Global Flavors (Food & Beverages) Market Overview:
Global Flavors (Food & Beverages) Market was valued at $12,474 million in 2016, and is expected to reach at $18,126 million by 2023, registering a CAGR of 5.5% from 2017 to 2023. Flavors are intense preparations added to food products to stimulate or impart a characteristic taste of choice, to maintain the flavor after processing, to modify an already existing flavor, and to guise some undesirable flavor to increase consumer acceptance. Flavor innovation in soft drinks is easier to formulate and manufacture as compared to other products. Cheese, yoghurt, milk & cream, cream cheese, butter products, and sweets are few dairy products that include various flavors in their formulations to achieve a good taste and consumer acceptance. Botanical flavors, such as elderflower, ginger, mint, hibiscus, and campari, blend well with fruity flavors to deliver unique aroma notes to mixers and cocktails.
Growth in food & beverage industry, technological innovations in flavor manufacturing procedures, and rise in health & wellness trend are the major factors driving flavors industry globally. In addition, introduction of functional food products and rise in demand for recognizable & authentic flavors in various end user industries, such as dairy & frozen products supplement the market growth. Asia-Pacific is the leading region, in terms of growth, due to large consumer base and is expected to follow premiumization trend, owing to the growth in the purchasing power of customers and rise in the demand for high-quality products. However, stringent government regulations in terms of flavor preparation and rise in awareness regarding side effects of artificial flavors limit the market growth. Rise in consumption of dairy, bakery, and beverage products provide high potential for the flavor market expansion in the emerging countries, such as India and China.
The flavors (food & beverages) market is segmented based on type, end user, and geography. On the basis of type, it is categorized into natural and artificial flavors. Based on end user, it is divided into beverages, dairy & frozen products, bakery & confectionery, savory & snacks, and animal & pet food. The beverages market is further classified into hot drinks, soft drinks, and alcoholic drinks. Dairy & frozen products segment is bifurcated into dairy products and meat. Bakery & confectionery segment is further categorized as bakery, chocolate, confectionery, and ice cream. The savory & snacks market is divided into savory and snacks. The animal & pet food is classified into animal feed and pet food. Geographically, it is analyzed across Asia-Pacific, North America, Western Europe, Eastern Europe, and LAMEA.
Market Share Analysis
Flavor industry is a highly competitive sector. Kerry Group Plc., Firmenich SA, Givaudan SA, and International Flavors & Fragrances Inc. were the top four flavor manufacturing companies in beverage industry, in terms of market share, in 2016. High market share of the leading companies is characterized by their vast product portfolio, wide distribution network, and R&D investments.
Global Beverage Flavors Market Share, By Player
Key Investment Pocket
Savory & snacks is anticipated to be the top investment pocket in the global flavors market as high demand for ethnic, spicy, and exotic flavorings are expected to come from this segment. The savory & snacks flavors segment is expected to witness a significant growth, especially in the developing nations, owing to growth in prevalence of ethnic drinks and food products, and westernization of diets in the emerging countries. In addition, increase in demand for unique & exotic flavors and unusual flavor combinations, such as exotic & classical fruits in the emerging economies, supplement the market growth. This segment is expected to grow at the highest CAGR of 6.3% during the forecast period. Asia-Pacific and Latin America are anticipated to possess high potential for the savory & snacks flavor products market.
Key Investment Pocket, By End User
The applications of advanced technologies provide innovative and novel tastes in food. Technological strides make it possible to develop innovative flavors to cater to the change in customer taste requirements.
Surge in Side Effects of Artificial Flavors
The chemicals utilized to make artificial flavors are sourced from petroleum and other volatile chemicals. Studies have shown the adverse effects of aforementioned chemicals on thyroid, RNA, and enzymes. Artificial flavors cause numerous problems, such as dizziness, nervous system depression, chest pain, fatigue, allergies, headaches, brain damage, nausea, and seizures.
The emerging economies constitute a population of around 3 billion, which is 40% more than today’s global population of the middle class by 2050. Considering the pace of change, in China, around 3 million households had a disposable income of around $10,000 in 2000, which increased to 60 million in 2012.
The Morocco flavors (food & beverages) market generated revenue of $18 million in 2016, and is estimated to reach at $26 million by 2023, growing at a CAGR of 5.0% during the forecast period. Product innovation is the key strategy used by Morocco flavor manufacturers to increase their market share.
Country-level Analysis, Morocco Flavors (Food And Beverages) Market, 2015-2023
Key leading players operating in this market include Firmenich SA, Frutarom Industries Ltd., Givaudan SA, Huabao International Holdings Limited, International Flavors & Fragrances Inc., Kerry Group, Plc, V. Mane Fils SA, Robertet SA, Sensient Technologies Corporation, Symrise AG, and Takasago International Corporation.
The other key market players in the value chain include Wild Flavors, Inc., T. Hasegawa Co., Ltd., Bell Flavors and Fragrances, Inc., Evolva Holding S.A., Isobionics B.V., Naturex S.A., Nestec S.A., and The Chemical & Food Aromatic Plant LLC.
- This report provides a quantitative and qualitative analysis of the current market trends and estimations from 2015 to 2023, which assists to identify the prevailing market opportunities in different application segments.
- Market trends of major countries in each region are mapped according to anticipated market revenue.
- Top investment pockets highlight the opportunities in the most lucrative application segment.
- Focused study of the factors that drive and restrict the growth of flavors (food & beverages) market is provided.
- Market share analysis by players in terms of end user and geography is provided.
- Key manufactures of flavors (food & beverages) products are profiled and their recent developments are listed.
Flavors (Food & Beverages) Market Key Segments
- Artificial (Synthetic)
By End User
- Hot Drinks
- Soft Drinks
- Alcoholic Drinks
- Dairy & Frozen Products
- Dairy Products
- Bakery & Confectionery
- Ice Cream
- Savory & Snacks
- Animal & Pet Food
- Animal Feed
- Pet Food
- South Korea
- Rest of Asia-Pacific
- North America
- Western Europe
- The Netherlands
- Rest of Western Europe
- Eastern Europe
- Czech Republic
- Rest of Eastern Europe
- Latin America
- Rest of Latin America
- Middle East
- Saudi Arabia
- Rest of Middle East
- South Africa
- Rest of Africa