According to MarketsandMarkets, the global food flavors market size is estimated to be valued at USD 16.4 billion in 2020 and is projected to reach USD 20.7 billion by 2025, recording a CAGR of 4.8% in terms of value. Emerging markets in upcoming economies such as the Asia Pacific and South American countries are going to be potential markets for the food flavor manufacturers. The increase in per capita income and change in the trends of food consumption are poised to increase the share of the market. These factors are projected to drive the growth of the food flavors market during the forecast period.
Food flavors are food additives that are used to enhance taste, aroma, and the overall experience of the consumer. Food flavors have numerous applications in the food & beverage industry. They are used in a wide range of products such as beverages, frozen food, and dairy products. The industry has witnessed consistent growth in the past few years.
In North America, the US is among the largest producer of carbonated beverages, snacks, and bakery products. Asia Pacific is projected to dominate the global food flavors market, which is largely driven by the rising demand for both natural and synthetic flavors, especially from China and India. The food flavors industry functions with legislators and regulators to deliver qualitative products to its end users. In North America and Europe, obesity is one of the major issues among individuals. To cater to the varied requirements of potential consumers, non-alcoholic beverage manufacturers have launched diet drinks to curb the calorie count in beverages, thereby increasing the demand for dietary drinks and further augmenting the growth of the beverages segment in the food flavors market.
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Flavored dairy products mostly include flavored milk, cheese, ice cream, and yogurt. There is an upsurge in the consumption of milk and milk products in developing countries, where the flavor manufacturers can find the potential market for expansion. An increase in population, a rise in demand for convenience food, and an increase in disposable income are the major driving factors for the dairy industry’s growth.
South America is projected to witness the fastest growth in the food flavors market during the forecast period due to the globalization of business and technological innovations, while Asia Pacific is the dominant market due to an increase in the demand for processed food and ready-to-eat options among the consumers.
The fruit & nut segment is projected to be the fastest-growing for the food flavors market. It is basically derived from the fruit concentrates and essential oils, which are quite popular flavors among the consumers nowadays. They are having fibers and nutrition, which are demanded by the health-conscious costumers.
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The liquid and gel forms of the food flavor are popular among the consumers. Due to its high stability as compared to the solid form, it is preferable among food & beverage manufacturers. The gel and liquid flavors are also known to blend easily with the other ingredients; thereby, they experience higher demand.