This Persistence Market Research (PMR) report analyzes the natural and organic flavors market at the global as well as regional levels. This study provides data for 2018 along with that for the forecast period (2018–2026). The main objective of the report is to identify opportunities in the market and provide recent updates and insights affecting various segments of the natural and organic flavors market. The report provides analysis of the natural and organic flavors market in terms of market value (US$ Mn) and volume (MT).
The global natural and organic flavors market has been segmented on the basis of flavor type (natural, organic), product type (With Other Natural Flavors (WONF), From The Named Fruit (FTNF)), source (fruits and fruit juices, vegetables and vegetable juices, plants and botanicals, meat and seafood, dairy), application (food, beverage, nutraceutical), and by region (North America, Latin America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA)).
The report begins with an overview of the global natural and organic flavors market, appraising the market performance in terms of revenue and volume, followed by PMR’s analysis of key trends, drivers, and restraints witnessed in the global natural and organic flavors market. Impact analysis of key growth drivers and restraints based on the weighted average model are also included in the report to equip clients with crystal-clear decision-making insights.
To deduce market size, the report considers various viewpoints based on secondary research. Furthermore, data points such as regional split and market split by application as well as qualitative inputs from primary respondents have been taken into consideration to arrive at suitable market estimates. The forecast presented in the report evaluates the actual revenue generated and expected revenue in the global natural and organic flavors market during the forecast period.
In the final section of the report, the competitive landscape is included to provide a dashboard view of companies that manufacture natural and organic flavors. Key participants in the global natural and organic flavors market report include Givaudan S.A., International flavors & Fragrances Inc., Firmenich SA, Symrise AG, Takasago International Corporation, Sensient Technologies Corporation, Kerry Group Plc., Frutarom Industries Ltd., Robertet SA, Archer Daniels Midland Company, Döhler GmbH, Huabao International Holdings Limited, T. Hasegawa Co., Ltd, Koninklijke DSM NV, Axxence Aromatic GmbH, GOLD COAST INGREDIENTS, INC., Zymus International Ltd, Treatt Plc, Blue Specific Flavors, Inc., and UNIQUE FLAVORS AND FRAGRANCES LTD.
PMR triangulates the data on the basis of various analysis based on both supply side and demand side, and dynamics of the natural and organic flavors market. However, quantifying the market across the aforementioned segments and regions is more a matter of quantifying expectations and identifying opportunities rather than rationalizing them at the end of the forecast period. It is imperative to note that in an ever-fluctuating market scenario, we not only conduct forecasts in terms of CAGR, but also analyze on the basis of key parameters such as Year-on-Year (Y-o-Y) growth to understand the predictability of the market and identify the right opportunities.
Another key feature of this report is the analysis of the natural and organic flavors market on the basis of region, flavor type, source, product type, and application; and the corresponding revenue forecast in terms of absolute dollar opportunity. 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 to identify potential resources from a sales perspective, in the global natural and organic flavors market. To understand key segments in terms of their growth and performance in the global natural and organic flavors market, PMR has developed a market attractiveness index. The resulting index would help providers identify existing market opportunities in the global natural and organic flavors market.
In terms of value, the global natural and organic flavors market is expected to expand at a CAGR of 5.7% during the forecast period (2018–2026) and reach US$ 11,269.7 Mn by 2026 end. Asia Pacific is projected to be the fastest growing market over the forecast period in terms of volume. The significant growth of the North America and Europe market is mainly attributed to an increase in the global volume of natural and organic flavors. On the basis of source, the fruits & fruit juice segment accounted for the largest market share of over 40% revenue share of the overall market in 2018, and is projected to maintain its dominance throughout the forecast period.
Increasing health consciousness among consumers, rapid urbanization, introduction of new flavors with more sensational taste, growing disposable income, and increasing emphasis on uniqueness in taste with patent in processed food and beverages products are a few of the key trends in the global natural and organic flavors market.
In 2018, Europe was the dominating market in the fruits & fruit juice segment followed by North America. This is attributed to consumer preference for ready to drink (RTD) fruit drinks, with natural ingredients. Berries and citrus sub-segments accounted for significant value share among the fruits & fruit juice sub segment. The edible yeast sub-segment contributes healthy revenue to the dairy segment. The plant and botanical segment is also projected to exhibit favorable growth over the forecast period.
On the basis of regions, Europe is expected to dominate the global natural and organic flavors market, accounting for significant value share of the overall market. Also, Europe is expected to maintain its dominance over the forecast period as well. In terms of volume, the market in Asia Pacific is projected to be the fastest growing market during the forecast period. Global natural and organic flavors market is a consolidated market, where top five companies hold significant market share. In terms of value, the top ten companies accounted for majority market share in 2018.
Currently, natural and organic flavors manufacturing companies are adopting advanced and upgraded version of technologies. Technological advancement is helping companies increase their revenues by increasing the efficiency of natural and organic flavor production. With the introduction of spicy flavors in different edible products, the ample opportunities are unfolded for companies engaged in food related business including natural and organic flavor manufacturers. Average net profit margin of the natural and organic flavors industry is around 15%-20%.
The price range for natural and organic flavors is expected to fluctuate between 2018 and 2026 due to factors such as varying production, demand, end stock, import and exports of natural and organic flavors. However, the spices sub-segment is expected to expand at the highest CAGR of 5.8% during the forecast period. The fruits & fruits juice and plant & botanical segments are anticipated to be the highest revenue generating segments during the forecast period. On the basis of flavor type, the natural flavor segment accounted for comparatively higher revenue share in the global natural and organic flavors market and is expected to maintain its dominance through 2026.
The essential oils segment is estimated to account for the highest value share by the end of 2016 and is expected to maintain its dominance throughout the forecast period. Increasing application of essential oils in processed food products and beverages are expected to drive growth of essential oils segment during the forecast period. Owing to increasing applications of From The Named Fruit (FTNF) in beverage, the FTNF segment is expected to grow healthy during the forecast period.
Key market players
Givaudan S.A., International flavors & Fragrances Inc., Firmenich SA, Symrise AG, Takasago International Corporation, Sensient Technologies Corporation, Kerry Group Plc., Frutarom Industries Ltd., Robertet SA, Archer Daniels Midland Company, Döhler GmbH, Huabao International Holdings Limited, T. Hasegawa Co., Ltd, Koninklijke DSM NV, Axxence Aromatic GmbH, Gold Coast Ingredients, INC., Zymus International Ltd, Treatt Plc, Blue Specific Flavors, Inc., and Unique Flavors and Fragrances Ltd. are the leading players operating in the global natural and organic flavors market.