Natural Flavors And Fragrances Market Size, Share & Trends Analysis Report By Application (Flavors, Fragrances), By Technology (Extraction, Distillation), By Product (Essential Oils, Dried Crops), By Region And Segment Forecasts, 2022 - 2030

Research Methodology

A three-pronged approach was followed for deducing the natural flavors and fragrances market estimates and forecasts. The process has three steps: information procurement, analysis, and validation. The whole process is cyclical, and steps repeat until the estimates are validated. The three steps are explained in detail below:

Information procurement: Information procurement is one of the most extensive and important stages in our research process, and quality data is critical for accurate analysis. We followed a multi-channel data collection process for natural flavors and fragrances market to gather the most reliable and current information possible.

• We buy access to paid databases such as Hoover’s and Factiva for company financials, industry information, white papers, industry journals, SME journals, and more.
• We tap into Grand View’s proprietary database of data points and insights from active and archived monitoring and reporting.
• We conduct primary research with industry experts through questionnaires and one-on-one phone interviews.
• We pull from reliable secondary sources such as white papers and government statistics, published by organizations like WHO, NGOs, World Bank, etc., Key Opinion Leaders (KoL) publications, company filings, investor documents, and more.
• We purchase and review investor analyst reports, broker reports, academic commentary, government quotes, and wealth management publications for insightful third-party perspectives.

Analysis: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilized different methods of natural flavors and fragrances market data depending on the type of information we’re trying to uncover in our research.

• Market Research Efforts: Bottom-up Approach for estimating and forecasting demand size and opportunity, top-down Approach for new product forecasting and penetration, and combined approach of both Bottom-up and Top-down for full coverage analysis.

• Value-Chain-Based Sizing & Forecasting: Supply-side estimates for understanding potential revenue through competitive benchmarking, forecasting, and penetration modeling.

• Demand-side estimates for identifying parent and ancillary markets, segment modeling, and heuristic forecasting.

• Qualitative Functional Deployment (QFD) Modelling for market share assessment.

Market formulation and validation: We mine the data collected to establish baselines for forecasting, identify trends and opportunities, gain insight into consumer demographics and drivers, and so much more. We utilize different methods of data analysis depending on the type of information we’re trying to uncover in our research.

• Market Formulation: This step involves the finalization of market numbers. This step on an internal level is designed to manage outputs from the Data Analysis step.

• Data Normalization: The final market estimates and forecasts are then aligned and sent to industry experts, in-panel quality control managers for validation.

• This step also entails the finalization of the report scope and data representation pattern.

• Validation: The process entails multiple levels of validation. All these steps run in parallel, and the study is forwarded for publishing only if all three levels render validated results.

Natural Flavors and Fragrances Market Categorization:

The natural flavors and fragrances market was categorized into four segments, namely product (Essential Oils, Oleoresins, Dried Crops, Herbal Extracts), technology (Fermentation, Extraction, Distillation), application (Flavors, Fragrances), and region (North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa).

Segment Market Methodology:

The natural flavors and fragrances market was segmented into product, technology, application, and regions. The demand at a segment level was deduced using a funnel method. Concepts like the TAM, SAM, SOM, etc., were put into practice to understand the demand. We at GVR deploy three methods to deduce market estimates and determine forecasts. These methods are explained below:

Market research approaches: Bottom-up

• Demand estimation of each product across countries/regions summed up to from the total market.

• Variable analysis for demand forecast.

• Demand estimation via analyzing paid database, and company financials either via annual reports or paid database.

• Primary interviews for data revalidation and insight collection.

Market research approaches: Top-down

• Used extensively for new product forecasting or analyzing penetration levels.

• Tool used invoice product flow and penetration models Use of regression multi-variant analysis for forecasting Involves extensive use of paid and public databases.

• Primary interviews and vendor-based primary research for variable impact analysis.

Market research approaches: Combined

• This is the most common method. We apply concepts from both the top-down and bottom-up approaches to arrive at a viable conclusion.

Regional Market Methodology:

The natural flavors and fragrances market was analyzed at a regional level. The globe was divided into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa, keeping in focus variables like consumption patterns, export-import regulations, consumer expectations, etc. These regions were further divided into eighteen countries, namely, the U.S.; Canada; Mexico; Germany; the UK; France; Spain; Portugal; Turkey; China; India; Japan; Southeast Asia; Brazil; Colombia; UAE; Saudi Arabia; South Africa.

