U.S. Organic Food Flavors Market Growing at 13.3% CAGR to Generate $234.3 Million by 2026

U.S. organic food flavors market was valued at $112.0 million in 2020, and is projected reach $234.3 million by 2026, registering a CAGR of 13.3% from 2021 to 2026.

Increase in sales of organic food products and rise in health awareness among consumers in the U.S. are the factors driving the market growth, however, the industry is facing significant challenges due to shortage in supply of raw materials to the manufactures.

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Surge in side effects of artificial flavors and rise in health awareness among consumers drive the growth of the U.S. Organic Food Flavors market. However, shortage in supply of raw materials, higher costs of organic farming, and difficulties in getting organic certification restrain the market to some extent. On the other hand, rise in number of end-use applications present new opportunities in the upcoming years.

Organic flavors are used in various products such as bakery, confectionery, meat, snacks, seafood, and poultry. Rise in disposable income and change in food habits are the factors that drive the growth of the U.S. organic food flavors industry. The beverages industry has a significant impact on the growth of the organic food flavors market in the U.S.

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Increase in demand for ready-to-eat meals is a key driver for the organic food flavors industry across the U.S. Moreover, innovative technologies, introduction of new flavors, and heavy inflow of investment in R&D activities are other factors that supplement the growth of the organic food flavors market. The U.S. organic food flavors market trends of using organic flavors and ingredients are on its peak, owing to rise in health awareness. Furthermore, high demand for flavors across the U.S. to produce commercialized clean label or green food products that are free of additives and other harmful chemicals propel the organic food flavors market growth.

Technological strides make it possible for manufacturers to develop innovative organic flavors to cater to the change in customer needs and taste requirements. The applications of advanced technologies provide innovative and novel tastes in food. Rise in consumer awareness regarding adverse effects of synthetic flavors on human health are expected to boost the market growth. However, shortage in supply of organic raw materials due to lack of adequate organic farms hamper the growth of the organic food flavors market in the U.S.

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The presence of Hispanic and Asian population is a major reason behind the surge in demand for the spices based organic food flavors in the U.S. According to the U.S. Census Bureau, Asians and Latinos are the fastest-growing minorities. The overall increase in population of Asian origins is expected to foster the growth of the spices segment in the U.S. during the U.S. organic food flavors market forecast period.

The U.S. organic food flavors market analysis includes key market players profiled in th report such as Firmenich SA, Symrise AG, The Archer-Daniels-Midland Company, Nature's Flavors Inc., Sovereign Flavors, Monster Beverage Corporation, Allen Flavors, Inc., Aromatech SAS, Blue Pacific Flavors, Inc., and Gold Coast Ingredients, Inc.

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