Global Food Flavors Market Size USD 23.97 billion by 2031 | CAGR of 4.4%

Introduction

Flavorings are compounds added to food in minute amounts to impart a particular flavor to a product, such as a soft drink, boiled sweet, or yogurt, or to improve or replace the flavor lost during processing. Flavorings can be made by extracting aromatic components from foods or synthesizing novel taste-stimulating compounds. Perishable foods lose flavor over time during preparation and preservation, necessitating the employment of flavoring chemicals to retain flavor. Flavors are required in the food and beverage sector for various purposes, including creating new products, introducing new products, and altering the flavor of current products.

Market Dynamics

Increasing Use of Health Products Drives the Global Market

Recent increases in demand for healthy products include energy drinks, fruit-flavored beverages, and nuts. Population health consciousness is the driving force behind the expansion of health products, also known as green-label products. In addition, a rise in the prevalence of disorders such as obesity, diabetes, and hypertension contributes to the expansion of health-related food products among consumers. Several food companies, like Coca-Cola and Pepsi, target consumers with zero-sugar goods. As a result, there has been a growth in the per capita income of the global population to meet the high costs of health and wellness products, which has contributed to the expansion of the business.

Opportunities in the Unpenetrated and Under-Penetrated Developing Countries Creates Tremendous Opportunities

Untapped prospects in emerging economies are vast and immense. More than 80% of the world's population resides in nations not members of the Organisation for Economic Co-operation and Development (OECD). Still, they eat less than 60% of the world's food. By 2020, emerging economies will account for more than sixty percent of the global middle-class population. Furthermore, rising earnings, especially in developing nations, have raised the demand for tastier and healthier food items. Milk, chocolate, and meat consumption have increased as a result of an increase in purchasing power. In addition, wealth enhances the quality of life, boosting the demand for nutritious and tasty food products and generating enormous growth prospects for the market.

Regional Analysis

Asia-Pacific is the most substantial shareholder in the global food flavors market and is anticipated to boost at a CAGR of 5.8% during the forecast period. Due to increasing income levels and a vast consumer base for food goods in Asia-Pacific, the global food flavor industry has significant expansion potential. China and India compete with Western nations for economic growth due to their enormous populations and high worker productivity. In several Asia-Pacific countries, the prevalence of Western fast-food restaurants has grown. Hence, it has become an essential location for the evolution of the global food flavor industry. In addition, the emergence of several companies in the Asia-Pacific area is due to less stringent regulatory constraints. Furthermore, Takasago International Corporation, T. Hasegawa Co., China Flavors & Fragrances Co., Ltd., and Huabao International Holdings Limited are the leading flavor manufacturers in the region. The rise in purchasing power of the Asia-Pacific population, changes in eating habits, the rise in urbanization, the absence of a regulatory framework, a large customer base, the increase in stress, and a taste for delectable food products all contribute to the expansion of the market in the region.

North America is projected to grow at a CAGR of 2.7% over the forecast period. Significant drivers propelling North America's food flavor market growth include the rising demand for convenience foods, the expansion and development of the beverage industry, and alterations in consumer lifestyles. Variations in customer preferences and a surge in demand for healthy and organic products contribute to the sector's expansion. North America has experienced tremendous technological advancements over the previous three to four decades, resulting in a broad and expansive food and beverage business. Unique and enthralling flavors require a substantial financial investment and new approaches. Bell Flavors and Fragrances, Inc., Wild Flavors, Inc., Sensient Technologies Corporation, Amyris, Inc., and International Flavors & Fragrances, Inc. are the leading flavor makers in the region.

Key Highlights

• The global food flavors market was valued at USD 16.27 billion in 2022. It is estimated to reach USD 23.97 billion by 2031, growing at a CAGR of 4.4% during the forecast period (2023–2031).
• Based on type, the global food flavors market is divided into natural and artificial flavors. The artificial flavors segment is responsible for the largest market share and is projected to grow at a CAGR of 3.9% over the forecast period.
• Based on end-user, the global food flavors market is segmented into beverages, dairy and frozen products, savory and snacks, bakery and confectionery, and animal and pet food.The beverages segment owns the highest market share and is projected to rise at a CAGR of 3.1% during the forecast period.
• Asia-Pacific is the most substantial shareholder in the global food flavors market and is anticipated to boost at a CAGR of 5.8% during the forecast period.

Competitive Players

Recent Developments

Recent Developments

• January 2024 - The assets of Dayton, New Jersey-based Sterling Food Flavorings, LLC ("Sterling") were acquired by Brookside Flavors & Ingredients LLC ("BFI"). For many years, Sterling has been designing and producing flavoring systems that enable clients to be successful. Sterling is highly regarded by its clients and has a strong focus on customer service.
• June 2024 - The Kraft Heinz Company added new products to its retail lineup, including stuffed hot dogs and plant-based macaroni and cheese. The Kraft Heinz Co.'s CEO, Carlos A. Abrams-Rivera, stated on a conference call with analysts on February 14 that the company is attempting to "reenergize" its macaroni and cheese division in an effort to adjust to a shifting market.

 

Segmentation

1. By Type
   1. Natural Flavors
   2. Artificial Flavors
2. By Application
   1. Beverages
   2. Dairy & Frozen Products
   3. Bakery & Confectionery
   4. Savory & Snacks
   5. Meat & Poultry
   6. Others
3. By Form
   1. Liquid
   2. Powder
4. By End-Use
   1. Food & Beverage Industry
   2. Pharmaceuticals
   3. Cosmetics & Personal Care
   4. Others
5. By Distribution Channel
   1. Online
   2. Offline