.5 per cent per year to give the market a total value of $4.6 billion by 2009, according to a new study from industrial market research firm Freedonia Group.
The company's research experts believe that gains will be supported across the board by an increased consumer interest in more complex and authentic flavors and fragrances, reflecting consumer demands for more variety and greater product satisfaction.
The continued popularity of natural ingredients, a reflection of the wellness trend that is having such a big impact on the cosmetics and toiletry segment, will also boost demand, since these materials are typically more expensive.
Healthy gains in anti-aging skin care products and tooth whitening dentifrices and fortified foods will also present opportunities for flavors and fragrances that enhance the sensory appeal of these products while masking the unappealing taste and aroma of vitamins, minerals, bleaches and other active ingredients, the group claims in its study entitled 'Flavors & Fragrances'.
One particular are highlighted for particular gains is environmental fragrance goods, which are expected to show above-average gains through 2009, driven by strong advances in aromatherapy and household applications, as well as consumer desires for more complex and exotic fragrances.
Cosmetics and toiletries will also see above-average growth through 2009, the report authors say. Skin care products are expected to provide the best opportunities for growth in this market, reflecting expansion of the skin care market itself and the rising popularity of anti-aging products that generally require more fragrance to mask unpleasant odors from active ingredients.
In recent years the financial results of the world's largest flavors and fragrance groups have been buoyed by their fragrance divisions, with sales to cosmetics and toiletry companies helping to sustain growth, or at least keep results stable during 2005.