Flavoured Syrups Market

Market Overview

The global flavoured syrups market size was valued at USD 51.20 billion in 2021 and is expected to reach USD 81.77 billion in 2030 expanding at a CAGR of 5.34%.

A flavoured syrup is a liquid that is either semi-hot or spicy and is prepared by combining sugar with artificial or natural fragrant substances and then concentrating the mixture. Its common function is that of a sweetener and flavour enhancer. For those who are concerned about their calorie intake, aromatic syrup can also be found in low-calorie formulations. They are divided into categories such as mint, delicious, sweet, sour, and other flavours based on the type of taste they possess. Fruits, coffee, herbs & spices, chocolate, vanilla, and other flavours can be found in flavoured syrups. Other flavours include vanilla and chocolate they find employment in a different variety of applications, including those involving dairy and frozen foods, confectionery, beverage, and pastry items, among others.

The expansion of the market may largely be due to the rising demand for customised tastes in the food and beverage manufacturing sector. A growing number of producers in all sectors of the business are turning to the use of flavoured syrups as a means of enhancing flavours and adding sweetness to their products. The category of beverages, which includes a broad variety of liquid syrups in a variety of tastes, has been the primary contributor to the highest level of demand in the market.

Market Dynamics

Global Flavoured Syrups Market Drivers

An increase in consumer interest in homemade foods is driving the rising demand for flavouring syrup

In recent years, there has been a significant increase in the amount of interest that consumers have shown in cooking. A rise in consumer interest in preparing creative meals at home can be attributed to the proliferation of cooking-focused streaming channels on social media platforms as well as traditional television.

Due to this an increase in demand for numerous items at the household level. These commodities are mostly acquired by enterprises that manufacture food and beverages, as well as hotels and restaurants. One example of such a food item that has gained popularity among those who shop for groceries at home is flavoured syrup.

In addition, the fact that homemade cuisines may be completely personalised to meet the requirements of individuals who have food allergies to particular components or who need a particular nutrient balance is another factor that encourages individuals to prepare their own cuisines at home. The demand for flavoured syrup is being driven higher as a direct result of this.

Urbanization in developing countries is booming, driving up demand for food ingredients

It is projected that the urban proportion of the population in Asian nations would increase from 44 percent in the year 2010 to 56 percent in the year 2030, as stated by the United Nations. People in developing nations have seen a profound shift in their patterns of consumption as a direct result of the continuous urbanisation of these countries.

Due to this, an increasing number of various celebrations and weekend hangouts are including dishes from a variety of different ethnic cuisines onto their menus. This has also resulted in the noteworthy spread of hotel chains and restaurant chains, which has contributed to their flourishing in emerging nations' tier-1 and tier-2 cities.

The whole supply chain has been positively impacted as a result of all of these changes and transformations. The use of flavoured syrup in restaurants and hotels in developing nations has also attracted a substantial amount of attention in recent years.

From 2021 to 2031, it is anticipated that the demand for flavoured syrup would increase by at least 1.5 times throughout the course of the projection period. This coincides with the anticipated transition of a substantial number of eating establishments toward the Western model.

Millennials are the most sought-after customers by manufacturers of flavoured syrup

When it comes to tasting new foods, millennials are among of the most adventurous clients in the market today. In the United States, for example, the chance that consumers of various generations will frequent restaurants at least once per week is, accordingly, 67 percent for boomers, 70 percent for GenZ, and 80 percent for millennials.

In addition, because they have such great purchasing power, millennials are also willing to spend more money on cuisines that are considered to be more traditional. While they do spend money on flavoured syrup for use in the preparation of meals at home, they also spend a significant amount of money on their meals out at restaurants that make use of flavoured syrup.

Global Flavoured Syrups Market Restraints

Consumers who already have high blood sugar or hyperglycaemia may experience complications as a result of the significant amounts of sugar that are included in flavoured syrups. Aside from this, there is a larger trend toward zero-sugar diets, which can be attributed to an increased health consciousness among consumers. Because of this, the expansion of the market in the years to come is very certain to be impeded.

Regional Analysis

In 2018, the North American continent was responsible for the greatest proportion, which was 33.9 percent. The inclination of consumers for include flavoured syrups in their everyday meals, such as cereals, snacks, desserts, and drinks, is the primary factor driving the expansion of the flavoured syrups market share. Because there is an abundant supply of high-quality ingredients including chocolates, toppings, fillings, and tastes in this region, the bakery business is anticipated to experience tremendous expansion in the next years. This, in turn, is pushing businesses in the food and beverage industry to increase their use of flavoured syrups.

From 2019 to 2025, it is anticipated that Asia Pacific would increase at a compound annual growth rate (CAGR) of 5.6 percent. Since bakery goods are so reasonably priced, many perceive them to be goods suitable for mass consumption. In addition, the desire of customers to consume foods high in sugar has prompted producers to develop novel goods that are mixed with syrups of various flavours. A great number of international businesses have made their way into the Asian market and have been able to quickly establish themselves as leaders in this sector. For example, Hershey dominated the chocolate syrups market in India in 2017, holding almost 94 percent of the market share.

Segmental Analysis

By Type Analysis

In 2018, the fruit market retained the greatest proportion, which accounted for 35.3% of total sales. The rising demand among customers for fruit-infused flavoured syrups, combined with their strong preference for distinctive flavours, is a primary reason that is driving the industry. To maintain their standing in the international market, manufacturers have been concentrating their efforts on the creation of combination fruit syrups and the introduction of unique tastes.

In response to the growing interest among customers in all-natural, chemical-free, and eco-friendly products, several businesses are now offering syrups that have been flavoured with real fruit. Some of the distinctive flavours that are created by combining significant amounts of fruit components are apple and beetroot juice, apple and 100 percent natural sour cherry, and apple and common sea-buckthorn. In a similar vein, Poloskei Drink Kft is a firm that sells syrup with a combination of flavours derived from fruits. It not only incorporates traditional tastes into its fruit syrups, but it also creates novel combinations of flavours, such as acerola-raspberry and blueberry-raspberry syrups.

Over the course of the projected period, it is anticipated that the chocolate category will record the highest CAGR, which will be 5.7 percent. The beverage and food business is showing signs of becoming more receptive to its implementation. The large use in hot and cold beverages such as milkshakes, hot and cold coffee, smoothies, as well as baking and confectionery items such as cakes, pastries, pancakes, and waffles, drives the segment's growth. Since India has a significant demand for goods containing chocolate, it is anticipated that India would be one of the target markets pursued by makers of chocolate syrup, specifically The Hershey Company.

By Application Analysis

In 2018, beverages represented a percentage of the market that was greater than 35.0 percent. As a flavour and sweetness enhancer component, flavoured syrups are frequently used in beverages, notably cocktails, as well as hot and cold beverages, and soft drinks. These are just some of the prevalent types of goods that contain flavoured syrups. For instance, Starbucks brews their coffee with a broad variety of naturally flavoured syrups, such as caramel, hazelnut, and vanilla, which they pour over the beverage before serving it.

Over the course of the projection period, it is anticipated that the category of bakery and confectionery would have the highest CAGR of 5.6 percent. It is anticipated that the expansion of this market sector would be driven by an increase in the customer desire for items such as bread, rolls, pastries, cakes, pies, cookies, crackers, and pretzels. It is anticipated that the introduction of unique tastes, in conjunction with the growing indulgence factors among consumers in APAC nations, would increase demand for products on the worldwide market in the next years.