Consolidation in the Global Flavours and Fragrances Industry: How Acquisitions Are Driving Strategic Growth
- ial
- 2 days ago
- 3 min read
The global flavours and fragrances (F&F) industry is entering a new phase of consolidation, with leading manufacturers increasingly leveraging acquisitions to strengthen product portfolios, expand technological capabilities and secure access to high‑growth markets. While the sector remains fragmented, a small group of multinational companies including Givaudan, dsm‑firmenich, International Flavors & Fragrances (IFF), Symrise and MANE collectively generate more than half of global revenues, establishing significant barriers to entry for smaller competitors.
As consumer demand shifts towards natural ingredients, clean‑label products, biotechnology‑enabled solutions and sustainable formulations, mergers and acquisitions (M&A) have become a critical strategic tool for securing long‑term competitive advantage.
Why Consolidation is Accelerating
Consolidation within the flavours and fragrances industry is gathering pace, driven by evolving consumer preferences, innovation advantages and geographic expansion. Heightened demand for natural flavours, botanical extracts, clean label ingredients and sustainable fragrances has prompted acquisitions of firms specialising in natural raw materials, active beauty, health and nutrition, and precision fermentation. Such transactions not only secure proprietary technologies, specialised expertise and established customer networks, but also accelerate innovation and shorten product development cycles. At the same time, rising consumption of food, beverages, personal care and household products across Asia-Pacific, Latin America, and the Middle East & Africa is encouraging regional acquisitions that bolster local manufacturing, strengthen supply chain resilience and provide access to faster growing markets.
Strategic Acquisitions
Leading F&F companies are pursuing varied acquisition strategies to reinforce long-term competitiveness. While organic growth remained the principal driver in 2025, acquisitions expanded portfolios, enhanced specialised capabilities and supported entry into high growth markets. This activity has continued into 2026.
Givaudan – Organic demand remained the primary growth driver, while acquisitions contributed CHF 53 million (0.7%) to 2025 sales. The acquisition of Vollmens Fragrances in 2025 strengthened its presence in Latin America, while the recently announced acquisition of a majority stake in Eurofragance in 2026 is expected to further expand its global fine fragrance business, particularly in the Middle East.
dsm-firmenich – The DSM–Firmenich merger was primarily aimed at creating synergies, improving operational efficiency and expanding cross-selling opportunities rather than delivering immediate revenue growth. The company reported 3% organic sales growth in 2025 alongside continued EBITDA improvement.
IFF – The US$26.2 billion acquisition of DuPont's Nutrition & Biosciences business significantly expanded the company's biotechnology, enzyme, probiotic and food ingredient capabilities, transforming its portfolio beyond traditional flavours and fragrances.
Symrise – Acquisitions including ADF/IDF and Probi have strengthened the company's health, nutrition and pet food businesses, adding new customer segments and revenue streams, complementing organic growth.
Robertet – Reported revenue was €843.9 million in 2025, driven primarily by 7.6% organic growth. While the acquisition of Phasex expanded its extraction capabilities in North America, the company expects targeted acquisitions to complement organic expansion as part of its strategy.
T. Hasegawa – The company's US flavour business recorded US$106.4 million in net sales in FY2025, up 5.8% year-on-year. Following the acquisition of Abelei Flavors, management reported that post-merger integration was completed on schedule and that Abelei's standalone sales were progressing ahead of plan, supporting its North American growth strategy.
Döhler – has continued to expand through strategic acquisitions to strengthen its natural ingredients portfolio. Its acquisition of Treatt, announced in 2026, is expected to significantly strengthen its position in natural flavour solutions, although financial benefits have yet to be reflected.
MANE – The acquisition of Fromatech expands MANE's presence in savoury flavours and food ingredients, particularly in Europe. While privately held and not disclosing detailed financial impacts, the acquisition aligns with MANE's strategy of broadening its flavour portfolio and regional footprint.
McCormick – In 2026, McCormick formed an agreement to combine with Unilever's Foods business, creating a global flavour-focused company with approximately US$20 billion in combined revenue. The transaction is expected to generate significant cost and revenue synergies once completed, but its financial impact has not yet been reflected.
Future Outlook
As growth opportunities increasingly emerge in biotechnology, sustainability and premium consumer products, acquisitions are shifting from scale‑driven expansion to securing specialised capabilities and reinforcing competitive positions. According to IAL’s latest study, the global flavours and fragrances market is projected to reach US$49.7 billion by 2029, growing at a CAGR of 4.6%. This steady growth trajectory is expected to sustain consolidation activity and encourage continued strategic investment across the industry.
Source: IAL Consultants, Industry reports & Company Announcements.
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