Food flavors and enhancers are the primary building blocks in the food and beverage industry. In this highly competitive market, the growth in innovative products can be attributed to the growth of food flavors and enhancers. The important trigger to these innovations is the region-wise and country-specific adoption of flavors & flavor enhancers by manufacturers. Final products of food and beverages segment constitute around 0.1 to 0.5 percent of the flavor enhancers. The major companies operating in the global food flavors and enhancers market are Givaudan, Firmenich, IFF, and Stymies Ag, holding about 55% share of the market.
The global market for food flavors and enhancers is expected to uphold a CAGR of XX% during the forecast period of 2016 to 2021.It is estimated to be worth USD XX billion by 2021.
Globalization and modernization are the primary factors that have increased the demand for flavors and enhancers. The changing lifestyle of people has also impacted their food habits. Earlier, natural herbs and spices were used in home cooking to get a tinge of flavor in the food, which eventually turned into an industrial need to cater to the big food processors. Owing to the increase in working women population there is a need in the market for processed foods, impelling food manufacturers to cater to the growing population resulting in the use of several flavors and enhancers. Also, the consumer preference for a low-salt, low-fat and low-carbohydrate diet is a key driver in the increase of consumption of flavors and enhancers. Since the flavors are region and country-specific, the manufacturers are constantly trying to hold a larger share of the pie, through rigorous R&D and innovations in the market.
The increase in health awareness among consumers is proving to be a major restraint in the artificial flavors market, flavors like monosodium glutamate (MSG). Consumers are now aware of the deteriorating health effects of MSG. For instance, when Maggi noodles were reported to be containing more than the required amount of MSG, it had to go through 8 lab tests to finally gain its place in the market. Hence consumer awareness is directly proportional to the market, wherein, when consumers realize the negative effects of artificial flavors, it subsequently results in a decrease in their demand, thus ticking the demand for natural flavors. Many new entrants face a challenge in the flavor and enhancer industry, as massive natural resources are needed to extract flavors. Also, the change in preferences and tastes of the consumers are constant constraints for the manufactures. Moreover, there are many regulatory bodies that have banned the use of artificial food flavors and enhancers, especially in Europe.
Regarding product type, the food flavor and enhancer market is segmented into food flavor and food enhancers. The food flavors segment is bifurcated into natural flavors and synthetic flavors. Natural flavors are sub-segmented into essential oils, aroma, natural extracts, and others; while synthetic flavors are sub-segmented into fruit flavors, citrus flavors, savory flavors, identical nature flavorings, and other synthetic flavors. The food flavors are further segmented by application into dairy, bakery & confectionery, meat & fish products, snacks & savories, beverages, and others.
Flavor enhancers are segmented by type into - glutamates, which is subdivided into MSG and others like DSG, MPG, etc.; and nucleotides, which is subdivided as disodium guanylate, disodium inosinate, ribonucleotides, etc. These food enhancers are further segmented by application into noodles, soups, seasonings & spices, meat products, and others.
Both, food flavors and enhancers, have their major applications in the beverage industry, occupying most of the share in flavor and enhancers market, followed by confectionary, soup, and bakery products. By type, the artificial flavors are expected to witness a fall in the market due to consumer preference for natural flavors. However, monosodium glutamate holds the major share, more than the natural flavors. The major constraint in the natural flavors industry is the need for large amounts of natural resources to extract flavors and enhancers according to consumer preference.
The major global manufacturing hubs are North America and Europe, which hold a large share in the food flavor and enhancer market. These regions are followed by Asia-Pacific, South America, and Africa. Snack and confectionary is leading the market in consumption in Europe, since a few years, followed by bakery items and meat. The European market is a mature market and has several bodies that stringently regulate the use of food flavors and enhancers, keeping the consumersâ€™ health in mind. Germany constitutes the major share having XX%, followed by the UK, Spain, The Netherlands, and Italy. The market value of synthetic flavors was about USD 823 million and that of natural flavors about USD 755.65 million, in the year 2014.
The strong growth in low-fat and low-carbohydrate food and beverages is expected to increase the demand in the North American flavor and fragrance market. However, Asia is projected to gradually overtake the North American market, due to an increase in growth estimated for this region. On the other hand, growth of the European market would continue to be moderate, due to market maturity, as well as, consolidation in the industries that use food flavors and enhancers.
â€œConAgra Foods has struck a $340m deal to sell its Spicetec flavors and seasonings business to Givaudan.â€
â€œGivaudan donates $1m to support UCR citrus variety collection.â€
â€œFirmenich Erythritol crystals to enhance flavor encapsulation.â€
The flavors segment forms the largest component of the overall food ingredients market, and the segment can be featured as specialized, highly technical, and innovative in nature. A good example of the approach in action can be found in the Philippines and Indonesia, where Givaudan has applied consumer understanding techniques to develop flavors for powder juice drinks, which are very popular in these parts of Asia-Pacific. When compared to other categories, within the food and beverage market, this industry is highly competitive and concentrated. The companies that operate in the flavor and flavor enhancers industry not only develop and supply a variety of flavor and flavor enhancing ingredients and components to food and beverages, but also to pharmaceuticals, food industries, and to the suppliers of household products. Also, this industry is bound to region-wise customization, which is highly complex in nature, with great variance in product formulations, from country to country, and within the countries.
