Factors such as the growing inclination toward clean-label products and technological introductions to flavors such as microencapsulation and non-thermal techniques have been driving the flavors market. The global food flavors market is estimated at USD 13.56 billion in 2018 and is projected to grow at a CAGR of 4.8%, to reach USD 17.10 billion by 2023.
Based on type, the fruits & nuts flavor accounted for the largest share, in 2018. Due to their wide application in areas such as bakery products, health drinks, frozen desserts, nutraceuticals, and nutrition bars. Vanilla is estimated as the second-largest type segment with respect to market share. Vanilla is largely used by food & beverage manufacturers. Recent trends in the food industry include consumers leaning toward natural flavors because of the health benefits associated with them.
The food flavors market, on the basis of application, is segmented into the beverages, dairy, confectionery, bakery, meat, and snacks & savory. The beverages segment accounted for the largest share in 2018, followed by snacks & savory products. Beverages such as carbonated, non-carbonated, and health drinks accounted for a larger share of the food flavors market.
On the basis of form, the liquid segment accounted for the larger share in 2018. Liquid flavors are the preferable form of flavors, due to high solubility and applied in almost all varieties of foods.
On the basis of origin, the artificial segment accounted for the larger share in 2018. Natural flavors are in demand due to the growth in consumer preference for natural products.
Asia Pacific accounted for the largest share of the food flavors market in 2018. This market is driven by increased awareness about natural food flavor products among consumers and inclination toward the health benefits provided by natural food flavors. South America is projected to be the fastest-growing market between 2018 and 2023. Emerging economies such as Brazil and Argentina play an important role in supplying food flavors. The demand for food flavors is increasing in the emerging economies of South America due to the growth of the processed food industry.
The major restraining factor for the food flavors market is the availability of natural flavors. Another factor could be the stability of natural flavors, which changes with fluctuations in atmospheric or processing conditions such as pH, temperature, and light.
Companies such as Givaudan (Switzerland), International Flavors & Fragrances(US), Firmenich (Switzerland), Symrise (Germany), and Frutarom (Israel) have acquired leading market positions through their broad product portfolios, along with a focus on diverse end-user segments. They are also focused on innovations and are geographically diversified.
