Food Flavour Enhancer Market - Key Research Findings
- The global food flavour enhancer market is estimated to be valued at ~US$ 7.4 Bn by 2019.
- The food flavour enhancer market is anticipated to grow at a CAGR of ~7% during the forecast period of 2019-2029.
- Plant-based food flavour enhancers are expected to witness high demand during the forecasted period.
- The growth of this particular type of food flavour enhancers can be primarily attributed to the increasing awareness of natural ingredients and growing vegan and vegetarian population.
- East Asia is estimated to account for maximum revenue share in the food flavour enhancer market through 2029.
- East Asia is estimated to continue to be an opportunistic market for food flavour enhancer manufacturers and distributors, owing to increased production and demand for organic compliant food flavour enhancer.
- Foodservice/HoReCas are expected to generate maximum demand for food flavour enhancers in the forecasted period.
- Adoption of food flavour enhances in the production of snacks, savouries, and seasoning products is expected to remain instrumental in driving growth of the food flavour enhancer The consumption and production of snacks, savouries and seasonings is increasing rapidly. Manufacturers are launching innovative and unique products in this segment, in order to attract more customers.
Key Factors Shaping Food Flavour Enhancer Market
Plant-based Food Flavour Enhancers Becoming Mainstream
The search for organic and vegetarian products has resulted in food flavour enhancer manufacturers opting for plant-based sources such as plant-extracts or vegetable powders. Also, the population that is turning vegan has been multiplying in the recent years, which might result in plant-based food flavour enhancers gaining popularity during the forecast years.
Also, various health concerns and ethical reasons have resulted in many people opting for meat substitutes. 30% of consumers around the globe were flexitarian and reducetarian in 2016. Thus, plant-based food flavour enhancers are gaining popularity, especially in developed regions such as North America and Europe. These food flavour enhancers are now being manufactured by many companies around the globe to cater to vegan, reducetarian, and flexitarian consumers.
Market players are mainly focusing on manufacturing food flavour enhancers that cater to the vegan population. They are also aiming for introducing food flavour enhancers that could enhance the juicy, succulent flavour profile of vegetarian food products.
Reduction in Small- and Medium-Sized Food Flavour Enhancer Businesses
Few years back, the food flavour enhancer market was fragmented, with various lower- and mid-tier manufacturers that provide these food flavour enhancers to the global market. However, due to various acquisitions of these small- and medium-scale companies by top-tier companies, the number of small and medium companies has decreased, resulting in a more uniform and less diverse market.
In recent years, the food flavour enhancer market has been mostly dominated by a few top companies that have a high market share. Also, the high investments required for product innovation and expansion can only be provided by these top-tier companies.
For example, Archer Daniels Midland Company acquired WILD Flavourss and Specialty Ingredients to increase its product portfolio of clean-label food flavour enhancers. The same was carried out by Kerry Group, which acquired Mastertaste Inc.
Consumers Expectations about Transparency Promoting the Use of Clean-Label Food Flavour Enhancers
Clean-label products are high in demand, and consumers want to know about the ingredients in food products. This has led to their expectations being high regarding transparency in whatever product they buy. Also, various certifications from regulatory bodies in the food industry add value to a product.
This has resulted in food manufacturers feeling the pressure to use clean-label food flavour enhancers in the products that they manufacture. This has increased the demand for food flavour enhancers that are manufactured from natural sources, even if their prices are a bit higher as compared to synthetic food flavour enhancers such as MSG, disodium guanylate, etc.
Food Flavour Enhancer Market Structure Analysis
- The global food flavour enhancer market is a moderately consolidated landscape, as 35% - 40% share of the market is held by tier-1 players.
- Expansion of businesses through mergers, acquisitions, collaborations, and alliances are the strategies followed by key players in the food flavour enhancer Key market players focus on strategies such as adoption of new technologies to develop innovative products, and further enlargement of sales and distribution channels.
- Noteworthy investments in the research and development for novel and sturdy products is projected to boost the growth prospects of the food flavour enhancer
Major players in the food flavour enhancer are B&G Foods Inc., Sensient Technologies Corporation, Cargill Inc., Givaudan S.A., Ajinomoto Group, Archer Daniels Midland Company, Kerry Group, Koninklijke DSM N.V., A&B Ingredients, International Flavours and Fragrances, Bell Flavours & Fragrances, Scelta Mushrooms BV, DPO International Sdn. Bhd., Griffith Foods Inc., Basic Food Flavours Inc., ALFA-FOOD s.r.o., Nikken Foods USA, Inc., and Flavaroma Flavours & Fragrances Pvt. Ltd.
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- Hydrolyzed Vegetable Protein
- Yeast Extract
- Others (Meat Extract, Plant Extract)
- Soups and Sauces
- Meat and Seafood
- Ready Meals/Prepared Foods
- Dairy Products
- Snacks, Savouries and Seasonings
- Bakery and Confectionery
- North America
- Latin America
- East Asia
- Southeast Asia & Rest of APAC