The food flavor market comprises flavoring ingredients and flavor enhancers that are added to variety of food items to enhance their taste and aroma. Food flavors play a crucial role in food manufacturing industry by creating desire food experiences for consumers. Some common food flavors include natural extracts, essence, organic acid salt, enzyme preparation, and other aromatic chemical synthesis products. With rising health consciousness, demand for natural flavors derived from plant and fruit extracts is increasing among manufacturers and consumers. These flavors are considered to be clean label ingredients and provide nutritional benefits. 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 key trends:
One of the key trends observed in the global food flavor market is the growing demand for customized flavors. Food manufacturers are focusing on developing new innovative flavors specific to regional taste preferences. They are bolstering their product portfolio through continuous research and development activities to introduce unique blends of flavors. This helps them in gaining competitive advantage and enhancing brand loyalty. Manufacturers are also offering customized flavor solutions to small food processing businesses as well as large food conglomerates. Moreover, rapid adoption of ambient flavors in packaged food and beverage products is expected to drive the market growth during the forecast period. Ambient flavors are stable at room temperatures and add longer shelf life to products without affecting the quality.
Porter’s Analysis
Threat of new entrants: The food flavor market requires heavy investment in R&D for product development and compliance with stringent FDA regulations, which makes entry difficult for new players.
Bargaining power of buyers: Large retail chains have significant bargaining power over flavor suppliers due to their bulk purchasing abilities. However, the availability of numerous flavor suppliers limits this power.
Bargaining power of suppliers: Leading flavor suppliers have some bargaining power due to proprietary product technologies and formulations. However, this is balanced by availability of substitutes.
Threat of new substitutes: Ongoing innovation has increased possibilities of substitute flavors from natural sources. However, regulatory compliance requirements limit rapid changes.
Competitive rivalry: The market is highly fragmented with numerous international and domestic players. Intense competition keeps pricing pressures and drives innovation.
Key Takeaways
The global Food Flavor Market Growth is expected to witness high over the forecast period. North America currently dominates the market due to strong demand from processed food industry and presence of leading players. Asia Pacific is expected to witness fastest growth due to rising health awareness and growing demand for convenience food.
Regional analysis: North America holds the highest share in the global food flavor market owing to high consumption of packaged food and presence of major flavor manufacturers in the region. Asia Pacific is expected to grow at fastest pace during the forecast period with China and India being the major consumers. Growing health awareness and changing lifestyle is expected to drive market growth in the region.
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, and Flowserve Corporation. Innovation and expanding product portfolio through mergers and acquisitions are the key strategies adopted by these players.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it