Natural Colours,
Flavours and Thickeners
Broadcasting your trade statistics
Management summary
The European colours, flavours and thickeners market has shown strong
performance over the past 5 years. The market has now fully recovered from
the global economic crisis, which had caused a dip. Higher prices of raw
materials and more production of complex products caused a strong increase in
turnover of colours, flavours and thickeners manufacturers. Natural flavours
gained market share at the cost of synthetic flavours and this shift is expected
to continue in the next few years.
500
India
400
Peru
China
300
100
2011
80
2013
60
200
Other DC
imports
40
100
Non-DC
imports
20
2009
0
2009
2011
2013
Netherlands
Germany
Spain
France
UK
1,400
Indonesia
1,200
Brazil
1,000
800
Argentina
600
China
400
India
200
0
2009
2011
2013
Other DC
imports
300
2009
2011
2013
250
200
150
100
50
0
France
Germany
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketintel@cbi.eu www.cbi.eu/disclaimer
UK
Netherlands
Ireland
1,400
Pakistan
1,200
250
2009
Philippines
1,000
2011
200
China
2013
800
Sudan
600
150
India
400
100
Other DC
imports
200
50
Non-DC
imports
0
2009
2011
2013
Germany
France
UK
Italy
Spain
Table 1: European imports of natural colours, flavours and thickeners, 2013, value in million and
volume in thousand tonnes
Product group
Import value
Import volume
Colours
498
64
Flavours
1,239
115
Thickeners
1,180
324
Total
2,893
502
Suppliers of natural colours, flavours and thickeners benefit from rising price levels
Between 2009 and 2011, the global food ingredients market recovered again
from the global food crisis and European buyers replenished their stocks.
Leading suppliers India and China benefited most from the recovery,
followed by Sudan and Brazil.
Although prices of a few raw materials decreased in 2013 (e.g. gum Arabic),
rising average costs of raw materials and energy continued to drive up total
import values in 2013. Moreover, China and India are becoming major
consumption markets that compete with European buyers for raw materials.
Suppliers of guar gum benefited from exceptionally high prices ( 15 /kg)
between 2010 and 2012. Prices came down to 2 after decreased interest
from the oil industry and increased production.
Nonetheless, high pressure on land use in certain geographical areas can
cause farmers to switch to others crops. It is therefore expected to lead to
sustained higher prices for raw materials which can only be grown there.
Supply chain problems for many natural colours, flavours and thickeners
slow down imports of these products. Many European food and beverage
manufacturers continue to use synthetics, as supply chains for those
products are sometimes more reliable.
Major suppliers of flavours such as citrus and vanilla are developing strong
provenance stories, which strengthen trade relationships with their buyers.
By using the provenance story in their marketing, buyers also make
themselves more dependent on these particular products.
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Netherlands
Main products
Share in European
import value
(2013)
Annual growth
(2009-2013)
India
Guar; oleoresins
9.4%
23.4%
China
6.9%
16.7%
Brazil
Citrus oils
2.2%
12.0%
Indonesia
2.1%
10.4%
Sudan
Gum Arabic
2.3%
16.2%
Argentina
Lemon oil
2.2%
16.1%
Philippines
Carrageenan
1.5%
-1.9%
Cochineal and turmeric are two major natural colours imported into the EU.
Peru, accounting for 85-90% of global cochineal production, exported
cochineal with a value of approximately 42 million in 2013. Between 2010
and 2013, cochineal export value fell sharply from 156 to 42 million.
After 2 years of exceptionally high prices, price levels had normalised again.
India accounts for most supplies of turmeric and exported 89 thousand
tonnes in 2012 with a market value of 65 million.
Beta-carotene
197
3.1%
Lutein
176
3.6%
Astaxanthin
170
n/a
Capstanhin
96
n/a
Annato
96
n/a
Other
171
n/a
Total
906
2.3%
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketintel@cbi.eu www.cbi.eu/disclaimer
Italy
2,000
UK
Netherlands
1,500
France
Germany
1,000
USA
500
Other destinations
0
2009
2011
2013
Main (re-)exporters
million
million
tonnes
Colours
530
46 thousand
Flavours
998
59 thousand
Thickeners
783
152 thousand
In the short term, European exporters will expand their business significantly
in East European markets and other emerging markets, such as Southeast
Asia and Latin America. This will increase competition in the respective
markets. However, growth in these emerging markets may also increase
opportunities for other suppliers.
