Food Flavors Global Market Opportunities and Strategies to 2032

This report describes and explains the food flavors market and covers 2017-2022, termed the historic period, and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The global food flavors market reached a value of nearly $12,817.0 million in 2022, having grown at a compound annual growth rate (CAGR) of 3.5% since 2017. The market is expected to grow from $12,817.0 million in 2022 to $17,371.3 million in 2027 at a rate of 6.3%. The market is then expected to grow at a CAGR of 6.2% from 2027 and reach $23,460.9 million in 2032.

Growth in the historic period resulted from strong economic growth in emerging markets, increasing consumer awareness regarding natural food flavors and rise in demand for processed foods. Factors that negatively affected growth in the historic period were the COVID-19 impact, shortage of skilled labor and geo-political tensions.

Going forward, increasing government support, rising demand for food products and increasing demand from the fast food industry will drive the growth. Factors that could hinder the growth of the food flavors market in the future include the Russia-Ukraine war impact and the rising interest rates.

The food flavors market is segmented by type into chocolate and brown, vanilla, fruit and nut, dairy type, spices and savory and other types. The fruit and nut market was the largest segment of the food flavors market segmented by type, accounting for 27.9% of the total in 2022. Going forward, the vanilla segment is expected to be the fastest growing segment in the food flavors market segmented by type, at a CAGR of 6.5% during 2022-2027.

The food flavors market is segmented by origin into natural and synthetic. The synthetic market was the largest segment of the food flavors market segmented by origin, accounting for 57.1% of the total in 2022. Going forward, the natural segment is expected to be the fastest growing segment in the food flavors market segmented by origin, at a CAGR of 6.5% during 2022-2027.

The food flavors market is segmented by application into dairy, bakery, confectionery, snack, beverage and other applications. The beverage market was the largest segment of the food flavors market segmented by application, accounting for 39.4% of the total in 2022. Going forward, the beverage segment is expected to be the fastest growing segment in the food flavors market segmented by application, at a CAGR of 6.5% during 2022-2027.

The food flavors market is segmented by form into powder and liquid. The liquid market was the largest segment of the food flavors market segmented by form, accounting for 59.0% of the total in 2022. Going forward, the liquid segment is expected to be the fastest growing segment in the food flavors market segmented by form, at a CAGR of 6.3% during 2022-2027.

Asia-Pacific was the largest region in the food flavors market, accounting for 38.1% of the total in 2022. It was followed by North America, and then the other regions. Going forward, the fastest-growing regions in the food flavors market will be Asia Pacific and North America where growth will be at CAGRs of 7.4% and 6.3% respectively. These will be followed by Western Europe and South America where the markets are expected to grow at CAGRs of 5.6% and 5.3% respectively.

The global food flavors market is fairly concentrated, with large players operating in the market. The top ten competitors in the market made up to 30.07% of the total market in 2021. International Flavors & Fragrances Inc was the largest competitor with 8.33% share of the market, followed by Givaudan with 4.88%, Kerry Group Plc with 2.79%, Sensient Technologies Corporation with 2.68%, Archer-Daniels-Midland Co with 2.65%, Takasago International Corporation with 2.42%, Ajinomoto Co., Inc with 2.00%, BASF SE with 1.90%, Symrise AG with 1.37%, and Koninklijke DSM NV with 1.04%.

The top opportunities in the food flavors market segmented by type will arise in the fruit and nut segment, which will gain $1,278.0 million of global annual sales by 2027. The top opportunities in the food flavors market segmented by origin will arise in the synthetic segment, which will gain $2,531.4 million of global annual sales by 2027. The top opportunities in the food flavors market segmented by application will arise in the beverage segment, which will gain $1,873.5 million of global annual sales by 2027. The top opportunities in the food flavors market segmented by form will arise in the liquid segment, which will gain $2,699.3 million of global annual sales by 2027. The food flavors market size will gain the most in China at $1,199.9 million.

Market-trend-based strategies for the food flavors market include increasing investments, product innovations, launches of innovative snack flavors, focusing on artificial intelligence for optimizing food and flavor formulation, technology advancements and strategic partnerships and collaborations.

Player-adopted strategies in the food flavors market include focus on strengthening business capabilities through business expansion and enhancing operational and business capabilities through strategic partnerships and collaborations.

To take advantage of the opportunities, the analyst recommends the food flavors companies to focus on natural food flavors, focus on technological advancements, focus on product innovations, expand in emerging markets, continue to focus on developed markets, focus on partnerships and collaborations, provide competitively priced offerings, continue to use B2B promotions, focus on online marketing, and continue to focus on fast-growing applications.