Food Flavors Market Size, Share & Trends Analysis Report By Type (Natural Flavors, Artificial Flavors), By Application (Beverages, Dairy & Frozen Products, Bakery & Confectionery, Savory & Snacks, Meat & Poultry, Others), By Form (Liquid, Powder), By End-Use (Food & Beverage Industry, Pharmaceuticals, Cosmetics & Personal Care, Others), By Distribution Channel (Online, Offline) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2033

Market Overview

The global food flavors market size was valued at USD 18.92 billion in 2024. It is expected to reach USD 28.91 billion in 2033, growing at a CAGR of 4.4% over the forecast period (2024-33). With increasing urbanization and hectic lifestyles, there is a growing demand for processed and convenience foods. Food flavors play a crucial role in enhancing the taste and appeal of these products, thereby driving market growth. Moreover, technological advancements, such as biotechnology and enzymatic processes, have enabled the development of new flavor compounds and improved flavor delivery systems. This fosters innovation and expands the range of flavors available in the market.

Flavorings are substances added to meals in minute quantities to impart a specific flavor to a product, such as a soft drink, boiled sweet, or yogurt, or to enhance or replace the flavor lost during processing. Flavorings can be produced by extracting aromatic components from meals or synthesizing novel chemicals that stimulate the taste buds. During processing and preservation, the flavor of perishable foods diminishes with time, necessitating the use of flavoring agents to preserve the flavor.

In the food and beverage industry, flavors are required for various purposes, including creating new products, introducing new products, and altering existing products' tastes. The two major categories of food flavors are natural flavors and synthetic flavors. Natural flavors consist of complex chemical compounds originating from plants or fruits. On the other hand, the synthetic flavor is not obtained from nature but rather from chemicals.

Market Dynamics

Global Food Flavors Market Drivers:

Increase in the Use of Health Products

Demand for healthy goods has increased recently, including energy drinks, fruit-flavored beverages, and nuts. The rise in health awareness among the population is the key factor that fuels the growth of health products, also known as green-label products. Furthermore, an increase in the incidence of diseases, such as obesity, diabetes, and blood pressure, drives the growth of health-related food products among consumers. Many food companies, such as Coca-Cola or Pepsi, target audiences through their zero-sugar products. Therefore, there has been a surge in the per capita income of the global population to address the high costs of health and wellness products, which drives the expansion of the market.

Consumer Preference for Botanical and Floral Flavors 

Floral flavors have emerged as one of the top flavor trends. Different floral and fruity tastes are added to the baked items to impart a natural aroma and flavor. Typically, fruit flavors are combined with botanical flavors to give edible items a natural scent. Floral and botanical flavors have expanded from a specialist market to a broader market over the past years. The bulk of flower essences are utilized in baked goods, and the growth rate of these smells fluctuated between 132% from 2015 to 2018. In addition, lemon-lavender cookies, honey-lavender gelato, lemon-violent granola, blackberry-rose marshmallows, and others are some of the flavors employed in the bakery's products. The emergence of floral flavors as a trend is attributable to consumers' desire to invest in natural food products and ingredients, thereby driving market growth.

Global Food Flavors Market Restraint:

Surge in Side Effects of Artificial Flavors

The artificial flavors used in food products are fully processed without having any natural quality left in them. Scientists create copies of natural flavors in terms of taste with different synthetic chemicals, which are ultimately added to the food. It is cheaper to manufacture a food product with the desired taste, with minimal or zero nutritional value. Furthermore, the need to disclose 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 sourced from petroleum and other volatile chemicals. Studies have shown the adverse effects of the abovementioned chemicals on the thyroid, RNA, and enzymes. In addition, artificial flavors cause numerous problems, such as dizziness, nervous system depression, chest pain, fatigue, allergies, headaches, brain damage, nausea, and seizures. Some popular flavors can lead to tumors, genetic defects, and bladder cancer.

Global Food Flavors Market Opportunities:

Opportunities in the Unpenetrated and Under-Penetrated Developing Countries

The opportunities in emerging economies are enormous, as they are untapped. Non-member nations of the Organisation 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. In addition, emerging economies constituted a population of more than 60% of today's global middle-class population in 2020. Considering the changing pace, around 3 million households in China had a disposable income of approximately USD 10,000 in 2000, which increased to 60 million in 2012. This number was expected to exceed 230 million by 2020.

In addition, rising incomes, particularly in developing nations, have increased the desire for tastier and healthier food products. A rise in purchasing power has led to a rise in the consumption of expensive food items such as milk, chocolate, and beef. In addition, an increase in wealth improves the quality of life, which increases the need for nutritious and delicious food products and creates tremendous opportunities for the market to grow.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global food flavors market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most substantial shareholder in the global market and is anticipated to boost at a CAGR of 5.8% during the forecast period. Due to rising income levels and a huge consumer base for food items in Asia-Pacific, the global food taste industry has significant growth potential. Numerous nations in the Asia-Pacific area have had an economic expansion in the last one to two decades due to the expansion of their businesses. In addition, China and India compete with Western nations in economic growth due to their high labor productivity and large populations. In several nations of the Asia-Pacific region, the prevalence of Western fast-food businesses has exploded. Therefore, it has become an important region for the expansion of the worldwide market for food flavors. Moreover, less strict government restrictions have led to the advent of numerous firms in the Asia-Pacific region.

