7.6
Bioeconomy, Regulatory Aspects and Legal Status
of Flavours
Today, approximately 5000 different aroma chemicals are available in the market
including synthetic and natural product (Personal Care Magazine 2009). Flavour and
fragrances account for 25% of the total food additives market (Dubal et al. 2008).
The flavour and fragrance industry is segmented broadly into three areas: (1) Production of synthetic and isolation of natural aroma chemicals or essential oils/natural
products, (2) Blending and compounding of these products into formulations so as to
meet specific customer requirements, (3) Sale and use of these formulations in the
production of various end-products.
The end-products of these formulations are foods, beverages, detergents and
pharmaceutical products which are now produced and utilized in each and every
country. The consumption in the global market has increased as these chemicals are
not just used individually, but the flavour and fragrances are usually combined and
blended, which imparts either an attractive taste or aroma or both to the processed
foods and beverages. Not only the edible products but consumer products such as
perfumes, toiletries, household cleaners, etc. also have acquired a pleasing scent
owing to these wonder chemicals.
The end-use markets of these products are first-world markets. About 50% of
these aroma chemicals are used in beverages and the rest are used for the
formulations of soaps/detergents and cosmetics/toiletries. The largest market is the
USA which accounts for 31% of the total market, followed by Western Europe
(29%) and Japan (12%). The remaining market of flavours and fragrances lies in
developing countries which have high growth rates as well as high market potential.
In 2002, the worldwide flavour and fragrance business, which included the sales of
compounded flavour and fragrance products, aroma chemicals as well as essential
oils and natural extracts, was estimated to be $15.1 billion (Triumph Venture Capital
(Pty) Limited et al. 2004). Due to the enormous growth, the value reached US$28.2
billion in 2017, showed an increase of 4.6% as compared to the previous year. It is
expected that the global market value of flavours and fragrance will reach US$28.37
billion in 2023. As the Flavour and Fragrance industry is continually expanding,
hence, in the future, it demands a definite and robust investment and research.
The enormous consumption of flavours and fragrances is anticipated to be driven
by various factors such as increase in gross national income, rapid urbanization, rise
in global population, enhancement of living standards, increase in demand for
packaged food and increase in middle class population. As the demand for packaged
food has also increased, it has led to the preferential incorporation of essential oil and
natural extracts as compared to the synthetic chemicals. The population who consume low calorie or salt and sugar-free diets is another reason for increase in use of
flavour additives as a taste appeal is required in dietetic and low-calorie foods
(Berenstein 2015). Despite the tremendous rise the market is also challenging,
being governed by various determinants like rising prices of raw materials, change
in demand by consumers; there are also numbers of barriers for new compounds. The
trends and developments in the market of these products are new launches, rise in
7 Biotechnological Interventions for Production of Flavour and Fragrance. . .
155
Bioeconomy, Regulatory Aspects and Legal Status
of Flavours
Today, approximately 5000 different aroma chemicals are available in the market
including synthetic and natural product (Personal Care Magazine 2009). Flavour and
fragrances account for 25% of the total food additives market (Dubal et al. 2008).
The flavour and fragrance industry is segmented broadly into three areas: (1) Production of synthetic and isolation of natural aroma chemicals or essential oils/natural
products, (2) Blending and compounding of these products into formulations so as to
meet specific customer requirements, (3) Sale and use of these formulations in the
production of various end-products.
The end-products of these formulations are foods, beverages, detergents and
pharmaceutical products which are now produced and utilized in each and every
country. The consumption in the global market has increased as these chemicals are
not just used individually, but the flavour and fragrances are usually combined and
blended, which imparts either an attractive taste or aroma or both to the processed
foods and beverages. Not only the edible products but consumer products such as
perfumes, toiletries, household cleaners, etc. also have acquired a pleasing scent
owing to these wonder chemicals.
The end-use markets of these products are first-world markets. About 50% of
these aroma chemicals are used in beverages and the rest are used for the
formulations of soaps/detergents and cosmetics/toiletries. The largest market is the
USA which accounts for 31% of the total market, followed by Western Europe
(29%) and Japan (12%). The remaining market of flavours and fragrances lies in
developing countries which have high growth rates as well as high market potential.
In 2002, the worldwide flavour and fragrance business, which included the sales of
compounded flavour and fragrance products, aroma chemicals as well as essential
oils and natural extracts, was estimated to be $15.1 billion (Triumph Venture Capital
(Pty) Limited et al. 2004). Due to the enormous growth, the value reached US$28.2
billion in 2017, showed an increase of 4.6% as compared to the previous year. It is
expected that the global market value of flavours and fragrance will reach US$28.37
billion in 2023. As the Flavour and Fragrance industry is continually expanding,
hence, in the future, it demands a definite and robust investment and research.
The enormous consumption of flavours and fragrances is anticipated to be driven
by various factors such as increase in gross national income, rapid urbanization, rise
in global population, enhancement of living standards, increase in demand for
packaged food and increase in middle class population. As the demand for packaged
food has also increased, it has led to the preferential incorporation of essential oil and
natural extracts as compared to the synthetic chemicals. The population who consume low calorie or salt and sugar-free diets is another reason for increase in use of
flavour additives as a taste appeal is required in dietetic and low-calorie foods
(Berenstein 2015). Despite the tremendous rise the market is also challenging,
being governed by various determinants like rising prices of raw materials, change
in demand by consumers; there are also numbers of barriers for new compounds. The
trends and developments in the market of these products are new launches, rise in
7 Biotechnological Interventions for Production of Flavour and Fragrance. . .
155