This report profiles the leading players in the global flavor and fragrance industry. Flavor is the sensory notion of a food or other substance, and is determined mainly by the sense of taste. Flavor companies produce and sell flavor compounds as well as flavor delivery technology that is used in foods and beverages. Hence, flavors are sold primarily to the food and beverage industries for use in a wide range of consumer products, including soft drinks, confectionery, bakery goods, desserts and prepared foods. Fragrances are designed to emit a pleasant aroma and are mostly used consumer products such as soaps, detergents, cosmetic creams, lotions and powders, lipsticks, after shave lotions, deodorants, hair preparations, candles, air fresheners and all purpose cleaners.

This report analyzes global flavor and fragrance industry in terms of market size (based of value), key drivers and resistors, industry trends and competitive positioning of the top 10 players in the global flavor and fragrance market. It includes profiles of the top ten companies in the industry and also involves brief write-up on other major players in the industry. The top 10 companies in the global flavor and fragrance industry were assessed on following parameters:

Each company’s financial performance in the global flavor and fragrances market;
Each company’s growth strategies and major acquisitions and divestments in this market;
Key partnerships and alliances formed by these companies;
Business-related strengths and weaknesses of these companies, and insights into the opportunities and threats facing them.

Key Benefits of this report

Learn from the strategies of the global flavor and fragrance companies to target future growth markets effectively, avoid their mistakes, replicate their successes and learn of the threats they face.

Benchmark your performance against the leading flavor and fragrance companies by comprehending their strategies.

Understand the major issues affecting the global flavor and fragrance market.

Predict the key growth areas in the global flavor and fragrance market arising from the change in consumers’ preferences and global recession.

Save time, money and resources on analyzing the performance of the key flavor and fragrance companies using this report.

Key findings from this report

The global flavor and fragrance market was valued at approximately $16bn in 2008. Business Insights anticipates that the value of global flavor and fragrance market will grow at a CAGR of 2.5% during 2008–13 to reach a total value of approximately $18bn in 2013.

Acquisitions have been ongoing in the industry for some years now creating a distinct two tier industry structure. The top ten players accounted for about 90.3% of the total market size in 2008 and smaller companies operating in niche and often domestic markets represent the remaining share.

Increasing demand for consumer products in emerging markets supported by rising disposable income will primarily drive demand for flavor and fragrance. Demand for differentiated products in developed markets such as natural and functional products will further increase consumption of flavor and fragrance as they serve as a key component to building product differentiation.

The limited market size coupled with the consolidated nature of the industry sets high barriers to entry in the industry. Substantial capital investment and R&D expenses as well as significant investment in quality assurance system further elevate barriers to entry.

T.Hasegawa was the only company among the top 10 players that registered a decline in CAGR of 2.3% during 2004–08. Shift in customer preference in end consumer products market in Japan swayed demand away from related flavor and fragrance, adversely impacting the financial performance of T.Hasegawa during 2004–08.

Burgeoning aging population in developed nations such as the US and Japan is driving the trend towards healthy lifestyle. In response to this trend, major flavor and fragrance companies are investing in the development of R&D capabilities in the field of natural ingredients applicable mostly in food and beverages, and cosmetic industries.

Key questions answered by this report

What was the market size of the global flavor and fragrance industry by value in 2008?
What will be the market size of the global flavor and fragrance industry during 2008-13?
What are the trends in the global flavor and fragrance industry?
Which geographies are expected to be the frontrunners in flavor and fragrance consumption through 2009-10?
Who are the top 10 players in the market?
What are the growth strategies of the top 10 companies?
What are the strengths of the top 10 players in the global flavor and fragrance industry?
What are the weaknesses of the top 10 players?
What are the growth opportunities for the global top 10 flavor and fragrance companies?
What are the problems faced by the global flavor and fragrance companies in the industry?

