Biotech Flavor Market - Forecasts from 2022 to 2027

Biotech Flavor Market is expected to grow at a compound annual growth rate of 6.61% over the forecast period to reach a market size of US$3.337 billion in 2027, from US$2.132 billion in 2020.

There have been certain strategic initiatives by various players in the biotech flavour market space in recent years. A few of them are listed below to provide a panoptic view of the space.

The growing business imperative to cater to the growing pool of consumers who value the health and environmental implications of the food and beverages they consume is fundamental to effectuating e a robust growth in the market. The need for enhancing the combination of sensorial perception has been around since time immemorial, which has consequently evolved to facilitate flavour optimization during food product formulation. The aforesaid has been coupled with the integration of biotechnology of flavouring compounds which are being increasingly acknowledged both by regulatory regimes and consumers as natural flavourings, which are being facilitated by the biotransformation of flavour compounds that are being achieved by whole microbial cells in suitable bioreactors. Thus, the wide range of applications of flavours and the awareness of the harmful effects of synthetic flavours are expected to propel the market's growth. Another area that is expected to drive the growth of the market aligned with the health consciousness and the efforts of individuals who are inclined to integrate functional and meal replacement beverages into their diet is the beverage industry.

Covid-19 Impact

The Biotech Flavour market has seen upliftment during the disease outbreak scenario as Covid-19 brings healthy eating habits with a lot more awareness about the health directives and the pros and cons of everything in use. The time called for stringent government regulation lockdowns and panic among the people, which resulted in the consumption of essential commodities with an inclination toward the organic and natural products to consume. The Biotech flavour is much safer and additive-free, and driven by natural material; the popularity of the same boosted the market for biotech flavour over the forecasted period globally.

Trends that are expected to drive the market growth for the Biotech Flavour Market

Increasing trends in product reformulations that are being made compulsory by various regulatory measures like the need to reduce sodium and sweet content are also expected to propel the growth of the biotech flavour market. The salt reduction priority stems from the growing trend of convenience snaking, which has experienced an upswing during the lockdown period enforced by the various national governments during COVID 19, which is expected to further fuel the demand for developing flavours via biotechnological means. Besides, with the availability of disposable income comes to the trend of premiumization, which permeates across food and beverage categories and ingredients and consumers' desire for exotic flavours. This, too, is expected to pave new opportunities for the players in the biotech flavour space to bring about innovation and consequently lead to healthy growth. Moreover, with the gradual growth of millennials, there has been a conscientious effort to transition to alcoholic beverages with low alcohol alcoholic content, which is expected to catapult further the demand for alcoholic beverages, which is expected to drive the biotech flavour market growth. For instance, in the UK, at current prices, the final consumption expenditure of households on alcoholic beverages was in the order of £ 21,551 million in 2019, which is an increase from the £ 21,278 million registered in 2018 and £ 19,806 million registered during 2017 [Source: OECD].

Concerning China, in the first half of the year, the per capita consumption expenditure on food, tobacco, and alcohol was 3,097 yuan, an increase of 5.0 %, accounting for 31.9 % of the per capita consumption expenditure. The potential for growth of this market, on the other hand, is dependent in part on the total Chinese population in the mainland, which reached 1,400.05 million, a reported increase of 4.67 million over that recorded at the end of 2018 [Source: National Bureau of Statistics of China] On the other hand the potential for the growth of this market is also dependent in part due to the total number of Chinese population in the mainland that reached 1,400.05 million which is a reported increase of 4.67 million over that of registered at the end of 2018 [Source: National Bureau of Statistics of China]. Thus, from the instances for both hemispheres, it can be delineated with certitude that the biotech flavour market is expected to grow robustly during the forecast period.

Market Strategies and Launches

October 2020 - Facility Expansion

Firmenich SA has reportedly launched a laboratory and biotechnology pilot plant in Geneva, Switzerland, that reportedly leverages novel digital technologies closely connected to the ingredients production site to facilitate the production of clean label flavour.

