U.S. Flavors and Fragrances Market (By Product: Aroma Chemicals, Natural; By Application: Flavors, Fragrances) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The U.S. flavors and fragrances market was estimated at USD 5.83 billion in 2023 and it is expected to surpass around USD 8.32 billion by 2033, poised to grow at a CAGR of 3.62% from 2024 to 2033.

Key Pointers

• By Application, the fragrances segment generated the maximum market share of 53% in 2023.
• By Application, the flavors segment is poised for significant growth with a notable CAGR from 2024 to 2033.
• By Product, the natural segment contributed the largest market share of 77% in 2023.
• By Product, the aroma chemicals segment is anticipated to grow at the noteworthy CAGR from 2024 to 2033.

U.S. Flavors and Fragrances Market Overview

The U.S. flavors and fragrances market represents a vibrant and dynamic industry at the intersection of consumer preferences, innovation, and technology. With a diverse array of applications spanning food and beverages, personal care products, household goods, and beyond, this market plays a pivotal role in enhancing sensory experiences and driving consumer satisfaction.

U.S. Flavors and Fragrances Market Growth

The growth of the U.S. flavors and fragrances market can be attributed to several key factors. Firstly, changing consumer preferences towards natural and sustainable ingredients have fueled demand for products that offer authentic sensory experiences. Additionally, the increasing disposable income and evolving lifestyles of consumers have led to a greater willingness to invest in premium flavors and fragrances across various applications. Furthermore, advancements in technology and research have enabled manufacturers to innovate and introduce novel formulations that meet the demands of modern consumers. Moreover, the rise of e-commerce platforms and digital marketing strategies have expanded market reach and accessibility, facilitating easier product discovery and purchase. Overall, these growth factors underscore the resilience and dynamism of the U.S. flavors and fragrances market as it continues to evolve and thrive in response to shifting consumer trends and market dynamics.

U.S. Flavors and Fragrances Market Trends:

• Shift Towards Natural Ingredients: There is a noticeable trend towards using natural ingredients in flavors and fragrances as consumers prioritize health and wellness, leading to a greater demand for products free from artificial additives and preservatives.
• Rise of Functional Products: Consumers are seeking flavors and fragrances that offer additional benefits beyond taste and scent. This includes products with functional properties such as probiotics, vitamins, and aromatherapy benefits, aligning with the growing focus on holistic well-being.
• Customization and Personalization: Brands are leveraging technology to offer customizable flavor and fragrance options, allowing consumers to tailor products to their individual preferences. This trend reflects the desire for unique and personalized experiences in a crowded market landscape.
• Digitalization and E-commerce: The proliferation of e-commerce platforms and digital marketing channels has transformed the way consumers discover and purchase flavors and fragrances. Brands are leveraging online platforms to reach a wider audience, engage with consumers directly, and offer personalized shopping experiences.
• Innovation in Delivery Systems: There is a growing emphasis on innovative delivery systems for flavors and fragrances, such as encapsulation technologies and controlled release mechanisms. These advancements enhance product performance, stability, and longevity, catering to evolving consumer needs and preferences.

Application Insights

In 2023, fragrances dominated the market with a commanding revenue share of 53%, and they are poised to maintain their lead with the fastest Compound Annual Growth Rate (CAGR) during the forecast period. This surge in the fragrance segment is primarily propelled by the robust disposable income in the U.S., fueling a heightened demand for luxurious fragrances across cosmetics, toiletries, and perfumes. Moreover, manufacturers venturing into natural fragrance development often apply a "green premium" to their products, further stimulating growth. Additionally, the bustling lifestyle in the U.S. is expected to spur the proliferation of retail outlets specializing in ready-to-eat meals. Furthermore, companies in the feed and feed additive sector, such as Kemin Industries, Inc. and Bentoli, LLC, are intensifying efforts to provide palatability solutions aimed at boosting feed intake. This, in turn, is anticipated to escalate the demand for flavors in animal feed applications.

