Developing Countries to Emerge at the Highest Growth Rates in the Global Food Flavors Market

The food flavors market is projected to grow at a CAGR of 4.8%, to reach USD 17,096.4 million by 2023. Manufacturers are planning marketing campaigns to increase consumer awareness regarding health benefits of food products incorporated with natural flavors. Natural and organic concepts are two tools that are predominantly utilized in the food industry by marketers to increase the demand for natural flavors in the market. Consumers are ready to pay premium prices for the natural ingredients, and the majority of the population thoroughly checks for the labeling for the same. This is one of the major driving factors for the food flavors market from natural origin. Technological advancements such as microencapsulation and non-thermal techniques such as HPP and PEF support the flavors market to a great extent by dealing with critical functions such as product protection and timely delivery of core material. Sensient Technologies Corporation (US) has been active in developing new encapsulated flavors for ice teas, carbonated soft drinks, and still drinks.

What are the challenges in complying with quality and regulatory standards?

The food flavors industry faces a legal obligation to abide by the norms and standards of various regulatory standards. These regulatory standards vary by country; however, they have a common goal of ensuring the safety of consumers. The regulations set by different countries also emphasize on the usage of flavors and proper labeling of food products. These stringent regulations can delay or prevent the launch of new products, increase the prices of any new product introduced in the market, and may lead to product recalls. Therefore, implementation of new regulations and modifications in the existing regulations negatively affect the growth of the market.

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Synthetic flavorings are used as low-cost substitutes for natural flavorings. The most popular is vanillin (imitation vanilla), widely used in chocolate as well as in vanilla-flavored items. Consumers may perceive their allergy to chocolates as an effect of the reaction caused by artificial flavoring. One source of vanilla flavoring is the waste product of paper mills, and another is petroleum. Although vanillin is technically identical to one of the chemicals in pure vanilla flavoring, the manufacturing methods result in high levels of sulfites and other contaminants. In this way, the compliance with regulations is required to maintain quality standards, which is thereby creating a challenge for market growth.

Innovative Raw Material Sources

The consumption of natural foods is becoming a trend, and the food industry strives to introduce new sources of flavors. Castoreum extract, a natural flavoring that is obtained from the anal glands of a beaver, is used as a natural flavor in beverage, confectionery, dairy, and desserts. Knowledge regarding the biogenesis of plant volatiles, their enzymes and genes, will pave the way for the production of innovative food flavors.

Microorganisms have a higher capacity of production for natural pigments and extracts. Sea sources are used on a commercial level for flavor extraction; seaweed is one of the most innovative sources that are used by well-established flavor houses. Varieties of super fruits from rainforests are in demand for the use of natural flavors. Such innovations present opportunities for market growth.

This Report is Targeted at the Existing Players in the Industry, Which Include the Following:

  • Research organizations
  • Food flavor manufacturers, suppliers, distributors, and retailers
  • Food & beverage producers, suppliers, distributors, and retailers
  • Flavor extraction equipment manufacturers, traders, distributors, and dealers

Asia Pacific accounted for the largest share of the food flavors market in 2018. This market is driven by increased awareness about natural food flavor products among consumers and inclination toward the health benefits provided by natural food flavors. South America is projected to be the fastest-growing market between 2018 and 2023. Emerging economies such as Brazil and Argentina play an important role in supplying food flavors. The demand for food flavors is increasing in the emerging economies of South America due to the growth of the processed food industry.

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Companies such as Givaudan (Switzerland), International Flavors & Fragrances (US), Firmenich (Switzerland), Symrise (Germany), and Frutarom (Israel) have acquired leading market positions through their broad product portfolios, along with a focus on diverse end-user segments. They are also focused on innovations and are geographically diversified.