The Food Flavor Market Is Estimated To Witness High Growth Owing To Increasing Demand For Processed And Packaged Foods
Food flavors are taste enhancers and flavorings that are used to impart or enhance the taste and aroma of food products. They are used in a variety of processed and packaged food products such as bakery, dairy, snacks, desserts, and confectionery. The global food flavor market is estimated to be valued at US$ 17.68 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing demand for processed and packaged foods: Rising urbanization and changinglifestyle patterns have increased the demand for convenience and packaged foods. Packaged foods have longer shelf-life and are easier to distribute and consume on-the-go. However, processing of foods can damage their flavors. This is where food flavors play a critical role in retaining or enhancing the original flavors of foods post-processing. Hence, the increased demand for processed and packaged foods directly drives the growth of the food flavor market.
Another key factor fueling the market growth is the increasing global population. As per United Nations estimates, the global population is expected to reach 8.5 billion by 2030 and 9.7 billion by 2050. With a rising population, the demand for food products is also increasing at a substantial rate. This is creating massive demand for food flavors from the food and beverage industry.
Market Overview:
Food flavors are taste enhancers and flavorings that are used to impart or enhance the taste and aroma of food products. They are used in a variety of processed and packaged food products such as bakery, dairy, snacks, desserts, and confectionery. The food flavoring industry involves extraction of essential oils and flavors from different sources. Common sources include fruits, vegetables, herbs, spices, flowers, meat, seafood and others. Flavorings add sensory properties to foods and help differentiate products. The global food flavor market is estimated to be valued at US$ 17.68 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
SWOT Analysis
Strength: The Food Flavor Market Share has seen an increased demand for natural and clean label flavors. This can be attributed to rising health concerns among consumers. Market players are investing in R&D to develop natural flavors without compromising on taste. The market is also witnessed increased adoption of customized flavors as per requirements of different regional cuisines.
Weakness: Price volatility of raw materials required for production of flavors is a major challenge faced by manufacturers. Flavor ingredients are highly susceptible to weather conditions which can impact prices. Import duties and regulations surrounding international trade can negatively impact overall profitability.
Opportunity: Emerging economy markets like Asia Pacific, Middle East and Africa offer lucrative growth opportunities. Rising disposable incomes and changing lifestyles contribute to the increased demand for convenience and packaged food products in these regions. Market players can expand business by catering to evolving taste preferences of consumers in developing countries.
Threats: Stringent norms and guidelines issued by regulatory bodies over usage of food additives and labeling can restrict product launches. Environmental regulations surrounding wastewater treatment from production sites have become much more stringent increasing compliance costs for manufacturers.
Key Takeaways
The global food flavor market is expected to witness high growth over the forecast period supported by rising demand for packaged and convenience food products worldwide.
Regional analysis: The Asia Pacific region currently accounts for over 35% revenue share of the global market led by China and India. Pakistan and Indonesia also contribute significantly to regional growth. Hectic lifestyles, rapid urbanization and expanding middle class population translates to high demand for convenience foods, thereby favoring market growth. Growing penetration of international fast food chains has exposed consumers to wide variety of flavors propelling trials. Additionally, local restaurants are experimenting with novel ingredients to satisfy evolving taste preferences providing a multiplier effect to the regional market.
Key players operating in the food flavor market are Schlumberger Limited, Goodwin International Ltd, Honeywell International Inc., General Electric Company, Emerson Electric Co., Rotork Plc, KITZ Corporation, AVK Holding A/S, Bürkert Fluid Control Systems. These companies enjoy a significant share and are focusing on expanding their regional footprint into emerging Asian and African countries through joint ventures and collaborations with local players to better understand local tastes.
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