Biotech Flavours Market Size, Share & Industry Analysis, By Form (Powder, Liquid, Paste), By Flavour Type (Vanilla & Vanillin, Fruity Flavours, Others), By Application (Food & Beverage, Pharmaceuticals, Cosmetics & Personal Care Products) And Regional Forecast, 2024-2032

Biotechnology can deliver complex flavours and fragrances as fermentation products or single constituents by metabolic engineering of biosynthetic pathways. The biotech flavours offer nutritional benefits and enhance the flavour of the food product, along with its consistent availability. This helps the food manufacturers to ensure a continuous supply of food products to meet the growing demands. In recent years, the popularity of natural flavours has increased over synthetic flavours as they are a healthier alternative to impart flavour in the food products. This has led many manufacturers to tend towards natural flavours and increasing their focus on manufacturing highly stable natural biotech flavours in the global marketplace.

The growing incorporation of biotech flavours in various food products such as cakes, ready-to-eat meals, chocolates, and others to offer consumers with authentic, clean-label, end-to-end traceable products is also driving in the market growth. Along with this, the growing environmental concerns among the consumers has influenced the manufacturers to replace the synthetic ingredients in the food products with such biotech flavours. Furthermore, the non-dependency of biotech flavours on harvest techniques for product manufacturing is expected to propel its market growth.

The increasing consumers’ inclination towards natural and chemical-free food ingredients is a major factor driving the biotech flavours market. Flavourings were traditionally produced by extracting molecules from the plants by using chemical synthesis. For instance, vanillin, the molecule which gives the characteristic flavour to vanilla is produced by the petrochemical process, while only 1% of flavour is obtained from the actual vanilla plant. Such chemically synthesized flavours can have a negative impact on health such as undesirable taste and diabetes, which in turn is boosting the demand for natural flavours.

The main restraint in the market growth is product consistency, texture, and taste challenges in solid foods that occurs due to the replacement of conventional ingredients with natural and healthier alternatives. For instance, utilization of stevia as a sweetener in cake mix will make it just sweet but the taste, texture, and mouthfeel imparted by the sugar cannot be achieved.

Key Players Covered:

The key companies operating in the global biotech flavours market are, Sensient Technologies Ltd., Givaudan SA,
International Flavors & Fragrances Inc., BASF SE, Symrise AG, Firmenich SA, Takasago International Corporation, The MANE Group, Kerry Group Plc, and Bell Flavors & Fragrances, Inc.

The fruity flavours segment is likely to account for the major share in the market due to its wide utilization with floral flavours to create exotic and refreshing flavours by the manufacturers. According to the Institute of Food Technologists (IFT) report, 2019, yuzu a tart Japanese citrus fruit flavour has growing widely popular in the U.S. and has witnessed a 10% rise in food menu inclusions. Flavours such as orange, strawberry, raspberry are widely used in cakes, pastries, ice creams, and chocolates which is boosting the segment growth in the market.

Food and beverage is anticipated to be the leading application segment owing to the wide utilization of flavourings in beverages. Consumers widely prefer naturally flavoured beverages such as juices, carbonated beverages, energy drinks, ready-to-drink beverages owing to their convenience and nutritional properties. Further, the rise in consumption of beverages is also expected to fuel the market growth in the forecasted years.

Regional Analysis:

North America is projected to foresee significant growth in the market due to the increase in demand for high-quality and natural flavouring agents. The growing incidences of health problems owing to consumption of high sugary products has led the consumers to switch towards natural alternatives. According to Centers for Disease Control and Prevention (CDC), national diabetes statistics, in 2019, nearly 10.5% of the U.S. population have diabetes. Coupled with this, the rising adoption and market penetration of such products due to the presence of major players such as Sensient Technologies Ltd. and IFF is expected to further boost the regional market growth.

Asia Pacific is likely to hold immense potential for the market to grow during the forecast years owing to the increasing research and interests for the production of natural flavours. India ranks among the 12 major biotech destinations in the world and holds 2% share of the global biotech industry in 2017, according to India Brand Equity Foundation, 2017. The global flavour manufacturers are expanding their business in the region, such as Givaudan SA in 2019, expanded its flavour manufacturing facility in India, which in turn is expected to contribute in the regional market growth.

Segmentation

Key Industry Developments

• In June 2020, Novozymes A/S, a Danish biotech company, launched eco-friendly umami flavouring by using engineered enzymes to break plant protein in Europe. The product was launched by the company to suffice the growing consumers demand for more natural and less hazardous chemical products.


•  In September 2019, BASF SE, acquired Isobionics BV, a biotech company to enter the natural flavours and fragrances market and also to broaden its portfolio with natural ingredients such as vanillin, nootkatone and valencene.