Food Flavors Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, UK, France - Size and Forecast 2024-2028

Food Flavors Market Forecast 2024-2028

The food flavors market size is forecast to increase by USD 6.62 billion at a CAGR of 6.86% between 2023 and 2028. Consumers are increasingly looking for transparency in food products, resulting in a surge in demand for flavors derived from real and recognizable sources. In addition, natural flavors extracted from fruits, herbs, and other plant-based materials are gaining preference over synthetic alternatives. Furthermore, clean-label products, with minimal and easily understandable ingredients, are seen as healthier and more wholesome choices.

Additionally, consumers are becoming more conscious of their diets and avoiding food additives and artificial food flavors. The rise in popularity of nutraceuticals and demand for processed food-products with fewer additives is indicative of this trend. Moreover, the convenience of instant dinners and packaged sauces is driving the growth of the market for flavored beverages in both liquid form and powder form, catering to diverse consumer preferences.

Market Overview

The market shows an Accelerated CAGR during the forecast period.

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Market Segmentation by Application

The increasing demand for flood flavors will fuel the food segment, which in turn will increase the market growth. In the global market, the products play a major role in improving the sensory profiles of various food applications.  In addition, in the savory and snacks industry, flavors contribute to the distinct taste profiles of chips, crackers, and savory snacks, driving consumer preferences for novel and unique taste experiences. Moreover, bakery products, including cookies, cakes, and pastries, benefit from flavors that add richness and diversity to the overall taste.  Furthermore, typical food-flavors and enhancers in the bakery industry and confectionery industry products include vanilla, cinnamon, ginger, garlic powder, almond essence, and different fruit extracts. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.

Market Segmentation by Product

The natural flavors segment is estimated to witness significant growth during the forecast period. Natural flavors comprise flavors derived from natural sources. In addition, these flavors are free from artificial flavors and other chemical preservatives. Furthermore, natural flavors help retain the original flavor and aroma of a natural ingredient and, therefore, are used as a seasoning in a wide range of health food-products.

The natural flavors segment was the largest segment and was valued at USD 9.54 billion in 2018.

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These flavors provide an appetizing aroma to various food-products. The growing health consciousness among consumers across the world and the increasing awareness about the harmful effects of artificial flavors have raised the demand for natural and organic flavors across several regions, particularly Europe, North America, and South America. Germany, France, the US, Canada, and Brazil are some of the countries that have witnessed a growth in demand for flavors-derived from natural products such as herbs, spices, fruits, vegetables, and their juices, dairy products, edible yeast, meat, and eggs. Consumers in these countries are increasingly seeking nutritious food-options and authentic flavors.

Key Regions for the Market

North America is estimated to contribute 27% to the growth of the global market during the forecast period

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The increase in demand for organic foods is mainly attributed to the rise in the number of health-conscious and nutrition-seeking consumers in the region. In addition, the US is one of the major countries that are expected to contribute to the growth of the market in the region, primarily due to the rise in demand for organic food products in the country. Moreover, this is leading to an increase in the adoption of natural-flavors as an active ingredient in organic-foods. For example, in the most recent Organic Industry Survey conducted by the Organic Trade Association (OTA) in 2021, consumers went back to their more consistent buy-as-you-need shopping habits. Hence, such factors are driving the market growth in North America during the forecast period.

Market Dynamics and Customer Landscape

The market is experiencing growth driven by premiumization in the food and beverage industry, leading to increased demand for natural and clean-label food-flavors across various segments, such as the beverage sector and bakery industry. A significant trend in this market is the preference for floral and botanical flavors, reflecting consumers' desire for wholesome food and natural food options amidst cultural upheavals and lifestyle changes.

However, the industry faces challenges due to the increase in the threat of counterfeit food flavor products, necessitating stringent measures in regulatory affairs and the use of clean-label products to ensure authenticity and safety. With a focus on meeting health objectives and catering to the evolving preferences of consumers for convenient and ready-to-eat food items, the market continues to evolve, driven by innovations in natural flavors and advancements in food additives to enhance taste and appeal in packaged eatable products and processed foods.

Key Market Driver 

One of the key factors driving the market growth is the premiumization in the food and beverage industry. Premiumization in the food and beverage industry is one of the major trends influencing modern consumer food choices. Thus, manufacturers in the food and beverage industry are focusing on offering high-quality products with unique flavor innovations. In addition, premiumization represents a paradigm shift in the food and beverage industry. Therefore, the demand for premium flavors has increased, which has positively impacted the global market.

Moreover, with the growing health awareness among consumers, the demand for healthy foods with innovative and premium flavors is increasing. Thus, some major companies operating in the global market are manufacturing different varieties of premium flavors, offering consumers a range of options, smell, and expanding their consumer base. Hence, such factors are driving the market growth during the forecast period.

Significant Market Trends 

A key factor shaping the market growth is the increasing demand for natural and clean-label food-flavors. Consumers are increasingly looking for transparency in food products, resulting in a surge in demand for flavors derived from real and recognizable sources. In addition, natural-flavors extracted from fruits, herbs, and other plant-based materials are gaining preference over synthetic alternatives.  Furthermore, clean-label products, with minimal and easily understandable ingredients, are seen as healthier and more wholesome choices.