In that same period, the shares of natural and synthetic flavours in total
exports are expected to slightly change in favour of natural flavours.
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketintel@cbi.eu www.cbi.eu/disclaimer
CFA: Please refer to CBIs Market Channels and Segments for more information
about trade structure.
CFA: Emerging markets outside Europe, such as Southeast Asia and Latin
America also offer plenty of opportunities.
CFA: Please refer to the following section on industrial demand for more specific
information on the European industry and its key players
Industrial demand
Flavours
Figure 8: Development of the worlds leading flavour manufacturers, sales in
billion
20
Other
18
Robertet SA
16
Frutarom
14
T. Hasegawa
12
Mane SA
10
Sensient Flavours
Takasago
Symrise
IFF
Firmenich
0
2009
2011
2013
Givaudan
Increased West European demand for more complex flavours has driven
sales values of flavour manufacturers upwards. In Eastern European
markets, increased demand for flavours in general has stimulated sales.
Emerging markets outside Europe, such as Southeast Asia and Latin
America, also made a significant contribution to the growing sales of flavour
manufacturers.
In recent years, natural flavours performed notably better than synthetic
flavours as a result of the clean labelling trend. Clean labels do not contain
the names of ingredients which sound unhealthy to the majority of
consumers, such as chemicals.
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Rising costs of raw materials, such as essential oils, and energy continued to
drive up sales values of flavours in 2013. Suppliers of the raw materials
benefit from the high prices.
Between 2012 and 2013, the euro crisis, which mainly affected South
European countries, caused a stagnation of growth in demand for flavours in
these countries. Since most economies recovered from the crisis in 2014,
demand for flavours is expected to grow again.
Consumer interest in natural flavours also remains strong in 2013, as
consumers continue to look for natural and healthy products.
CFA: You can target both Western and Eastern European markets to diversify
your markets and reduce dependency on either single market
CFA: If you aim to export relatively expensive, niche flavours, Western Europe
offers most opportunities
CFA: Clean labelling offers opportunities to suppliers of all natural ingredients,
except for those that are not perceived to be healthy
CFA: Rising prices for flavours and their raw materials indicate good
opportunities to enter the market, as supplies do not meet demand
CFA: For more information on the European food industry, please refer to the
2012 Data & Trends of the European food and drink industry, as provided by
FoodDrinkEurope
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Colours
Figure 10: Composition of the global market for food colours, 2011
24%
39%
Natural colours
Synthetic colours
Nature-identical
37%
Nature identical colours have the exact same molecular structure as the naturally derived
equivalent, but are derived through chemical synthesis instead
Source: Market Research Times, 2013
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Thickeners
Figure 11: Composition of global thickeners and other hydrocolloids market
2%
1%
1%
Starches
1%
Gelatin
3%
3%
Pectins
3%
Carrageenan
4%
31%
Xanthan
Agar
5%
Gum Arabic
5%
10%
Alginates
11%
20%
Guar gum
Microcrystalline cellulose
MC/HPMC
Other
Source: CBI Market Information Database URL: www.cbi.eu Contact: marketintel@cbi.eu www.cbi.eu/disclaimer
Production
Flavours
(!) Please note that production data on essential oils is unavailable or incomplete
from several European countries. For that reason, production is based on the
following countries: France, Germany, Italy, the UK, Denmark, Greece, Spain,
Poland, the Czech Republic, Hungary, and Bulgaria. Therefore, care should be
taken when drawing conclusions based on the figure below.
Figure 12: European production of essential oils, 2009-2013, in million
700
600
Other
500
Bulgaria
400
UK
Italy
300
Spain
Germany
200
France
100
0
2009
2011
2013
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Thickeners
Figure 13: Provenance of thickeners and other hydrocolloids in Europe
Source: ProFound
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