FOOD FLAVOR MARKET ANALYSIS

The global food flavors market size was valued at US$ 16.90 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 4.6% from 2023 to 2030. The food flavors market has been witnessing a steady growth over the last few years owing to the number of factors, such as increased consumption of beverages and fast-foods, growing demand for natural ingredients, and the rising awareness among consumers about the side effects of artificial flavorings. Additionally, new flavorings such as plant-based and clean label flavors are also gaining popularity.

Global Food Flavors Market: Regional Insights

Based on geography, the global food flavors market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

North America is expected to hold leading position in the global food flavors market over the forecast period. The presence of numerous food processing units and the increased demand for industrialized foods owing to the changing lifestyle of consumers in the region are fueling the growth of this market. Moreover, the region is also witnessing a surge in the popularity of natural and chemical-free flavors such as plant-based flavors.

At the same time, Asia Pacific food flavors market is exhibiting rapid growth owing to the growing middle-class population in the region, the rising expenditure on processed food and beverages, and the increasing demand for innovative and appetizing flavors. The regional market is expected to follow the premiumization trend due to the growing purchasing power of customers and their preference for high-quality food and beverage products.

Figure 1. Global Food Flavors Market, By Region, 2023

To learn more about this report, request a free sample copy

Global Food Flavors Market Drivers:

Growing demand from food and beverage sector to augment market growth

Food flavors are widely used in dairy & frozen desserts, bakery & confectionery, beverages, sweet &savory snacks, and meat products. The expanding food industry and increasing disposable income of the consumer is again fuelling growth of the food flavors market. This is encouraging consumers to opt for ready-made substitutes that can save their time and energy without compromising their nutrition goals.

Rising demand for natural food ingredients to foster market growth

Natural food ingredients have gained in popularity because they are healthier and more environmentally conscious than their synthetic counterparts. In addition, there is a growing emphasis on animal welfare, which has prompted a shift towards organic and natural foods. This is driving key players to switch from artificial to natural ingredients which has led to an expansion of the food flavors market.

Global Food Flavors Market Opportunities:

Growing popularity of functional food is expected to provide significant market growth opportunities. Functional foods are minimally processed whole foods with enhanced nutrients. Foods that contain added omega-3 are considered to be functional, for example, because they can help reduce the risk of heart disease. Other functional foods include berries, as they are low in calories and contain anthocyanins, which have been linked to a reduced risk of heart disease; milk and yogurt fortified with calcium to help reduce osteoporosis; and chocolate, because it contains flavonoids, which can boost endorphin levels and serotonin.

Growing awareness regarding the benefits of food flavors is expected to offer lucrative market growth opportunities. The key advantage of food flavors is that they are highly versatile and safe to use. They can be manufactured in different ways and are generally classified as natural or artificial. Natural flavorings are extracted from plant or animal raw materials using physical, microbiological, or enzymatic methods, while synthetic flavors are developed through chemical synthesis. However, both natural and synthetic flavorings are equally safe to be used in the preparation of foods.

Global Food Flavors Market Trends:

Functional beverages is a growing trend

Growing consumption of functional beverages, bakery products, and confectionery is augmenting growth of the global food flavor market. Moreover, increasing cases of diabetes, high blood pressure, obesity, and other metabolic disorders is again fueling the demand for functional beverages products. This is helping to expand the market for various food flavors used in beverage products such as sports drinks, fruit juices, and sugar-free drinks.

Growing number of partnership in the market

Key players are adopting various growth strategies to in order expand their market presence and this trend is expected to continue in the near future. For instance, in April 2023, Doehler has signed a new deal with Ixora Scientific to commercialize natural taste modulators derived from botanicals and plants. The two partners will explore new frontiers and bring novel solutions to the market in this significant collaboration geared toward natural ingredient systems and integrated solutions for F&B.

Global Food Flavors Market Restraints:

Strict government regulations to hamper market growth

Recent studies showed the potential hazards of food flavors which led to the introduction of strict government regulations on using these flavors. These regulations may vary from country to country. For instance, According to European regulations, natural flavors must be manufactured only using traditional food preparation processes. Moreover, under the US regulations, natural flavors are derived from natural raw materials that do not contain artificial constituents.  

Food allergy and intolerance may hinder the market growth         

Mostly, flavored foods are high in salicylates, which can cause food allergy among consumers. Food allergy causes problem in the immune system, and it is seen that one of those triggering ingredients is an artificial flavor. Hence, allergy associated with the flavored food is expected to hinder the market growth.

Figure 2. Global Food Flavors Market, By Flavor Type, 2023

To learn more about this report, request a free sample copy

Global Food Flavors Market Segmentation:

The global food flavors market report is segmented into category, flavor type, application, and region

Based on category, the market is segmented into synthetic and natural. Out of which, synthetic is expected to dominate the global market over the forecast period and this is attributed to their cost-effectives and are efficient for those who are allergic to natural food flavors. The synthetic segment was valued at USD 10,618.32 million in 2021 and is projected to register a 4.52% CAGR during the review period.

Natural segment is also expected to witness significant growth in the near future and this is owing to the growing demand for natural food ingredients and rising awareness regarding the health benefits of natural flavors.

Based on flavor type, the market is segmented into Chocolate, Vanilla, Fruit & Nut, Spices, and Others. Out of which, Chocolate is expected to dominate the global market over the forecast period and this is attributed to their popularity. Also, they are combination of natural and artificial flavors.

Vanilla segment is also expected to witness significant growth in the near future. Vanilla is highly flavors in food and beverages industry. It is in high demand from soy and almond milk, ice cream, protein bars, yogurts, and cereals.

Based on application, the market is segmented into Beverages and Food. Out of which, Beverages is expected to dominate the global market over the forecast period. Flavors are popular for adding tastes in beverages. It is in both artificial and natural form.

Food segment is also expected to witness significant growth in the near future. Flavor is add to intensify improve taste of the food.

Global Food Flavors Market: Key Developments

In November 2019, Takasago announced the completion of the new factory in Indonesia to expand its flavors & fragrances market.

In January 2018, Takasago International Corporation announced the opening of its sales office In Lahore, Pakistan, to strengthen its sales structure by providing more fulfilling services in the region

In December 2021, Symrise expanded portfolio of custom taste solutions by acquiring the Giraffe Foods Inc. (Canada) in North America

In June 2021, Symrise acquired Oterra’s (US) natural food coloring activities to strengthen the focus its Flavor & Nutrition segment.

In October 2019, Symrise AG expanded its innovation center in Indonesia.

In September 2019, Symrise AG announced the opening of its application labs in Nigeria to strengthen its presence in Africa.

Global Food Flavors Market: Key Companies Insights

The global food flavors market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global food flavors market are Givaudan SA, International Flavors & Fragrances Inc., Firmenich SA, Symrise AG, Takasago International Corporation, Sensient Technologies Corporation, T. Hasegawa Co., Ltd., Kerry Group, Mane SA, and Huabao International Holdings Limited

*Definition: Food flavors are made from a variety of sources such as spices, herbs, fruits, meat, botanical extracts, and essential oils. They can also be synthesized using advanced technologies.