Market News Service - International Trade Centre
Market News Service - International Trade Centre
Market News Service - International Trade Centre
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Global industry looks at India as a future hub for<br />
Fragrances and Flavours<br />
Fragrances and Flavours Association of<br />
India (FAFAI) is the national apex body of<br />
the players in the Fragrances & Flavours<br />
segment. The body was formed in 1949 by<br />
a few traders from the segment, with the<br />
key objective to promote the sector.<br />
Today, with 800 members, the body, apart<br />
from manufacturers and dealers from the<br />
Fragrances & Flavours industry, includes<br />
those that are from Aroma Chemicals,<br />
Natural Essential Oils as well as allied<br />
fields. The association regularly conducts<br />
biennial seminars across India, on various<br />
topics that are relevant to the Fragrances<br />
& Flavours and allied industries. The 20th<br />
FAFAI seminar was held in Bangalore<br />
between January 28 and 30, 2011. The<br />
theme of the event was India – The Future<br />
of F&F Industry.<br />
According to Frost & Sullivan India,<br />
globally, the Fragrances & Flavours<br />
segment is estimated to be $17.8 billion<br />
industry of which the top five players<br />
account for 40 per cent of the market. The<br />
five largest companies in the industry are<br />
Givaudan, <strong>International</strong> Flavours &<br />
Fragrances (IFF), Firmenich, Symrise and<br />
Quest <strong>International</strong>. Japanese firm,<br />
Takasago, the sixth largest player, has<br />
revenues close to that of Quest<br />
<strong>International</strong>.<br />
The Indian Fragrances and Flavours<br />
industry has been growing rapidly<br />
following liberalisation. The global<br />
economic slowdown did not have any<br />
impact on the industry; instead, it clocked<br />
a growth rate of 12 -15 per cent. With<br />
globalisation, there have been<br />
improvements in technology, competition<br />
and brand images. The global industry is<br />
looking at India as a future hub for<br />
fragrances and flavours, stated Rohit<br />
Seth, Joint Secretary, FAFAI, in an<br />
interaction over email. Excerpts:<br />
How would you describe the current<br />
food fragrances and flavours industry<br />
scene in India?<br />
The market for the food fragrances and<br />
flavours related products is showing strong<br />
growth. The Indian strength lies in the fact<br />
that the products are available at<br />
competitive prices.<br />
<strong>Market</strong> <strong>News</strong> <strong>Service</strong><br />
Essential Oil and Oleoresins<br />
What are India’s capabilities in this<br />
space? Which are the important<br />
flavours and fragrances that are<br />
distinct to India?<br />
India's capability in this space pertains to<br />
sandal, jasmine and herbal-related<br />
fragrances. For flavours, it is about spicebased<br />
products since India dominates in<br />
production of spices.<br />
What is the total size of this sector and<br />
its growth rate?<br />
The total size of the industry including<br />
menthol, sandalwood oil and other<br />
essential oils is around Rs. 9,000 crore<br />
and the estimated growth rate is<br />
approximately 12 per cent. The key<br />
applications of flavours in the food<br />
processing sector include confectionaries,<br />
dairy, bakery and snacks among others.<br />
Globally what is India’s stand in the<br />
food fragrances and flavours space?<br />
India is a market, which the world is<br />
eyeing, so we expect that India is going to<br />
place itself at a very commanding position<br />
in near future.<br />
Would the country become a hub for<br />
contract manufacture of food<br />
fragrances and flavours?<br />
India has a good potential to become a<br />
hub for manufacturing, especially, for raw<br />
materials used by the industry.<br />
What according to you are the visible<br />
trends in this industry?<br />
Strong growth is visible for the industry in<br />
coming years, going by India‘s inherent<br />
strength in the space of spices and<br />
development of fragrances.<br />
Conventionally, flavours and fragrances<br />
are mainly customised in raw materials,<br />
which lead to higher pricing of endproducts.<br />
The industry is also extremely fragmented<br />
and is expected to consolidate in the<br />
coming years.<br />
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