Fermented flavor and fragrance ingredients include flavoring, fragrance, and aromatic ingredients that are produced through the microbial fermentation process. These fermentation-derived flavoring and fragrance ingredients are used across various industries such as food & beverages, personal care & cosmetics, perfumes & fragrances, home care, and home cleaners. Manufacturers are significantly investing in research and development to manufacture fermentation-derived flavor and fragrance ingredients to meet the rising sustainability, supply, and price concerns related to naturally derived flavors and fragrances. The rising demand for natural and clean-label claims in convenience food products as well as personal care and cosmetic products, along with sustainable approaches to manufacture various flavoring and aroma ingredients, are the key factors responsible for the expansion of fermented flavor and fragrance ingredients market.
Geographically, the scope of the fermented flavor and fragrance ingredients market report is divided into North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America. The fermented flavor and fragrance ingredients market in Europe is significantly growing owing to increasing demand for clean-label consumer goods. This has surged the demand for natural ingredients among end-use industries, including food & beverages, cosmetics, and personal care. Moreover, corporate and consumer’s rising concerns about sustainability and the environmental impact of certain flavor & fragrance ingredients such as vanilla, sandalwood, and agarwood boost the demand for fermented flavors and fragrances. Thus, manufacturers in the region have significantly invested in producing sustainable ingredients. For instance, Koninklijke DSM N.V. and BASF have invested a lump sum amount of US$ 13.5 million toward the microbial production of flavor and fragrance molecules in collaboration with a company named Allylix. Such investments by manufacturers boost the demand for fermented flavors and fragrances in Europe and are anticipated to propel the fermented flavor and fragrance ingredients market growth.
Surging Demand for “Clean Label” and “Non-GMO” Products Propels Fermented Flavor and Fragrance Ingredients Market Growth
Consumers are highly concerned about their diet owing to which they pay extra attention to product labels and additives used in processed products such as food, beverages, cosmetics, and personal care products. Consumers are increasingly seeking clean-label (products free from synthetic additives and preservatives) and non-GMO (products made without genetic engineering and whose ingredients are not derived from GMOs) products. The end product manufactured using the fermentation process is labeled as clean, and consumers increasingly prefer these products as they are free of synthetic ingredients. Furthermore, they focus on holistic and conscious consumption and prefer products made with ethically sourced additives.
Fermentation is regarded as a natural process by the Food and Drugs Administration (FDA), and fermented flavors are considered “natural flavors.” For instance, Solvay is producing vanillin using naturally occurring yeast and claiming the products as “natural.” Thus, the increasing demand for natural flavors among various end-use industries boosts the demand for fermented flavors and fragrances. Additionally, fermented flavors and fragrances are manufactured using genetically engineered microbes. For example, Evolva claimed their fermented vanillin is non-GMO as it is made of genetically engineered yeast. Thus, an upsurging demand for clean-label and non-GMO products is expected to favor the fermented ingredients for the flavors and fragrances market.
Fermented Flavor and Fragrance Ingredients Market: Segmental Overview
Based on type, the fermented flavor and fragrance ingredients market is segmented into fruity, floral, woody, blends, and others. The floral segment is expected to register a significant CAGR during the forecast period. Floral fragrances are used in personal care products, beverages, perfumes, fabric detergents, and home care products. The fermented rose fragrance is usually made using Rhodotorula minuta (yeast). Takasago International Corporation, one of the leading companies in flavor and fragrance manufacturing, produces fermented floral fragrances. Biocyclamol, one of their products, is derived through the fermentation of sugar cane and delivers the fragrance of cyclamen flower. This product is suitable for application in various products such as fine fragrances, fabric softeners, antiperspirants, toiletries, detergents, and soaps. Thus, all these factors are expected to drive the fermented flavors and fragrances ingredients market for the segment.
Based on application, the fermented flavor and fragrance ingredients market is segmented into food and beverages, personal care, cosmetics, and others. The cosmetics segment is expected to register a significant CAGR during the forecast period. Fermented flavors and fragrances made using microbes are considered natural, due to which their use in cosmetic products is increasing across the beauty industry. Further, as natural flavors and fragrances processed through the traditional method are highly-priced, the demand for fermented flavors is rising among cosmetic manufacturers to maintain the final product cost. Firmenich, a key market player in fermented ingredients for the flavor and fragrance market, offers Dreamwood— a fermented fragrance that offers woody fragrances that are widely used in cosmetic applications.
Fermented Flavor and Fragrance Ingredients Market: Competitive Landscape
Givaudan SA, Firmenich International SA, Takasago International Corp, BASF SE, Evolva Holding SA, Amyris Inc, Insempra GmbH, Conagen Inc, Jeneil Biotech Inc, and Dohler GmbH are among the major players operating in the fermented flavor and fragrance ingredients market. Companies in this market emphasize strategies such as R&D investments and new product launches. For instance, in April 2023, Insempra, a biology-powered company, launched its first functional ingredient, a biotechnologically produced, 100% natural “alpha-Ionone” flavor and fragrance ingredient for food and cosmetic applications. The flavor is produced via fermentation. The company also partnered with a leading natural aroma ingredients manufacturer and distributor, “Axxence Aromatic GmbH” to market its products to food and cosmetic manufacturers worldwide. Such strategic initiatives by key market players facilitate the expansion of fermented flavor and fragrance ingredients market.