Flavored Syrups Market Forecast till 2028

Flavored Syrups Market Forecast till 2028

Market Overview
The market for flavored syrups involves the production and distribution of syrups that are utilized to enhance the taste of various food and beverage items. These syrups are generally composed of a blend of water, sugar or artificial sweeteners, and natural or artificial flavorings. Flavored syrups can be used in multiple ways, such as a topping for pancakes or waffles, in coffee or tea beverages, or as a mixer for alcoholic drinks.

The market's growth is primarily propelled by the increasing demand for sweeteners and flavorings in the food and beverage sector. Consumers are seeking ways to personalize their food and drink choices, and flavored syrups provide a simple and convenient option. The growth of the coffee industry has also led to an uptick in demand for syrups to complement coffee beverages such as lattes and cappuccinos. Popular flavors for syrups include vanilla, chocolate, caramel, and fruit flavors like strawberry and raspberry. To cater to evolving tastes, manufacturers are experimenting with new and unique flavors.

The market for flavored syrups is highly competitive, with numerous companies competing for market share. Key players in the market include Monin, Torani, DaVinci Gourmet, and The Hershey Company. These companies offer a range of flavored syrups for use in food and beverage products and often collaborate with customers to develop customized flavors for their specific requirements.

Segment Overview
The dominant category in the market in 2021 was B2B distribution channels, which comprises industries such as bakery and confectionery, dairy, frozen desserts, and beverages. Flavored syrups are frequently used to enhance the taste and sweetness of products like cocktails, soft drinks, and hot and cold beverages. For example, Starbucks uses a variety of naturally flavored syrups such as hazelnut, vanilla, and caramel in their coffee.

The B2C segment is expected to exhibit the fastest CAGR, driven by the increasing global demand for flavored syrups. Furthermore, the sales of flavored syrups through company-owned websites and other e-commerce platforms are projected to boost this segment's growth. The market demand is anticipated to increase in the APAC countries due to the introduction of innovative flavors and the rising consumer inclination towards indulgence in the coming years.

Regional Analysis
Flavored syrups are in high demand in North America, particularly in Canada and the US, due to their widespread usage in daily meals, snacks, cereals, beverages, and desserts. Furthermore, the availability of high-quality ingredients like toppings, chocolates, flavors, and fillings has resulted in increased use of flavored syrups in the bakery industry. Hence, in 2021, North America dominated the global flavored syrup market.

In contrast, Asia Pacific is projected to experience the highest CAGR of 4.4% from 2019 to 2028. The consumption of bakery products and beverages is widespread in this region due to their low prices. In addition, consumers' affinity for sweet foods has led to the introduction of innovative products infused with different flavored syrups, such as fruits and chocolate. The entry of foreign companies into the Asian market has also led to quick inroads and success in the flavored syrup industry.

Major Players
Major companies in the market includes, Amoretti (US), Wholesome Sweeteners Inc. (US), Nestlé S.A. (Switzerland), R. Torre & Co. (Torani) (US), Conagra Brands, Inc. (US), The J.M. Smucker Company (US), Kerry Group plc (Ireland), VKL Seasoning Pvt. Ltd. (India), The Hershey Company (US), and Monin, Inc. (France).

COVID 19 Impacts
The COVID-19 pandemic has had a mixed impact on the flavored syrups market. On one hand, there has been a surge in demand for at-home coffee-making products, including flavored syrups, due to the closure of coffee shops and cafes. This has led to an increase in the sale of flavored syrups through e-commerce channels. Additionally, there has been an increase in demand for flavored syrups from the foodservice industry, as restaurants and hotels have shifted to offering takeout and delivery services.

However, on the other hand, the closure of many businesses, including hotels, restaurants, and cafes, has resulted in a decrease in demand for flavored syrups from the foodservice industry. This has had a significant impact on the overall market, as the foodservice industry is a major consumer of flavored syrups.

Furthermore, supply chain disruptions caused by the pandemic have resulted in a shortage of certain ingredients used in flavored syrups, which has further impacted the market. The closure of factories and production facilities has also had an impact on the availability of flavored syrups, as manufacturers have been unable to operate at full capacity.

Companies Mentioned
Amoretti (US)
Wholesome Sweeteners Inc. (US)
Nestlé S.A. (Switzerland)
R. Torre & Co. (Torani) (US)
Conagra Brands
Inc. (US)
The J.M. Smucker Company (US)
Kerry Group plc (Ireland)
VKL Seasoning Pvt. Ltd. (India)
The Hershey Company (US)
and Monin
Inc. (France).

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