The flavor systems market is estimated to be valued at USD 5.43 billion in 2018 and is projected to reach USD 6.96 billion by 2024, at a CAGR of 4.3% during the forecast period. The market is driven by the creation of novel flavors, favorable consumer perceptions, and the cross-product usage of flavors.
The flavor systems market, based on type, has been segmented into brown, dairy, herbs & botanicals, fruits & vegetables, and others. The market for the brown segment is estimated to dominate the flavor systems market in 2018. This is attributed to the fact that brown flavors are most commonly used across a number of applications. Brown flavors stand inclusive of flavors such as chocolate, coffee, nut, nougat, caramel, and vanilla. Additionally, they could also stand inclusive of a number of novel tastes such as eggnog, salted caramel, and brownie, which are optimized from chocolate, nougat, macadamia, and caramel. The fruits & vegetables segment is projected to be the fastest-growing segment during the forecast period. Rising awareness about health among consumers has led many manufacturers to include the usage of fruit & vegetable flavors in their products. As a result, the market is experiencing the highest growth rate.
The flavor systems market, by application, has been segmented into beverages, bakery & confectionery, savories & snacks, and dairy & frozen desserts. The beverages segment is estimated to dominate the market in 2018 and is projected to grow at the highest CAGR by 2023, owing to many end-product manufacturers that are now venturing into novel-flavored beverage categories. For instance, manufacturers are now coming up with herb-infused and spice-flavored beverages.
The European region is estimated to dominate the market in 2018. Soft drinks, dairy products, frozen products, and other alcoholic and non-alcoholic beverages are the most innovative food sectors in the region, offering significant opportunities for the growth of flavor systems. Furthermore, the growing consumption of bakery & confectionery products and savories & snack products, along with the increasing demand for variety in products have intensified the demand for flavor systems in these food products. The inclusion of innovations in flavor systems for food applications in these industries has resulted in new product development and increased consumption of flavor systems. The European market is projected to grow at the highest CAGR from 2018 to 2023. The major factors driving the flavor systems market in Europe are diversified food habits, increasing popularity of the varieties of flavors in food products, and the increasing consumer preferences toward convenience and ready-to-eat food.
The key players in the flavor systems market include Givaudan (Switzerland), International Flavors & Fragrances (IFF) (US), Firmenich (Switzerland), Symrise (Germany), and Mane SA (France). Furthermore, Sensient (US), Tate & Lyle (UK), Robertet (France), Takasago (Japan), T Hasegawa (Japan), Frutarom (Israel), and Kerry Group (Ireland) are other players that hold a significant share in the market.
