What will drive the Flavouring Agents Market share? Key Participants are Givaudan, Firmenich, Symrise AG, Sensient Technologies Corporation
Strong outlook in various applications sector including beverages, bakery, dairy, savory & convenience foods, confectionery, and meat is driving the flavoring agents market growth. Factors such as the increasing popularity of flavored soft drinks, a promising regulatory scenario for fortified products, along with increasing demand for organic products and clean product labeling are expected to fuel the product demand over the forecast timeframe.
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• International Flavors & Fragrances
• Symrise AG
• Sensient Technologies Corporation
• Takasago International Corporation
• T. Hasegawa
Rising consumption of processed food & beverages along with growing consumer demand for nutritious food will increase the flavoring agents market share. The rapid expansion of ready to eat food industry owing to an improved standard of living and purchasing power will complement the business growth over the forthcoming years. Key benefits such as enhanced taste, aroma, and essence across numerous food & beverage applications will provide a strong outlook for industry growth over the forecast period.
Growing preference of the populace for ethnic and spicy ingredients particularly in the developing economies such as Mexico, India, Brazil, China, and South Africa will stimulate the product demand. Extensive R&D investments to produce better varieties of artificial and natural flavoring agents has urged the manufacturers to adopt cutting-edge technologies for enhanced product suitability and stability. For instance, tropical fruits lose their flavors while processing operations. Thus, to retain their flavor, industry participants have started adopting solid-liquid extraction (SLE) technology which is used to extract over 90% of the flavors.
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Beverages market accounted for over 30% of the industry share in 2018. Increasing consumption of alcoholic beverages, sports drinks, soft drinks, and carbonated beverages is expected to enhance the market share over the forecast period. Also, the adoption of natural and organic flavors has been on the rise owing to increasing consumer awareness about the benefits of using products derived from plant sources.
Artificial flavor market is projected to witness over 4% gains from 2019 to 2025. Inclination towards packaged and processed food products among the consumers due to changing lifestyles and busy work schedule will support the business growth. Strong outlook for these products in various baking applications is expected to augment the segment share. Additionally, ever-increasing consumer demand for food and beverage products with reduced sugar and salt have urged the manufacturers to innovate their products using novel technologies such as the SLE Technology, will fuel the demand for artificial flavors in the overall market.
Asia Pacific flavoring agents market will witness CAGR over 5% from 2019 to 2025 owing to increasing consumer expenditure on restaurant-like and fine dining experience at home. This is driving the market growth of premium products such as seasonings and sauces, by inducing a sense of authenticity in the flavor. The market has observed a shift in consumer preference owing to the expansion of the convenience food industry which can be attributed to growing population of working-class people, urbanization, and improved household income. The regional market holds huge potential for growth among the flavor suppliers and food manufacturers.
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Europe flavoring agents market accounted over USD 5 billion by 2025. Growing consumption of Processed products such as acidified milk drinks, fruit beverages, yogurts and confectionery provide lucrative opportunities for the product penetration. Rising consumer awareness regarding consumption of food products prepared from natural ingredients will augment the regional demand.
Global industry is highly competitive owing to the presence of multinational corporations and regional players Givaudan, Firmenich, International Flavors & Fragrances Inc. (IFF), Symrise AG, Sensient Technologies Corporation, Frutarom Industries are among major flavoring agents manufacturers. The manufacturers are involved in new product launches, mergers & acquisitions and production capacity expansions to gain competitive share. For instance, in May 2018, International Flavors & Fragrances Inc. (IFF) announced the acquisition of Frutarom, Israel based manufacturer for USD 7.1 billion to expand its geographic presence.
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