Food Flavors Market to Reach $19.2 billion, Globally, by 2030 at 3.6% CAGR: Allied Market Research
The food flavor market is expected to reach $19.2 billion by 2030, growing at a CAGR of 3.6% during the forecast period. The Asia-Pacific region is projected to dominate the market throughout the forecast period. The natural food flavors segment is expected to grow at the highest CAGR during the forecast period. The food flavor market is driven by the growing demand for natural and organic food flavors, the increasing demand for processed and convenience food, and the changing consumer preferences. However, the high cost of natural and organic food flavors is expected to restraint the market growth. The key players in the food flavor market include Givaudan SA, Firmenich SA, Symrise AG, International Flavors & Fragrances, Inc., Sensient Technologies Corporation, and IFF. These players have adopted various growth strategies, such as product launches, expansions, agreements, partnerships, collaborations, and acquisitions to expand their presence in the food flavor market.
The food flavors market is expected to grow at a CAGR of 36% from 2014 to 2030
The food flavors market is expected to grow at a CAGR of 36% from 2014 to 2030. The market is segmented by type, geography, and application. The market by type is classified into natural and artificial flavors. The market by geography is divided into North America, Europe, Asia-Pacific, and LAMEA. The market by application is categorized into savory, sweet, and others.
The key players operating in this market include Givaudan SA, Firmenich SA, International Flavors & Fragrances Inc., Sensient Technologies Corporation, Synergy Flavors, Inc., Takasago International Corporation, and Frutarom Industries Ltd.
The natural flavors segment is expected to grow at the highest CAGR during the forecast period. The need for healthier and more natural products has resulted in the increased demand for natural flavors.
The savory application segment is expected to grow at the highest CAGR during the forecast period. The growth of the savory segment can be attributed to the increased demand for savory snacks and the growing popularity of ethnic cuisines.
North America is expected to dominate the food flavors market during the forecast period. The region has a well-developed food & beverage industry and is a major producer of natural flavors.
The key players in the market have adopted various strategies to increase their market share. These strategies include mergers & acquisitions, expansions, and new product launches.
Givaudan SA has acquired Naturex, a leading manufacturer of plant-based ingredients for the food & beverage, dietary supplements, and cosmetics industries. The acquisition will help Givaudan expand its product portfolio and geographic presence.
In October 2018, Frutarom acquired the flavor business of Wiberg, a leading manufacturer of savory flavors. The acquisition will help Frutarom expand its savory flavors portfolio and presence in Europe.
The global food flavors market is segmented on the basis of type, function, and geography
The global food flavors market is segmented on the basis of type function and geography. On the basis of type, the market is classified into natural and artificial flavors. On the basis of function, the market is classified into savory & meat, dairy, bakery, beverages, and others. On the basis of geography, the market is classified into North America, Europe, Asia-Pacific, and LAMEA.
The global food flavors market was valued at $15.1 billion in 2016, and is projected to reach $19.2 billion by 2030, growing at a CAGR of 3.6% from 2017 to 2030. The major factors that drive the growth of the global food flavors market are change in lifestyle and rise in disposable income. However, stringent government regulations regarding the use of food flavors are anticipated to hinder the market growth.
On the basis of type, the natural flavors segment is estimated to grow at the highest CAGR during the forecast period. The increase in preference for natural flavors over artificial flavors due to the health benefits associated with natural flavors is expected to fuel the growth of the natural flavors segment. Moreover, the increase in demand for natural flavors from the beverage industry is anticipated to provide new growth opportunities for the natural flavors segment.
On the basis of function, the beverages segment is estimated to grow at the highest CAGR during the forecast period. The increase in demand for flavored beverages, such as energy drinks, sports drinks, and RTD tea & coffee, is expected to fuel the growth of the beverages segment. Moreover, the increase in demand for functional beverages, such as probiotic drinks, is expected to provide new growth opportunities for the beverages segment.
On the basis of geography, the North America market is estimated to grow at the highest CAGR during the forecast period. The increase in demand for food flavors from the beverage, bakery, and dairy industries is expected to fuel the growth of the North America market. Moreover, the presence of major food flavors manufacturers in North America is expected to provide new growth opportunities for the market.
Key players operating in the global food flavors market include Givaudan SA, Firmenich SA, International Flavors &
On the basis of type, the market is segmented into natural and artificial flavors
On the basis of type, the food flavors market is segmented into natural and artificial flavors. The natural flavors segment is further classified into fruit & vegetable, meat, poultry & seafood, dairy, and others. The artificial flavors segment is further categorized into coffee & tea, chocolate & cocoa, baking & desserts, and others. The fruit & vegetable segment is anticipated to grow at the highest CAGR during the forecast period.
The fruit & vegetable flavors segment is anticipated to grow at the highest CAGR in the food flavors market during the forecast period. This growth is attributed to the increasing demand for natural flavors from the beverage and food industry. Moreover, the rising demand for exotic fruits & vegetables flavors from the Asia-Pacific region is projected to fuel the growth of this segment.
The artificial flavors segment is expected to hold the largest share of the food flavors market in 2018. This growth is attributed to the wide range of applications of artificial flavors in the food & beverage industry. Moreover, the easy availability and low cost of artificial flavors are the major factors that are anticipated to drive the growth of this segment.
The coffee & tea flavors segment is expected to grow at the highest CAGR in the artificial flavors market during the forecast period. This growth is attributed to the rising demand for coffee & tea flavors from the Asia-Pacific region. Moreover, the growing popularity of flavored coffee & tea is projected to fuel the growth of this segment.
The chocolate & cocoa flavors segment is anticipated to hold the largest share of the artificial flavors market in 2018. This growth is attributed to the increasing demand for chocolate & cocoa flavors from the food & beverage industry. Moreover, the wide range of applications of chocolate & cocoa flavors is expected to drive the growth of this segment.
On the basis of function, the market is segmented into savory, sweet, and others
The food flavors market is expected to reach $19.2 billion by 2030, growing at a CAGR of 3.6% from 2019 to 2030. The savory flavors segment is projected to grow at the highest CAGR during the forecast period. The growth of the savory flavors segment can be attributed to the rising demand for savory snacks and the growing popularity of ethnic cuisines.
The sweet flavors segment is expected to grow at a moderate CAGR during the forecast period. The growth of the sweet flavors segment can be attributed to the rising demand for sweet snacks and the growing popularity of desserts.
The other flavors segment is expected to grow at a moderate CAGR during the forecast period. The growth of the other flavors segment can be attributed to the rising demand for exotic flavors and the growing popularity of functional foods.
The savory flavors segment is expected to grow at the highest CAGR during the forecast period. The growth of the savory flavors segment can be attributed to the rising demand for savory snacks and the growing popularity of ethnic cuisines.
The sweet flavors segment is expected to grow at a moderate CAGR during the forecast period. The growth of the sweet flavors segment can be attributed to the rising demand for sweet snacks and the growing popularity of desserts.
The other flavors segment is expected to grow at a moderate CAGR during the forecast period. The growth of the other flavors segment can be attributed to the rising demand for exotic flavors and the growing popularity of functional foods.
On the basis of geography, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA
The global food flavors market is expected to reach $19.2 billion by 2030, growing at a CAGR of 3.6% during the forecast period (2020–2030). The market is driven by the increasing demand for natural and artificial food flavors in the food and beverage industry. Moreover, the growing population and their changing lifestyles are resulting in the increased demand for new and innovative flavors. However, the fluctuations in the prices of raw materials used for manufacturing food flavors are expected to restraint the market growth.
On the basis of geography, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA. North America is expected to hold the largest market share, due to the increased demand for artificial and natural flavors in the region. Asia-Pacific is anticipated to be the second-largest market, due to the growing demand for food flavors in the region.
The major players operating in the global food flavors market include Firmenich SA, Givaudan SA, International Flavors & Fragrances Inc., Symrise AG, Takasago International Corporation, Mane SA, Robertet SA, Frutarom Industries Ltd., Kerry Group Plc., and Sensient Technologies Corporation.