Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Liquid Smoke Market 2017 – 2027
Liquid smoke is a flavor primarily used to add smoky fragrance across various cuisines and is mainly available in yellow and red colors. It is also used to enhance the shelf-life of the food items especially meat and seafood. It is water-soluble and generally produced by condensing the smoke from wood along with the additives. It is a natural by-product of burnt wood and is distilled into a concentrate followed by filtering its impurities. Liquid smoke is majorly used across food such as marinades, barbecue sauces, and "barbecue" flavored foods. It is taste like smoke and there are different type of smoke flavors are also available which includes mesquite, hickory, and pecan. Moreover, it is also used as a substitute for bacon food that uses cured pork for obtaining smoky taste.
The global liquid smoke market is projected to surpass US$ 160 million by the end of 2027, in terms of revenue, growing at CAGR of 8.1% during the forecast period (2019 to 2027).
Growth in the processed food industry is primarily fueling the market growth of liquid smoke. According to the Invest India, The Processed food market is expected to grow to US$ 543 billion by 2020 from US$ 322 billion in 2016, at a CAGR of 14.6%. Food processing industry includes Fruits & Vegetables, Dairy, Fisheries, Poultry & Meat processing, Food retail, etc. Therefore, the growing processed food industry is propelling the market growth.
Increasing demand for meat products in the U.S. country is expected to fuel the market growth of liquid smoke. According to the North American Meat Institute, the meat and poultry industry is the largest segment of U.S. agriculture. The meat production in the country was totaled 52 billion pounds in 2017 and poultry production was totaled 48 billion pounds in 2017. Therefore, the growing demand for meat products is expected to augment the market growth.
Regionally, Europe dominated the global Liquid Smoke market in 2018, reporting 37% market share in terms of revenue, followed by North America and Asia-pacific, respectively.
Figure 1. Global Liquid Smoke Market, Revenue Share (%), By Regions, 2018
Still few processed meat manufacturers prefer the conventional method of smoking meat products since it provides a strong flavor to meat products such as beef and pork. Moreover, the conventional method of smoking meat also provides a distinct texture. This factor is expected to limit the adoption of liquid smoke which in turn is hindering the market growth.
Lack of awareness regarding liquid smoke products among consumers of developing countries is projected to hamper the market growth of liquid smoke. Moreover, few people are allergic to smoked products which are further expected to restrict the adoption of liquid smoke. This, in turn, hindering market growth over the forecast period.
Rising adoption of liquid smoke equipment among major players in order to reduce the overall cost production is expected to offer enormous growth opportunity to the market of liquid smoke. The use of advanced equipment favor has less impact on the environment and is also cost-effective as compared to traditional smoking methods. Hence, this is expected to fuel market growth over the forecast timeframe.
Rising adoption of liquid smoke in various cheese products will favor market growth over the forecast period. Various manufacturers of dairy products are using liquid flavor in cheese product such as provolone, mozzarella, and scamorza, for expanding their range of smoked cheese products. For instance, in November 2018, Norseland introduced Applewood Vegan smoked cheese.
Figure 2. Global Liquid Smoke Market – Opportunity Analysis
The rising trend of using liquid smoke in pet treat products is expected to augment the market growth of liquid smoke over the forecast period. For instance, in August 2018, Omaha Steaks, a retailer of steaks, seafood has introduced a new line of premium dog treats in response to the increasing demand for dog treats. This trend is expected to fuel the market growth of liquid smoke over the forecast period.
Shifting preferences of consumers for liquid smoke in hot dogs is projected to accelerate the market growth of liquid smoke in the near future. For instance, in July 2019, Nolan Ryan Beef has announced that it has launched uncured beef franks, to expand its hot dog and frank portfolio. Hence, using liquid smoke in hot dogs is gaining popularity among consumer and this will favor the market growth.
Figure 3. Global Liquid Smoke Market, Revenue Share (%), By Wall Material, in 2018
On the basis of application, meat and seafood dominated the global liquid smoke market in 2018 with around 77% of market share in terms of revenue, followed sauces and pet food & treats, respectively.
Canadian Food Inspection Agency (CFIA):
Mandatory requirements for labels of edible meat products in registered establishments:-
Smoke and smoke flavor are ingredients and must be listed accordingly. The following designation shall be used depending on how these ingredients were added to the meat product:
- "Naturally smoked" – the meat product was exposed to smoke generated from the direct combustion of hardwood, hardwood sawdust or corn cobs. This can be done either in the presence of heat or not; and/or
- "Smoked" – the meat product was treated with smoke derived directly or indirectly (i.e. liquid smoke) from hardwood, hardwood sawdust or corn cobs. In the case of liquid smoke, the term "smoked" shall be used only if the meat product was subjected to heat in the presence of a vaporized liquid smoke solution or when the meat product subjected to heat has been packaged in a casing or wrapping impregnated with liquid smoke; and/or
- "Smoke flavor" – this term shall be used when liquid smoke has been added to the meat product by methods other than those mentioned above, e.g. adding liquid smoke directly into the emulsion.
Key players operating in the global liquid smoke market are Azelis, Besmoke, FRUTAROM Savory Solutions GmbH, Red Arrow International LLC, Redbrook Ingredient Services Ltd, MSK Specialist Ingredients, Kerry, Inc., Ruitenberg Ingredients, B&G Foods, Inc. (Wrights), andBaumer Foods, Inc.
Few Recent Developments
Kerry Group Plc
- In 2015, it acquired U.K.-based Rollover Ltd. in January and France-based Dairygold Co-operative’s food ingredient business in February. It has also initiated the process of acquiring Pinnacle’s lifestyle bakery business in Australia. It also announced plans to acquire U.S.-based Red Arrow Products, Island Oasis, and Biothera, Inc.’s Wellmune businesses.