The flavors and textures of processed foods are customized by the local preference. Traditional or local foods have unique flavors, which evolve from the indigenous climate and land.
In recent years, the global flavor and flavor enhancers market has reached a threshold of enormous growth. The growth of the segment can be partially attributed to the expansion of global beverage industry, and increasing demand for convenience food, change in consumer lifestyle, and a rising number of sensory-oriented consumers around the world. On the other hand, factors like mounting raw material prices, high entry barriers, regulatory limitations, and price pressure on manufacturers owing to the consolidations, are influencing the industry growth. Major trends that prevail in the market are consolidations in the industry; â€˜No artificial flavors or colors,â€™ is in trend with the emergence of biotech flavors and sensory trend.
Firmenich Industries Ltd,
International Flavors & Fragrances Inc.
Takasago International Corporation
Sensient Technologies Corporation
V. Mane Fils SA
Key Deliverables: In The Report
Market analysis for the global flavor and enhancer market, with region specific assessments and competition analysis.
Market definition along with the identification of key drivers and restraints.
Identification of factors instrumental in changing the market scenario, rising prospective opportunities, and identification of key companies that can influence this market.
Extensively researched competitive landscape section with profiles of major companies along with their market share.
Identification and analysis of the macro and micro factors that affect the global flavor and enhancer market.
A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information.
A wide-ranging knowledge and insights about the major players in this industry and the key strategies adopted by them to sustain and grow in the studied market.
Insights on the major regions in countries where this industry is growing and also identify the regions that are still untapped.
1.1 Research methodology
1.2 Market Definition
1.3 Report Description
2. Key Findings
3. Market Overview & Dynamics
3.2.1 Globalisation and modernization in the food habits
3.2.2 Expanding Processed Foods market
3.2.3 Rising demand from Emerging economies
3.3.1 Consumers demand for natural Additives
3.3.2 Awarness on allergens related health issues
3.3.3 Complex US regulatory environment
3.4.1 Growing demand for Natural and Nutraceutical Ingredients
3.4.2 Innovations to meet the wellness demand
3.4.3 Wider Acceptance of GSFA for improved International Trade
3.5 Porter Five Forces Analysis
3.5.1 Bargaining power of Suppliers
3.5.2 Bargaining power of Buyers
3.5.3 Degree of Competition
3.5.4 Threat of Substitution
3.5.5 Threat of new entrants
4. Market Segmentation
4.1 Food Flavors Segmentation
4.1.1 Flavours by Type
188.8.131.52 Natural Flavour
184.108.40.206.1 Essential oils
220.127.116.11.3 Natural Extracts
18.104.22.168 Synthetic Flavour
22.214.171.124.1 Fruit flavours
126.96.36.199.2 Citrus flavours
188.8.131.52.3 Savoury flavours
184.108.40.206.4 Other synthetic flavours
220.127.116.11 Nature Identical flavourings
4.1.2 Flavours by application
18.104.22.168 Meat & fish products
22.214.171.124 Snacks & savouries
4.2 Flavor Enhancers Segmentation
4.2.1 Flavour enhancer by type
126.96.36.199.2 Others (DSG, MPG)
188.8.131.52.1 Disodium guanylate
184.108.40.206.2 Disodium Inosinate
4.2.2 Flavour Enhancer by Application
220.127.116.11 Seasonings & spices
18.104.22.168 Meat products
4.3 By Geography
4.3.1 North America
5. Competitive Landscape Overview
5.1 Market Share Analysis
5.2 Strategies by leading players
5.3 New Product Developments &Other Innovations
6. Company Profiles
6.1 Amitalia S.r.l.
6.2 Ariake U.S.A.,INC.
6.3 Cargill Inc
6.4 Kerry Group
6.5 Corbion Purac
6.7 Archer Daniels Midland(ADM)
6.8 FMC Corporation
6.9 Brenntag Pacific Inc
6.12 International Fragrance and Flavours, Inc.(IFF)
6.14 D.D. Williamson & Co Inc.
List of Tables
1: North America food Food flavors & Enhancers market revenue, by Country, 2012-2020($ Million)
2: North America food Food flavors & Enhancers market revenue, by type, 2012-2020($ Million)
3: U.S.: Food flavors & Enhancers market Revenue,by Type, 2012-2020 ($Million)
4: Canada.: Food flavors & Enhancers market Revenue,by Type, 2012-2020 ($Million)
5: Mexico: Food flavors & Enhancers market Revenue,by Type, 2012-2020 ($Million)
6: Others: Food flavors & Enhancers market Revenue,by Type, 2012-2020 ($Million)
7: North America food Food flavors & Enhancers market revenue, by Application, 2012-2020($ Million)
8: U.S.: Food flavors & Enhancers market Revenue,by Application, 2012-2020 ($Million)
9: Canada.: Food flavors & Enhancers market Revenue,by Application, 2012-2020 ($Million)
10: Mexico: Food flavors & Enhancers market Revenue,by Application, 2012-2020 ($Million)
11: Others: Food flavors & Enhancers market Revenue,by Application, 2012-2020 ($Million)