The global food flavor market size in 2016 was estimated USD 9.2 billion, and it is estimated to increase at a compound annual growth rate (CAGR) of 5.1% during the forecast period (2018 - 2023).
Sensient Flavors has launched a product line including seasonal combinations for spring, summer, autumn and winter. Fruit flavors are perceived by consumers as natural flavors being healthier options than other flavors. Sensient’s product line allows manufacturers to reinvigorate their brands and includes concepts designed to appeal to adults as well as children. Cargill has introduced erythritol as a flavor and it opened up new avenues for the ingredient, which till now had been pigeonholed as a bulk sweetener.
Changing Consumer Food Preferences
Globalization and modernization are the primary factors that have increased the demand for food flavors. 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.
The consumer’s preference for low-fat and low-carbohydrate diet is a key driver in the growth of the consumption of food flavors. Since the flavors are region- and country-specific, the manufacturers are constantly trying to hold a larger share of the demand through rigorous R&D and innovations in the market. Increase in health awareness among consumers is proving to be a major restraint in the artificial flavors market. Consumers are becoming more conscious about 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 industry, as massive natural resources are needed to extract flavors. Also, the change in preferences and tastes of the consumers are constant constraints for manufactures. Moreover, there are many regulatory bodies that have banned the use of artificial food flavors, especially in Europe.
Beverage Market Holds a Prominent Share
The food flavors segment is bifurcated into natural food flavors and synthetic food flavors. The food flavors are further segmented by application into dairy, bakery & confectionery, meat & fish products, snacks & savories, beverages, and others. By type, the artificial food flavors are expected to witness a fall in the market due to consumer preference for natural flavors. The major constraint in the natural flavors industry is the need for large amounts of natural resources to extract flavors according to consumer preference.
Europe Dominates the Food Flavors Market
The major global manufacturing hubs are North America and Europe, which hold a large share in the food flavor market. These regions are followed by Asia-Pacific, South America, and Africa. In Europe, snack and confectionary is leading the market in consumption followed by bakery items and meat. Keeping the consumers’ health in mind, the European market is mature and has several regulatory bodies for different applications of food flavors. Germany constitutes the major share in the Europe market having 23%, followed by the United Kingdom, Spain, The Netherlands, and Italy.
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-Pacific 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.
MAJOR PLAYERS: GIVAUDAN, FIRMENICH, ARIAKE U.S.A. INC., CARGILL INC, KERRY GROUP, CORBION PURAC, ARCHER DANIELS, MIDLAND (ADM), FMC CORPORATION, SYMRISE AG, BASF, INTERNATIONAL FRAGRANCE AND FLAVORS, INC. (IFF), SENSIENT, DUPONT- DANISCO and D.D. WILLIAMSON & CO INC., amongst others.
June 2017: Ajinomoto has started the third stage of its USD 2 billion global acquisition campaign at Europe. The company aims for takeover deals, with specific attention over the United Kingdom, Germany and France.
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1.1 Research methodology
1.2 Market Definition
1.3 Report Description
2. Key Findings
3. Market Overview & Dynamics
3.2.1 Globalization and Modernization in Food Habits
3.2.2 Expanding Beverage Industry
3.3.1 Consumers Demand for NATURAL ADDITIVES
3.3.2 Region Specific Customization
3.4.1 Innovations in Natural Flavors Segment
3.4.2 Innovations to Meet the Wellness Demand
3.5 Porter’s 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 By Type
4.1.1 Natural Flavor
4.1.2 Synthetic Flavor
4.1.3 Nature Identical Flavorings
4.2 By Application
4.2.4 Meat & fish products
4.2.5 Snacks & savory
4.3 By Geography
4.3.1 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
4.3.4 South America
188.8.131.52 South Africa
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
6.3 Ariake U.S.A. INC.
6.4 Cargill Inc
6.5 Kerry Group
6.6 Corbion Purac
6.7 Archer Daniels Midland (ADM)
6.8 FMC Corporation
6.9 Symrise AG
6.11 International Fragrance and Flavors, Inc. (IFF)
6.13 Dupont- Danisco
6.14 D.D. Williamson & Co Inc.
- Ariake U.S.A. INC.
- Cargill Inc
- Kerry Group
- Corbion Purac
- Archer Daniels
- Midland (ADM)
- FMC Corporation
- Symrise AG
- International Fragrance and Flavors Inc. (IFF)
- Dupont- Danisco
- D.D. Williamson & Co Inc.