Natural flavours market to reach US$6.3m by 2020
The global natural flavours market will be worth $6.295.3 billion by 2020, according to estimates by IndustryARC, the research and consulting firm that publishes more than 500 reports annually in various industries, including agriculture, food, beverages, life sciences and healthcare.
Natural flavours are used to add flavour and aroma to food products, drinks, supplements and pharmaceuticals. These ingredients are derived from natural sources such as orange, lemon, grape, onion, beef and others according to the desired taste profile of the product. Natural flavours have extensive usage in packaged food industry.
The consumers in developed nations such as Japan, the US, the UK and France are becoming increasingly cautious on the food items they consume. This is due to increasing awareness through blogs and articles which claim the side effects related to artificial flavours consumption. In addition, consumers’ shift towards consumption of organic and natural food products which contain minimum added chemicals drives the natural flavours market.
The major product types that use natural flavours derived from various sources are beverages, confectionery, bakery, snacks, dietary supplements, dairy and other packaged food. Beverages are the most dominant segment in the natural flavours market.
Some of the health conscious consumers are purchasing beverages flavoured with natural flavours derived from exotic fruits and vegetables as they are rich in antioxidants.
The rising demand for addition of healthier and nutritious ingredients in major food categories propels the market for natural flavours.
APAC is the fastest growing region for natural flavours, which is estimated to reach $1.86 billion by 2020 at a CAGR of 10.5% during 2015-2020. With heightened awareness and wide availability of natural products in the US, North America is the most dominant market for natural flavours currently. The rising organised retail and the exposure of consumers to premium quality products in countries such as South Africa, Brazil, and India will drive the natural flavours market in these emerging economies.
The major players in the natural flavours market include: Givaudan (Switzerland), Firmenich International (Switzerland), International Flavors & Fragrances (US), Takasago International (Japan) and Symrise (Germany).
The key players continue to channel funds towards R&D and expansion of production facilities in emerging economies. These players account for approximately 60% of the total market. The mid-sized players such as Frutarom (Israel) are fervently making acquisitions with plans to expand market share in developing countries which offer huge growth prospects for natural flavours in near future.