Natural Flavors Market: Market Outlook
Natural flavors are included in edible as well as non-edible items for sensory impressions which act as elite additives for various applications and are derived from sources that are natural such as fruits, plants, herbs and spices, flowers, animals, and others. The function of natural flavors is to enhance the taste of the food while keeping up with the health benefits of being naturally derived. Natural flavors are the craving factor behind many of the recipes. It makes the food more appealing and is a signature ingredient in many famous recipes making it consistently tasty universally. Different chemists and flavourists make different formulations by blending various natural extracts available, to create unique flavors with distinctive taste and odor.
Increased number of life-style based disorders like obesity, cardiovascular diseases, diabetes, and osteoporosis has inclined the consumers towards natural alternatives. Natural, clean-label, sustainable are some of the buzz words in the food and beverage industry today and with the health and wellbeing awareness megatrend, the overall natural flavors market is expected to show potential growth in the forecasted period. The increased cost of natural flavors as compared to synthetic flavor may push potential customers away and may prove to restrain the growth of the natural flavors market.
Global Natural Flavors Market: Market Dynamics
The increasing number of health-conscious customers to drive the natural flavors market
The growing trend of consumers demanding natural ingredients with the increase in awareness about the harmful effects of synthetic ingredients is expected to trigger the market for global natural flavors. Consumers have become more concerned about the long-term health effects of artificial additives causing digestive disorders, nervous disorders, respiratory, and skin problems thus driving the market for natural flavors.
The natural flavors have been made available easily with the strong command of the retailers in the supply chain coupled with increased application of natural flavors in the processed food and beverages industry, the demand for natural flavors is expected to increase.
Global Natural Flavors Market: Segmentation
Based on the source, the natural flavors market has been segmented as
Based on product type, the natural flavors market has been segmented as
Based on form, the natural flavors market has been segmented as
Based on application, the natural flavors market has been segmented as
Based on the region, the natural flavors market has been segmented as
Global Natural Flavors Market: Key Players
Some of the players operating in the natural flavors market include Takasago International Corporation, Givaudan SA, Sensient Technologies Corporation, Firmenich SA, Kerry Group PLC, Dohler Group, Frutarom Industries Ltd., International Flavors & Fragrances Inc., Wild Flavors GmbH, Symrise AG, and others.
Global Natural Flavors Market: Opportunities
With the introduction of different exotic flavors by the manufacturers and increased application of natural flavors in food and well as pharma industry the opportunities for increased revenue exist for existing players. Manufacturers are involved in constant research and development with upgraded technologies to bring more innovative natural flavors to serve the customers. Givaudan SA acquired Vietnamese flavor company Golden Frog to strengthen its position in Asia-Pacific region thus established companies are using the strategy of expansion and are investing huge capital in natural flavors but the growing population and their increasing demand for processed foods and beverages can prove to be a great opportunity for the other players too.
Global Natural Flavors Market: Regional Outlook
Owing to the awareness among consumers in Europe and North America regarding healthy eating-regimes the regions are expected to hold large market growth for natural flavors. With growing urbanization and increased consumption of soft drinks and beverages in countries like Brazil and Argentina, the growth for the market is expected to be the fastest. Rising income levels and increased spending for quality food along with the growing population in Asia-Pacific may prove to be influential for the sales of natural flavors in this region.
COVID-19 Impact on Global Natural Flavors Market
Workforce issues, cash-flow problems, market volatility, supply-chain disruption have occurred owing to the outburst of COVID-19 which has greatly impacted businesses along with the food industry also witnessing difficulty in serving. Some of the key manufacturers for natural flavors are still operating amid lockdown but with comparatively less capacity as flavors are ingredients for many food items. Thus the impact of COVID-19 for the natural flavors market will be moderate for the next year.
The high consumption in the food and beverage industry is driving the growth of the natural flavor carrier market. The practice of adding value and flavor in processed food is augmenting the utilization of natural flavor carriers. The high growth rate of flavoring agents is proportionally increasing the demand for these carriers. The growth in the health-conscious population is expected to enhance the prominence of natural flavor carriers in the coming years.
Innovations in Food Escalates Adoption Rate
Food innovations to cater to the increasing demand for natural food is expected to fuel the progress of the natural flavor carriers. The surge in the consumption of additives and flavors to enhance the value of food products is creating scopes of growth for the manufacturers. The trend of innovative recipes and flavors is contributing to the market expansion. Baby food has surfaced as an attractive segment in the food sector. The huge gap in baby food products is encouraging manufactures to introduce innovations. Such developments are projected to scale the growth of the landscape during the forecast period. The rise in demand for instant and ready-to-cook products is expected to impart growth to the natural flavor carrier landscape.
Two prominent forms of these flavor carriers are liquid and solid. The food and beverage sector is expected to hold a major chunk of the market by the end of the forecast period over the high consumption of these products. The pharmaceutical sector is another vertical forecasted to generate revenue prospects for the manufacturers in the coming future. Different carriers prominently used in food processing include starches, solvents, and fats.
Asia Pacific Creates New Revenue Prospects
The leading regions in the global market include Latin America, North America, South Asia, East Asia, Europe, , Oceania, Middle East & Africa. With a large market for processed food, Asia Pacific is expected to witness a high growth rate during the forecast period. The growing demand for food products offering added benefits and nutrition is paving the way for the use of natural flavor carriers. High demand for convenience food products, especially in developing economies is estimated to act as a catalyst for market growth in these regions.
The natural flavor carriers manufactures are focused to develop cost-effective carriers cutting down the expense on adding flavor. They are developing methods that enhances the functionality of the product even with less quantity. Inspired by the emerging trend of clean label products, the manufactures in the food industry are keen to use quality products that can be listed on the ingredients label. The growing importance of consumer sentiments in the marketing of different products acts in favor of natural flavor carriers. The market competitors are competing in terms of innovations, quality, and cost. They are stretching their foothold in the market by correlating with consumer sentiments.
Established players profiled in the global natural flavor carrier market include DuPont Tate & Lyle Bio Products, Stepan Company (US), Firmenich (Switzerland), Symrise and Sensient Technologies, Senomyx (US), and Cargill.