Table of Contents
The Top 10 Flavor and Fragrance Companies
Executive summary 12
Industry overview 12
Givaudan 13
Firmenich 13
International Flavors & Fragrances (IFF) 14
Symrise 14
Takasago 15
Sensient 15
Mane 16
Frutarom 16
Robertet 17
T.Hasegawa 17
Chapter 1 Introduction 20
What is the report about? 20
Methodology 21
Chapter 2 Industry overview 24
Summary 24
Introduction 25
Market dynamics 25
Global flavor and fragrance market size 25
Drivers and resistors 26
Competitive landscape 27
Competitive positioning of the top 10 flavor and fragrance companies 27
Trends 30
Expansion into emerging markets 30
The pace of consolidation will gain momentum 32
Shift towards natural flavor and fragrance 33
Chapter 3 Givaudan 36
Summary 36
Company overview 37
Recent financial performance 37
Performance by business segments 39
Growth strategies 39
Expansion in emerging markets 39
Strengthening R&D to attain competitive advantage 40
Investing in in-house R&D to drive growth in the long term 40
Alliances fostering development of new ingredients 40
Acquisitions and divestments 41
SWOT analysis 42
Chapter 4 Firmenich 44
Summary 44
Company overview 45
Recent financial performance 45
Performance by business segments 46
Growth strategies 46
Expanding production capabilities 46
Strengthening R&D to drive growth through development of new ingredients 47
Acquisitions and divestments 47
SWOT analysis 48
Chapter 5 IFF 50
Summary 50
Company overview 51
Recent financial performance 51
Performance by business segments 53
Growth strategies 53
Improving margins through cost reduction 53
Strengthening foothold in emerging markets 53
Acquisitions and divestments 54
SWOT analysis 54
Chapter 6 Symrise 56
Summary 56
Company overview 57
Recent financial performance 57
Performance by business segments 59
Growth strategies 59
Investing in R&D to drive growth in the long term 59
Fortifying growth in potential sectors through partnerships and alliances 60
Investing in emerging markets to accelerate growth 61
Acquisitions and divestments 61
SWOT analysis 63
Chapter 7 Takasago 66
Summary 66
Company overview 67
Recent financial performance 67
Performance by business segments 69
Growth strategies 69
Strengthening R&D to deliver new flavors 69
Acquisitions and divestments 70
SWOT analysis 71
Chapter 8 Sensient 74
Summary 74
Company overview 75
Recent financial performance 75
Performance by business segments 76
Growth strategies 77
Strengthen distribution network in and commercial presence in emerging markets 77
Improving margins through debt reduction 77
Acquisitions and divestments 77
SWOT analysis 78
Chapter 9 Mane 80
Summary 80
Company overview 81
Recent financial performance 81
Performance by business segments 82
Growth strategies 83
Expanding in international markets to accelerate growth 83
Acquisitions and divestments 83
SWOT analysis 84
Chapter 10 Frutarom 86
Summary 86
Company overview 87
Recent financial performance 87
Performance by business segments 88
Growth strategies 89
Expanding investments in R&D to drive long term growth 89
Acquisitions and divestments 90
SWOT analysis 92
Chapter 11 Robertet 94
Summary 94
Company overview 95
Recent financial performance 95
Performance by business segments 96
Growth strategies 97
Investing in capacity expansion and emerging markets to accelerate its sales growth 97
Acquisitions and divestments 97
SWOT analysis 99
Chapter 12 T.Hasegawa 102
Summary 102
Company overview 103
Recent financial performance 103
Performance by business segments 105
Growth strategies 105
Penetrate new and under-represented sectors in Japan to drive growth 105
Investing in facility expansion outside Japan 106
Acquisitions and divestments 106
SWOT analysis 107
Chapter 13 Other major players 110
Soda Aromatic 110
Company overview 110
Recent financial performance 110
Ogawa 112
Company overview 112
Recent financial performance 112
Agilex Flavors and Fragrances (Agilex) 112
Company overview 113
Cargill Flavor Systems 113
Company overview 113
Recent financial performance 114
Bell Flavors and Fragrances 115
Company overview 116
Huabao International (Huabao) 116
Company overview 116
Recent financial performance 117
Etol 118
Company overview 119
Recent financial performance 119
Mastertaste 120
Company overview 121
China Flavors and Fragrances (CFF) 121
Company overview 121
Recent financial performance 121
Wanxiang International (Wanxiang) 123
Company overview 123
Recent financial performance 123
Chapter 14 Appendix 126
Glossary 126
Index 127

