Natural flavors are prepared from plants and animals such as vegetables, dairy products, edible yeast, herbs, meat, and poultry. Natural flavors can be obtained by roasting and heating animal or plant products. Natural flavor enhances the taste and quality of the food products and are extremely common in food and beverage products. Natural flavors offer original flavor without the use of any chemicals and does do not contain any preservatives. The organic flavor is manufactured organically starting from the production of raw materials to processing and manufacturing of flavors with labels or Non-GMO. These raw materials are manufactured by methods that meet with the standards of organic farming.

The global natural and organic flavor market is estimated to account for US$ 5.3 billion in terms of value in the year 2018 and it predicted to grow at a CAGR of 8.1% during the forecast period (2019-2027)

Drivers:

Growing demand for organic and natural flavors from the food and beverage industry is primarily fueling the market growth of organic and natural flavors over the forecast period. Flavor has a huge demand in the overall food ingredients market due to a high preference for natural or organic flavors by consumers which are expected to fuel the market growth of natural and organic flavors over the forecast timeframe. Moreover, expanding food and beverage industry around the globe due to the entry of various players is further expected to propel the market growth of organic and natural flavors.

Market Opportunities

Increasing launch of spicy flavors in different edible products is expected to offer ample opportunity area for manufacturer engaged in the food and beverage industry. Consumer preference for hot and spicy flavor is spreading across the world. For instance, in July 2019, Wonderful® Pistachios launched two new flavors to its Wonderful Pistachios No Shells offerings—Chili Roasted and Honey Roasted—two distinctive flavors that allow the brand to reach two contrasting categories of snacking fans; those seeking heat, and those who enjoy a sweet escape.

Market Restraints

Less shelf-life of natural and organic flavors compare to artificial flavors as there is no artificial product is added such as preservatives are expected to hinder the market growth of organic and natural flavors. Due to this reason, many end-user companies prefer artificial flavors over natural and organic flavor and this factor is restricting the volume growth of the natural and organic flavors market. Therefore, less shelf-life of the natural and organic flavor is expected to hinder the market growth.

Key Takeaways

On the basis of application, the food segment has dominated the global natural and organic flavor market in 2018, with a 56.2% market share in terms of value, followed by beverages and nutraceutical applications respectively.

Market Trends

Rising trend of multiuse of flavors such as melon is being used in the alcoholic beverage and also in soft drinks is expected to propel the market growth of natural and organic flavors. For example, coffee is one of the most versatile flavors that is used in various food and beverages application such as beer sports nutrition including RTDs bars; candy and desserts. Hence, the rising trend of multiuse of flavors are propelling the market growth of natural and organic flavors.

The growing popularity of flavored tea such as matcha, dandelion tea, cascara tea, turmeric tea, and orange ginger tea is expected to augment the market growth of natural and organic flavors. According to the Coherent Market Insights analysis, tea has gained steam in the United States, where retail sales of the beverage grew nearly 20% to $7.3 billion between 2009 and 2014. The Tea Association of the USA cited that 85% of tea consumed in America is iced tea and loose-leaf tea.

Competitive Section

Key players operating in global natural and organic flavors are Givaudan S.A., International Flavors & Fragrances Inc., Firmenich SA, Symrise AG, Takasago International Corporation, Sensient Technologies Corporation, Kerry Group Plc., Frutarom Industries Ltd., Archer Daniels Midland Company, Döhler GmbH, Huabao International Holdings Limited, T. Hasegawa Co., Ltd, Koninklijke DSM NV, Axxence Aromatic GmbH, GOLD COAST INGREDIENTS, INC., Zymus International Ltd, Treatt Plc, Blue Specific Flavors, Inc., UNIQUE FLAVORS AND FRAGRANCES LTD.

Few Recent Developments

DuPont 

  • In December 2019, IFF and DuPont announced that they have entered into a definitive agreement for the merger of IFF and DuPont’s Nutrition & Biosciences (N&B) business in a Reverse Morris Trust transaction. The deal values the combined company at $45.4 billion on an enterprise value basis, reflecting a value of $26.2 billion

Firmenich SA

  • In January 2018, Firmenich acquired Natural Flavors, Inc., a privately-held manufacturer of high-quality organic certified natural flavors. 

Symrise AG

  • In April 2016, Symrise AG opened a production facility of fragrance and flavor in Tehran, Iran. This production unit helps to expand the company’s footprint in the Middle East region.

Market Taxonomy

By Flavor Type

  • Natural
  • Organic

By Source

  • Fruit & Fruit Juice
    • Berries
    • Citrus
    • Drupes
    • Pepos
    • Pomes
    • Others
  • Vegetable & Vegetable juice
  • Plant & Botanical
    • Spices
    • Herbs
    • Others
  • Meat & Seafood
    • Meat & Poultry
    • Seafood
  • Dairy
    • Dairy products
    • Edible East

By Product Type

  • From the Named Fruit (FTNF)
  • With Other Natural Flavors (WONF)
  • Oleoresin
  • Meat & Dairy Flavor
  • Essential oil

By Application

  • Food
    • Dairy Products
    • Bakeries
    • Confectionaries
    • Savories
  • Beverage
    • Alcoholic
    • Non-Alcoholic
  • Nutraceuticals

By Regions

  • North America
  • Latin America
  • Europe
  • Asia Pacific 
  • MEA
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