Food flavors are widely used in the food and beverage industry to enhance the organoleptic properties of various food products such as snacks, beverages, dairy products, and bakery items. Food flavors are available in different forms including liquid, dry, and gel. They deliver benefits such as improved taste and texture of food items along with extending their shelf life. The versatile use of food flavors in various cuisines to achieve desired tastes and preferences has triggered their demand substantially. Changing dietary habits and preferences for natural food ingredients over synthetic counterparts have encouraged food manufacturers to incorporate more natural flavors in their products.
The global Food Flavor Market is estimated to be valued at US$ 20.37 billion in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends witnessed in the global food flavor market is the rising demand for clean label and natural flavors. Consumers are increasingly seeking transparency in product ingredients and shifting their preference towards more simple and understandable labels. This has prompted food manufacturers to replace synthetic flavors with clean label alternatives derived from natural sources such as fruits, vegetables, herbs, and spices. According to a survey, around 78% of global consumers claim to read labels, thereby prioritizing clean and understandable product formulations. Besides clean label compliance, natural flavors offer additional health benefits like nutraceutical properties which is another factor driving their popularity. Their use reduces risk of developing food allergies and intolerance.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as there are certain entry barriers such as high capital requirement, technological expertise and established brand recognition of existing players.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of substitutes and price sensitivity of buyers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are number of suppliers in the industry.
Threat of new substitutes: The threat of new substitutes is moderate as new alternative flavors can disrupt the market.
Competitive rivalry: Competition rivalry is high among existing players.
Key Takeaways
The Global Food Flavor Market Size is expected to witness high growth. The global Food Flavor Market is estimated to be valued at US$ 20.37 billion in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024-2031.
Regional analysis
The Asia Pacific region is dominating the food flavor market and is expected to continue its dominance during the forecast period. This is attributed to increasing consumption of bakery and confectionery products in countries like China, India and others. Changing dietary habits and rising disposable income are key factors fueling market growth in the region.
Key players
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. Flavors play an important role in determining the taste and aroma of food products. Key players are focusing on developing innovative flavors to cater to changing consumer preferences.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