List of Figures
Figure 2.1: Global flavor and fragrance market size ($bn), 2008–13 26
Figure 2.2: Flavor and fragrance industry drivers and resistors 27
Figure 2.3: Top 10 flavor and fragrance companies market share, 2008 28
Figure 2.4: Performance of top 10 flavor and fragrance companies, 2004–08 29
Figure 3.5: Givaudan financial performance ($m), 2004–08 38
Figure 3.6: Givaudan SWOT analysis 42
Figure 4.7: Firmenich financial performance ($m), 2004–08 46
Figure 4.8: Firmenich SWOT analysis 48
Figure 5.9: IFF financial performance ($m), 2004–08 52
Figure 5.10: IFF SWOT analysis 54
Figure 6.11: Symrise financial performance ($m), 2004–08 58
Figure 6.12: Symrise SWOT analysis 63
Figure 7.13: Takasago financial performance ($m), 2004–08 68
Figure 7.14: Takasago SWOT analysis 71
Figure 8.15: Sensient financial performance ($m), 2004–08 76
Figure 8.16: Sensient SWOT analysis 78
Figure 9.17: Mane financial performance ($m), 2004–08 82
Figure 9.18: Mane SWOT analysis 84
Figure 10.19: Frutarom financial performance ($m), 2004–08 88
Figure 10.20: Frutarom’s SWOT analysis 92
Figure 11.21: Robertet financial performance ($m), 2004–08 96
Figure 11.22: Robertet SWOT analysis 99
Figure 12.23: T.Hasegawa financial performance ($m), 2004–08 104
Figure 12.24: T.Hasegawa SWOT analysis 107
Figure 13.25: Soda Aromatic financial performance ($m), 2004–08 111
Figure 13.26: Cargill financial performance ($m), 2004–08 115
Figure 13.27: Huabao financial performance ($m), 2005–08 118
Figure 13.28: Etol financial performance ($m), 2006–08 120
Figure 13.29: CFF financial performance ($m), 2004–08 122

List of Tables
Table 2.1: Global flavor and fragrance market size ($bn), 2008–13 26
Table 2.2: Performance of top 10 flavor and fragrance companies, 2004–08 29
Table 2.3: Select investment in emerging markets by flavor and fragrance companies, 2007–09 31
Table 2.4: Select acquisitions in flavor and fragrance industry, 2007–09 32
Table 3.5: Givaudan snapshot 36
Table 3.6: Givaudan financial performance ($m), 2004–08 38
Table 3.7: Givaudan business segment performance ($m), 2008 39
Table 3.8: Givaudan partnership and alliances, 2007–09 41
Table 4.9: Firmenich snapshot 44
Table 4.10: Firmenich financial performance ($m), 2004–08 45
Table 5.11: IFF snapshot 50
Table 5.12: IFF financial performance ($m), 2004–08 52
Table 5.13: IFF business segment performance ($m), 2008 53
Table 6.14: Symrise snapshot 56
Table 6.15: Symrise financial performance ($m), 2004–08 58
Table 6.16: Symrise business segment performance ($m), 2008 59
Table 6.17: Symrise partnerships and alliances, 2007–09 60
Table 6.18: Symrise investment in emerging markets, 2007–09 61
Table 6.19: Symrise acquisitions, 2007–09 62
Table 7.20: Takasago snapshot 66
Table 7.21: Takasago financial performance ($m), 2004–08 68
Table 7.22: Takasago business segment performance ($m), 2008 69
Table 8.23: Sensient snapshot 74
Table 8.24: Sensient financial performance ($m), 2004–08 75
Table 8.25: Sensient business segment performance ($m), 2008 76
Table 9.26: Mane snapshot 80
Table 9.27: Mane financial performance ($m), 2004–08 81
Table 9.28: Mane business segment performance ($m), 2008 82
Table 10.29: Frutarom snapshot 86
Table 10.30: Frutarom financial performance ($m), 2004–08 88
Table 10.31: Frutarom business segment performance ($m), 2008 89
Table 10.32: Frutarom acquisitions, 2007–09 91
Table 11.33: Robertet snapshot 94
Table 11.34: Robertet financial performance ($m), 2004–08 95
Table 11.35: Robertet business segment performance ($m), 2008 96
Table 12.36: T.Hasegawa snapshot 102
Table 12.37: T.Hasegawa financial performance ($m), 2004–08 104
Table 12.38: T.Hasegawa business segment performance ($m), 2008 105
Table 13.39: Soda Aromatic snapshot 110
Table 13.40: Soda Aromatic financial performance ($m), 2004–08 111
Table 13.41: Ogawa snapshot 112
Table 13.42: Agilex snapshot 112
Table 13.43: Cargill Flavor Systems snapshot 113
Table 13.44: Cargill financial performance ($m), 2004–08 114
Table 13.45: Bell Flavors and Fragrances snapshot 115
Table 13.46: Huabao snapshot 116
Table 13.47: Huabao financial performance ($m), 2005–08 117
Table 13.48: Etol snapshot 118
Table 13.49: Etol financial performance ($m), 2006–08 119
Table 13.50: Mastertaste snapshot 120
Table 13.51: CFF snapshot 121
Table 13.52: CFF financial performance ($m), 2004–08 122
Table 13.53: Wanxiang snapshot 123