Food flavors could be worth $17.10 billion by 2023
The food flavors market is estimated to be worth $13.56 billion this year, and is projected to reach $17.10 billion by 2023, at a compound annual growth rate (CAGR) of 4.8 percent during the forecast period. This is according to the recently issued market research report from Pune, India-based MarketsandMarkets entitled "Food Flavors Market by Type (Chocolate & Browns, Vanilla, Fruits & Nuts, Dairy, Spices), Application (Beverages, Dairy, Confectionery, Bakery, Meat, Savory & Snacks), Origin (Natural and Artificial), Form, and Region Global Forecast to 2023."
Demand for processed food and beverages is on the rise, notes the 203-page report, thus demand for food flavors is also growing. The need for natural food flavors is increasing significantly across all regions with rising health awareness. Natural flavors offer varied health benefits and are widely accepted by consumers ready to pay premium prices for natural foods, MarketsandMarkets said in a news release.
The fruits and nuts category will account for the largest share of food flavors by type this year, estimates MarketsandMarkets. Fruit and nut flavors are common in beverages, bakery products, dessert items, puddings and energy bars because of their numerous health benefits and the rising demand for healthy ingredients. Various energy drinks and non-carbonated drinks also incorporate these flavors.
In terms of applications, the beverage segment follows the fruits and nuts category, and increased demand for carbonated and non-carbonated energy drinks have been key drivers. The liquid format segment of flavors, whichis usually available in water-soluble and oil-soluble varieties, will grow faster during the forecast period.Liquid food flavors are used for beverages, dairy products, protein drinks and pharmaceuticals because they are easy to mix and provide flavor consistency.
Natural liquid flavors (water- and oil-soluble formats) are expected to increase based on origin and consumers prefer them because of their clean label and organic ingredients, the market researcher added.
The Asia Pacific region is noted as the largest market for food flavors in 2018, because of the rising consumption of beverages, confectionery, dairy and bakery products there. “China is witnessing economic development and a rise in disposable income, due to [the population consuming more] processed food items,” it said.
The report includes a study of marketing and development strategies, along with product portfolios of the leading flavor suppliers and profiles. More on the report is available from MarketsandMarkets.