Flavored Syrup Market

Flavored Syrup Market Outlook (2023 to 2024)

Expanding at a CAGR of 5.2%, the global flavored syrup market is projected to increase from a valuation of US$ 53.77 billion in 2024 to US$ 89.48 billion by the end of 2034, according to a new study published by Fact.MR, a market research and competitive intelligence provider.

The latest flavored syrup market trend includes growing consumers’ interest in homemade cuisines as it is entirely customizable as per their needs. It is particularly suited for people who are allergic to certain ingredients or want a specific nutrient balance and this is continuously driving demand for flavored syrups.

Owing to this, several international cuisines are being observed to feature on different occasions as a part of celebrations or weekend hangouts. All these transformations are positively impacting the entire supply chain. Flavored syrups are also gaining attention in restaurants and hotels across several countries with increasing consumers' interest in trying out different flavors.

Key Market Growth Drivers

• Consumption of fruit-infused flavored syrups is rising constantly. Consumer perception of 'natural' associated with fruit flavors is the key reason for its increasing demand.
• The flavored syrup market size is expanding due to the growing consumers’ preference for flavored beverages. Syrups with flavors such as chocolate, caramel, fruit, vanilla, coffee, and malt are gaining popularity as taste enhancers.
• The need for unique flavored syrups is growing as a result of the increasing consumer demand for sweeteners to accompany breakfast meals. The consumption of flavored syrups is also increasing as toppings, particularly for breakfast foods.
• Several companies are introducing naturally flavored syrups with their increased popularity and a larger base of health-conscious consumers.
• Utilization of flavored syrups is increasing in beverages such as iced drinks, mixed drinks, and others because they are natural supplements that help to sweeten and enhance the taste.
• Rising desire for frozen bakery products and ready-to-eat foods among consumers who lead busy lives as well as the rise in consumer demand for a wider variety of food flavors are contributing to flavored syrup market growth.
• Demand for processed foods is increasing because they are more convenient and easily accessible through effective distribution methods and a rising population of working people.
• The market is expanding due to the availability of powdered syrups in RTE food products for adaptable and simple preparation.

Report Attribute	Detail
Flavored Syrup Market Size (2024E)	US$ 53.77 Billion
Forecasted Market Value (2034F)	US$ 89.48 Billion
Global Market Growth Rate (2024 to 2034)	5.2% CAGR
North America Market Share (2024E)	24.8%
East Asia Market Value (2024E)	US$ 12.24 Billion
Direct Sales Segment Value (2034F)	US$ 27.96 Billion
Beverages Segment Value (2034F)	US$ 34.62 Billion
Key Companies Profiled	Monin Inc.; Starbucks Coffee Company; The Hershey Company; Tate & Lyle; Walden Farms; Fuerst Day Lawson; Archer Daniels Midland Company; Smucker’s; Fox Syrups; B&G Foods; DaVinci Gourmet; Ghirardelli Chocolate Company; 1883 Maison Routin; Nestle S.A.; Jordan's Skinny Mixes; Torani; Kerry Group.

Why is the Consumption of Flavored Syrups Increasing Across the Globe?

“Growing Popularity of Mixology and Home Bartending”

Demand for flavored syrups is increasing continuously due to the growing popularity of mixology and home bartending in several countries. More consumers are getting attracted to this trend as they enjoy mixing their cocktails and mocktails by making different types of beverages at home with flavored syrups. Because of increasing consumers’ desire for creativity and diversity in their homemade beverages, the demand for a wide variety of flavored syrups such as fruit, chocolate, vanilla, coffee, herbs & seasonings, and others is increasing.

Other than this, the growing specialized beverage industry and the number of coffee shops are further driving the need for flavored syrups. More companies are widely using flavored syrups to increase the number of flavored drinks on their menu, ranging from specialty beverages to lattes and cappuccinos.

Which Obstacles are Becoming a Roadblock in the Market Growth?

“High Prices of Products Prepared Using Flavored Syrups”

The global market growth is being hampered by price sensitivity as premium and specialized syrups are generally more expensive than regular sweeteners or natural flavorings. Several people avoid spending high on expensive beverages, particularly in tough periods such as recession. This price sensitivity factor is negatively affecting the overall demand for flavored syrups.

Several flavored syrups come with high sugar content, and because of this reason, several people do not prefer them due to weight gain issues or diabetes, thereby avoiding purchasing these products.

Country-wise Insights

North America is estimated to account for 24.8% of the global flavored syrup market share in 2024. East Asia is forecasted to surpass the revenue of the North American region in the next ten years, due to continuous ongoing innovation by beverage companies. In North America, the United States and Canada are considered the key hubs for flavored syrups due to the high popularity of coffee chains, diverse culinary applications, and bartending.

Why are Flavored Syrups Gaining Popularity in the United States?

