dreaming fragrances & flavours

Market trends

The world is under pressure from ongoing political, policy and economic uncertainties. World economic growth is predicted to be 3-4%, with China and India offering the highest growth in the range of 6-7%. Predictions for other high growth markets in Asia and Latin America are in the range of low single-digit growth. Mature markets are also expected to deliver low single-digit growth, with a slightly higher growth rate at present in the USA.

Global megatrends will continue to influence our society and consequently the flavour and fragrance industry. Against this backdrop, the increase of the global population, rising life expectancy and ongoing urbanisation will continue to drive demand for personal hygiene and fragranced products, as well as convenience food and beverages.

Givaudan is in a strong position to create consumer preferred flavours and fragrances that grow our customers’ brands and bring about shared success as we move forward on the road to our 2020 ambition.

Megatrends

Local taste preferences and consumer behaviours influence our industry, but certain trends affect the demand for products and services in which flavours and fragrances are used. We have identified three key megatrends:

Market trend: Growing customer base

Growing customer base

The world’s population is to rise by 2020 to an estimated 7.7 billion, with 55% living in cities. In a complex and volatile world, we see growth for our industry in Africa and Asia, increased relevance for local and regional companies in emerging markets, and more demand for convenience products.

Growth in flavours will come mostly from high growth markets, where local and regional brands are gaining relevance with consumers. In the fragrance industry, an evolution in retailing is being seen with the development of speciality retailers and the growth of e-commerce. Local brands are also quickly gaining more relevance with consumers, and innovation is moving at a faster pace.