The global bio-tech flavor market is growing rapidly, owing to an increasing demand in the food & beverages industry. Besides, the regional government regulations on increasing use of bio-based technology boosts the bio-tech flavor consumption. Food & beverages manufacturers experienced increased sales of their products that are marked as natural and biotech. Particularly in Europe, where in 2015, out of every seven new beverages product launches, one was labelled as natural and bio-tech.
As per Persistence Market Research analysis, global sales revenue of the bio-tech flavor market is estimated to be valued at US$ 906.7 Mn by 2016 end and is expected to increase to US$ 2,092.2 Mn by 2024, representing incremental opportunity of US$ 1,260 Mn between 2016 and 2024 and is expected to register a CAGR of 11.0% during the forecast period.
Demand for bio-tech flavor is expected to grow at a significant rate over the forecast period, since bio-tech flavor manufacturers are developing new applications that are in the developing phase. Bio-tech flavors provide number of health benefits including enhancement of antioxidant levels, reduces the risk of metabolic disease including obesity and diabetes, which makes the consumer to consume bio-tech flavor based food and beverages over natural and artificial flavors.
Bio-tech flavors have low shelf life as compared to the shelf life of natural and artificial flavors. As there is no added artificial compound such as artificial preservatives, the average shelf life of bio-tech flavors is around six months to one year only. Increasing shelf life of natural and fruity flavor is a real challenge in order to enhance growth of the global bio-tech flavors market. Mostly, vanilla & vanillin flavors are not used in soda drinks due to reaction issues. This is another growth restraining factor for the bio-tech flavors market in terms of value.
Based on application type, the food segment is estimated to account for more than 55% volume share of the overall global market by 2016 end, which is expected to increase further by the end of 2024. The global bio-tech flavor market volume, by the food application segment is forecasted to register a single digit CAGR for the period of 2016 through 2024.
Amongst the flavor type segment, the vanilla & vanillin segment is projected to be the most prominent segment over the forecast period, this is primarily owing to increasing demand of vanilla & vanillin flavor in protein bars, snacks, powder and protein drinks. As per Persistence Market Research analysis, the vanilla & vanillin segment, which accounts for more than quarter of the global bio-tech flavor market, is anticipated to register a CAGR that is estimated to be over 0.9% greater than the CAGR of the food application segment, during the forecast period.
Besides biotech flavor in food application, the exceptional eco-friendly and healthy properties of bio-tech flavor in beverages and nutraceutical segments, its use is anticipated to increase by 2024. Non-alcoholic beverages segment is estimated to be the most prominent sub-segment in beverages application segment, which is anticipated to account for more than 70% of total beverages market in global bio-tech flavor market over the forecast period.
Similarly in food segment, confectionery products are estimated to account for a majority of the share followed by dairy products. Currently, bio-based technology adoption is limited to fewer companies such as Givaudan, Symrise AG, International flavors & fragrance Inc. etc. This is due to high cost and less shelf life of natural and bio-tech flavor.
Beverages application segment is currently the second most remarkable segment in the market, while the food application segment is projected to register an above average CAGR during 2016-2024. The nutraceutical application accounts for the smallest market share in the year 2015, is expected to observe a Year-on-Year growth rate of about 7.8% in 2016.
The Asian countries such as China, India, Japan and in Europe especially Germany are demonstrating a rapid growth in the demand for bio-tech flavors as compared with rest of the countries in the region. The key players in Asia Pacific region are undergoing capacity increase of bio-tech flavors with the increase use in food and beverages manufacturing.
Key market players
Givaudan S.A , International Flavors and Fragrances Inc. (IFF), Firmenich SA, Symrise AG, Takasago International Corporation, Sansient Technologies Corporation, Kerry Group Plc are some of the key players operating in the global bio-tech flavor market.
Persistence Market Research (PMR) offers an eight-year forecast on the global Bio-Tech Flavor market between 2016 and 2024. The report defines 2015 as the base year and provides data for the following 8 years.
This research report provides a detailed analysis of the global Bio-Tech Flavor market, while identifying the factors contributing to growth of the market across the region. This study offers insights into the market dynamics and trends of various regional markets that are influencing the current nature and future dynamics of the global bio-tech flavor market during the forecast period.
The report provides insights on bio-tech flavor of various application that includes food, beverages and nutraceutical products. Increase in the demand from food and beverages particularly for ready-to-eat food and ready to drink beverages with favorable government policy for increasing adoption of bio-tech over natural and synthetic flavor is a major factor creating a significant growth in global bio-tech flavor market. In order to meet increasing demands, manufacturers and new players in the market are investing in capacity increase and also R&D initiatives for developing new applications. A detailed analysis by each application and end use further empowers clients to formulate strategies for every stage of their business.
As per analysis, product availability plays a very important role, and hence this report further offers an analysis on the segmentation, targeting and positioning (STP) analysis for key revenue growth areas.
The next section of report includes analysis of the global Bio-Tech Flavor market on the basis of flavor type. It provides market outlook for 2016–2024, and sets the forecast within the context of bio-tech flavor markets. This study also discusses about the Bio-Tech Flavor market size and its dynamics on the basis of flavor type namely vanilla & vanillin, fruity flavor, microbial produced flavor and essential oils. It talks about the market share of each of the segment in the global Bio-Tech Flavor market. Vanilla & vanillin segment is the prominent segment among the rest three flavor type segments.
On the basis of source the bio-active flavor market is segmented into fruit & fruit juice, plant & botanical, meat & sea food, dairy and vegetable & vegetable juice. Fruit & fruit juice segment has been further divided into berries, citrus, drupes, pepos, pomes and others. Plant & botanical has been further divided into spices, herbs and others. Meat & sea food is divided into meat & poultry and sea food. Furthermore, On the basis of form the market is segmented into liquid, powder, spray dry and paste. Powder accounts for major share amongst the rest three flavor type
In the final section of the report, a competitive landscape including strategic benchmarking and regional bench marking has been provided to present the client with a dashboard view of various comparison points including revenue bracket, key application area, and global presence amongst others. It also enables identification and evaluation of key competitors based on in-depth assessment of their capabilities and success in the marketplace. Some of the key players in the global bio-tech flavor market are Givaudan S.A, International Flavors and Fragrances Inc. (IFF), Firmenich SA, Symrise AG, Takasago International Corporation, Sansient Technologies Corporation, Kerry Group Plc, Frutarom Industries Ltd.
A detailed analysis has been provided for every segment in terms of market size analysis for the global bio-tech flavor market. In order to offer an accurate forecast, we started by sizing up the current market, which forms the basis of how the global bio-tech flavor market is expected to develop in the future. Given the characteristics of the market, we triangulated the outcome of three different types of analysis based on supply side, downstream industry demand and the economic envelope.
It is vital to note that in an ever-fluctuating global economy, we not only conduct forecast in terms of CAGR, but also analyze the same on the basis of key parameters such as, year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities for market players.
Another key feature of this report is the analysis of all segments in terms of absolute dollar. This is usually overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as identify potential resources from a sales and delivery perspective in the global bio-tech flavor market. In addition to this, we have also provided strategic recommendations and key success factors for new entrants in the global bio-tech flavor market.