Market and Competition
The F&F industry helps make
people’s lives more pleasant, comfortable, and interesting. Food,
drink, and personal hygiene are basic human needs; additionally our
industry heavily profits from trends like beauty, health, wellness, and
convenience. Our corresponding market is some € 13–14 billion large and
is growing 2.5%–3% annually, in 2007 at the upper end of the range.
Some areas such as the emerging markets (parts of Asia, South America,
eastern Europe, Africa, and the Middle East) and some market segments
(health, wellness, beauty, convenience) are growing faster, while
others are showing not such good performance.
In 2007, there were more than 500 F&F companies worldwide. The top four participants in the market have a combined market share of just below 60%. Typically, these participants grow faster than the rest of the F&F industry. With an estimated market share of 10% at present, Symrise is one of the top four in terms of revenue.
Greater size is a less critical success factor once a company has reached a critical mass that we see at sales of approximately € 1 billion. This critical minimum size is important in order to support a global network that F&F companies need to follow their multinational customers and to do business with them in every region. The business itself is then typically generated in a country or a region due to different taste preferences.
In general, there are not any high-end technologies that provide a long-lasting competitive edge. Costs is important, but even more important is the level of creation and innovation we offer to our customers proactively in the tender process. Success in our industry is largely based on creative minds recognizing trends, choosing or developing the right technology, and translating all of that into a commercial product concept that is attractive to customers and consumers. Backed by a strong issue of commercial drive, we rely on our innovative spirit. 25%–30% of our products are replaced each year. A speedy development of new products and applications is of increasing importance in our business. Supported by our development centers in Singapore, Shanghai, China, Teterboro, US, and Holzminden, Germany, we focus on our customers’ needs.