Moreover, this trend aligns with the broader consumer shift towards cleaner and more sustainable eating habits. Therefore, flavor manufacturers are investing in research and development to create innovative, natural flavor profiles that cater to the demand for authenticity and transparency in the food and beverage industry. Hence, such factors are driving the market growth during the forecast period.

Major Market Challenge 

The increase in the threat of counterfeit food flavor products is one of the key challenges hindering market growth. The rise in demand has simultaneously led to a rise in the influx of counterfeit products into the market. In addition, counterfeiting refers to the branding and sales of unauthorized products, which represents a major challenge for genuine vendors. Furthermore, counterfeit food flavor products are manufactured using low-cost, non-standard materials.

Moreover, counterfeit flavor and fragrance products affect consumers as well as manufacturers of genuine flavor products. In addition, consumers buying fake goods, either knowingly or unknowingly, will be affected by adverse health issues caused by them.  Furthermore, most consumers are unable to distinguish between original products and counterfeit ones and buy the latter due to their low cost, which affects the brand image and sales of the company. Hence, such factors are hindering the market growth during the forecast period.

Market Company Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.

• Key Offering - Ajinomoto Co. Inc: The company offers food-flavors such as AJI-NO-MOTO powder used for umami-flavors in sauces, broths, soups, and many more foods.
• Key Offering - Archer Daniels Midland Co: The company offers food-flavors such as natural flavors, Clean-label solutions, different varietal and provenance-flavors and extracts, best in-class mint flavor, traceable vanilla, and citrus flavor.

The  market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

BASF SE, Carbery Food-Ingredients Ltd., Cargill Inc., Corbion nv, DPO International, Givaudan SA, Huabao International Holdings Ltd., International-Flavors and Fragrances Inc., Kerry Group Plc, Keva Flavours Pvt. Ltd., Koninklijke DSM NV, LorAnn Oils Inc., McCormick and Co. Inc., Robertet SA, Sensient Technologies Corp., Symrise AG, Takasago International Corp., V. Mane Fils, and Bell-Flavors and Fragrances GmbH

The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The market is experiencing a dynamic shift towards environmentally friendly eating habits and the adoption of natural and plant-based flavors. With an emphasis on regulatory affairs and dietary supplements, consumers in high-income countries are exploring a diverse range of botanical flavors and synthetic edible flavors across various sectors, like the beverage sector and food retail industry.

From floral flavors to exotic food flavors, manufacturers are innovating with botanicals such as ginseng, ashwagandha, and citrus fruits to create novel products catering to stress relief and sleep. The rise of ready-to-eat food items and packaged eatable products has led to increased demand for liquid food flavors and powdered food flavors, especially in processed foods and convenient foods.

The market is undergoing significant transformations driven by cultural upheavals and dynamic lifestyle changes. Consumers, motivated by health objectives, are increasingly turning to natural food flavors and ready-made substitutes. Producers are investing in research and development to introduce a variety of foods and beverages, incorporating botanical extracts and essential oils. Sustainability is a key focus, influencing global initiatives and reshaping the food production system. The market reflects changing dietary patterns and preferences, impacting household food consumption, greenhouse gas emissions, and resource usage.

Natural tastes offer health advantages, challenging the dominance of synthetic ingredients and emphasizing freshness, nutritional value, and adherence to regulatory standards. National and international food safety bodies play a crucial role in maintaining quality standards across food processing units. The demand for functional foods, coupled with shifts in lifestyle and eating habits, is influencing the meat processing industry, savory flavor market, and soft drinks sector. The growing preference for natural ingredients, including fruit and botanical extracts, showcases the evolving flavor varieties that cater to customer convenience and the pursuit of wholesome-food. These market dynamics underscore the increasing demand for natural and sustainable flavors, such factors will increase the market growth during the forecast period.

Innovations such as blueberry-flavored protein drinks and rose-flavored teas are reshaping the food & beverage industry while flavoring approaches incorporate terpenes and cannabinoids for medicine and taste response enhancement. Market growth analysis indicates a promising future for functional beverages and ready-to-cook meals, and ready-to-eat food products as food-manufacturing companies diversify their product portfolios to meet evolving consumer preferences.

Segment Overview

The research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Product Outlook
  • Natural-flavors
  • Artificial-flavors
• Application Outlook
  • Foods
  • Beverages
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Scope
Report Coverage	Details
Page number	170
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 6.86%
Market Growth 2024-2028	USD 6.62 billion
Market structure	USD Fragmented
YoY growth 2023-2024(%)	5.97
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 27%
Key countries	US, China, Germany, UK, and France
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	A and B Ingredients Inc., Ajinomoto Co. Inc., Archer Daniels Midland Co., BASF SE, Carbery Food-Ingredients Ltd., Cargill Inc., Corbion nv, DPO International, Givaudan SA, Huabao International Holdings Ltd., International-Flavors and Fragrances Inc., Kerry Group Plc, Keva Flavours Pvt. Ltd., Koninklijke DSM NV, LorAnn Oils Inc., McCormick and Co. Inc., Robertet SA, Sensient Technologies Corp., Symrise AG, Takasago International Corp., V. Mane Fils, and Bell-Flavors and Fragrances GmbH
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, market growth and trends, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough market research and growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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