INDONESIA – International Flavors & Fragrances (IFF) is bolstering its position in Asia’s food ingredients market with a new US$87 million in its flavors manufacturing plant in Karawang, Indonesia.

The facility, located in Karawang International Industrial City, first started operations in 2015 to address the fast-growing demand for flavor technology in the region.  

Today, as IFF’s largest manufacturing facility in Greater Asia, Karawang houses full manufacturing capabilities, from liquid compounds to powder, emulsions, and spray dry technology, warehousing, and quality control. 

A growing population and rapid urbanization have been fueling demand for flavors, according to a recent report by Expert Market Research. 

The market research firm now projects the Asia Pacific Food Flavors Market which was valued at US$5.32 million in 2021 to reach USD 7.7 Million by 2026, growing at a CAGR of 7.67% during the forecast period from 2021 to 2026. 

IFF’s investment in its Indonesian facility positions the US-based flavor and fragrance giant at a vantage position to take advantage of increased demand.  

“This market is dynamic and in need for differentiated products,” said Nicolas Mirzayantz, president of IFF’s Nourish division 

 “Consumers in Asia are expected to account for half of global consumption growth in the next decade, making the growth potential more of a reality than ever before.”  

According to the company, the newly extended facility is equipped with infrastructure and technology that ensures efficiency, safety, quality, and traceability.  

Meanwhile, IFF has taken measures to reduce the facility’s overall impact on the environment. 

Sustainability initiatives at the facility include zero waste to landfill, reductions in greenhouse gas emissions, energy, water, and hazardous waste. 

IFF chairman and CEO, Andreas Fibig, said: “The vision for IFF is to be the partner for essential solutions. That means we are committed to leading throughout our global value chain and accelerating our pursuit of new, creative and integrated solutions.” 

“This investment reflects our confidence and ambition in the region. For the past ten years, IFF has made significant investments in Asia as we’ve expanded our footprint in China, Singapore, India and most recently, Indonesia.” 

Earlier this month, IFF reported its Q3 results where net sales rose 142% to US$3.07 billion driven primarily by the incremental sales related to the merger with Nutrition & Biosciences (N&B). 

Incremental profit related to the merger with N&B also positively impacted the company’s adjusted operating EBITDA for the third quarter to US$648 million, an increase of 135% from US$276 million in 2020.  

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