Vegan Flavors Market Outlook & Key Findings
- Future Market Insights (FMI) forecasts optimistic growth for global vegan flavors market and projects a CAGR of 4.8% between 2020 and 2030
- Demand for plant-based bakery and confectionery products is increasing as consumers are more inclined towards vegan diet and healthy lifestyle
- More than 80% of vegan flavors produced worldwide in 2019 were derived from fruits
- In 2019, liquid form of vegan flavour held over 60% production share against other forms
- Other factors contributing to market’s snowballing growth includes increasing prevalence of lactose intolerance among consumers and a desire to maintain eco-friendly and sustainable food choices
Brand Differentiation by Acquiring Certifications has been playing for Companies
As per FMI, the global vegan flavor market is estimated to surpass the valuation of US$ 7.9 Bn by the end of 2020. The increasing awareness about animal welfare and popularity of vegan lifestyle are the key factors driving vegan flavor market.
The competition in vegan flavor market is intense due to the presence of a number of small, medium and large scale manufacturers. There is also immense focus on gaining consumer trust. Companies operating in the market are therefore concentrating on organic, vegan, kosher, Non-GMO, halal, and natural certifications. Through this they also intend to boost their overall sales.
As a result of their efforts, the market is witnessing a spurt of certifications. For instance, IFF-LMR, a subsidiary of International Flavors & Fragrances Inc. has received vegan certification for its natural extracts from Expertise Vegan Europe.
With more consumers go the vegan or flexitarian way, market players are compelled to introduce unique flavors and fragrances. They are introducing more vegan ingredients to woo consumers. Driven by this trend Sensient Technologies Corporation has developed a special website for vegan flavors only.
Vegan Flavor Sale Surges as a Result of Spurt of Artisan Bakeries
The vegan flavor market will witness sales uptick in response to the rising popularity of artisan bakery. Artisan bakery products are handcrafted and produced by using high quality ingredients. Color, texture and flavor in these food items are chosen as per consumer’s requirements.
The number of health-conscious consumers is increasing, which in turn fuels the demand for healthier options in baking products. The trend has picked pace since consumers around the world are seeking a healthy lifestyle. Experts believe it to have long-term impact on consumers’ purchase behavior.
The prevailing trend also has resulted in spurt in the number of artisan bakeries. Artisan bakeries use various vegan flavors to cater to the demand for healthy and high quality bakery products. The consumption of high quality vegan bakery products is growing, which is resulting in the positive growth of vegan flavors market.
Marketing and Promotional Strategies Creating Lucrative Opportunities in Vegan Flavor Market
In the highly competitive vegan flavor market, it becomes necessary to focus on promotional strategies. Monitoring target consumers and using proper promotional strategies are the most important aspects, which can help to improve the sales of vegan flavors.
There are many consumers who do not have any information about the available vegan flavors, and thus, prefer other available options. Providing vegan flavor specific product brochures and developing customized services are expected to create growth opportunities for the vegan flavors market.
The increasing number of vegan influencers will have a significant impact on the sales of vegan flavor products. There are many vegan influencers who are spreading awareness regarding health benefits associated with vegan products on Instagram, Facebook, Pinterest, YouTube, and blogs. This is expected to have a positive influence on the overall market.
Several companies are partnering with these influencers to get an authentic review about their product and increase awareness regarding the same.
Focus on the Specific Needs of F&B Manufacturers
Key players in the vegan flavors market such as International Flavours and Fragrances, Inc., Sensient Technologies Corporation, Symrise AG, and others are focusing on customizing vegan flavors to enhance their sales prospects. They are hiring special professionals to study consumers’ trends and requirements, besides setting up creative centers around the world. Through this, they intend to understand the regional flavor trends and develop innovative products accordingly.
Acquisition also remains one of the key strategies adopted by the market players. Strategic collaborations and acquisitions give them scope to expand geographic footprint as well as product portfolio. The market has witnessed a spurt of acquisitions in the last few years.
For instance,
- In July 2017, McCormick & Company, Inc. acquired the food division from the Reckitt Benckiser Group PLC for US$ 4.2 billion. The acquisition helped the company to strengthen its position in the condiment and flavor segment.
- In July 2018, the Sensient Technologies Corporation acquired Mazza Innovation Limited. The acquisition provided an umbrella technology and extraction technology to Sensient Technologies Corporation which supports applications in both flavors & fragrances and color segments. Due to the use of technologies the efficiency in production increased.
- In May 2019, Givaudan SA acquired a Vietnamese flavor company named Golden Frog, with the aim of expanding its product portfolio. Golden Frog manufactures natural flavors and extracts essential oils for the consumers in the ASEAN region.
West is Dominator and the East is the Rising Star: Vegan Flavors Regional Analysis
While Europe and North America are deemed as leading markets for vegan flavors, East Asia and South Asia are anticipated to exhibit higher growth prospects.
Europe and North America accounts for more than 60% of the global vegan flavor market. These regions will continue to lead in global vegan flavor market in forecast period.
