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International Flavors & Fragrances Inc. (IFF): A Bull Case Theory

Tue Jun 24, 2025
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Ricardo Pillai

3 min read

In This Article:

We came across a bullish thesis on International Flavors & Fragrances Inc. (IFF) on DualEdge Invest and Ozeco’s Substack. In this article, we will summarize the bulls’ thesis on IFF. International Flavors & Fragrances Inc. (IFF)'s share was trading at $76.09 as of 13th June. IFF’s forward P/E was 18.25 according to Yahoo Finance.

Matthew Ennis/Shutterstock.com

International Flavors & Fragrances (IFF), based in New York, stands as a diversified leader across the taste, scent, nutrition, and health sectors. Its 2021 acquisition of DuPont’s Nutrition & Biosciences division was transformative, expanding its portfolio into enzymes, cultures, and texture solutions, and reinforcing its stature as a key partner to both legacy FMCG giants and disruptive food-tech upstarts.

While IFF may not post the fastest growth numbers in the sector, its broad portfolio breadth and category reach give it a strategic positioning that few can rival. More than just a supplier, IFF is part of an elite group of ingredient companies functioning as stealth R&D powerhouses. These firms allocate between 4% and 11% of their revenue to research and development—significantly above the consumer brands they serve—demonstrating their commitment to driving innovation from within.

IFF sits alongside names like Novonesis, Givaudan, DSM-Firmenich, and Symrise, all of whom contribute to shaping the future of food, personal care, and health products. Around 20% of revenue across the industry is derived from innovation, including new formulations, textures, and functional health claims.

When a global brand like Unilever seeks to launch a sulfate-free shampoo that smells of wild peach and delivers a luxurious lather, companies like IFF are behind the curtain making it happen. Their innovation strategy revolves around solving the health-versus-indulgence paradox: delivering lower sugar, less fat, more protein, and cleaner labels without sacrificing sensory appeal.

As secular trends like health, wellness, and sustainability accelerate, IFF benefits from serving all brands equally—without having to bet on which ones will win.

Previously, we explored a bullish thesis on Sprouts Farmers Market by Stock Picker’s Corner in February 2025, highlighting its superior margins, localized distribution model, and potential takeover appeal. The thesis on International Flavors & Fragrances complements this by spotlighting another behind-the-scenes player benefiting from health and wellness trends, though from the ingredient innovation side. While Sprouts monetizes consumer demand directly, IFF enables it across brands, showing how both companies capitalize on the same secular shift from different points in the value chain.