This pages analyzes the market share and market size of the flavor and fragrance manufacturers in Japan. The report also includes the trends of major Japanese F&F companies such as Takasago International Corporation, T.HASEGAWA CO.,LTD., Fuji Flavors, Naigai Flavors & Fragrances, Takada Flavors & Fragrances, Lacton Chemical Industry, Inabata Kyoryo, Nagaoka Flavors & Fragrances, SHIONO KORYO, Ogawa & Co.,Ltd., and Soda Aromatic Co.,Ltd. With Mitsui & Co. and Toray Industries, Inc. acquiring Soda Aromatic Co.,Ltd., it seems that the industry reshuffles will continue.
Market share of the Japanese flavor and fragrance industry in 2020
Using the sales of the flavor & fragrance manufacturers listed in the “Latest Global Ranking of Sales by Industry” as the numerator and the market size of the industry described below as the denominator, a simple calculation of Japanese flavor and fragrance market share in 2020 yields the following rankings where Takasago comes in first, followed by Hasegawa and Ogawa.
No.1 Takasago 56.5%
No.2 Hasegawa 18.6%
No.3 Ogawa 14.2%
No.4 Soda 6.4%
No.5 Nagaoka 3.7%
No.6 Shiono 3.4%
No.7 Fuji 3.4%
No.8 Takada 2.6%
No.9 Inabata 2.1%
No.10 Naigai 0.5%
It is said that there are about 200 flavor and fragrance companies in Japan in total, many of which are privately held. This website uses data published by various research companies to calculate the market share of the flavor and fragrance industry, assuming a global market size of 270 billion yen in 2020. The data used for reference is as follows. According to Japan Flavor＆Fragrance Materials Association, the total domestic production value of flavors and fragrances will be 178.4 billion yen in 2019, and the market size, including imports, will be approximately 270 billion yen.
What is flavoring?
Flavors and fragrances are mainly divided into food flavors and cosmetic flavors. The former are used in processed foods such as beverages, frozen desserts, confectionery, and instant noodles, while the latter are used in cosmetics and toiletries. It is said that the global market for flavors and fragrances is almost the same size. In Japan, flavors account for about 70% of the market. Each company has skilled flavorists (flavors) and perfumers (fragrances) who take a long time to cultivate, and there is a high barrier to entry in this industry due to capital investment in flavor production. There are two types of raw materials for fragrances: naturally-derived ingredients such as lavender and cinnamon, and chemically-synthesized ingredients, and Japanese fragrance companies rely almost entirely on imports for raw materials for fragrances.
The value chain in the flavor and fragrance industry is composed of fragrance raw material suppliers (natural and chemically derived raw material suppliers), fragrance companies (fragrance and flavor blending companies), consumer goods manufacturers (daily necessities manufacturers, food and beverage manufacturers), and retailers (supermarkets, online stores, etc.).
Books to learn more about the industry
Chemistry and Technology of Flavours and Fragrances
How Government and Industry Are Reforming Japanese Capitalism
Snapshot on Japanese flavor and fragrance companies
Takasago International Corporatio
Takasago International Corporation, founded in 1920 and based in Tokyo, is one of Japan’s largest flavor and fragrance companies. The company is listed on the Tokyo Stock Exchange. Flavors and fragrances are the main pillar of the business.
T.HASEGAWA CO.,LTD. is a Tokyo-based flavors and fragrances manufacturer established in 1961. The company’s strength lies in flavors for dairy products and beverages. In 2014, the company acquired Peresscol, a Malaysian flavors and fragrances processing company, with the aim of expanding its business in the Islamic world, which requires halal compliance.
Fuji Flavor is a flavors and fragrances company established in 1971. It is a subsidiary of JT and is specializing in flavors for tobacco and pest attractants.
Naigai Flavors & Fragrances
Naigai Flavors & Fragrances was established in 1955 and is headquartered in Tokyo, Japan. The company specializes in high-mix low-volume production in the fields of vanilla concentrates, vanilla sugar, compounds, aromas, and seasonings used in potato chips.
Takada Flavors & Fragrances
Takada Flavors & Fragrances was established in 1951 and is headquartered in Hyogo Prefecture. The company develops fruit flavors, vanilla flavors, citrus flavors, etc. The company is privately held, with approximately 40% of its shares held by an executive stock ownership plan.
Soda Aromatic Co.,Ltd.
Soda Aromatic Co.,Ltd. is a Tokyo-based flavor and fragrance company established in 1915. The company acquired the food flavoring business from Fuji Flava in 2017. Toray Industries, Inc. and Mitsui & Co. own 66% and 34% of the company, respectively.
Inabata Kyoryo is an Osaka-based flavor and fragrance company founded in 1926. Inabata Kyoryo develops and manufactures flavors and fragrances for confectionery, beverages, frozen confectionery, dessert products, bakery products, instant foods, retort foods, prepared foods, tobacco, oral care products, skin care and makeup products, toiletries, and house hold products.
Nagaoka Flavors & Fragrances
Nagaoka Flavors & Fragrances is an Osaka-based flavor and fragrance company established in 1895. The company manufactures and sells food flavors, cosmetic flavors, food ingredients such as seasoning powders and pastes, and vanilla liqueurs.
SHIONO KORYO is a long-established fragrance manufacturer with a history of over 200 years.
Ogawa & Co., Ltd.
Ogawa & Co., Ltd. is a flavor and fragrance company established in 1893. It is characterized by the fact that it carries out all processes from the cultivation of flavor and fragrance crops on its own farms to the manufacture.