Flavor Ingredients Market Forecast (2021-2026)

Flavor Ingredients Market Overview

Flavor Ingredients market size is forecast to reach $23,349 million by 2026, growing at a CAGR of 3.2% during the forecast period 2021-2026. Flavor ingredients are compounds that improve the flavor of food, drink, or any other material. Essential oils, oleoresins, aroma compounds, and other substances are used in flavoring. Natural or synthetic flavoring components can be used. Natural flavors are generated from natural sources such as vegetables, plant extracts, marine extracts, dairy, and others. It is frequently added to food products to improve flavors that are lost during manufacturing. This is an additional ingredient that enhances the flavor of the dish and makes it more appealing to consumers. Increasing application of Flavor Ingredients in various food products are the major factors driving the growth of the Flavor Ingredients market. Increasing demand for processed food products coupled with rising disposable income of the people is set to further enhance the overall market development of the Flavor Ingredients Market for the period 2021-2026.

Report Coverage

The report: “Flavor Ingredients Market Forecast (2021-2026)” covers an in-depth analysis of the following segments of the Flavor Ingredients Market.

By Ingredients: Essential Oil, Oleoresins, Aroma Chemicals, Others.

By Source: Vegetable, Plant Extract, Marine Extract, Dairy, Others

By Form: Liquid, Powder, and Paste

By Application: Beverage, Bakery & Confectionery, Savory Foods, Tobacco, Pet Food, Oral Care, Nutraceuticals, Others

By End-User: Pharmaceuticals, Cosmeceuticals, Food & Beverages, Others

By Geography: North America (U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia, and Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia, and New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, and Rest of South America), and Rest of the World (Middle East, and Africa)

Key Takeaways

• Asia-Pacific dominated the Flavor Ingredients Market in 2020 owing to rising disposable income of the people coupled with growing demand for convenience food products. The Flavor Ingredients Market scope for different regions will be provided in the final report.
• Increasing demand for natural food ingredient are likely to aid the market growth of the Flavor Ingredients Market report.
• Detailed analysis of the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the Flavor Ingredients Market report.
• Fluctuation in raw material prices is poised to create the hurdles for the Flavor Ingredients Market.

Flavor Ingredients Market Segment Analysis - By Ingredients

Essential Oil held the largest share in the Flavor Ingredients Market in 2020 and is estimated to grow at a CAGR 3.2% during the forecast period 2021-2026. Essential oils are distilled plant extracts that retain the natural scent and taste of their source. They are obtained by mechanical pressing or distillation. Each essential oil has a unique chemical structure that determines the aroma, absorption, and effects on the body. Essential oil helps in providing and treating a variety of diseases such as sleep problems, stress disorders, depression, and immune system issues.

Flavor Ingredients Market Segment Analysis - By Source

Plant Extract held the largest sharer in the Flavor Ingredients Market in 2020 and is estimated to grow at a CAGR 4.0% during the forecast period 2021-2026. Flavor components are derived from a variety of plant extracts. Plant extracts are naturally occurring chemicals extracted from plants. Plant extraction is the process of separating liquid or solid from plants using an extraction method. These plant extracts are used in a variety of industries, including the food, pharmaceutical, and cosmetic industries. Plant Extract are estimated to register the higher CAGR over the period 2021-2026.

Flavor Ingredients Market Segment Analysis - By Geography

Asia-Pacific dominated the Flavor Ingredients Market with a major share of 28.9% in 2020 and is estimated to grow at a higher CAGR during the forecast period 2021-2026. This is attributed to growing demand for natural food ingredient in this region. Furthermore, as a result of the hectic lifestyle in this region, people's desire for processed food items is growing, which is increasing demand of the market in this region.

Flavor Ingredients Market Drivers

Increasing Demand for Natural Ingredients

Increasing demand of natural ingredients in food products is increasing the growth of the Flavor Ingredients Market. A considerable number of customers have developed an interest in acquiring clean label items, which provide a wide range of naturally produced components, hence increasing the demand for natural food ingredients. Increasing shifting of consumers towards products with natural flavor. Thus, increasing the growth of the Flavor Ingredients Market during the forecast period 2021-2026.

Increasing Application of Flavor Ingredients

Increasing application of flavor ingredients in various application including food and beverage, bakery & Confectionery, nutraceutical and many others is increasing the growth of the Flavor Ingredients Market. Flavor Ingredients is majorly used in food and beverage products to enhance taste, thus increases demand for food products which leads to rise in demand for processed food products.

Flavor Ingredients Market Challenges

Strict Regulation Policies

Strict regulation policies of government that norms delay the new product launch by manufacturers further limiting the Flavor Ingredients market. Furthermore, fluctuation in raw material prices which are among the challenges for the Flavor Ingredients also set to hinder the growth of the market.

Flavor Ingredients Market Landscape

Product launches, mergers and acquisitions, joint ventures, and R&D activities are key strategies adopted by players in the Flavor Ingredients Market. In 2020, the Flavor Ingredients Market share is consolidated by the top ten players present in the market. The Flavor Ingredients Market, top 10 companies are Givaudan, MANE SA, Firmenich, International Flavors & Fragrances, Inc. (IFF), Symrise, Huabao International Holdings Limited, Takasago, Sensient Flavors, Robertet SA, and T.Hasegawa.