With the shift in global purchasing power to Asia and Africa, much of our business growth is expected in new markets such as China and India.
We will focus resources on further building our presence in markets where we see high growth opportunities and can accompany our customers in growing their business – we want to be by our customers’ side, always. Central to our high growth markets strategy is our ability to understand local market trends and adapt our business model accordingly.
Multi-tiered investment approach in Flavours
Our Flavour Division has identified 11 key high growth markets in which the aim is to grow at an accelerated pace in the coming five years. Firstly, the division will invest heavily in China where the opportunity is most significant because of the size of the population and the shift to a consumer-based economy. Secondly, we will extend our market penetration in the first tier of five countries which represents large, fast-growing markets. Here, we will increase our technical, commercial and manufacturing capabilities. The second tier of five countries represents the ‘up-and-comers’ where we plan to gradually increase our presence over the next five years.
Eleven focus markets for our Flavours growth strategy
Increasing presence in key regions for Fragrances
Increasing our presence in Asia to capture the growing consumer demand will be a key priority for both Consumer Products and Fine Fragrances. The Fragrance Division will further deploy a commercial presence in Africa by investing in sales representation as we lay the groundwork for further growth in these markets.
Delighting consumers with innovative taste and scent creations is central to our business.
Consumer preferences are not only rapidly evolving, but are also very specific to each region. Changing consumer trends offer many opportunities for our industry. We will capture growth by leveraging our in-depth knowledge of local markets and our consumer insights, and by harnessing our innovation and unique creative capabilities. With increasing consumer demand for responsible products, we will work with our customers and other key stakeholders to develop ever more sustainable solutions.
High growth segments for Flavours
Building on our strong capabilities in consumer understanding, creativity and innovation, we will offer differentiated flavours and flavour solutions for the high growth segments of beverages, dairy drinks, yoghurts and processed meats.
Driving creativity in Fragrances
Tapping into the creativity of our teams, we will drive initiatives that enable our perfumers to define avant-garde fine fragrances to satisfy diverse consumer desires. We also plan to increase our presence with selected local brands in fine fragrances and consumer products and develop our capabilities to meet the unique needs in this area.
With the world’s population growing older and obesity rates rising, solutions that meet consumer demand for health and well-being products will be a priority.
We will work with customers to keep their brands relevant and desirable, providing them with solutions that deliver the scents and flavours that consumers desire while contributing to their sense of a healthy, active and balanced life.
Evolving our flavours offer
We see many opportunities as the role of food evolves to have more of a focus on well-being. Consumers want less sugar, salt and fat in their foods while at the same time seek more from ‘functional foods’ that have ingredients such as protein that provide additional health benefits. To respond to consumer demand for more natural products, we will work with our customers to develop the next generation of natural ingredients that are both cost-effective and able to deliver signature flavours.
Leading in active cosmetic ingredients
Our activities in the Fragrance Division have been evolving steadily in recent years and we have made several key acquisitions to enhance our capabilities in active cosmetic ingredients. Offering solutions in anti-ageing, self-tanning, skin-soothing and moisturising and the like, we will leverage our global footprint to bring the products in our expanded portfolio to new customers. Using the synergies between active cosmetic ingredients and our existing fragrance capabilities, we will continue to strengthen our customer offer. Givaudan aims to become a key player in the fast-growing business of active cosmetic ingredients and plans to grow rapidly in this area through additional strategic acquisitions.
Over the next five years, we will look at opportunities to grow our business through ways that go beyond our core flavour and fragrance capabilities.
Integrated solutions are a route to such opportunities. Integrated solutions will enhance the Company’s value proposition to customers and create new avenues for growth.
With the aim of simplifying product development for our customers, we will explore solutions that enhance our offerings to them while contributing additional growth to our business.
We currently see that the most significant opportunities for integrated solutions are in our Flavour Division. The concept of integrated solutions is aimed at moving beyond flavours by combining with other ingredients into a larger range of ingredients of the finished product. Here, we will seek to differentiate our offerings by moving into the development of multi-ingredient solutions, where flavour plays a key role in formulations.
We will seek to create incremental value through acquisitions in the areas of integrated solutions for food and beverages. For example, we will lead in the development of integrated protein solutions to support our customers in animal protein replacement as well as in the development of great tasting, high protein products.