In addition, major regional flavor manufacturers include Takasago International Corporation, T. Hasegawa Co., China Flavors & Fragrances Co., Ltd., and Huabao International Holdings Limited. The rise in purchasing power of the Asia-Pacific population, changes in eating habits, increase in urbanization, lack of regulatory framework, wide customer base, growth in stress, and preference for tasty food products also propel the market growth in the Asia-Pacific region. Furthermore, the growing consumption of dairy, bakery, and beverage products in the region provides high potential for expansion in the food flavors market.

North America is estimated to grow at a CAGR of 2.7% over the forecast period. The increase in demand for convenience food, the growth & development of the beverage industry, and change in the lifestyle of customers are significant factors that drive the growth of the food flavor market in North America. Differences in consumer preferences and surge in demand for healthy and organic products supplement the market growth. In addition, North America has witnessed rapid technological innovations in the last 3–4 decades, resulting in vast and extended food and beverage industry. Creating unique and mesmerizing flavors requires huge capital investment and advanced and innovative techniques. Having all these attributes, North America naturally helped the food flavor market grow extensively. Furthermore, significant regional flavor manufacturers include Bell Flavors and Fragrances, Inc., Wild Flavors, Inc., Sensient Technologies Corporation, Amyris, Inc., and International Flavors & Fragrances, Inc.

In the European market, dairy goods such as cheese, milk, and butter are in high demand, stimulating the need for food tastes. Dairy products utilize food flavors to achieve a pleasant flavor. Europe is traditionally a rich country in terms of taste and cuisine. It has been a flourishing market for the food flavors industry owing to different cultures and food practices. Prominent players in the market have made high capital investments in R&D activities to enhance their technological base, diversify their product offerings, and increase their geographical outreach. In addition, Symrise AG, Mane S.A., Robertet Flavors, Inc., Naturex S.A., Nestec S.A., Isobionics B.V., Evolva Holding S.A., and Kerry Group Plc. are prominent flavor manufacturers in this region. There are strict regulatory laws regarding artificial food flavors in Europe, which boosts the growth of this region's natural food flavors market.

In Latin America, growing urbanization, increasing disposable income, and expanding retail sales augment demand for processed food and beverage, creating demand for food flavors. However, the rise in health awareness and fluctuating cost of raw materials required to produce natural flavors might hinder the market growth in the region.

Technological innovation, increased consumer preference toward ready-to-eat and convenience meals, and increased demand for health and wellness food are other factors that supplement the market growth in the Middle East region. Expanding the food service industry in the region, augmented by heavy investment in transforming the food and beverage industry, will create lucrative opportunities for the engaged stakeholders in the Middle East region.

In Africa, the food processing industry is nascent, with consumer preference gradually shifting towards higher-quality Western and international-style food. Furthermore, rapid urbanization and expanding regional food service outlets create demand for food flavors in Africa.

Segmental Analysis

The global food flavors market is segmented by type and end-user.

Based on type, the global 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. Artificial flavors are chemical compounds used to flavor food or improve the taste properties of natural food tastes. Unlike natural flavors, artificial flavors are subject to rigorous regulatory scrutiny. Processing artificial taste chemicals are less expensive than natural flavor chemicals. Moreover, the production time of artificial tastes is minimal and environmentally friendly. Numerous businesses, mainly the beverage and processed food industries, use artificial flavors extensively. In addition, the primary elements driving the growth of the artificial flavor industry include economic viability and an easier and shorter manufacturing procedure than natural flavors. Rising demand for processed foods in the Asia-Pacific region and innovations in the fast food industry is also expected to generate profitable prospects for market participants.

Natural flavors are animal or plant raw materials, which are either used in their natural state or processed through physical, microbiological, or enzymatic processes. They are used to promote or impart a characteristic taste of choice to hold the flavor after processing to modify an existing flavor and mask some undesirable flavors to increase consumer acceptance. Distillation, fermentation, and extraction are the most commonly used natural flavor component production methods. Roasting, hydrolysis, heating, and enzymolysis are other methods that can be employed to derive natural flavors. In addition, the market for natural food flavors has gained momentum globally, owing to their increased demand in the food and beverages industry. Natural flavors have a significantly low share in the global market; however, this share is anticipated to increase soon due to global demand for clean-label products.

Based on end-users, the global 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. Beverages are defined as liquid drinks manufactured for human consumption. The beverage industry is well-known for its distinctive flavors and evolving flavor trends. Innovations in beverage manufacturing technologies drive the taste sector. At beverage-manufacturing companies, flavorists blend flavors to perfection and cater to consumers' shifting preferences. Typically, manufacturers of beverages do not alter the flavor. They contract them out to flavor manufacturers. On the market, Parle Agro Corporation sells Appy Fizz, a fizzy apple juice produced by a third party. In addition, herbs, honey, super fruits, and spices are healthy flavors that drive the flavor trends in the beverage industry. The growth of the beverage flavors product market is expected to decline in some regions during the forecast period due to rising understanding among the population regarding the side effects of artificial flavors. Further, consumer preference for health drinks is projected to impede the growth of soft drinks and alcoholic beverages.

Natural and artificial flavors are added to various animal feed products, including mineral premix, milk replacers, and compound or concentrated feeds to enhance food taste. They help maintain consistent feed consumption and maximize feed intake. Vanilla flavors are added in starter feeds to improve post-weaning and pre-weaning calf performance, while cows prefer a citric aroma and taste to deliver satisfactory milk yields. Natural chicken flavor, natural turkey flavor, natural pork flavor, and natural fish flavor are some natural flavors generally added to pet food products. Furthermore, adding flavors to ruminant diets is a helpful tool to enhance palatability and performance parameters and increase feed intake. An increase in ownership of pet animals and a rise in owner spending on pet food products are expected to provide great potential for the food flavors market expansion.

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.