Conversely, the flavors segment is poised for significant growth with a notable CAGR from 2024 to 2033, largely attributed to the increasing utilization of flavors in dietary supplements. The prevailing health and wellness trend within the market is expected to further elevate the preference for natural flavor ingredients. The food and beverage industry, offering vast potential, is witnessing a surge in demand for ready-to-eat meals, processed food, snacks, juices, and other beverages. This surge in demand for food and beverages is anticipated to drive flavor demand over the forecast period.

Product Insights

In 2023, the natural segment commanded the largest revenue share, accounting for 77% of the market, and it is anticipated to sustain this lead with the fastest Compound Annual Growth Rate (CAGR) during the forecast period. The escalating demand for natural essential oils in the cosmetics and skincare sectors is poised to drive market growth over the forecast duration. Furthermore, the increasing consumer preference for natural and organic products is expected to further boost the demand for essential oils across various end-use industries.

Additionally, the aroma chemicals segment is projected to witness significant expansion at a prominent CAGR from 2024 to 2033. Aroma chemicals play a pivotal role in the production of food flavors and fragrances, encompassing esters, alcohols, aldehydes, phenols, and other chemical compounds. This segment is anticipated to experience substantial growth in the coming years, driven by increased utilization in pharmaceuticals, wineries, and perfumeries.

U.S. Flavors and Fragrances Market Key Companies

• International Flavors & Fragrances Inc.
• Young Living Essential Oils
• dōTERRA International
• Ungerer & Company
• Vigon International, Inc.
• Elevance Renewable Sciences, Inc.
• Alpha Aromatics
• BASF SE
• Archer-Daniels-Midland Company

Recent Developments

• In September 2023, Coca‑Cola launched the AI-driven flavored Coca‑Cola Y3000 Zero Sugar to explore what a Coke from the year 3000 might taste like. The zero-sugar is a limited-edition drink available in select markets including the U.S., Canada, Europe, China, and Africa.
• In July 2023, Symrise AG announced an investment agreement with Bonumose to develop enzymatic technology for flavor innovation of tagatose and allulose. This will strengthen Symrise AG’s position in the North America region, particularly in the U.S.

U.S. Flavors and Fragrances Market Segmentations:

By Product

• Natural
  • Essential Oils
    • Orange Essential Oils
      • Limonene
      • Myrcene
      • Others.
    • Corn mint Essential Oils
      • Menthol
      • Menthone
      • Others
    • Eucalyptus Essential Oils
      • Eucalyptol
      • Limonene
      • Others
    • Pepper Mint Essential Oils
      • Menthol
      • Menthone
      • Others
    • Lemon Essential Oils
      • Pinene
      • Limonene
      • Camphene
    • Citronella Essential Oils
      • Citronellal
      • Others
    • Patchouli Essential Oils
      • Patchouli Alcohol
      • Others
    • Clove Essential Oils
      • Eugenol
      • Others
    • Ylang Ylang/Canaga Essential Oils
    • Lavender Essential Oils
      • Linalyl Acetate
      • Others
  • Oleoresins
    • Paprika Oleoresins
      • Piperine
      • Others
    • Black Pepper Oleoresins
      • Piperine
      • Others
    • Turmeric Oleoresins
      • Curcumin
      • Others
    • Ginger Oleoresins
      • Gingerol
      • Others
  • Others
• Aroma Chemicals
  • Esters
    • Ethyl acetate
    • Benzyl Acetate
    • Ethyl benzoate
    • Methyl Decanoate
    • Others
  • Alcohol
    • Lauryl Alcohol
    • Menthol
    • Others
  • Aldehydes
    • Benzaldehyde
    • Vanillin
    • Others
  • Phenol
    • Ethylvanillin
    • Others
  • Terpenes
    • Limonene
    • Camphor
    • Eucalyptol
    • Others
• Others

By Application

• Flavors
  • Confectionery
  • Convenience Food
  • Bakery Food
  • Dairy Food
  • Beverages
  • Animal Feed
  • Others
• Fragrances
  • Fine Fragrances
  • Cosmetics & Toiletries
  • Soaps & detergents
  • Aromatherapy
  • Others