Food Flavors Market - Forecasts from 2022 to 2027

The food flavors market is evaluated at US$14.795 billion for the year 2020, growing at a CAGR of 5.07% reaching a market size of US$20.913 billion by the year 2027.

Food flavours are ingredients that are added to food and beverages to enhance the taste of food and beverages. There is a high demand for processed food in both developed and developing economies of the globe, which in turn plays a key role in supplementing the food flavors market growth globally. Processed food tends to lose its flavors over time after processing which further creates the necessity for the use of flavouring substances to maintain the flavour throughout the shelf life of the product. The market for food flavors is expected to grow nominally over the next five years, owing to the hectic and changing lifestyles of people all over the world, particularly in developing economies due to rapid urbanization and industrialization in countries such as India and China, among others. This has further amplified the demand for convenience foods and beverages, which is anticipated to positively impact the market growth during the next five years. The growing participation by food and beverage manufacturers in the form of increased investments in R & D for the development and launch of new products is also anticipated to create lucrative business growth opportunities for the manufacturers throughout the forecast period.

The outbreak of COVID-19 is projected to negatively impact the market growth moderately to some extent as the government restrictions led to the closure of hotels, and restaurants which further led to a decline in the demand for dairy products as well as frozen food products in many parts of the world. A slump in the food services sector amid the disease further inhibits the market growth to some extent. However, a recovery is expected after a short period of six to eight months since the easing of restrictions in some countries will further improve the demand.

The food flavors market has been segmented based on type, application, and geography. By type, the classification of the market has been done into natural, natural-identical, and artificial. By application, the market has been classified based on dairy, beverages, bakery and confectionery, and others. Geographically, the food flavors market has been distributed in North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Natural flavors are witnessing a significant growth

By type, the artificial flavours segment is anticipated to hold a healthy market share over the next five years, which is supported by the fact that the costs associated with artificial flavours are comparatively lower. Since they offer similar tastes to those of natural ingredients, it is also a key factor bolstering their usage in food and beverages. The natural flavours segment is projected to grow at a noteworthy CAGR because consumer preferences toward natural ingredients are increasing in many countries due to the risk associated with the consumption of artificial ingredients. Moreover, the demand for clean label products is also increasing globally, particularly in the developing economies, primarily due to the increasing purchasing power of people along with the increasing awareness of naturally sourced food.

Beverages will account for a sizable portion of the market. By application, the bakery and confectionery segment is expected to hold a significant share in the flavors market, which is attributable to the fact that there are wide applications of flavouring agents in bakery products. Additionally, the consumption of confectionery products is increasing in both developed and developing economies around the world, which also plays a significant role in bolstering the growth of this segment during the coming five years. However, on the other hand, the beverages segment is anticipated to hold a promising market share throughout the forecast period. The major factor bolstering the share of this segment includes the applications of a variety of flavours in beverage products. The demand for beverages around the globe is increasing at a significant rate. This, in turn, is also positively influencing the growth of this segment until the end of the forecast period.

Europe will have a sizable share. Geographically, the European region is anticipated to hold a significant market share throughout the forecast period. The key factors supporting the share of the region in the global market include the wide consumption of organic foods and drinks in several countries throughout the region. The Asia Pacific region is projected to show decent growth in the market. The growing consumption of processed foods and beverages in countries like India, China, and Indonesia is one of the key factors supporting the market growth in the APAC region during the next five years.

Key Developments

• In April 2020, Symerise AG announced its partnership with KitchenTown Berlin, which is a food and food tech innovation company. The company aims to revolutionize its food product portfolio and also to tap into the growing consumer requirements.
• In October 2021, Symrise AG, a German manufacturer of fragrances, flavorings, nutrition, and care, entered into a strategic partnership with Freddy Hirsch Nigeria, a leading spices, flavors, and ingredients manufacturer, to spice up the West African food market. The duo collaborated on developing, launching, and commercializing food products such as general seasoning, instant noodles, snacks, and bouillon meat. This ground-breaking collaboration will use the flavor technology platform to deliver authentic regional and local African ingredients and flavors.
• In November 2021, researchers from the Universities of Adelaide and Nottingham teamed up to inaugurate a new multinational food flavor facility to enhance the taste of healthy, sustainable, healthy, plant-based food and ingredients. This new US$ 2.5 million is supported by investments from v2food, a leading plant-based meat alternatives provider. Under one roof, the facility will bring together world-class scientists from agriculture, flavor chemistry, and food to tackle the challenge of getting more healthy, sustainable, healthy, plant-based food and ingredients.
• In February 2021, IFF and Dupoint's N&B (Nutrition & Bioscience) business announced their merger. With this merger, the duo intends to consolidate its brand presence to meet changing needs of consumers while accelerating its pursuit of innovative, integrated, and creative solutions.

Covid-19 Impact

Covid-19 had a significant impact on the Food flavors market. Amid the global pandemic, there was a paradigm shift in diet and hygiene, thereby increasing the demand for nutritional and homecooked food. The increasing trend of DIY cooking with appealing flavours strategically launched by companies is expected to propel the market. Nonetheless, owing to the rise in infected cases, lockdown, and social distancing measures, the low staffing, and travel restrictions led to the supply and demand gap, slowing the market.

Competitive Insights

Prominent/major key market players in the food flavors market include Sensient Technologies, ADM, and DuPont among others. The players in the food flavors market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies. The report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered, along with the recent deals and investments of these important players in the food flavors market.

Market Segmentation

By Type

• Natural
• Natural-Identical
• Artificial/Synthetic

By Application

• Dairy
• Bakery and Confectionery
• Convenience food

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• France
• UK
• Spain
• Italy
• Middle East and Africa
• Saudi Arabia
• UAE
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Indonesia
• Thailand