Food Flavors Market Size, Share & Industry Analysis, By Type (Natural and Synthetic), By Application (Bakery, Beverages, Confectionery, Dairy, Convenience Food, Snacks, and Others), and Regional Forecast, 2024-2032

The global food flavors market size was USD 15.73 billion in 2023 and is projected to grow from USD 16.47 billion in 2024 to USD 26.28 billion by 2032, exhibiting a CAGR of 6.01% during the forecast period 2024-2032. Moreover, the food flavors market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 5.27 billion by 2032, driven by the high usage of food flavors in the food service industry to impart various flavors, especially in ethnic cuisines.

There has been a negative impact of the COVID-19 pandemic on a global market, ultimately disrupting the global supply chain. According to our analysis, the global market exhibited a decline of -3.70% in 2020. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The global market is majorly fueled by the increasing consumption of various packaged eatable products and beverages. All packed edibles consist of various food additives which include flavoring agents. Owing to the fast-paced lifestyle and increasing working women population, the consumption of ready-to-eat food products is in demand. This directly aids the food flavors market growth.

The current market is expected to get affected due to the global pandemic caused by coronavirus disease (COVID-19). Since most of the countries experienced nationwide lockdown, the purchasing power of the consumers has negatively impacted the growth of processed eatable products. Rules and regulations imposed by various governments regarding the gathering of people in places such as all types of markets (hypermarkets, supermarkets, convenience stores, and others.) for the purchase of food products have led to a slight decline in the sales of various edibles and beverages.

Food Flavors Market Trends

Growing Consumer Inclination towards Organic and Clean-label Ingredients to Foster Industry Progress 

The growing organic trend in various developing countries and the adoption of clean-label products are factors that aid natural food flavors growth. According to the Organic Trade Association, the U.S. organic eatable sales witnessed a CAGR of 8.81% during the period from 2013 to 2018. Consumers’ inclination towards the consumption of natural products (chemical-free) and awareness regarding the ingredients on labels is positively impacting the growth of natural flavoring agents. Consumers prefer plant-based and plant-derived ingredients which helps them to lead a healthier lifestyle. The right amount of awareness regarding natural products among consumers is also a factor that helps in creating demand for organic ingredients in products.

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Food Flavors Market Growth Factors

Consumer Inclination towards Botanicals and Floral Flavors to Propel Industry Growth

Floral flavors emerged as one of the major flavor trends as per the 2019 food flavor market trends. Various floral and fruity flavors are added to the bakery products which gives a natural aroma and taste. Fruit flavors are usually paired with botanical flavors to give a natural aroma to edible products. Over the past few years, the floral and botanical flavors grew from a niche sector to a larger one. A majority of floral essences are used in baked goods, and the growth rate of these aromas ranged 132% between 2015-2018. Few examples of the flavors used in the bakery products are lemon-lavender cookies, honey-lavender gelato, lemon-violent granola, blackberry-rose marshmallows, and others. The adoption of floral flavors as a trend is attributed to the consumer’s willingness to spend on natural food products and ingredients.

Rising Consumer Awareness regarding Natural Food Flavors to Aid Market Growth

A significant number of consumers are aware of the synthetic ingredients that are used in food products. Rising awareness regarding the usage of natural ingredients and consumer’s inclination towards the consumption of clean-label ingredients may propel the usage of natural food essences. The manufacturers are capitalizing on the growing trend of clean-label products by developing products with flavours that are naturally sourced.. The usage of natural flavors helps retain the ethnicity of the edible products and provides an authentic taste and flavor. In recent years, synthetic flavors such as pyridine, benzophenone, styrene, and ethyl acrylate are identified to be carcinogenic. These synthetic flavors are thus replaced by various natural flavors. The majority of natural flavorings act as a preservative, which subsides the usage of artificial preservatives.

RESTRAINING FACTORS

Stringent Regulations to Constraint Market Growth

This industry has to legally abide by various rules and norms imposed by regulatory affairs. The regulatory standards vary from one country to the other, but the common goal is to maintain the quality of the flavors. Such regulations ensure proper labeling of the ingredients and the right usage of the flavorful essences in eatbales. These norms and regulations imposed by various regulatory bodies will constraint the market growth as it delays the new product launch or development by the manufacturers, thereby leading to product recalls. Therefore, the stringent regulations imposed by multiple nations may negatively impact the global food flavor market.

Food Flavors Market Segmentation Analysis

By Type Analysis

Natural Food Flavors Hold Largest Market Share, Owing to its Authentic Taste and Flavor

The natural flavor holds the largest market share owing to various regional cuisine influences. Natural extracts from various plants provide the ethnicity of a regional dish, unlike synthetic flavors. Various food chains are adopting these natural flavors to provide authentic taste. Additionally, the young generation prefers to use various botanicals and adaptogens in their culinary. This is due to the awareness regarding the harmful effects of synthetic flavors. Prolonged usage and consumption of artificial flavoring agents lead to various health issues such as skin rashes and cancer. Various manufacturers are engaged in the production of natural food flavoring agents as the innovative usage of the naturally sourced raw materials will create growth opportunities for food manufacturers.

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On the other hand, the usage of synthetic edible flavors grows at a moderate CAGR, this is owing to the decreased consumer preference of these artificial flavor additives. The production of these essences is cost-effective, which is the reason for the manufacturers to adopt the usage of it in their food products.

