The global Food Flavor Market size was valued at $12,712.7 million in 2020, and is projected to reach $19,223.6 million by 2030, registering a CAGR of 3.6%. Asia-Pacific was the highest revenue contributor, accounting for majority of the share in 2020, and is estimated to at a CAGR of 4.6%. Food flavor are commonly used to improve the taste of food products. The flavor additives mainly include natural and synthesized flavors. Perishable foods after processing and preserving tend to lose their flavor over time, which creates the need to use flavoring substances to help maintain the flavor. The food & beverages industry requires flavors for different purposes such as new product development, add new product line, and change the taste of existing product. High demand for new flavors from the food & beverages industry and continuous innovation drive the growth of the market. In addition, increase in requirement from the fast food industry is expected to provide growth opportunities in the Food Flavor Market during the forecast period.
The food & beverages industry is getting impacted profoundly amidst the outbreak of the coronavirus. The outbreak started in China resulting in lockdown and ceasing of production activities across the country.
Innovative flavor to cater to the change in customer taste requirements. The applications of advanced technologies provide innovative and novel tastes in food. However, stringent government regulations and adverse effects of synthetic flavors on human health are expected to hamper the market growth. Innovation in flavors and their growth in demand across emerging economies are expected to open new avenues for the market players in the future.
In the last decade, the Food Flavor Market has constantly witnessed high demand for RTE and other convenience food products. Such foods are called as convenience foods, and are available in fully or partially cooked forms. They help save time and are convenient for use. Furthermore, they can be carried anywhere in frozen form. Thus, surge in demand for RTE meals boosts the Food Flavor Market growth.
Rise in income levels especially in the developing countries have triggered the demand for tastier and healthier food products. The consumption of costly food products, such as milk, chocolates, and meat has increased due to surge in purchasing power. Moreover, rise in income levels improve the quality of life, which further adds to the demand for healthy and tasty food products.
Many cases of adverse effects of manufactured food products have been reported, especially the flavors used in them. Thus, different governments across the globe have set up regulatory guidelines to regulate the food flavors market. Such regulations, especially in Europe and North America, have led to decline in growth of the food flavor industry, particularly synthetic flavors. There are regulations regarding the raw materials, their processing, ingredients used, and labeling of these products. Thus, the Food Flavor Market has come under the government’s lens, which is expected to restrain the growth of the market.
The pandemic has had the most impact on the manufacturing, logistics, and the travel & tourism industries. The virus outbreak enforced the governments of various countries to impose a lockdown to reduce the spread of the virus. Thus, various companies are experiencing a down time, and has driven some companies to work remotely away from the office premise, leading to low productivity and ultimately low income.
The food & beverages industry is getting impacted profoundly amidst the outbreak of the coronavirus. The outbreak started in China resulting in lockdown and ceasing of production activities across the country. The demand for food flavors in China is expected to taper as it is the leading food processor and consumer of beverages and packaged products.
According to the Food Flavor Market analysis, the market is segmented into type, end user, and region. By type, it is bifurcated into natural and artificial flavors. By end user, it is divided into beverages, dairy, nutrition & health, savory, sweet goods, and others. The beverages segment is further segmented into alcoholic beverages, hot non-alcoholic beverages, cold non-alcoholic beverages (RTD Coffee, RTD juices, and others), and alcoholic free beverages. Dairy segment is further segmented into cheese, dairy drinks (flavored milk, yogurt drinks, and others), and dairy foods. Nutrition & health segment is further segmented into weight management, infant & baby nutrition, maternal health, sports nutrition (Sports protein & sports non-protein). Savory segment is further segmented into bakery, snacks, soups, sauces & dressings, and others. Sweet goods segment is further segmented into bakery sweets, confections and desserts. By region, it is analyzed across North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa.
The Synthetic segment would witness the fastest growth, registering a CAGR of 37.2% during the forecast period.
Based on the type, synthetic flavor held the major share in the market. Synthetic/artificial flavors are chemical compounds that are used to add taste to the food or enhance the food flavoring characteristics of natural food flavors. Artificial flavors undergo stringent regulatory evaluation as compared to natural flavors. Chemicals used in artificial flavors involve less cost for processing as compared to natural flavors. Furthermore, the processing time of artificial flavors is extremely less and is eco-friendly. Synthetic flavors are widely used across various industries, especially in the beverages and processed food industries. Similar to natural flavors, they are prepared by flavorists in laboratories. There are also two synthetic flavor such as natural identical flavor and artificial flavor. The key factors driving the growth of the artificial flavor market include economic viability and easy & less-lengthy manufacturing process as compared to that of natural flavors. Rise in demand for processed foods in Asia-Pacific and developments in the fast food industry are the factors anticipated to create Food Flavor Market demand in the future.
