Excluding beverages, the food industry still represents the biggest market for flavors and fragrances and it could post annual growth of 3.6 percent to sales of $1.9 billion in 2012, says market researcher Freedonia Group. The Cleveland-based company predicts the total flavor and fragrance market will grow to $5.3 billion in three years, with cosmetics and toiletries representing the second largest market. One factor influencing food flavor sales is the rise of functional foods. Freedonia says there is a need to mask the sometimes unpleasant taste of vitamins or other nutritious ingredients.