By Application Analysis

Beverage Sector to hold Largest Market Share, owing to Increased Popularity of Flavored Drinks

The global beverage sector is continuously evolving due to the emerging trends of premiumization, functionality, convenience, and sustainability. The growing popularity of innovative flavors across the beverage industry has significantly contributed to the growth of this market globally. Functional beverages are rapidly becoming popular because of the growing knowledge regarding their health benefits among consumers. The wide range of natural flavors has found extensive applications in these functional beverages. The growing demand for plant-based beverages has also increased the utilization of natural flavors across the beverage industry. Various synthetic flavors such as chocolate, fruit, and floral flavors are becoming popular in developing markets of Asia Pacific and the Middle East due to the increasing discretionary incomes among consumers.

Dairy, confectionery, and bakery sectors are expected to witness prominent growth over the forecast period. Various flavors such as natural spices and fruit flavors are widely utilized in dairy beverages as well as other dairy products. The growing popularity of cocoa and fruit flavors across bakery and confectionery industries is anticipated to drive the growth of this market in the upcoming years.

REGIONAL INSIGHTS

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Asia Pacific to Exhibit Highest Growth due to Emerging Processed Food Industry

Asia Pacific dominated the food flavors market with a market share of 35.86% in 2023. The Asia Pacific is an emerging economy that consists of a large population and working professionals. Asia Pacific has a very different opinion of dairy products, as consumers have a unique preference compared to Europeans and Americans. The Asians are willing to try new products by using a basic ingredient, which can be used to produce a wide range of exotic products, such as beverages and yogurts.

Population dynamics being one of the major macro-economic factors, which supports the eatable flavoring agents market growth. In addition, investments from various multinationals, especially from major nations such as China, India, and Japan will create opportunities for various mid-tier companies. The rise in the number of working women population and a busy lifestyle leads to the consumption of various ready-to-eat/drink products. Moreover, the consumption of confectionery products and baked products in the region is also expected to hold high growth potential. This is owing to a large consumer base for bakery goods.

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Followed by the Asia Pacific, North America is expected to hold the second-largest market share in this market. This is owing to the consumption of various regional cuisines in the region. The migrant population in the region leads to the consumption of authentic food products, which led to the opening of various international edible services in the region. Consumers in the U.S. have a liking for Japanese and Indian food. The retailers and restaurants draw the popularity of Japanese ingredients and foods such as matcha, sushi, and ramen. Japanese eatable products utilize various flavors such as umami. The usage of umami in Japanese cuisine lingers the taste of the whole food product. This positively helps in the growth of this market in North America.

The changing consumer demands are shaping the dairy industry across the global market, the potential of dairy farmers to react to the changes, and dairy entrepreneur strategies for intensifying profits. The dairy market in Europe is influenced by a combination of factors that vary from country to country within the region. The overall demand for dairy products in Europe is driven by its large and diverse population. Moreover, economic conditions, including disposable income levels, further affect the dairy Food market in the region. This factor is expected to push the demand for food flavors from the dairy industry very high in the coming years.

In Europe, Russia holds the largest food flavor market share owing to the presence of a large population base in the country. The U.K. holds the second-largest market share as the consumption of organic products is growing rapidly. One of the three products sold in the U.K. is claimed to be organic, and this supports the natural food flavors growth in the country.

South America and the Middle East and Africa hold the least market share, whereas the growth rate of the Middle East & Africa remains to be the second largest. This is due to the growing popularity of Middle Eastern cuisines such as spreads and sauces. These cuisines are evolved from the Eastern Mediterranean flavors, thereby contributing to the growth of the market in the region.

List of Key Companies in Food Flavors Market

International Flavors and Fragrances (IFF) is Focused on Merger with Established Players to Strengthen the Business Capabilities

IFF, a leading player in this market, is focused on investing in a merger with established players to strengthen its presence in the market. For instance, in February 2021, the company announced its merger with DuPont’s Nutrition and Biosciences business to improve its natural ingredients product portfolio. This will enable the company to fulfill the growing consumer demand for natural and healthier products. The presence of a few major players and their extended production and distribution capabilities has resulted in the consolidation of the global market. Other key players and flavor producers such as Givaudan S.A., Symrise AG, and Firmenich are focusing on new product developments, innovations, and partnerships to strengthen their presence in the market.

LIST OF KEY COMPANIES PROFILED:

• Givaudan SA (Vernier, Switzerland)


• International Flavors and Fragrances (New York, U.S.)


• Symrise AG (Holzminden, Germany)


• Sensient Technologies Corp (Wisconsin, U.S.)


• Firmenich (Geneva, Switzerland)  


• Archer-Daniels-Midland Co. (Illinois, U.S.)


• Kerry Group Plc (Tarlee, Ireland)


• Corbion NV (Amsterdam, Netherlands)


• Koninklijke DSM NV (Herleen, Netherlands)


• BASF SE (Ludwigshafen, Germany)

KEY INDUSTRY DEVELOPMENTS:

• March 2023 - International Flavors and Fragrances (IFF), one of the leading companies in food, beverages, biosciences, health, and fragrances, announced a new strategic partnership for the distribution of FermaSure XL in the Brazilian sugar and alcohol market.


• May 2021 – Synergy Flavors, Inc. announced the acquisition of the leading savory flavor ingredient manufacturer, Innova Foods that is owned by Griffith Foods.


• November 2019 – Givaudan SA has announced to acquire Ungerer & Company, the U.S.- based manufacturer of flavors, fragrances, and specialty ingredients. This will enable the company to expand its global flavor business.

REPORT COVERAGE

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The global food flavors market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

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Report Scope & Segmentation