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The global food flavors market size was projected to reach USD 20.12 billion by 2028, exhibiting a CAGR of 4.64% during the forecast period. The market stood at USD 14.30 billion in 2020 and is estimated to reach USD 14.66 billion in 2021. Rising adoption of packaged foods and beverages and consumers’ inclination towards clean-label and organic ingredients are likely to propel market development. Fortune Business Insights™ mentions this information in its report titled “Food Flavors Market, 2021-2028.”

Food flavors are ingredients that are added to food products and beverages to enhance their taste. The rising consumer preference for packaged foods and beverages is expected to boost the adoption of essences. The sedentary lifestyles of consumers and the rising demand for clean-label and organic food products are likely to bolster the demand for flavoring substances. Further, rising awareness regarding organic edible substances’ health benefits is likely to propel flavoring substances’ adoption. For example, as per the Organic Trade Organization, organic foods and beverages’ sales exhibited a CAGR of 8.81% in the U.S. from 2013 to 2018. In addition, the rising adoption of plant-based products is likely to foster the product’s demand. These factors are likely to propel industry growth.

Impact of COVID-19

Adoption of Online Retail and Rising Demand for Healthy Products to Nurture Market Growth

This market is expected to grow positively during the COVID-19 pandemic because of consumers' rising demand for healthy products. Despite the imposition of lockdowns, the demand for healthy packaged products is expected to fuel the product’s adoption. The adoption of online retail may enable manufacturers to improve their sales and reach a wider audience. Further, the adoption of sanitization and social distancing may enable eatable flavoring manufacturers to control the spread of the virus and satisfy demand. In addition, the incorporation of production machinery may enable manufacturers to recover losses and function efficiently. These factors are likely to boost market growth during the pandemic.

Browse A Complete Research Report:

https://www.fortunebusinessins....ights.com/food-flavo

List of Key Players Profiled in the Food Flavors Market Report

Givaudan SA (Vernier, Switzerland)
International Flavors and Fragrances (New York, U.S.)
Symrise AG (Holzminden, Germany)
Sensient Technologies Corp (Wisconsin, U.S.)
Firmenich (Geneva, Switzerland)
Archer-Daniels-Midland Co. (Illinois, U.S.)
Kerry Group Plc (Tarlee, Ireland)
Corbion NV (Amsterdam, Netherlands)
Koninklijke DSM NV (Herleen, Netherlands)
BASF SE (Ludwigshafen, Germany)
Segments

By type, the market is segmented into synthetic and natural.

Based on application, it is classified into snacks, convenience foods, dairy, confectionery, beverages, bakery, and others.

Geographically, it is clubbed into Europe, North America, Asia Pacific, South America, and the Middle East & Africa.

Highlights of the Report

The report provides a detailed analysis of the top segments and the latest trends in the market. It comprehensively discusses the driving and restraining factors and the impact of COVID-19 on the market. Additionally, it examines the regional developments and the strategies undertaken by the market's key players.

Drivers and Restraints

Robust Demand for Floral and Botanical Flavors to Facilitate Market Growth

The rising consumer preferences towards floral and botanical aromas are expected to boost food flavors’ demand. The incorporation of floral essences enhances eatable products’ aroma and attracts several consumers. They are utilized by baked foods to improve the aroma and taste of food products. Blackberry-rose marshmallows, lemon-violent granola, honey-lavender gelato, edible lemon-lavender cookies are examples of products that utilize flavoring substances to improve their taste and smell. Furthermore, the rising awareness among consumers regarding the benefits of organic flavors is likely to propel the industry's growth. Organic essences retain the flavor and taste of the product and improve the product’s quality. The risks associated with synthetic flavoring are expected to propel natural flavoring substances’ demand. In addition, natural additives substances also act as a preservative, which, in turn, may boost the product’s shelf-life. These factors may drive the food flavors market growth.

However, the incorporation of regulatory policies and norms may impede the growth of the industry.

Regional Insights

Extensive Adoption of Processed Foods to Boost Market Growth in Asia Pacific

Asia Pacific is projected to dominate the market share because of the rising adoption of processed eatables and beverages among consumers. The market in Asia Pacific stood at USD 5.02 million in 2020 and is expected to grow positively during the upcoming years. Further, the presence of several employed individuals and a huge population is likely to boost the adoption of healthy foods and drinks. Moreover, increasing investments in India, Japan, and China is likely to boost the market growth. In addition, the rising adoption of is expected to boost eatable flavors’ demand. These factors may boost market development.

North America is the second-largest shareholder because of the adoption of several regional cuisines. Further, the increasing migrant population may boost flavored foods’ demand. In addition, the consumers’ inclination towards Japanese and Indian dishes and flavors may fuel flavoring substances’ adoption. These factors are likely to boost the market growth in the region.

In Europe, Russia holds the largest market share because of the presence of a huge population. In addition, the rising adoption of organic products in the U.K. is expected to boost edible flavors’ demand. These factors are likely to boost market development.

Competitive Landscape

Companies Acquire Crucial Players to Expand Market Reach Globally

The prominent companies operating in the market devise acquisition strategies to expand their reach globally. For example, Synergy Flavors acquired Innova Foods, a leading savory flavor manufacturer, in May 2021. It is owned by Griffith Foods and may allow Synergy to expand its reach globally and reach a wider audience. Further, the launch of novel products may help manufacturers grasp the consumers’ attention, boost sales, and improve their brand image. In addition, the adoption of research and development may allow companies to develop better products and incorporate flavors. This strategy may enable the company to establish a remarkable market position.

Industry Development

July 2021: Synergy Flavors Inc. announced its “Inspiring Fruits” line of depictable food flavors, natural flavors, and fruit essences for food and beverages.

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