Vegan Flavors Market

Vegan Flavors Market Outlook (2023-2033)

The global vegan flavors market was bustling with growth in the historical period assessment and growing at a rate of 4.7% between 2018 and 2022. This market value increased and registered sales of US$ 10,257.0 Mn in the year 2023.

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Vegan Flavors Consumption Analysis (2018-2022) Vs. Market Estimations (2023-2033)

The global vegan flavors market has witnessed significant growth in the historical period registering a CAGR of 4.7% in the historical period and was valued at US$ 10,257.0 Mn in 2023. The rising health concerns, increasing demand for plant-based, and natural products, and the growing vegan population are some of the key factors that are estimated to have a positive impact on the growth of the vegan flavors market in the coming years.

Vegan flavors are ingredients that do not contain any animal components. Vegan flavors are derived from various sources such as fruits, herbs, vegetables, and other plant parts. Vegan flavors are free from dairy ingredients. They are used for various industries such as food, and beverage, among others. Various types of vegan flavors are available in the market as per the demand of end-users such as in processed food, bakery, fruit juices, confectionery, and flavored drinks, among others.

As per the Vegan Society, the vegan population in the United Kingdom is expected to quadruple from 2023 to 2033. As such, increasing consumption of vegan food will provide growth opportunities for the sales of vegan flavors in the food & beverage industry. In its new study, Persistence Market Research (Persistence Market Research) offers insights into key factors driving demand for vegan flavors. The report tracks the global sales of vegan flavors in more than twenty high-growth markets, where North America and Europe top the pecking order.

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What are the Key Trends in the Market for Vegan flavors?

“Labeling on Food Products Change Consumer Preference toward Vegan Products.”

With awareness regarding food consumption, the idea of deep-rooted transparency has established itself in the market. Latest technologies have provided consumers the accessibility to smart labels, through which they can track the journey of products and check them against their individual qualities. Consumers are nowadays asking food companies to increase the transparency of their products, going beyond free-from status, ingredients, and nutritional levels. Buyers are keen to understand the background of products – from where and how the ingredients were sourced, to the end product. In the food & beverage industry, trust and transparency have become major challenges, as there aren't any strict regulations and guidelines laid down by governments regarding clean labeling.

• For instance, companies have started using clean labeling as a catchword for promotional and marketing purposes, and have taken advantage of this to sell their products as clean label products. Manufacturers need to adopt cleaner practices to sell their clean-label food products without alienating the trust of consumers. Therefore, many companies have developed clean-label vegan flavors to attract health-conscious consumers.

“Growing Demand for Exotic Flavors”

Consumer preference is shifting towards a new blend or new combination that is unique for instance hot and tangy flavor. The popularity of hot and tangy flavors has grown across East Asia and Europe. Heat and tangy flavors are prominent in savory products such as beef jerky and snack foods including chips. Millennials are the major driver for the increasing demand for exotic flavors. Moreover, millennials have curiosity about the variety of flavors that are present across the market and have the desire to experience new bold and authentic flavors of various regions. Thus, the manufacturers are focusing on developing products with innovative flavors.

• In June 2019, Nestle India planned to introduce MAGGI Fusian, a line of Asian-inspired noodles. Hong Kong Spicy Garlic, Bangkok Sweet Chili, and Singaporean Tangy Pepper are the three distinct flavors.

“Plant-based Products at a Lucrative Nexus of Both Health and Ethical Consumerism”

A positive consumer shift towards social media and information technology has raised consumer awareness about how their food consumption impacts the environment. Animal cruelty and health issues have more sway over the buying decisions of consumers, especially in developed regions such as Europe and North America. In addition, there has been growing awareness about the link between meat consumption and non-communicable diseases. In an attempt to cut the risks of such diseases as well as obesity, consumers are cutting off meat from their diets, which will gradually encourage them to become vegetarians in the future.

Plant-based food products are perfect to cater to the indulgent needs of these consumers. There are other consumer perspectives, such as going against animal cruelty, reducing carbon emissions, and conservation of water (a large quantity of water is utilized for meat production/processing), which will increase the demand for plant-based products. Besides, a spurt in population growth is also likely to create the need for alternative foods. These factors are estimated to have a positive impact on the vegan flavors market.

“Market Strategies are Manufacturers Adopting”

In the highly competitive vegan flavors market, it becomes necessary to focus on promotional strategies. Tracking target consumers and using proper promotional strategies are major aspects that can help improve the sales of vegan flavors. Many consumers do not have any information about available vegan flavors, and thus, prefer other options in the market. Providing vegan flavor-specific product brochures and developing customized services are expected to serve as opportunities for the vegan flavors market.

