Flavor Enhancer Market Size, Share & Industry Analysis, By Type (Sugar Alternatives {Stevia, Sorbitol, Xylitol, Mannitol, Erythritol, and Others}, Monosodium Glutamate (MSG), Acidulants {Citric acid, Fumaric Acid, Lactic Acid, and Tartaric Acid}, Hydrolyzed Vegetable Protein, Yeast Extract, and Botanical Extracts), By Form (Dry and Liquid), By Application (Processed Foods, Beverages, Meat and Seafood, Baked Goods, Confectionery, and Others), and Regional Forecast, 2024-2032

The flavor enhancer market size was valued at USD 10.44 billion in 2023. The market is projected to grow from USD 11.06 billion in 2024 to USD 18.77 billion by 2032, exhibiting a CAGR of 6.84% during the forecast period. Asia Pacific dominated the flavor enhancer market with a market share of 35.44% in 2023.

Flavor enhancers are compounds used in food and beverages to improve the taste and modify the existing taste profiles. These include sugar alternatives, Monosodium Glutamate (MSG), acidulants, hydrolyzed vegetable protein, yeast extract, and botanical extracts. These compounds are derived from natural sources, such as plants and also manufactured through chemical synthesis. However, the cost of such products is higher than that of synthetically produced products, and hence, the adoption rate of natural flavors is still low.

During the COVID-19 pandemic, the demand for processed food products increased significantly; hence, the demand for flavor enhancers, which help to improve the taste profile of savory snacks, processed meat, dairy products, and beverages, increased significantly. Therefore, the demand for these ingredients also increased during the period.

Flavor Enhancer Market Trends

Increasing Investments in Advanced Technologies to Fuel Flavor Enhancer’s Innovation

Companies are investing heavily in adopting advanced technologies to manufacture innovative products for their applications in various industries. Novel technologies are being used to develop customized flavor solutions, which help to create authentically flavored foods and beverages for consumers. Such technologies can also be helpful in reducing overall production costs and reliance on expensive ingredients. For instance, in July 2023, California-based T. Hasegawa USA Inc. launched new technology named HASEAROMA and ChefAroma technological solutions for manufacturing flavor enhancers specifically for the North American market; such technologies can be used to produce fruit and savory flavors for food and beverages.

Flavor Enhancer Market Growth Factors

Rising Popularity of Processed Food Products to Fuel Market Growth

Consumers' food habits have changed rapidly over the past few years. The fast-paced lifestyle of people and increased focus on the job has reduced the time available for consumers to cook their meals. Therefore, the dependency on readymade food and junk food has increased significantly in recent years. Thus, to make these highly processed food products palatable, manufacturers include additives to improve their product taste and increase the palatability of the food items.

Growing Demand for Naturally Sourced Products to Support Market’s Growth

There is a heightened consumer attention toward naturally derived food additives, which are used in food and beverages. Such natural products are preferred over their chemical counterpart owing to the perceived health benefits of such ingredients. Thus, several food and beverage manufacturers use natural products, such as yeast extracts and botanical extracts, to manufacture food products, thus leading to market growth. This factor is contributing to the global flavor enhancer market growth.

RESTRAINING FACTORS

Negative Health Impact of Chemically Produced Products Hampers Market Growth

Consumption of certain products, such as Monosodium Glutamate (MSG), along with High Lipid Diet (HLD), can cause severe health complications, such as non-alcoholic fatty liver disease and metabolic alterations in the body. Hence, consumers prefer food products that are made of natural ingredients, such as botanical extracts, which are extracted from natural sources and cause minimal negative impact on the human body and the environment. These factors are expected to impede the growth of the global flavor enhancer market.

Flavor Enhancer Market Segmentation Analysis

By Type Analysis

Monosodium Glutamate (MSG) Accounts for the Largest Market Share Owing to the Wide Usage of Processed Food Products

Based on type, the global market can be segmented into sugar alternatives, Monosodium Glutamate (MSG), acidulants, hydrolyzed vegetable protein, yeast extract, and botanical extracts. Among these, monosodium glutamates account for the highest flavor enhancer market share. These glutamates are widely used in processed snacks, processed meat, soups, and other ready meals. They are popular, especially in Asian countries, and are widely used in the food industry.

Sugar alternatives, such as stevia, sorbitol, mannitol, and others, also account for the second-largest market share. As consumers are becoming more aware of the negative health impact of processed sugar, sugar alternatives are being used as their substitutes to improve the sweetness profile of food and beverages and reduce the overall calories of the products.

Acidulants emerge as another major segment in the global market. Chemical compounds, such as citric acid, fumaric acid, lactic acid, and tartaric acid, add a sour and acidic taste to the food and beverages and enhance the overall taste of the food products.

Hydrolyzed vegetable protein is another evolving segment that is used in several processed food productions, such as soups and sauces, and it is also used in processed meat products such as hot dogs.

Other major products include yeast extracts and botanical extracts, which are used in several foods and beverages to infuse an herbal taste and enhance the overall umami taste profile of the food items.

By Form Analysis

Dry Segment Accounts for Highest Market Share as It is Available in Customized Formats and can be Transported Easily

Based on form, the market is segmented into dry and liquid. Among these forms, the dry form is widely used in food and beverages to improve the flavor profile of the products and accounts for the largest share and continues to grow steadily. Specifically, products, such as glutamates, yeast extracts, and botanical extracts are available in dry form. Dry forms are available in powder, granules, and other forms, which are available in customized formats and can be stored and transported easily.

Liquid flavor enhancer is also popular in the market and is used for manufacturing beverages, soups, and other processed food products. Liquid ingredients can dissolve better in the final product formations and are used widely for producing dairy beverages, ice cream formations, and other liquid and solid products.

By Application Analysis

Processed Food Leads Due to its Growing Popularity among Young Consumers

Based on application, the market is segmented into processed foods, beverages, meat and seafood, baked goods, confectionery, and others. Among these segments, processed foods, such as breakfast cereals, noodles, and snacks, account for the highest market share. Such products are becoming popular among young consumers globally, and their demand for processed food production is increasing rapidly.

As the global demand for flavorful and unique beverage formulations is increasing, the demand for products that reduce the product sweetness and also help improve the standard identity of beverages is increasing rapidly. Functional flavors are used in a wide range of beverages to provide consistent flavor notes in the final products.

Confectionery products such as chocolates, gums, and toffees also use them to mask the bitterness of the cocoa and improve the taste of the final product. Sugar substitutes, sweeteners, and others are used to enhance the taste, improve sweetness, and make them appealing to consumers.

Flavor enhancers are used in other food products as well, which include meat and seafood, baked goods, meals, and soups and spreads.

REGIONAL INSIGHTS

The market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Asia Pacific was valued at USD 3.70 billion in 2023. The region accounts for the highest market share. The demand for processed food and beverages in China, India, and Japan has increased significantly over the past few years. With the growing adoption of Western diets and lifestyles, the consumption of food and beverages is also increasing. Moreover, products, such as MSG and acidulants have been used traditionally in China and Japan to enhance the taste of food products. 

North America is another major consumer of such products. The U.S. is the leading consumer as the consumption of processed food and beverages in the country is significantly higher than other countries. The country is also one of the leading importers and exporters of processed foods. For instance, in 2021, the country exported USD 13,888 million in 2023 compared to USD 12,522 million in 2022. As processed food products are increasing, the demand is also rising rapidly globally. 

Europe’s market is steadily increasing, and the demand for clean-label natural products is expected to increase in the future. Natural flavoring ingredients, such as yeast extracts, hydrolyzed protein, and botanical extracts, are popular among food manufacturers. Moreover, clean labeling regulations in Europe also prompt manufacturers to include safe and natural flavorings in the final food and beverages.

South America is another growing market for food enhancers. Industrially formulated products, which include processed snacks, beverages, and other similar products, are popular among consumers in the region, and demand for them is expected to increase further in the future. Governments are adopting several steps to ensure that food products are safe, and thus, they have passed laws to print nutritional warning labels on the fronts of food packages. Hence, the popularity of natural and safe flavoring agents is expected to rise in the market.

The Middle East & Africa market of flavor enhancing products is expected to increase in the future. Food consumption patterns are evolving due to the influx of foreign tourists in the country, leading to the growing popularity of processed food.

KEY INDUSTRY PLAYERS

Key Industry Players Investing in Product Innovation and Technological Innovation to Achieve Competitive Advantage

The market is fragmented, with major manufacturing companies competing with local and regional players to expand their market share in global and regional markets. Some of the key players operating in the global market include Firmenich SA, Ajinomoto, International Flavors & Fragrances Inc., and others. New product launches, along with investment in advanced technologies, are some of the major strategies adopted by the manufacturers to expand their market presence. 

LIST OF TOP FLAVOR ENHANCER COMPANIES:

• Givaudan (Switzerland)


• International Flavors & Fragrances Inc. (U.S.)


• Firmenich (Switzerland)


• Tate and Lyle (U.K.)


• Corbion N.V. (Netherlands)


• Novozymes A/S (Denmark)


• Angel Yeast Co. Ltd. (China)


• Ajinomoto (Japan)


• Kerry Group (Ireland)


• ABF Ingredients (U.K.)


• Sensient Technologies Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2024: Sweegen, a natural sweetener company, expanded its better-for-you taste option named “Tastecode.” The company strategically collaborated with biotechnology company Sensegen to develop sugar substitutes that provide bio-based tonal flavors, such as red fruit and citrus.


• June 2024: Startup company REDUCED received USD 3.11 million to fund investment into the development of unique technology for creating plant-derived flavor enhancers. The flavor solutions are centered toward umami flavor and suited for processed meat products.


• January 2023: IFF launched a flavor enhancer product named CHOOZIT VINTAGE in the North American market. These products help to overcome the undesirable flavor in cheese manufacturing and improve the flavors of the final products.


• May 2022: Givaudan introduced NaNino+, a plant-based natural flavoring ingredient that can be applied to manufacture processed meat products. This product is mainly designed to provide taste, color, and freshness to the final products.


• April 2019: Firmenich acquired a majority stake in India-based company VKL Seasoning Pvt. Ltd, which is one of the leading manufacturers of seasonings and flavors in the country. This acquisition helped the company expand its presence in the country.

REPORT COVERAGE

The global flavor enhancer market research report includes quantitative and qualitative insights into the market using different research methodologies. This global market forecast also offers a detailed regional analysis of the global market, trends, dynamics, regional forecast, market value, and rate for all possible segments. This report provides various key insights on the market, an overview of related markets, competitive landscape, forecast period, recent industry developments such as mergers & acquisitions, and the regulatory scenario in critical countries.

Report Scope & Segmentation