“High Demand for Crafted Beverages and Specialty Coffee”

Attribute	United States
Market Value (2024E)	US$ 10.94 Billion
Growth Rate (2024 to 2034)	3.8% CAGR
Projected Value (2034F)	US$ 15.93 Billion

In North America, the United States is analyzed to account for 82.1% of revenue share in 2024. The increasing popularity of specialty coffee and craft beverages in the United States is stimulating the demand for flavored syrups. Flavored Syrups are becoming essential for crafting several customized drinks in coffee shops and cafes, particularly for businesses that want to increase their range of specialty drinks. This latest trend in the United States is pushing the use of flavored syrups in several specialty drinks. By using flavored syrups in drinks, these businesses are attracting consumers as well as satisfying their taste preferences.

What Makes Japan a Lucrative Market for Flavored Syrup Manufacturers in East Asia?

“Trend of Making Own Mocktails and Cocktails at Home”

Attribute	Japan
Market Value (2024E)	US$ 2.11 Billion
Growth Rate (2024 to 2034)	7.1% CAGR
Projected Value (2034F)	US$ 4.19 Billion

The rising popularity of home bartending and mixology in Japan is a key factor that is stimulating the demand for flavored syrups. Individuals in Japan are becoming interested in creating mocktails and cocktails at home to add complexity and taste to their concoctions. This increasing desire for unique and customized drink experiences is positively affecting the market in Japan.

Several domestic and international players are aiming in Japan to increase their profitability and market presence by satisfying consumers' demand for a wide variety of syrup flavors for making their cocktails and mocktails.

Category-wise Insights

Based on flavor, the market is segmented into fruit, chocolate, and vanilla. The fruit-flavored syrup segment is analyzed to hold a significant portion of the worldwide market throughout the projection period due to their widespread use in alcoholic beverages including cocktails, soda, other cold drinks, and soft drinks.

Which Sales Channel is Holding a Large Portion of Market Share?

“Surging Use of Direct Sales Channels for Their Advantages of Engaging Directly with Consumers”

Attribute	Direct Sales
Segment Value (2024E)	US$ 15.89 Billion
Growth Rate (2024 to 2034)	5.8% CAGR
Projected Value (2034F)	US$ 27.96 Billion

Purchases of flavored syrups are rising more from direct sales channels as it enables producers to interact directly with customers, providing individualized service, better pricing, and customized product selections. Direct sales channels give brands the ability to develop closer bonds with their customers, offer unique items and promotions that are not easily accessible through middlemen, and operate through company websites, branded stores, and specialty outlets.

Direct sales also provide more control over the brand experience and enable a faster reaction to consumer trends, which in turn drives more sales as customers look for convenience, reliability, and a carefully chosen purchasing experience.

Why Consumption of Flavored Syrups Increasing in Beverages?

“Beverages with Custom Flavors Gaining Popularity All Over the World”

Attribute	Beverages
Segment Value (2024E)	US$ 20.37 Billion
Growth Rate (2024 to 2034)	5.4% CAGR
Projected Value (2034F)	US$ 34.62 Billion

The market is classified into beverages, dairy & frozen desserts, bakery and confectionery, and others based on the application. One of the key reasons driving the market for flavored syrups is the rise in demand for custom flavors in the beverage sector. The availability of customized flavor options, product variety, and broad use in beverage goods such as cocktails, carbonated and cold beverages, and soft drinks are contributing to the increasing sales of flavored syrups.

Consumers' increasing preference for flavored beverages is creating new opportunities for manufacturers. As flavor enhancers, syrups with the flavors of chocolate, caramel, vanilla, fruit, malt, and coffee are gaining popularity.

Competitive Landscape

Top flavored syrup producers are diversifying their product offerings, increasing their global footprint, and meeting the needs of diverse customer segments in several regions. Key players in the flavored syrup market are investing in advanced technologies to generate higher sales over the coming years and maintain their competitive edge in the market.

• In April 2024, Torani, a 99-year-old leader in the flavor sector, released Torani Dragon Fruit Syrup, the new product in its lineup of over 150 syrups and sauces.
• In August 2023, a new naturally sweetened Pumpkin Spice syrup with zero calories and sugar was introduced by Jordan's Skinny Mixes. The taste, created with organic components, took drinks to new levels.
• In 2022, Singing Dog Vanilla introduced an organic vanilla syrup. According to the manufacturer, the organic vanilla syrup will give tea, lattes, iced coffee, and other beverage goods a pure and nuanced flavor.
• In 2021, a line of organic date syrups was introduced by Bateel, a global leader in the gourmet date sector. Four varieties of these syrups were offered: traditional, vanilla, cardamom, and passion fruit.
• In 2021, in partnership with Post, a food producer and distributor, Mrs. Butterworth, a firm that makes pancake syrups, introduced cereal-flavored syrup. This Fruity Pebbles Flavored Pancake Syrup was created especially to go with pancakes, porridge, and waffles.

Fact.MR provides detailed information about the price points of key manufacturers of flavored syrups positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Flavored Syrup Market Research

• By Flavor :

  • Fruits
  • Chocolates
  • Vanilla

• By Application :

  • Beverages
  • Dairy & Frozen Desserts
  • Bakery & Confectionery

• By Sales Channel :

  • Direct Sales
  • Modern Trade
  • Convenience Stores
  • Specialty Stores

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa