by The global Food Flavor Market is estimated to be valued at US$ 17.68 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The food flavor market comprises products that flavor food and beverages and enhance their taste and aroma. Flavors come from natural sources like spices, fruits, vegetables, herbs, meat and other botanical or animal sources. They are also synthesized in laboratories from natural raw materials using different technologies. The major application of food flavors includes bakery & confectionery products, dairy & frozen desserts, snacks & savories, beverages, and others. Growing demand for natural ingredients in food products due to rising health consciousness among consumers worldwide is the prime factor driving the growth of this market. Moreover, innovations in flavor encapsulation technology and clean label trends are also propelling the market growth.
Market key trends:
One of the key trends in the food flavor market is the growing demand for natural flavors. Consumers are increasingly preferring food products with clean labels containing natural ingredients. This is compelling food processors to replace artificial flavors with natural variants. According to a survey, over 70% of global consumers are willing to pay extra for foods with no or minimal artificial ingredients. Additionally, innovation in natural flavor encapsulation technology is allowing food manufacturers to deliver enhanced and consistent flavor profile in various product formulations. For example, technologies like spray drying and extrusion enable encapsulation of flavors, protecting them from degradation during processing and product shelf life. This offers convenience to manufacturers for developing new product lines catering to the health-conscious demographic.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the food flavor market is moderate. Factors like high capital requirements and established distribution networks pose entry barriers.
Bargaining power of buyers: The bargaining power of buyers in the food flavor market is high. Buyers can negotiate lower prices and demand high-quality products from established manufacturers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers of raw materials. However, suppliers of novel and natural ingredients have some bargaining power.
Threat of new substitutes: The threat of substitutes is low as there are limited product alternatives for food flavors. However, natural and clean label ingredients are gaining traction.
Competitive rivalry: The competitive rivalry in the food flavor market is high owing to the presence of many global and local players. Manufacturers compete on innovation, quality, and pricing.
Key Takeaways
The Global Food Flavor Market Size is expected to witness high growth, exhibiting CAGR of 4.6% over the forecast period, due to increasing demand for convenience and processed foods.
The Asia Pacific region is projected to witness the fastest growth in the food flavor market during the forecast period. Increasing disposable income, growing middle-class population, and rising demand for processed foods are fueling market growth in the region.
Key players operating in the food flavor market are Givaudan SA, International Flavors & Fragrances Inc., Firmenich SA, Symrise AG, Takasago International Corporation, Sensient Technologies Corporation, T. Hasegawa Co., Ltd., Kerry Group, Mane SA, and Huabao International Holdings Limited. Manufacturers are focusing on new product launches, mergers & acquisitions, and expansions to gain a competitive edge in the market.
