BEVERAGE FLAVORING MARKET - KEY RESEARCH FINDINGS
- The market will exhibit a CAGR of 5.6% between 2019 and 2029.
- The Asia Pacific market is projected to expand significantly due to the rapid growth of the food and beverage market.
- Growing demand for packaged juices, sports drinks and energy drinks is expected to further fuel demand for drink-flavored systems in the Asia Pacific region.
- Increasing investment by many multinational manufacturers in flavor enhancement coupled with rising demand for ready-to-eat food and beverages is boosting the the global market for flavoring beverages.
- By product, the flavoring agents segment is projected to hold the largest share in the market.
- The preference of consumers for natural flavoring is growing as they are more conscious of their wellbeing, which is the key driver of market growth.
FACTORS SHAPING THE BEVERAGE FLAVORING MARKET
Flavoring Agents Segment is Expected to Hold the Largest Market Share
Since customers are more health-conscious, there is a strong demand for low-salt, low-sugar, and low-fat drinks, this has increased demand for taste modulators and taste-masking agents. This segment's growth is also owing to increased consumption of fortified beverages due to their nutritional values. Beverage manufacturers are concentrating on the application of natural flavoring ingredients such as natural stabilizers like pectin to fulfill market demands for natural goods combined with preservatives. Pectin is used for a wide variety of applications including fruit drinks and soft drinks.
On 11 March 2020 the WHO (World Health Organization) identified the novel coronavirus as a pandemic. Government-imposed lockdowns to avoid the spread of the pandemic have adversely affected many manufacturers' supply chain network. Although beverage flavoring raw materials are imported from other countries, preventive measures taken to curb the spread of the infection have a negative effect on the global market.
Stringent Laws Implemented by Governments Aiding the Beverage Flavoring Market Growth
Strict product labelling laws and regulations have encouraged food & beverage producers to use natural flavoring ingredients because of their health benefits. Rising health consciousness has also led to greater acceptance of natural flavoring systems. Additionally, beverage flavoring systems are experiencing rising global demand from sports, energy, carbonated, and alcoholic beverage manufacturers. The demand for beverage flavoring systems is expected to be resistant due to the high production costs and strict food additive regulations.
The Fruits & Vegetables Segment, by Type, is estimated to dominate the Beverage Flavoring Systems Market
The fruits & vegetables segment is expected to represent the largest share in the market. Most manufacturing companies are influenced by the rising customer awareness regarding healthier goods. To cater to the changing consumer demand they are introducing tropical fruit-flavored beverages and vegetable-flavored beverages, which is also expected to make this market the fastest growing market during the forecast period.
BEVERAGE FLAVORING MARKET - STRUCTURE ANALYSIS
- The market for beverages flavoring systems is highly competitive and fairly concentrated.
- Companies operating in the market are focusing on new technology and product launches as to gain a leading market position.
- They also intend to achieve this by offering a large portfolio, meeting the diverse consumer demands and concentrating on the different end-user segments.
Market Research Methodology - Perfected through Years of Diligence
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- Base year considered- 2019
- Actual estimates/Historical data - 2014 - 2018
- Forecast period - 2019 - 2029
- Market Value in 2019 - US$ 4,021.0 Mn
- Segments covered - Ingredient Type, Source, Form, and Region
- Regions covered - North America, Latin America, Europe, South Asia, East Asia, Oceania, Middle East and Africa,
- Key Players - Givaudan, International Flavors & Fragrances, Sensient Technologies, Takasago International Corporation, Symrise, Firmenich, Mane, Dohler, and Robertet SA
- Growth Drivers
- Launch of advanced technologies in flavor processing
- Increasing consumer inclination toward clean-label and organic products
- Growing demand for a variety of innovative flavors in soft drinks
- Favorable regulatory environment for fortified products
Natural Segment Witnesses High Demand Among Type
Producers of beverage flavoring are regularly offering consumers are looking to offer innovations in flavors and ingredients used. Their efforts are intended to meet the consumer demand for a healthier drink without compromising the taste, texture, flavor, and nutritional potentials of the product.
Flavors are used as taste enhancer improves the overall aesthetic product value by altering its taste and smell. In terms of type, the beverage flavoring market can be segmented into natural and artificial. Of these, the demand for flavors obtained from natural sources is higher. Due to the rising incidence of novel infections, the demand from the natural segment is forecast to remain high through the course of the forecast period.
Economic Expansion to Offer Major Growth Opportunities in Developing Nations
Regionally, the global beverage flavoring market covers North America, Latin America, Europe, South Asia, East Asia, and Oceania, along with Middle East and Africa. Among these regions Europe and North America are leading the market as present. A key factor to consider here is that attitude of regional consumers often has major implications on the market, making it far too difficult to establish ubiquitous standards.
Moreover, most market players are increasing their inventory of products to cohere to restrictions by following the standard guidelines. This yet again increases the overall cost of production therefore the product is often sold at a high price, which in turn challenges the market.
Countries in the South Asia, and East Asia along with MEA conversely offer considerable growth opportunities to the market. Impressive economic growth witnessed in the last couple of years has resulted in the rising population of working people.
Millennial Mindset: Integrating Exotic Flavors
Increasing consumers’ consciousness and the desire for more exotic flavor profiles, particularly driven by millennial population are altering the flavor profiles as well as innovations in the non-alcoholic and alcoholic beverage categories. Millennial population is driving the growth of exotic citrus varieties. They are similarly triggering beverage producers to innovate with novel product.
Leading market players are likely to adopt strategies allowing them to keep pace with changing preference of consumers. Besides staying relevant in the market, they intend to gain competitive advantage from the product innovation and launches.
How Growth will Unfold
Healthy living and focus on wellness constitute some of the most popular trends today. These trends not only influence lifestyle of millennial, but their purchase decisions as well, making it imperative for companies to keep pace with the dynamic consumer preferences. As a result an increasing number of companies in the food sector are shunning the use of artificial or synthetic additives to opt for organic products.
In addition to this, consumers nowadays have easy access to information - thanks to modern technology. They often read through label of various food products before buying them. Due to the prevailing trend, an increasing number of producers are using beverage flavoring in their products.
This is also rather necessary for them to survive in a highly competitive market. Besides this, several market players are focusing on product launches and expanding their geographic reach to strengthen their foothold in the beverage flavouring market.
GLOBAL BEVERAGE FLAVORING MARKET TAXONOMY
The global Beverage Flavoring Market is segmented in detail to cover every aspect of the Market and present complete Market intelligence to readers.
- Chocolate & brown flavours
- Fruits & nuts
- Others (honey, mint, and vegetables)
- Dairy products
- Confectionery products
- Bakery products
- Meat products
- Savory & snacks
- Frozen products
- North America
- Latin America
- East Asia
- South Asia