All three above-mentioned market research methodologies were applied to arrive at regional-level conclusions. The regions were then summed up to form the global market.

Natural flavors and fragrances market companies & financials:

The natural flavors and fragrances market was analyzed via companies operating in the sector. Analyzing these companies and cross-referencing them to the demand equation helped us validate our assumptions and conclusions. Key market players analyzed include:

• MANE: MANE is a manufacturing company engaged in the production of flavors, fragrances, and natural ingredients. It also undertakes various R&D activities that generate synthetic molecules and natural raw materials that helps enrich the palettes of perfumes along with flavorists. The company has a wide global presence in more 39 countries. It has 27 manufacturing sites and more than 50 research and development sites worldwide. In 2021, flavors segment accounted for 55% of the total sales, 35% was reported from fragrances segment, and remaining 10% was reported by natural ingredients segment.

• Keva Flavors Pvt. Ltd.: Keva Flavors Pvt. Ltd. is one of the prominent flavors manufacturers in India, specifically for food & beverage industry. The company’s product portfolio comprises 3,000 flavors, catering to various applications such as confectionery, bakery, beverages, dairy, savory, and pharmaceuticals. It also provides seasoning for various savory snacks such as potato chips, popcorn, fox nuts, baked things, Indian snacks, and nachos & tortillas. The company is integrated across the value chain as it manufactures natural ingredients as well. This integration helps the company to strengthen its operational efficiency and sustainability framework. Products manufactured by the company have been Halal, Kosher, FEMA GRAS, FSSAI, and FSSC certified.

• DÖHLER GmbH: DÖHLER GmbH is a global manufacturer of natural ingredients, ingredient systems, and integrated solutions. Its product portfolio of natural ingredients ranges from plant-based ingredients, natural flavors, natural colors, health ingredients, pulses & cereals ingredients, fermented ingredients, dairy & plant-based ingredients, dry fruits & vegetable ingredients, fruits & vegetables ingredients to ingredient systems. It offers a variety of products to multiple end use industries such as water, soft drink, brewery, fruit juice, dairy, bakery, ice cream, confectionery, food service, and wine & spirits. The company is Halal, Organic, FSSC, AEO, Kosher, SGF, Fairtrade, BRC, RSPO, Umweltallianz Hessen, Rainforest Alliance, and Bioland certified.

• Blue Pacific Flavors, Inc.: Blue Pacific Flavors, Inc. is a manufacturer of flavors in North America. The company has more than 300 flavors in its product portfolio. It follows ‘Farm to Flavour’ model, which means the company is engaged in sourcing natural ingredients and production of various flavors. Products of the company are USDA Organic, Non-GMO, Organic, and Quality Assurance International (QAI) certified.

• Stringer Flavour Ltd.: Stringer Flavour Ltd. is a manufacturer specializing in the production of specialist flavors and a supplier of natural flavorings and organic extracts for food industry. The company offers more than 200 flavors under eight different categories, namely alcohol, herbs & spices, dairy, nuts, fruits & berry, savory, sweet, and brown & cream. It also has more than 15 botanical extracts in its product portfolio. The company has various certifications including BRCGS, Vegan, Kosher, and Organic.

• BIOLANDES: BIOLANDES is one of the prominent manufacturers of natural plant extracts. The company has more than 750 products in its product portfolio, which are catered to various end-use industries such as perfumery, food flavors, beauty & personal care, and aromatherapy. It is also engaged in manufacturing natural plant-based raw materials for its products and has more than 200 such products. It has more than 12 subsidiaries, which include 4 of its farms. Some of the products of the company have been Kosher, Halal, Natural Organic Program (NOP), ORG, COSMOS, Good Manufacturing Practice (GMP), Organic Cosmetics, and Fair for Life (FFL) certified.

• Young Living Essential Oils, LC: Young Living Essential Oils, LC is a manufacturer of essential oils, which are marketed under the company’s multiple brands that include NingXia, ART, Nature’s Ultra, and Bloom. These products are mainly catered to personal care and cosmetics industries. The company operates on seed-to-seal business model, which means the company undertakes cultivation activities on its farms and then converts these natural raw materials into final essential oil products. It has multiple farms and distillery locations throughout the world. The company includes 10 farms and distilleries in North America; 2 farms in Central & South America and 7 farms in Asia; and 5 farm locations in Europe, 2 locations in Australia, and 1 in Africa. It has a global presence on over 6 continents and in more than 25 open markets. The company is non-GMO kosher certified.

