Food Flavors Market Forecasts to 2028 – Global Analysis By Type (Vanilla, Chocolate, Spices & Savory, Fruit & Nut and Other Types), Origin (Synthetic and Natural), Form (Dry and Liquid & Gel), Application and By Geography

Food Flavors Market Forecasts to 2028 – Global Analysis By Type (Vanilla, Chocolate, Spices & Savory, Fruit & Nut and Other Types), Origin (Synthetic and Natural), Form (Dry and Liquid & Gel), Application and By Geography

According to Stratistics MRC, the Global Food Flavors Market is accounted for $16.27 billion in 2022 and is expected to reach $23.60 billion by 2028 growing at a CAGR of 6.4% during the forecast period. Food flavors are regularly added to food products to enhance their flavour. Synthetic and natural flavors are the most common flavouring ingredients. Perishable foods tend to lose flavour after processing and preserving, necessitating the use of flavouring agents to help retain the flavour. Flavors are needed in the food and beverage industry for a variety of reasons, including the development of new products, the addition of new product lines, and the alteration of the flavors of existing items.

According to the Organic Trade Association, the U.S. organic eatable sales witnessed a CAGR of 8.81% during the period from 2013 to 2018.

Market Dynamics:

Driver:

A shift in demand for natural and sustainable flavors

Sustainability is a multifaceted topic in which the food production system and diets play key roles. It is critical to move towards a sustainable food future through coordinated global actions. Household food consumption accounts for more than 60% of global greenhouse gas emissions and 50-80% of total resource consumption. As a result, customers are gradually adopting nutritious and environmentally beneficial eating habits. Changing food consumption is a necessity for reaching global sustainability goals, particularly in high-income countries. Customers increasingly prefer meals and beverages with natural flavors and environmentally ethical safe ingredients for health benefits, from blueberry-flavored protein drinks to rose-flavored teas.

Restraint:

Harmful impacts of synthetic flavors

Synthetic flavors are artificial components that are added to food to increase its flavor, shelf life, freshness, and nutritional value. They can be found in a variety of foods such as yoghurt, chips, bread, baked goods, salad dressings, and baked goods. However, evidence from a number of scientific research suggests that artificial food additives may be carcinogenic. Nitrites and nitrates, which are commonly found in processed meats, have been linked to an increased risk of colorectal cancer when taken in large quantities. Artificial food additives are being studied for their impact on children's behavioral issues or neurodevelopmental defects. Synthetic flavors’ negative impacts may consequently limit the market's expansion.

Opportunity:

Adoption of cannabis as a natural ingredient for flavor development

Terpenes and cannabinoids such as tetrahydrocannabinol (THC) and cannabidiol (CBD) offer immense promise for use in medicine and health. Furthermore, cannabis-derived compounds have specific properties that can lend various flavors to meals and beverages. Cannabis is being studied in order to prove that it can improve taste sensitivity and increase food sensory attractiveness. Furthermore, combining cannabis with botanicals such as ginseng, ashwagandha, and citrus fruits not only generates novel flavour profiles but also boosts cannabis's effects on focus, sleep, and stress relief. The application of cannabis as a flavour element may generate potential for the food flavour sector to grow enormously.

Threat:

Compliance with quality and regulatory standards

This industry must legally follow different laws and norms imposed by regulatory affairs. The regulatory standards differ from country to country, but the common purpose is to protect the quality of the flavors. Such standards assure appropriate ingredient labelling and proper use of delicious essences in eatbales. These rules and regulations enforced by various regulatory organisations will limit market growth by delaying new product launch or development by manufacturers, resulting in product recalls. As a result, the strict regulations established by various countries may have a negative impact on the worldwide food flavour business.

Covid-19 Impact

The current market is projected to be impacted by a global pandemic caused by coronavirus illness (COVID-19). Since most countries have been subjected to nationwide lockdown, consumer purchasing power has had a negative impact on the rise of processed eatable products. Rules and regulations implemented by various governments regulating the gathering of people in places such as all types of marketplaces for the purchase of food goods have resulted in a modest decrease in the sales of various consumables and beverages. Nevertheless, the market finds its pace to grow in the upcoming years owing to the regular consumption of packaged eatable products.

The natural segment is expected to be the largest during the forecast period

The natural segment is estimated to have a lucrative growth. The increased desire for food products that promote wellness and health is a primary driver of the global market for natural food flavors. The market for natural food flavors is expected to expand due to a variety of factors, including the health benefits of some natural colours and flavors, rising purchasing power among consumers, increased demand for organic food products, and a wide variety of products with novel tastes and flavors. Furthermore, many food establishments use organic flavors to achieve authentic flavour.

The beverage segment is expected to have the highest CAGR during the forecast period

The beverage segment is anticipated to witness the highest CAGR growth during the forecast period. Beverages are defined as liquid drinks made for human consumption. The beverage business is well-known for its diverse flavors and evolving flavour trends. Innovations in beverage manufacturing technology drive the taste industry. Flavorists at beverage production firms combine flavors to perfection and cater to changing consumer tastes. Generally, beverage producers do not alter the flavour. They contract them out to flavour makers.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period due to rising income levels and a huge consumer base for food items in Asia-Pacific, the global food taste industry has significant growth potential. Many Asia-Pacific countries have experienced economic growth in the last one to two decades as a result of company expansion. Furthermore, due to their high labour productivity and enormous populations, China and India compete with Western nations in economic growth. Furthermore, less stringent government regulations have resulted in the establishment of numerous enterprises in the Asia-Pacific region.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period. The rise in demand for convenience foods, the expansion and development of the beverage industry, and changes in customer lifestyle are all key drivers driving the growth of the food flavour market in North America. Consumer preferences vary, and there is a surge in demand for healthy and organic products, which contributes to market growth. Furthermore, throughout the previous three to four decades, North America has seen rapid technical advancements, resulting in a broad and diverse food and beverage business.

Key players in the market

Some of the key players profiled in the Food Flavors Market include Flavor & Fragrance Specialties, Gulf Flavors & Food Ingredients FZCO, ADM, MANE SA, Symrise, International Flavors & Fragrances, Taiyo International, Aromata Group, Kerry Group, Takasago International Corporation, Fontana Flavors, Besmoke Limited, Firmenich SA., Givaudan, Create Flavors and Sensient Technologies Corporation.

Key Developments:

In August 2021, Taiyo International partnered with ITO EN, a supplier of authentic, flavorful, and highly nutritious tea, intending to supply high-quality matcha to the food, beverage, and supplement industries in North America.

In July 2021, Symrise acquired Giraffe Foods Inc, a leading manufacturer of custom taste solutions for various food industries. This acquisition facilitated the expansion of the flavor & nutrition segment in North America.

In June 2019, Kerry Group opened its production facility in India as an investment in the expansion of taste and nutrition profiles.

Types Covered:
• Vanilla
• Chocolate
• Spices & Savory
• Fruit & Nut
• Other Types

Origins Covered:
• Synthetic
• Natural

Forms Covered:
• Dry
• Liquid & Gel

Applications Covered:
• Food
• Beverage

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements