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2023

Indonesia Food Flavor Market

Indonesia Food Flavor Market Size, Share, Competitive Landscape and Trend Analysis Report by Type and End User : Opportunity Analysis and Industry Forecast, 2023-2032

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Author's: Vidit Gite | Roshan Deshmukh
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The Indonesia food flavors market Size was valued at $565.4 million in 2022, and is projected to reach $877.7 million by 2032, registering a CAGR of 4.4%.

High demand for new flavors from the food & beverages industry and continuous innovation drive the growth of the Indonesia food flavors market. Increase in requirement from the fast-food industry is expected to provide growth opportunities in the Indonesia food flavors market during the forecast period. The Indonesian food processing industry served a domestic population of 275 million in 2022 and is increasingly seeking new export markets in the country and globally.

Indonesia-Food-Flavor-Market

Flavors play a vital role in the Indonesian food & beverages industry to improve the taste of food products. The flavors are mainly categorized into natural and synthesized flavors. Perishable food products have a distinct and unacceptably unpleasant taste afterwards, the introduction of flavors help to mask and improve the food quality while also increasing the acceptance of food, which is propelling the growth of Indonesian food flavors market.

The food & beverages industry requires flavors for different purposes such as new product development, adding new product lines, and change the taste of existing products. High demand for new flavors from the food & beverages industry and continuous innovation drive the Indonesia food flavors market Growth.

Consumers in Indonesia are seeking ingredients and cooking practices that are long-forgotten traditions in their cultural past or may mean consumers are seeking flavors related to the roots and origins of other cultures. Human desire to travel through their taste buds is really strong, and that is where these roots and origins are becoming a significant trend, with a strong desire to explore and experience flavors that are deeply rooted in their cultural past or that offer a connection to the origins of other cultures. This trend reflects the human fascination with traveling through taste buds and has become a significant force in the culinary world. Thus, the food manufacturers are intensively focusing on incorporating new and novel food ingredients such as natural food flavors in their food processing, which in turn propels the Indonesia food flavors market Demand.

Consumers are increasingly valuing tradition and provenance, leading to a resurgence in traditional manufacturing practices and recipes among food manufacturers. As part of this trend, ingredients such as apple cider vinegar, ashwagandha, and mushrooms, are making their way into snack and beverage applications. These ingredients add unique and distinct flavors and are catering to consumers' cravings for new taste experiences. The roots-and-origins trend not only satisfies the desire for authenticity but also allows consumers to connect with their cultural heritage and explore the culinary traditions of other cultures. By incorporating these authentic and culturally significant ingredients, food manufacturers can tap into this demand and provide consumers with a truly immersive and satisfying culinary journey.

Major food and beverages expansion has been captured in the past couple of years, which is augmenting a huge opportunity for food flavor manufacturers in Indonesia. For instance, Asia’s largest dairy processor, Yili Group, officially launched its first ice cream factory in Indonesia with an estimated investment of $133 million in 2021-2022.

Indonesia Food Flavor Market
By Type
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Natural segment would witness the fastest growth, registering a CAGR of 5.6% during the forecast period, owing to the rise in interest of consumers towards healthy and natual food products and ingredients.

Flavors are very complex, with dozens or sometimes hundreds of chemicals interacting to create each food and beverage’s unique taste profile. It is important to note that food flavorings themselves do not contribute any nutritional value to the products they are used in and, in some cases, may even pose potential harm. For instance, smoked food, especially, are considered carcinogenic, but are appreciated due to their particular flavor. Sometimes flavors alone are very toxic at higher doses. Owing to this, rise in concern among consumers about the long-term health effects of artificial ingredients and additives in food products are hampering the demand for synthetic food flavors in the market. Consumers are seeking alternatives that provide both flavor and nutritional benefits, driving the industry to explore and develop more natural and healthier options to meet these evolving preferences.

The Indonesia food flavors market is segmented on the basis of type and end user. By type, it is bifurcated into natural and synthetic flavors. By end user, it is divided into beverages, dairy, nutrition and health, savory, sweet good, and others. The report focuses on the growth prospects, restraints, and Indonesia food flavors market opportunities.

The study provides Porter’s five forces analysis to understand the impact of various factors such as competitive intensity of competitors, bargaining power of suppliers, threat of substitutes, threat of new entrants, and bargaining power of buyers of the Indonesia food flavors market. The key players analyzed in this report include Firmenich International SA, Givaudan SA, International Flavors & Fragrances Inc., Kerry Group Plc, PT. Delion Citra Dinamika, Robertet Group, S H Kelkar and Company Limited, Sensient Technologies Corporation, Symrise AG, Synergy Flavors, Inc.

Indonesia Food Flavor Market
By End User
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Beverages segment would witness the fastest growth, registering a CAGR of 5.13% during the forecast period, owing to the increasing spending of consumers on innovative drinks and beverages in the country.

Key Benefits For Stakeholders

  • This report provides an extensive analysis of the current Indonesia food flavors market trends and emerging estimations & dynamics of the Indonesia food flavors market from 2022 to 2032, in terms of value.
  • Detailed Indonesia food flavors market analysis of the market helps us understand the different sources of food flavor services that are currently available, and the variants that are expected to gain prominence in the future.
  • The Porter’s five forces analysis highlights the potency of buyers and suppliers to offer a competitive advantage to stakeholders to make profit-oriented business decisions and help strengthen their supplier & buyer network.
  • Extensive analysis of the market is conducted by following key product positioning and monitoring the top competitors within the market framework.
  • Market share for all segments with respect to country is detailed in the report, which helps understand the trends in the Indonesia food flavors industry.

Analyst Review

This section provides the opinion of the top-level CXOs in the Indonesia food flavor market. According to the insights of CXOs, natural and organic products are performing decently and expected to grow rapidly in upcoming years. 

The wonderful culture and diversity of people in Indonesia allow for some of the best flavors and an abundance of choices for food. With the scaling up of international trade and globalization, consumers are exposed to a variety of cuisines and flavors from Indonesian culture. Moreover, rise in disposable income plays a major role in changing dietary preferences, which in turn fuels the demand for animal and dairy products, vegetables, fruits, and spices & oils.Westernization of diets in developing countries is most prevalent in the middle-class population.

The quick spread of 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.
 

Author Name(s) : Vidit Gite | Roshan Deshmukh
Frequently Asked Questions?

The Indonesia food flavors market was valued at $565.4 million in 2022, and is projected to reach $877.7 million by 2032, registering a CAGR of 4.4%.

The forecast period in the market report would be 2023-2032.

The market value of Indonesia food flavor market in 2022 is $565.4 million.

The year 2022 is base year calculated in the Indonesia food flavor market report.

Growing trends of adapting natural and organic products among consumers have led to an increase in demand for natural/organic flavors in the country.

Some of the key players analyzed in this report include Firmenich SA, Givaudan International SA, Kerry Group, S H Kelkar and Company Limited., Sensient Technologies Corporation, Symrise AG, Synergy Flavors, PT IFF Indonesia, Robertet Indonesia, and Aroma Prima Livindo.

Natural segment will dominate the market by the end of 2032.

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Indonesia Food Flavor Market

Opportunity Analysis and Industry Forecast, 2023-2032