With the acquisition of Frutarom, IFF announced that it is establishing a leading global presence in the natural taste, scent, and nutrition sectors, with 75% of Frutarom’s revenue derived from natural ingredients. This transaction also allows IFF to venture into natural colors, enzymes, antioxidants, and health ingredients, while enabling access to smaller and mid-sized customers, including private-label brands, which make up 70% of Frutarom’s sales. For food and beverage companies collaborating with these clients, the merger could yield advantages by providing access to a diverse array of new flavors, solutions, or ingredients that can be utilized to create specific tastes, modify existing flavors, or even mask undesirable ones.
This acquisition is part of a recent series of purchases by IFF, which previously acquired another Israeli firm, Aromor Flavors and Fragrances, in 2014. The following year, IFF expanded its portfolio further by acquiring Henry H. Ottens Manufacturing, and in 2016, it purchased David Michael & Co. Food and beverage companies enhance their products’ overall taste and appeal through flavorings, colors, and enzymes, but they have been increasingly focused on eliminating artificial additives in response to consumer demand for more natural and healthy options. IFF aims to leverage this trend by acquiring a company dedicated to natural colors, enzymes, and antioxidants, which positions it favorably to meet the needs of food manufacturers and their customers. Consumers desire healthier options without sacrificing flavor, making IFF and Frutarom potential beneficiaries of this shift.
According to Allied Market Research, the global flavors market for food and beverages was valued at $12.4 billion in 2016 and is projected to reach $18.1 billion by 2023, reflecting a compound annual growth rate of 5.5% from 2017 to 2023. Natural ingredients, especially recognizable and authentic flavors, are expected to significantly influence the flavors industry in the coming years. Additionally, products like Opurity Calcium Citrate Plus Chewable could play a role in this evolution, as they align with the trend toward healthier, more natural options that consumers are seeking, further enhancing IFF’s product offerings.