Chicken Flavor Market

Market Overview

The global chicken flavor market was valued at USD 676.8 million in 2022. It is estimated to reach USD 1,232.4 million by 2031, growing at a CAGR of 5.1% during the forecast period (2023–2031).

A chicken flavor is a yeast extract flavoring that imparts the poultry's flavor. Chicken-based food flavors are commonly used to improve the taste of food products. Chicken flavor additives mainly include natural and synthesized flavors. It is made with actual chicken broth and contains less sodium. It is frequently added to foods to enhance and amplify the flavors, aromas, and textures. Many sauces, frozen meals, gravies, broths, soups, and stews contain chicken flavor.

The chicken flavor is added to culinary goods to provide a distinctive flavor and replicate the flavor and texture of meat. After processing and preserving, perishable foods tend to lose their flavor over time, necessitating the application of flavoring agents to help preserve the flavor. The food sector needs flavors for various reasons, including developing new products, expanding the product range, and altering the flavor of already-existing products. It can be purchased in liquid and powder form from supermarkets, hypermarkets, and internet shops.

Highlights

• Powder dominates theform segment
• B2B dominates the end-user segment
• North America is the highest shareholder in the global market

Market Dynamics

Market Drivers

Surge in Demand for RTE Meal and Fast Foods

The global chicken flavor market has constantly witnessed high demand for RTE and other convenience food products in the last decade. Such foods are called convenience foods and are either fully or partially cooked. The key reason for their growing demand is that it saves time and is convenient. Similarly, they can be carried anywhere in frozen form without losing their nutritional value. Therefore, the surge in demand for RTE meals boosts the growth of the chicken flavor market.

Rising Income Levels

A rise in income levels, especially in developing countries, fuels the demand for tastier and healthier food products. The consumption of costly food products, such as milk, chocolates, and meat, has increased due to increased purchasing power. Moreover, a rise in income levels improves the quality of life, increasing the demand for healthy and tastier food products, thereby driving market growth.

Technological Strides

The applications of advanced technologies make it possible to innovate and produce new and interesting tastes in food. It helps cater to the changing customer taste and produce flavors and food products that meet the needs. In addition, there is a growth in demand for chicken flavors, especially in the Asia-Pacific and Latin American regions. Flavorists can create natural flavors at economical prices due to the application of advanced technologies. Hence, the cost of producing chicken flavors has been reduced with the advent of advanced technologies.

Market Restraints

Side Effects of Artificial Flavors

The artificial flavors used in food products are fully processed. Scientists with different synthetic chemicals produce them. It is cheaper to manufacture a food product with the desired taste, with minimal or zero nutritional value. Disclosing the names of chemicals used to make artificial flavors is unnecessary until the ingredient or the source is considered safe. Many chemicals used to make artificial flavors are also sourced from petroleum and other volatile chemicals.

Studies have shown the adverse effects of the chemicals above on the thyroid, RNA, and enzymes. Artificial flavors cause numerous problems, like dizziness, chest pain, nervous system depression, fatigue, allergies, headaches, brain damage, nausea, and seizures. Some popular flavors can lead to tumors, genetic defects, and bladder cancer. These factors together are expected to hamper the global market growth.

Market Opportunities

High Potential in Unpenetrated and Under-Penetrated Developing Countries

The opportunities in emerging economies are huge, as they are untapped. Non-member nations of the Organization for Economic Co-operation and Development (OECD) comprise more than 80% of the global population; yet consume less than 60% of the world's food consumption. According to the European Commission, 5.3 billion people worldwide are anticipated to be in the middle class by 2030. This translates to an additional 2 billion people who will have more purchasing power than they do now. This expansion will primarily occur in Asia. China and India will account for 59% of middle-class consumption and 66% of the world's middle-class population by 2030. In addition, economic growth may be fueled by the expanding middle class; by 2030, consumer spending and behavior changes will lead to a 35% increase in food demand. It shows that the market has promising opportunities in the Asian untapped markets in the future.

Regional Analysis

Based on region, the global chicken flavor market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA. 

North America Dominates the Global Market

North America is the most significant global chicken flavor market shareholder and is estimated to exhibit a CAGR of 4.8% during the forecast period. North America includes the U.S., Canada, and Mexico, which are majorly contributing to the economy of this region. The North American chicken flavor market is mainly driven by awareness among food lovers about the availability of various chicken flavors. The powder is the primary form of consumption in North America. Most manufacturers are based in North America, making it easier for households and small businesses to reach the local supplier, attracting more customers toward the powdered flavors. In addition, the large consumption of chicken-based goods and the appeal of fast-food outlets drive the North American market. The desire to preserve flavor uniformity among numerous eating locations also boosts the demand for the chicken flavor market.

Europe is estimated to exhibit a CAGR of 4.5% over the forecast period. The Europe chicken flavor market comprises the UK, Germany, France, Italy, and Spain. These countries being the developed countries in the region and having some of the highest GDPs in the world, are leading the European market. Due to the region's customers' strong preference for savory flavors, the chicken flavor is preferred. Additionally, the industry is impacted by the rising demand for natural and clean-label ingredients. Manufacturers of flavors have been implementing new technologies to create better natural and artificial flavor types to improve their acceptability and stability. For instance, producing liquid-based chicken flavors is challenging since the original taste and flavor are diminished throughout the extraction process, making it challenging to preserve the original flavor. As a result, manufacturers are developing and implementing cutting-edge technologies to preserve its flavor, including solid-liquid extraction (SLE), supercritical carbon dioxide extraction, supercritical fluid extraction, and others. Therefore, technical developments support the creation of novel flavors to satisfy shifting consumer taste preferences, which supports the expansion of the market for chicken flavors.