September 2020 - New Technology

Kerry Inc., the globally renowned Taste & Nutrition company, reportedly announced an advanced citrus extract technology called “New! Citrus Extract”, which has been claimed to deliver all the benefits and impact of traditional natural citrus products but can be labelled a “Natural Extract”. This technology is reportedly applicable to a variety of citrus fruits, which finds a variety of applications that includes sparkling and still flavoured waters, ready-to-drink teas, mocktails, flavoured beers and spirits, malt beverages, juice drinks, isotonic and energy drinks, craft carbonated soft drinks (CSDs), and alcoholic beverages such as hard seltzers. The initial offerings encompass tangerine, orange, lime, and lemon.

August 2020 - Partnership

DolCas Biotech and IFF Health, part of International Flavors & Fragrances Inc., have reportedly partnered to facilitate the sales and marketing of Curcugen™, which is essentially a next-gen all turmeric extract intended for industries on food and beverage and dietary supplements. The product is characteristically clean, highly concentrated, and highly dispersible, with curcumin as the main ingredient. It features a wholesome turmeric base and a high (50%) curcuminoid concentration that has been produced by a patent-pending technology.

June 2020 - New Production Method

Novozymes (CPH: NZYM-B), a reputable Danish industrial enzymes manufacturer, has reportedly unveiled an environmentally friendly method of producing umami flavourings that use enzymes rather than chemical methods and is essentially an alternative to yeast extract and traditional HVP (hydrolyzed vegetable proteins). They are known as Novozymes Protana® UBoost and Protana® Prime. They are said to facilitate the production of natural flavour preparations at up to 40% lower cost-in-use than traditional enzymatic methods.

Novozymes (CPH: NZYM-B), the reputed Danish industrial enzymes manufacturer, had reportedly unveiled an environment-friendly means of producing umami flavourings that utilize enzymes instead of chemical methods and is essentially an alternative to yeast extract and traditional HVP (hydrolyzed vegetable proteins). Called Novozymes Protana® UBoost and Protana® Prime, they are known to reportedly facilitate the production of natural flavour preparation up to 40% minimized cost-in-use compared to traditional enzymatic methods. Moreover, HVP produced through HVP is acceptable in producing natural flavours in the EU, enabling producers to make a natural claim and market a product with a perceived cleaner flavour.

March 2020 - Partnership

A development partnership between a leading innovator and supplier of biotechnological products for regulated markets like pharma and food called c-LEcta and one of the world’s leading marketers of fragrances and flavours, Symrise AG, was announced to facilitate the development of an enzymatic process for the production of a flavouring agent.

February 2021- Merger

IFF Health and DuPont incorporated in 2021. With this merger, both businesses will assemble their expertise in food flavours and fragrances, as well as DuPont's leading expert knowledge in probiotics, enzymes, and food preservation.

March 2021-Acquisition

Royal DSM, a global science-based organisation in Health, Nutrition, and Sustainable Surviving, announced a collaboration to attain Amyris, Inc.'s flavour and fragrance (F&F) bio-based intermediates business, expanding DSM's Aroma Flavourings offerings with bio-based substances for the flavour and fragrance and cosmetic products sector.

MANE SOURCE Product

A Product From MANE is a portfolio in which they have ingredient natural flavour extracted from the fruits. The best aromatic Ingredient is captured from strawberries and other fruits for an organic taste.

Market Segmentation

By Form

• Liquid
• Paste
• Powder

By Application

• Beverage
• Dairy
• Sweet-tasting food
• Salty
• Snacks

By End-Users

• Food and Beverage
• Pharmaceutical

By geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• United Kingdom
• France
• Spain
• Middle East and Africa
• Saudi Arabia
• South Africa
• Asia Pacific
• China
• Japan
• South Korea
• India
• Thailand
• Indonesia
• Taiwan