Flavoring Syrup and Concentrate Global Market Report 2021: COVID-19 Impact and Recovery to 2030

Major companies in the flavoring syrup and concentrate market include Monin; Sensient Technologies; The Hershey Company; Tate & Lyle and Kerry Group.

The global flavoring syrup and concentrate market is expected to grow from $47.82 billion in 2020 to $50.15 billion in 2021 at a compound annual growth rate (CAGR) of 4.9%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $63.92 billion in 2025 at a CAGR of 6%.

The flavoring syrup and concentrate market consists of sales of flavoring syrup and concentrate by entities (organizations, sole traders and partnerships) that produce flavoring syrup drink concentrates and related products for soda fountain use or for the produce of soft drinks. The companies in the flavoring syrup and concentrate industry process raw materials into flavoring syrup and concentrate, package and distribute them through various distribution channels to both individual customers, soft drink producers and commercial establishments. The flavoring syrup and concentrate market is segmented into syrups; molasses; sweet spreads; jam, jellies, preservatives and savory spreads.

Asia Pacific was the largest region in the global flavoring syrup and concentrate market, accounting for 35% of the market in 2020. North America was the second largest region accounting for 27% of the global flavoring syrup and concentrate market. Africa was the smallest region in the global flavoring syrup and concentrate market.

Syrup and concentrate manufacturers are increasingly offering products made with natural and organic ingredients. Innovative flavored products with enhanced nutritional value and low sugar content are attracting consumers with health consciousness. For instance, in 2019, Swoon introduced flavoring syrups with zero sugar content that can be consumed by diabetic patients. Similarly, in 2019, Torani, a US based flavor company launched 16 flavors of pure made syrups including green apple, peach, pumpkin spice, passion fruit, raspberry and strawberry. Canadian Organic Maple Co. Ltd, Hamel Maple Syrup and Hoover's Maple Syrup are some of the companies that have introduced organic syrups.

The flavoring syrup and concentrate manufacturing market growth is aided by stable economic growth forecasted in many developed and developing countries. The International Monetary Fund (IMF) predicts that the global GDP growth will be 3.3% in 2020 and 3.4% in 2021. Recovering commodity prices, after a significant decline in the historic period is further expected to aid the market growth. Developed economies are also expected to register stable growth during the forecast period. Additionally, emerging markets are expected to continue to grow slightly faster than the developed markets in the forecast period. Stable economic growth is expected to increase investments in the end user markets, thereby driving the flavoring syrup and concentrate manufacturing market during forecast period.

The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the flavoring syrup and concentrate manufacturing market in 2020 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China and spread globally including Western Europe, North America and Asia. Food and beverage manufacturers depend on supply of raw materials from domestic and international suppliers. As many governments restricted the movement of goods across countries and locally, manufacturers had to halt production due to lack of raw materials. Also, restrictions on trade of non-essential goods and fear of contamination through manufacturing facilities contributed to the decline. The outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the flavoring syrup and concentrate manufacturing market will recover from the shock across the forecast period as it is a 'black swan' event and not related to ongoing or fundamental weaknesses in the market or the global economy.