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Global Food and Beverage Flavors Market, Forecast to 2030

  • Report

  • 134 Pages
  • July 2020
  • Region: Global
  • Frost & Sullivan
  • ID: 5135944

Demand for Bold, Ethnic, and Global Flavor Profiles will Boost Innovation; Natural Flavors will Drive Growth

Flavors are defined as additives used to modify the taste and the odor of food and beverage products. Broadly, flavoring substances are segregated into natural and artificial categories based on the raw material used and the production processes involved. Positive consumer perception regarding natural ingredients has attributed to growth in demand for products comprising natural additives, including natural flavors. In addition, rising demand for clean-label products, especially in Western countries, is driving food and beverage manufacturers to make the shift from artificial ingredients to all-natural or non-additive portfolios, which will further boost adoption of natural flavors. However, despite strong demand for natural flavors, the higher price volatility, reduced stability, raw material supply challenges, and regulatory requirements limit large-scale adoption. Conversely, factors supporting the growth of artificial flavors include ease of use, cost efficiency, and flexibility to replicate strong and complex profiles.

Globally, artificial flavors held the majority share in 2019; however, changing consumer demand will drive the market toward natural flavors. Although artificial flavors are expected to register stable growth in terms of volume demand, the increasing prices of natural flavors over the forecast period will drive most of the revenue growth. Asia-Pacific (APAC) is expected to witness stable growth in demand for artificial flavors, primarily driven by the unorganized food and beverage sector, which holds a significant share, especially in high-growth markets such as India. The high cost and the lack of stringent regulations for the use of natural flavors in APAC are other key factors that support the adoption of artificial flavors. However, with rising consumer awareness, demand for natural flavors will witness robust growth, especially in high-volume markets such as China as well as Southeast Asian countries. Latin America, the Middle East, and Africa are also expected to witness double-digit growth in demand for natural flavors. North America and Europe recorded strong penetration of natural flavors in 2019, and demand is expected to increase further over the forecast period.

Globally, beverages dominated the food and beverage flavors market in 2019 in terms of both revenue and volume, followed by bakery and confectionery. Savory and sweet snacks, which includes salty snacks, snack bars, processed fruits and vegetables, processed meat and seafood, soups, noodles, and ready-to-eat meals (RTMs), is projected to witness strong growth over the forecast period. Changing lifestyles and the growing demand for convenient, on-the-go food products are key factors driving growth in the global snacks sector. As taste remains one of the key purchase criteria, demand for bold, ethnic, and unique flavor profiles will drive most of the product innovation across snacks and culinary products. Plant-based food products (plant-based meat substitutes, plant-based snacks, plant-based dairy products) are key propellers of growth and offer significant innovation opportunity for flavor manufacturers, especially in North America and Europe.

In general, the market is highly consolidated, and global manufacturers account for most of the share. Acquisitions of regional participants or specific technology-based companies seem to be a key strategy for global manufacturers. Investments in technology platforms that can cater to evolving consumer needs can act as a key growth differentiator for manufacturers.


Table of Contents

Executive Summary

Market Overview


  • Scope of the Study
  • Key Questions this Study will Answer
  • Market Segmentation
  • Market Segmentation Description

Drivers and Restraints-Total Food and Beverage Flavors Market


  • Market Drivers
  • Drivers Explained
  • Market Restraints
  • Restraints Explained

Forecast and Trends-Total Food and Beverage Flavors Market


  • Revenue and Volume Forecast
  • Revenue and Volume Forecast Discussion
  • Percent Revenue and Volume Forecast by Flavor Type
  • Percent Revenue and Volume Forecast by Flavor Type Discussion
  • Percent Revenue Forecast of Natural Flavors by Source
  • Percent Revenue Forecast of Natural Flavors by Source Discussion
  • Percent Revenue and Volume Forecast by Region
  • Percent Revenue and Volume Forecast by Region Discussion
  • Market Share
  • Key Participants’ Product Summary
  • Recent Activity of Key Participants-Givaudan
  • Recent Activity of Key Participants-IFF
  • Recent Activity of Key Participants-Firmenich
  • Recent Activity of Key Participants-Symrise
  • Recent Activity of Key Participants-Sensient and MANE