According to Plant Proteins Co., U.S. retail sales of plant-based foods have increased 11% from 2018 to 2019. This creates ample opportunities for the expansion of the vegan flavors market in U.S and Canada.
The increasing health consciousness amongst consumers is a key factor bolstering veganism in Asia Pacific. Inevitably this would boost growth prospects for vegan flavors market.
In the Middle East & Africa, consumption of animal based products is high as well as awareness of vegan products is limited due to which vegan flavor market is expected to grow at a slow pace.
Regardless of difference in consumer preferences across key regions, there is more or less similarity in the variance of product pricing. The price of fruit based vegan flavor is higher than vegetable, fusion and herbs and spice vegan flavors.
Key players are launching various unique vegan flavors in these regions and investing in research and development to launch innovative products in the future.
Top Vegan Flavors Brands in the Market
Several big brands such as McCormick, 360 Nutrition, Accent, Alovitox, Colgate, and Earth Balance are now going organic, gluten-free and GMO free, subsequently driving vegan flavors market.
With an estimated 60+ vegan flavors players with personalized packaging, innovative flavors, and variety of claims including clean-label claims.
Following list of brands are commonly preferred brands around the globe in vegan flavors category:
- Beyond Fresh
- California Gold Nutrition
- Crook & Marker
- Feel Great 365
- Foreal Foods
- Honey Badger
- Ice Chips
- Kal
- Lifetime Vitamins
- Marcia Boothby
Below are some of the key players in the vegan flavors market:
Americas
- International Flavors & Fragrances, Inc.
- Sensient Technologies Corporation
- The Edlong Corporation
- Innova Flavors
- Flavor Producers, LLC
- LorAnn Oils
Europe
- Symrise AG.
- Givaudan SA
- McCormick & Company, Inc.
- Döhler Group SE
- Kerry Group
- Firmenich SA
Asia Pacific
- Takasago International Corporation.
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report
Vegan Flavors: Future Tastes Good
Governments of various countries have designed dietary guidelines to encouraging healthy food choices. A few European countries such as the U.K, Sweden, Netherlands and France and others have established new dietary guidelines, which suggest that individuals should decrease the consumption of meat and dairy products. The support from government is encouraging consumers to include vegan products in their daily diet.
This has also impelled manufacturers to focus on the production of various vegan meat alternatives that can satisfy the requirements of the customers. The use of vegan flavors is rising by key players in food and beverage industry as they focus on producing innovative vegan products.
The rising prevalence of lactose intolerance is one of the chief drivers of veganism. Evidently it has a strong influence on the vegan flavors market as well. This, coupled with strategies adopted by manufacturers aimed at expanding their distribution network, will boost vegan flavors market.
FAQ ABOUT THE MARKET
FAQ ABOUT THE MARKET
- What factors are driving the demand for vegan flavours?
Increasing health-concerns among consumers are projected to serve as one of the key drivers for the vegan flavors market growth. The consumer inclination towards natural and plant-based products is increasing across the globe. Growing awareness of animal welfare and popularity of vegan lifestyle are the key factors for driving the vegan flavor market.
- Which application area of vegan flavours is experiencing the highest growth?
The demand for vegan and plant-based food products is rising across the globe due to which vegan flavors experiencing highest growth from food industry. The use of vegan flavors is increasing from processed, bakery, dairy, and confectionery food manufacturers.
- Which sectors are companies tapping for new growth opportunities?
Vegan flavor manufacturers supplying their products mainly to food and beverage industry but now companies are tapping for new growth opportunities from pharmaceutical, animal feed, personal care, dietary supplement, and tobacco industries.
- What factors are driving the demand for vegan flavours?
Increasing health concerns among consumers are projected to serve as one of the key drivers for the vegan flavors market growth. The consumer inclination towards natural and plant-based products is increasing across the globe. Growing awareness of animal welfare and the popularity of vegan lifestyle are the key factors for driving vegan flavor market.
- Which application area of vegan flavours is experiencing the highest growth?
The demand for vegan and plant-based food products is rising across the globe due to which vegan flavors experiencing highest growth from the food industry. The use of vegan flavors is increasing from processed, bakery, dairy, and confectionery food manufacturers.
- Which sectors are companies tapping for new growth opportunities?
Vegan flavor manufacturers supplying their products mainly to food and beverage industry but now companies are tapping for new growth opportunities from pharmaceutical, animal feed, personal care, dietary supplement and tobacco industries.
Market Segmentation
The global Vegan Flavors market is segmented in detail to cover every aspect of the market and present complete market intelligence to readers.
By Form
- Powder
- Liquid
By Source
- Vegetables
- Fruits & Others
- Fusion
- Herbs & Spice
By Application
- Food Industry
- Processed Food
- Dairy
- Bakery
- Confectionery
- Beverage Industry
- Flavored Drinks
- Energy Drinks
- Fruit Juices
- Pharmaceutical Industry
- Others
By Region
- North America
- Latin America
- Europe
- East Asia
- South Asia
- Oceania
- MEA
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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