At 8.9% CAGR, South & Central America Fermented Flavor and Fragrance Ingredients Market is Projected to be Worth US$ 220.31 Million by 2030, says Business Market Insights

According to Business Market Insights' research, the South & Central America fermented flavor and fragrance ingredients market was valued at US$ 111.72 million in 2022 and is expected to reach US$ 220.31 million by 2030, registering a CAGR of 8.9% from 2022 to 2030. Surging demand for "clean label" and "non-GMO" products and rising sustainability concerns are among the critical factors attributed to drive the South & Central America 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. This shifting trend has made it challenging for manufacturers to satisfy the demand from their procurement point of view. 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 flavor." 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 remain a growing trend in the fermented flavor and fragrance ingredients market in the coming years.

On the contrary, high product costs hurdle the growth of South & Central America fermented flavor and fragrance ingredients market.

Based on type, the South & Central America fermented flavor and fragrance ingredients market is divided into fruity, floral, woody, blends, and others. The fruity segment held 39.4% South & Central America fermented flavor and fragrance ingredients market share in 2022, amassing US$ 43.99 million. It is projected to garner US$ 85.06 million by 2030 to register 8.6% CAGR during 2022-2030.

In terms of application, the South & Central America fermented flavor and fragrance ingredients market is categorized into food and beverages, personal care products, cosmetics, and others. The others segment held 43.9% share of South & Central America fermented flavor and fragrance ingredients market in 2022, amassing US$ 49.04 million. It is projected to garner US$ 93.07 million by 2030 to expand at 8.3% CAGR from 2022 to 2030.

Based on country, the South & Central America fermented flavor and fragrance ingredients market is categorized into Brazil, Argentina, and the Rest of South & Central America. Our regional analysis states that the Rest of South & Central America captured 52.8% share of South & Central America fermented flavor and fragrance ingredients market in 2022. It was assessed at US$ 58.95 million in 2022 and is likely to hit US$ 113.86 million by 2030, registering a CAGR of 8.6% during 2022-2030.

Key players operating in the South & Central America fermented flavor and fragrance ingredients market are Amyris Inc, BASF SE, Dohler GmbH, Firmenich International SA, Givaudan SA, and Takasago International Corp, among others.

• In December 2023, Takasago International Corp launched Clean Beauty Collective's new Clean Reserve H2EAU in collaboration with Sephora. This product aims to serve people with sensitive skin, and the product is ethyl alcohol-free.
  
  
• In February 2023, Givaudan SA partnered with biotech company Amyris to acquire primary cosmetic ingredients, including high-performance emollient Neossance Squalane, plant-based silicone alternative Neossance Hemisqualane, and sustainable sun protector CleanScreen. The long-term partnership agreement will allow Amyris to continue manufacturing cosmetic ingredients for Givaudan and provide access to its innovation capabilities. Givaudan will become the commercialization partner for future sustainable beauty ingredients. Amyris' ingredients are used in over 20,000 products from top brands, reaching over 300 million consumers. The deal includes an upfront cash consideration and performance-based earnout.

Contact Us
Phone: +16467917070
Email Id: sales@businessmarketinsights.com