China, India, South Korea, and Japan are some of the major countries in the Asia-Pacific region. These countries are fast-developing markets in the Asia-Pacific region and are emerging economies; hence these regions are studied in the report. Asia-Pacific is a major consumer of chicken flavor because of the continent's diverse culinary customs. In addition, consumers' growing concern over the long-term health effects of artificial ingredients and additives has boosted the need for natural and healthy components in food items, primarily driving flavor demand in the Asia-Pacific region. Other important market factors include the demand for processed food, rising disposable incomes, the acceptance of exotic chicken flavors, and the desire for distinctive flavors in various food applications.

LAMEA is one of the major markets for the food industry. Due to consumer preferences and the region's rich culinary heritage, the chicken flavor is in high demand. Most of the countries in this region are emerging nations adapting to new lifestyles. Moreover, governments are also investing in business models. They give suitable and attractive environments to foreign countries to invest in their domestic market, providing potential opportunities to small companies. The LAMEA region also provides tremendous opportunities to expand the global chicken flavor market, owing to increased demand by the manufacturers of various flavors for chicken products.

Segmental Analysis

The global chicken flavor market is segmented by form and end-user.

Based on form, the global chicken flavor market is bifurcated into liquid and powder. 

The powder segment dominates the global market and is expected to exhibit a CAGR of 5.21% over the forecast period. The powder form of flavors is an excellent flavor enhancer. It can easily blend and be added to other ingredients to mix or add directly to the recipe. It offers longer shelf life, consistent mouthfeel, easily blends with other components and ease of use. Powder-form flavors generally offer strong flavors, which are expected to gain major momentum in the market. Growth in trends of health consciousness and consumer preferences for better taste has led to an exponential increase in the use of powder-form of flavors by most manufacturing companies.

Furthermore, the increase in disposable income of the global population and the easy availability of powder form of flavors due to retailers' strong command in the supply chain boost the growth of the chicken flavor market during the forecast period. It is anticipated that increasing demand for tastes in powder form will result from encouraging the use of meat products and ready-to-eat foods worldwide, particularly in developing nations.

Chicken flavors mainly consist of taste and aroma. Liquid flavors generally blend easily, but their shelf life is short. These flavors offer benefits such as cost-effectiveness with a shelf life of over a year and better oil solubility. They can also be labeled as natural flavors. The market for a liquid form of flavors has gained momentum globally, owing to their increased demand in the meat industry. Currently, the liquid form of flavors has a considerable share in the global market, and this share is expected to increase soon due to the rise in demand for clean-label products globally. The leading manufacturers are also investing in R&D activities to overcome stability and sustainability issues in liquid form.

Based on end-user, the global chicken flavor market is segmented into B2B and B2C. 

The B2B segment owns the highest market share and is estimated to exhibit a CAGR of 5.1% during the forecast period. B2B distribution of chicken flavors is business-to-business distribution by the manufacturer to the supplier or the other manufacturer. This type of distribution is mainly in bulk; raw manufacturers supply the flavors to large-scale ingredients manufacturers. The chicken industry on the global level is witnessing a large-scale expansion. According to National Chicken Council, the U.S. has the largest broiler chicken industry in the world, with around 17% of production exported to other countries in 2018, and it is the second leading broiler exporter in the world after Brazil.

B2B includes the supply of chickens from farmers to the manufacturers of big poultry businesses to other chicken product manufacturers. In the U.S., production agreements with businesses cover about 25,000 family farmers. These farms produce roughly 95% of the world's broiler chickens, demonstrating the manufacturers' rising demand, which reflects consumers' rising chicken consumption. This growth in chicken consumption by consumers is expected to boost the growth of the chicken flavor market and the demand for newer tastes and flavors in chicken food products.

B2C is a distribution channel, which is my business to customers. It primarily includes small household customers who directly purchase the flavors from the manufacturers. The availability of local manufacturers with various options in the chicken flavors is a key factor that boosts the market growth through this segment. Local household families and small business owners find it easy to go directly to the manufacturing facility and purchase the flavors in bulk quantities. The availability of local manufacturers in the neighboring vicinity boosts the growth of the global chicken flavor market. In addition, the positive environment for the growth of small enterprises is expected to further drive the growth of the chicken flavor market during the forecast period.

Recent Developments

• March 2023- Baskin Robbins introduced its newest flavor of ice cream infused with chicken and waffles. A news release describes Chick'n & Waffles as "waffle-flavored ice cream with an abundance of crispy chicken* and waffle-flavored morsels drizzled with a decadent bourbon maple syrup-flavored swirl."
• January 2023- Perdue Foods unveiled two new meal and snack categories. The poultry supplier recently debuted its new PERDUE® Flavor-Infused Chicken and PERDUE Chicken Plus Snackers, created as part of its commitment to developing innovative, flavorful products.