• dōTERRA: dōTERRA is a manufacturer of essential oils. It is engaged in sourcing, testing, production, and distribution of various essential oils., which are available in their portfolio of products. The company offers its products to more than 5 million customers around the world. Apart from essential oils, it also provides a premium line of single plant extracts, oil-infused personal care and spa products, and dietary supplements. The company markets its essential oils products under four major brands such as DeepBlue, ZenGest, dōTERRA EasyAir, and On Guard. It uses two of the most common processes to effectively manufacture its products. These processes include expression, sometimes referred to as cold press and steam distillation.

• Falcon: Falcon is one of the reputed manufacturers, suppliers, and exporters of pure and natural essential oils. The products of the company are offered under three major categories, namely carrier oil, essential oil, and linseed oil. These products are catered to spas, herbal treatments, and some the other medications. In addition, oils offered by the company are widely used in beauty products, pharmaceuticals, nutraceuticals, agriculture, and in industries such as soap, candle, perfumery, and paint.

Value chain-based sizing & forecasting

Supply Side Estimates

• Company revenue estimation via referring to annual reports, investor presentations, and Hoover’s.

• Segment revenue determination via variable analysis and penetration modeling.

• Competitive benchmarking to identify market leaders and their collective revenue shares.

• Forecasting via analyzing commercialization rates, pipelines, market initiatives, distribution networks, etc.

Demand side estimates

• Identifying parent markets and ancillary markets

• Segment penetration analysis to obtain pertinent

• revenue/volume

• Heuristic forecasting with the help of subject matter experts

• Forecasting via variable analysis

Natural Flavors and Fragrances Market Report Objectives:

• Understanding market dynamics (in terms of drivers, restraints, & opportunities) in the countries.

• Understanding trends & variables in the individual countries & their impact on growth and using analytical tools to provide high-level insights into the market dynamics and the associated growth pattern.

• Understanding market estimates and forecasts (with the base year as 2021, historic information from 2018 to 2020, and forecast from 2023 to 2030). Regional estimates & forecasts for each category are available and are summed up to form the global market estimates.

Natural Flavors and Fragrances Market Report Assumptions:

• The report provides market value for the base year 2022 and a yearly forecast till 2030 in terms of revenue/volume or both. The market for each of the segment outlooks has been provided on region & country basis for the above-mentioned forecast period.

• The key industry dynamics, major technological trends, and application markets are evaluated to understand their impact on the demand for the forecast period. The growth rates were estimated using correlation, regression, and time-series analysis.

• We have used the bottom-up approach for market sizing, analyzing key regional markets, dynamics, & trends for various products and end-users. The total market has been estimated by integrating the country markets.

• All market estimates and forecasts have been validated through primary interviews with the key industry participants.

• Inflation has not been accounted for to estimate and forecast the market.

• Numbers may not add up due to rounding off.

• Europe consists of EU-8, Central & Eastern Europe, along with the Commonwealth of Independent States (CIS).

• Asia Pacific includes South Asia, East Asia, Southeast Asia, and Oceania (Australia & New Zealand).

• Latin America includes Central American countries and the South American continent

• Middle East includes Western Asia (as assigned by the UN Statistics Division) and the African continent.

Primary Research

GVR strives to procure the latest and unique information for reports directly from industry experts, which gives it a competitive edge. Quality is of utmost importance to us, therefore every year we focus on increasing our experts’ panel. Primary interviews are one of the critical steps in identifying recent market trends and scenarios. This process enables us to justify and validate our market estimates and forecasts to our clients. With more than 8,000 reports in our database, we have connected with some key opinion leaders across various domains, including healthcare, technology, consumer goods, and the chemical sector. Our process starts with identifying the right platform for a particular type of report, i.e., emails, LinkedIn, seminars, or telephonic conversation, as every report is unique and requires a differentiated approach.

We send out questionnaires to different experts from various regions/ countries, which is dependent on the following factors:

• Report/Market scope: If the market study is global, we send questionnaires to industry experts across various regions, including North America, Europe, Asia Pacific, Latin America, and MEA.

• Market Penetration: If the market is driven by technological advancements, population density, disease prevalence, or other factors, we identify experts and send out questionnaires based on region or country dominance.

The time to start receiving responses from industry experts varies based on how niche or well-penetrated the market is. Our reports include a detailed chapter on the KoL opinion section, which helps our clients understand the perspective of experts already in the market space.