Growth Opportunities and Companies to Action


  • Growth Opportunity 1-Increasing Adoption of Natural Flavors Results in Innovation
  • Growth Opportunity 2-Demand for Bold, Ethnic, and Unique Flavors Drives the Growth of the Snacks Industry
  • Strategic Imperatives for Success and Growth

Trends and Key Flavor Profiles-Total Food and Beverage Flavors Market


  • Food and Beverage Flavor Trends-An Overview
  • Food and Beverage Flavors-Focus on Beverages
  • Food and Beverage Flavors-Focus on Dairy and Ice Cream
  • Food and Beverage Flavors-Focus on Bakery and Confectionery
  • Food and Beverage Flavors-Focus on Savory and Sweet Snacks
  • Food and Beverage Flavors-Focus on Other Food Products

North America Breakdown


  • Growth Opportunity Dashboard
  • Percent Revenue and Volume Forecast by Flavor Type
  • Percent Revenue and Volume Forecast by Flavor Type Discussion
  • Revenue Forecast by Application Category
  • Volume Forecast by Application Category
  • Revenue and Volume Forecast Discussion by Application Category-Beverages
  • Revenue and Volume Forecast Discussion by Application Category-Dairy
  • Revenue and Volume Forecast Discussion by Application Category-Bakery
  • Revenue and Volume Forecast Discussion by Application Category-Confectionery
  • Revenue and Volume Forecast Discussion by Application Category-Savory and Sweet Snacks
  • Revenue and Volume Forecast Discussion by Application Category-Other Food Products

Europe Breakdown


  • Growth Opportunity Dashboard
  • Percent Revenue and Volume Forecast by Flavor Type
  • Percent Revenue and Volume Forecast by Flavor Type Discussion
  • Revenue Forecast by Application Category
  • Volume Forecast by Application Category
  • Revenue and Volume Forecast Discussion by Application Category-Beverages
  • Revenue and Volume Forecast Discussion by Application Category-Dairy
  • Revenue and Volume Forecast Discussion by Application Category-Bakery
  • Revenue and Volume Forecast Discussion by Application Category-Confectionery
  • Revenue and Volume Forecast Discussion by Application Category-Savory and Sweet Snacks
  • Revenue and Volume Forecast Discussion by Application Category-Other Food Products

Asia-Pacific Breakdown


  • Growth Opportunity Dashboard
  • Percent Revenue and Volume Forecast by Flavor Type
  • Percent Revenue and Volume Forecast by Flavor Type Discussion
  • Revenue Forecast by Application Category
  • Volume Forecast by Application Category
  • Revenue and Volume Forecast Discussion by Application Category-Beverages
  • Revenue and Volume Forecast Discussion by Application Category-Dairy
  • Revenue and Volume Forecast Discussion by Application Category-Bakery
  • Revenue and Volume Forecast Discussion by Application Category-Confectionery
  • Revenue and Volume Forecast Discussion by Application Category-Savory and Sweet Snacks
  • Revenue and Volume Forecast Discussion by Application Category-Other Food Products

Latin America, the Middle East, and Africa Breakdown


  • Growth Opportunity Dashboard
  • Percent Revenue and Volume Forecast by Flavor Type
  • Percent Revenue and Volume Forecast by Flavor Type Discussion
  • Revenue Forecast by Application Category
  • Volume Forecast by Application Category
  • Revenue and Volume Forecast Discussion by Application Category-Beverages
  • Revenue and Volume Forecast Discussion by Application Category-Dairy
  • Revenue and Volume Forecast Discussion by Application Category-Bakery
  • Revenue and Volume Forecast Discussion by Application Category-Confectionery
  • Revenue and Volume Forecast Discussion by Application Category-Savory and Sweet Snacks
  • Revenue and Volume Forecast Discussion by Application Category-Other Food Products

The Last Word


  • The Last Word-3 Big Predictions
  • Legal Disclaimer

Appendix


  • List of Exhibits

The Publisher's Story


  • Value Proposition-Future of Your Company & Career
  • Global Perspective
  • Industry Convergence
  • 360º Research Perspective
  • Implementation Excellence
  • Blue Ocean Strategy

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Firmenich
  • Givaudan
  • IFF
  • MANE
  • Sensient
  • Symrise