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Over the past few years, the increasing demand for natural products in the food industry has encouraged remarkable efforts towards the development of biotechnological processes for the production of flavour compounds. The present paper reviews the recent major achievements reported in this field, with a special emphasis on the potential lying in plant cell, microbial cultures and enzyme technology for the production of a wide range of flavours. The use of solid-state fermentation as a means to improve economical feasibility of these processes is also considered.