278.3 Billion Yuan! The Four Major Flavors and Fragrance Giants Are Doing Quite Well!

In 2024, the four major international flavors and fragrance giants are all "doing well." Symrise, DSM-Firmenich, IFF, and Givaudan all reported growth in sales and profits, with EBITDA (earnings before interest, taxes, depreciation, and amortization) generally increasing by more than 15% year-on-year.

What business segments have contributed most to this growth? In a time of global economic slowdown, what has supported these giants in maintaining steady growth?

Collective Growth: The Four Giants Sold 278.3 Billion Yuan

In terms of sales revenue, the merged DSM-Firmenich led with €12.799 billion, followed by IFF with $11.48 billion. Givaudan (CHF 7.412 billion) and Symrise (EUR 4.999 billion) ranked third and fourth, respectively.

It is worth noting that in the past year, all companies achieved double growth in both sales and profits:

• DSM-Firmenich achieved a 4% year-on-year sales growth, significantly improving core business competitiveness through business restructuring, cost control, and operational optimization, resulting in a 19% jump in EBITDA margin.

• Givaudan's sales grew by 7.2%, and its EBITDA increased by 19.8%, reaching new highs. From 2020’s revenue of CHF 6.322 billion to the current CHF 7.412 billion, Givaudan’s performance grew by nearly CHF 1.1 billion in just five years.
• Symrise broke the "increased revenue without increased profit" situation from 2023 and greatly improved its profitability, achieving a 5.7% revenue increase and a 21.3% EBITDA growth rate.

• Although IFF’s revenue was nearly flat (0.04%), it achieved a 16% EBITDA growth through cost optimization, highlighting its resilience in a tough environment.

Notably, all four companies' EBITDA margins exceeded 15% last year, with Symrise leading with a 21.3% growth rate. This reflects the industry's strong focus on high-margin businesses, shifting the flavor and fragrance industry from a "scale competition" to a "value exploration" model.

Fragrance and Beauty Business as Core Growth Engine

If you ask which business has supported the growth of the four giants, the answer is unanimous: the fragrance, scent, and beauty segments. In 2024, the "olfactory economy" has shown strong development, undoubtedly fueling the growth of the four major companies' performance.

DSM-Firmenich: Fragrance and Beauty Lead the Way

In terms of business segments, DSM-Firmenich's fragrance and beauty sector (P&B) performed exceptionally well in 2024, with a 7% year-on-year sales growth, reaching €3.964 billion , and adjusted EBITDA of €882 million, growing by 13%.

This growth was primarily driven by strong market demand and the company’s innovative products in the laundry care sector, such as the PopScent? Fresh Series, HALOSCENT? fragrance ingredients, and Eterwell? series products.

Symrise: High-End Perfume Business Remains Strong

Symrise’s perfume and care business segment generated €1.908 billion, with an 8.7% year-on-year growth. Adjusted EBITDA was €347 million, a 25.4% increase. It’s notable that the high-end perfume business continues to show strong growth after last year's impressive performance.

In the consumer fragrance application field, there was double-digit growth. The oral care application field achieved low single-digit organic growth, with North America performing well.

Givaudan: Fragrance and Beauty Show Significant Annual Growth

In recent years, Givaudan’s fragrance and beauty segment has continued to grow, with this year showing particularly significant growth.

In 2024, Givaudan’s fragrance and beauty business grew 14.1% on an LFL basis, with sales reaching CHF 3.66 billion, a 10.5% year-on-year increase. Adjusted EBITDA was CHF 985 million, growing by 28% year-on-year.

The perfume business segment grew 17.8%, and the consumer goods sector saw a 15.9% increase. Sales in fragrance ingredients and active beauty products grew by 10.8% year-on-year.

IFF: Fragrance Business Leads with Double-Digit Growth

Among IFF’s four business segments (nutrition, health and biosciences, fragrance, and pharmaceuticals), fragrance led the way with double-digit growth.

In 2024, the fragrance business achieved revenue of $2.44 billion, up 12%, with both consumer fragrances and fragrance ingredients growing in double digits. High-end fragrance also saw a high single-digit growth. Adjusted EBITDA was $518 million, a 25% increase, mainly due to sales growth and improved production efficiency.

In recent years, perfumes and fragrances seem to have replaced lipsticks, becoming a new “track” during market downturns. This has driven performance growth from upstream raw material suppliers to downstream brand companies. From the reports of the four giants, it is clear that perfume businesses have performed exceptionally well, achieving double-digit or high single-digit growth, acting as a "booster" for overall company performance growth.

From Scale to Quality: New Growth Paths for the Four Giants

In their financial reports, the giants have also outlined their profit goals and development strategies for 2025. Faced with an uncertain future, their strategic choices show subtle differences.

• Symrise continues to focus on its diversified investment portfolio and cost improvement, confirming its growth and profit targets for 2025. It expects long-term growth of 5-7% (CAGR) and anticipates EBITDA margins around 21%, with mid-term goals between 21% and 23%.
• Givaudan plans to continue its expansion strategy, aiming for 4-5% organic sales growth and at least 12% free cash flow during the 2021-2025 strategy period, focusing on portfolio expansion, customer base growth, and key market strategies.

• Unlike Symrise and Givaudan's expansion and diversification approach, DSM-Firmenich will continue to execute its "streamlining and muscle building" plan, focusing on innovation and business optimization to achieve a target of €2.4 billion in adjusted EBITDA for 2025.
• As the only major player without significant growth, IFF has lowered its growth expectations for 2025. The company expects about 4% negative impact from foreign exchange rates on 2025 sales growth and about 6% on adjusted EBITDA. Asset divestitures are also expected to negatively impact sales and EBITDA growth.

From the 2025 growth plans of the major players, it is evident that although the industry paths differ, all companies are focusing more on profits, cash flows, and other key health indicators. This indicates that the flavors and fragrance industry is gradually transitioning to a new stage focused on high-quality and sustainable development, emphasizing the long-term competitiveness of companies.