“Marketing and Promotional Strategies Creating Lucrative Opportunities”

In the highly competitive vegan flavors market, it becomes necessary to focus on promotional strategies. Tracking target consumers and using proper promotional strategies are major aspects that can help improve the sales of vegan flavors. Many consumers do not have any information about available vegan flavors, and thus, prefer other options in the market. Providing vegan flavor-specific product brochures and developing customized services are expected to serve as opportunities for the vegan flavors market.

“The Vegan Flavors Market is Vulnerable to Volatile Raw Material Prices”

Raw materials such as fruit extracts, vegetables, flowers, and essential oils, among others are used for the production of vegan flavors. The prices of these raw materials remain volatile and could affect the pricing of the final product i.e. vegan flavors. It can also have an adverse effect on the profit margins of the company. In addition, high prices of vegan flavors are estimated to further affect their sales as some consumers would prefer other alternatives to maintain their profit margins. Therefore, changing prices of raw materials are expected to hinder the growth of the vegan flavors market.

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Country-wise insights

Why is the U.S. a Significant Market for Sales of Vegan Flavors?

Until 2022, vegan flavor sales across the United States experienced a Y-o-Y growth of over 3% to reach US$ 3.1 Bn. The market is set to acquire a sales volume of 198,082 tons in 2030. A considerable factor is a rise in the vegan population across several states of the country such as Oregon, California, and Florida, among others.

Moreover, companies are focused on offering vegan flavors as per the requirement of vegan food manufacturers such as for organic and natural food products.

• In July 2019, Baskin-Robbins launched its two vegan flavor ice creams in the U.S. market.

Is the Growth Pattern for Vegan Flavors Positive in France?

France's market is witnessing a significant growth of 5.5% over the forecast period. Like other European countries, France has also formed a beneficial growth pattern for the vegan flavors market. Consumers in France have rapidly reduced their meat consumption, and their inclination toward plant-based food products has risen over the past few years. Different vegan foods start-ups such as Feed, Algama, Les Merveilloeufs, and others are formulating a better market set-up for vegan food ingredients, including vegan flavors.

How is China Pushing for Higher Acceptance of Vegan Products?

As China has shown promising economic outcomes, per capita food expenditure is rising across the country. Vegan flavor ma is 8.4% in the country, and in 2023, the revenue of approximately US$ 1.13 Bn from the sales of vegan flavors was achieved. Chinese consumers are continuously adopting the vegan lifestyle and increasing the consumption of plant-based foods.

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Category-wise insights

Should Vegan Flavor Manufacturers Target the Dairy & Confectionery Industry?

Among the food industry segments of application, the processed food segment holds ~36% sales volume share in the global vegan flavors market. Despite this, the dairy and confectionery segment will witness higher potential over the forecast period of 2023-2033.

A key considerable factor for substantial growth is increasing product development in the dairy and confectionery industry. Moreover, confectionery manufacturers are increasing innovative product development, which further creates a high demand for vegan flavors in this sector.

Are Fruit Flavors Gaining Popularity in Vegan Flavors?

By source, fruit flavors hold the largest market share of approximately 81.3% in the global vegan flavors market outlook for 2023-2033. Fruit flavors are among the most utilized flavors in bakery, confectionery, snacks, beverages, and other food applications. Fruit flavors are multi-applicable ingredients, and consumers have a high preference for these flavors. In the beverage industry, flavor drinks, energy drinks, and fruit juices are mostly produced from fruit flavors. Herb and spice flavors are also forming a better opportunity in the global vegan flavors market.

Competitive Dashboard

The majority of large-scale international and local businesses make up the global vegan flavors market. Companies are trying to offer customized flavors to fulfill the varied requirements of food & beverage manufacturers. They are focused on offering vegan flavors per the requirements of vegan food manufacturers, such as organic and natural food products. These companies are engaged in the business of proving vegan flavors, operate at a small scale, and are more export-oriented.

• In 2021, Vitsoy International Holdings Ltd. launched its new product VitOat oat milk and expanded the series with two tasty new flavor offerings, Chocolate, and Matcha Red Bean.
• In July 2019, Symrise AG established its new production line for liquid flavorings in Russia. It aimed to provide regionally produced taste solutions for sweets, beverages, and dairy products.
• The Edlong Corporation focuses on developing innovative dairy and dairy-free flavors to attract target consumers. The company has developed flavors with various claims such as organic, vegan, vegetarian, etc. to increase its consumer base.

Vegan flavors Industry Report Scope

Vegan flavors Industry Research by Category

By Source:

• Vegetables
• Fruits & Others
• Fusion
• Herbs & Spices

By Form:

• Liquid
• Powder

By Application:

• Food
  • Processed Food
  • Dairy
  • Bakery
  • Confectionery
• Beverage
  • Flavored Drinks
  • Energy Drinks
  • Fruit Juices
• Pharmaceuticals
• Others

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa