in the FF & I sector drives M & A activity
Michael Loudon , partner and international head of Industrials & Chemicals at Clearwater International , reviews M & A activity in the flavours , fragrances and ingredients sector
M
& A activity in the flavours , fragrances and ingredients ( FF & I ) sector is supported by strong sector dynamics . With numerous consolidation opportunities within the market , major players continue to pursue bolt-on acquisitions . The main recent ones are listed below . Strong growth in the sector is the primary driver for this M & A activity , particularly as many players focus on increased innovation and product enhancements in response to changing consumer and end-user demands . This growth is supported by consumer demand in the cosmetics , food and beverage , household products , oral care and personal care markets . Areas of focus for new developments include amino acids , botanicals , enzymes , minerals , prebiotics and probiotics , plant proteins , vitamins , natural extracts and ingredients .
The ongoing coronavirus pandemic has accelerated the need for these new developments . Consumer health consciousness has been amplified and people are generally more cautious when it comes to what they buy , and what they consume . Many are now more aware of the importance of general health and wellbeing than they were pre-pandemic . The more traditional areas of acidulants , anti-caking agents , antioxidants , aroma chemicals , colourants , emulsifiers , esters , hydrocolloids , oleoresins , phenols , preservatives and sweeteners also remain important to market growth . The rising global population and increased urbanisation across the world are driving the appetite for more products and increased innovation . In addition , certain increased legislative and regulatory forces are driving changes in the sector as well ,
36 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981