By End User
The Nutrition & health segment would witness the fastest growth, registering a CAGR of 4.0% during the forecast period.
Based on the end user, the beverages segment held the major Food Flavor Market share in the market. The beverages market is known for its unique flavors and changing flavor trends. The flavor industry is driven by advancements in beverage manufacturing technologies. Flavorists at beverage-making firms focus on creating a perfect blend of flavors that would add and cater to the changing preference of consumers. Generally, beverage manufacturers do not process the flavor. They outsource them to flavor companies. For instance, Appy Fizz, a carbonated apple juice, which is processed by third party food processors, is sold under Parle Agro Company in the market. It includes alcoholic beverages, hot non-alcoholic beverages, cold non-alcoholic beverages and alcoholic free beverages. Cold non-alcoholic beverages consist of RTD Coffee, RTD juices, carbonated water, a flavoring agent and a sweetener, and is stored in cans or bottles after manufacturing. Cold drink, soda, soda pop, fizzy drinks, and others are some of the common cold drinks consumed across the globe. RTD fruit juices and energy drinks are also categorized under soft drinks. The summer season across the globe witnesses the highest demand and sales of soft drinks. Flavor innovation in soft drinks is easier as it is easy to formulate and manufacture new soft drinks as compared to other products.
Asia-Pacific region held the major share of 30.3% of the total market.
Based on the region, Asia-Pacific held the major share in the market in 2021 and is likely to remain same throughout the Food Flavor Market forecast period. The global Food Flavor Market has wide scope for growth in the Asia-Pacific region due to rise in income level and large consumer base for the food products. The market is expected to follow premiumization trend owing to the growth in purchase power of customers and demand for high quality products. In the past 1-2 decades, numerous countries in the Asia-Pacific region have seen an upsurge in their economy due to growth of industries. China and India compete with developed countries in terms of growth due to high productivity and large workforce. The Western fast-food chains have increased tremendously in many countries of the Asia-Pacific region. Thus, it becomes an important region for the development of the global food flavors market. Major flavor manufacturers in the region include T. Hasegawa Co., Takasago International Corporation, China Flavors & Fragrances Co., Ltd., and Huabao International Holdings Limited.
Europe is the third largest food flavors market. Countries such as the UK, Germany, France, the Netherlands, Spain, and Belgium are major contributors to the revenue of this region. Huge demand for dairy products such as cheese, milk, or butter was witnessed in the European market, which fuels the demand for food flavors due to their use in dairy products to attain a delicious taste. Natural flavors are majorly used in the European market due to increase in consumer awareness regarding side effects of artificial flavors.
The key players analyzed in this report include Firmenich SA, Frutarom Industries Ltd., Givaudan International SA, Huabao International Holdings Limited, Kerry Group, Plc., Robertet SA, S H Kelkar and Company Limited., Sensient Technologies Corporation, Symrise AG, Takasago International Corporation, and Synergy Flavors.
Key Benefits For Stakeholders
- The report provides a quantitative analysis of the current Food Flavor Market trends, estimations, and dynamics of the market size from 2020 to 2030 identify the prevailing opportunities.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth analysis and the market size and segmentation assists to determine the prevailing Food Flavor Market opportunities.
- Drivers and restraints are analyzed in the Food Flavors market.
Food Flavor Market Report Highlights
By END USER
Key Market Players
S H KELKAR AND COMPANY LIMITED, FIRMENICH SA, SENSIENT TECHNOLOGIES CORPORATION, SYMRISE AG, TAKASAGO INTERNATIONAL CORPORATION, GIVAUDAN INTERNATIONAL SA, SYNERGY FLAVORS, HUABAO INTERNATIONAL HOLDINGS LIMITED, KERRY GROUP, PLC, ROBERTET SA, FRUTAROM INDUSTRIES LTD.
Rapid urbanization and globalization along with rise in disposable income play a major role in changing the dietary preferences across the globe, which in turn fuel the demand for animal and dairy products, vegetables, fruits, and fats & oils. Rise in disposable incomes trigger a huge demand for rich food products such as butter, cheese, milk, and dairy items such as chocolates and ice creams. Globalization and interaction between different cultures boost the demand for tasty and highly nutritious food products.
Westernization of diets in developing countries is most prevalent in the middle-class population. The quick spread of global market chains and fast food restaurants is strengthening the aforementioned patterns. Innovation of enhanced flavors and consistent improvement in the technology fuels the growth of the food flavors market. Many companies with their promising R&D initiatives are expecting a positive response from the food flavor industry. However, stringent regulatory framework and rise in health awareness among people are expected to hamper the market growth during the forecast period.