Food Flavor Market is Estimated To Witness High Growth Owing To...

Food Flavor Market is Estimated To Witness High Growth Owing To Increasing Demand for Convenience and Packaged Food Products

Posted 2023-11-24 13:47:10

The food flavor market is estimated to be valued at US$ 17.68 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Food flavors are consumable agents that are added to food and beverages in order to impart, enhance, or modify their aroma and taste. Flavorings are blended to produce a variety of flavors that improve the organoleptic properties and sensory appeal of foods. Natural flavors are extracted from spices, fruits, vegetables, herbs, and other plant materials, while artificial flavors are produced through chemical synthesis or isolation. Flavors are used across various food applications such as snacks, bakery, confectionery, beverages, dairy products, meat products, and soups among others. Their increasing use is a consequence of changing lifestyles and rising consumer preference for convenience and processed or packaged foods.

Market key trends:
One of the key trends spurring the growth of the food flavor market is the rising demand for convenience and packaged food products. Busy lifestyles and increasing number of working women have encouraged individuals to consume packaged or ready-to-eat snacks and meals. Flavored versions of snacks like chips, noodles, and other bakery items are popular. Likewise, beverage flavors for soft drinks, juices, flavored milk, and packaged fruit drinks witness high consumption. This has augmented the overall demand for natural and artificial food flavors from major snacks & baked products, beverage, and dairy companies seeking to expand their product lines catering to evolving consumer tastes. Flavors help packaged food manufacturers differentiate products, attract new buyers, and enhance their brand loyalty through great tasting offerings.

Porter’s Analysis
Threat of new entrants: New players face high threat as the market is already dominated by large established players. High initial capital investments and the need for R&D also pose barriers.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes. However, buyers prefer well-established brands for quality and consistency.

Bargaining power of suppliers: Suppliers have moderate power due to the presence of a large number of raw material suppliers. However, established players source raw materials in bulk quantities lowering supplier power.

Threat of new substitutes: Threat from substitutes is low as natural and artificial flavors have distinct tastes and functional properties. However, alternative protein sources pose a potential threat.

Competitive rivalry: Intense due to the large number of major players globally focused on new product launches and acquisitions.

SWOT Analysis
Strengths: Strong R&D capabilities and brand recognition of key players. Growing demand for plant-based, clean label, and organic flavors.

Weaknesses: Vulnerable to fluctuations in raw material prices. Vulnerable to stringent food safety regulations across regions.

Opportunities: Growth in developing markets. Rising demand for allergen-free, gluten-free, vegan, and sustainability-focused flavors.

Threats: Price wars among competitors. Popularity of private label brands.

Key Takeaways
The Global Food Flavor Market Size is expected to witness high growth, exhibiting CAGR of 4.6% over the forecast period, due to increasing demand for processed and convenient food products. Advancements in flavor encapsulation technologies are also fueling market growth.

Regional analysis: North America dominates the global food flavor market, owing to strong processed food industry in the US and Canada. Asia Pacific is projected to be the fastest growing market during the forecast period due to rising disposable incomes, growing middle class population and their willingness to spend on premium food products.

Key players: Key players operating in the food flavor market are Givaudan SA, International Flavors & Fragrances Inc., Firmenich SA, Symrise AG, Takasago International Corporation, Sensient Technologies Corporation, T. Hasegawa Co., Ltd., Kerry Group, Mane SA, and Huabao International Holdings Limited. These players are focusing on new product launches, capacity expansions and mergers & acquisitions to strengthen their market positions.