Food Flavor Market

Food Flavor Market Outlook (2024 to 2034)

Worldwide revenue from the sales of food flavors is projected to reach US$ 13.74 billion in 2024, as revealed in a newly published study by Fact.MR. The global food flavor market has been forecasted to expand at a CAGR of 4.9% and reach a value of US$ 22.17 billion by the end of 2034.

Food flavor market growth is attributed to the growing need for new sensory experiences and tastes globally. More manufacturers are under constant pressure to innovate and create new flavor profiles to capture consumers’ palates as they are opting for unique textures and flavors in the food & beverages industry. The accelerating popularity of ethnic cuisines, shifting nutritional preferences, and cultural influences are contributing to demand for food flavors.

Several technological advancements are taking place in encapsulation, flavor synthesis, and extraction, thereby contributing to the production of new flavors with better stability, consistency, and authenticity. These advancements are enhancing the creation of novel flavors while addressing regulatory requirements and the demand for clean-label products. Innovations include the use of both artificial flavor components and natural extracts.

However, global market growth dynamics are challenged by stringent regulatory frameworks for food additives, labeling specifications, and flavorings. Compliance with safety requirements, consumer transparency initiatives, and labeling laws is imposing additional burdens on manufacturers, negatively impacting the food flavor market size.

• Demand for food flavors in Canada is approximated to increase at 5.4% CAGR through 2034.
• Worldwide demand for food flavors for use in beverages is evaluated to increase at a CAGR of 4.1% and reach a market value of US$ 4.97 billion by the end of 2034.
• Sales of food flavors in Japan are projected to rise at a CAGR of 5.4% from 2024 to 2034.
• North America is expected to hold 24.3% of the global food flavor market share by 2034-end.

Report Attributes	Details
Food Flavor Market Size (2024E)	US$ 13.74 Billion
Forecasted Market Value (2034F)	US$ 22.17 Billion
Global Market Growth Rate (2024 to 2034)	4.9% CAGR
Market Share of Liquid Food Flavors (2034F)	55.2%
East Asia Market Share (2034F)	23.1%
South Korea Market Growth Rate (2024 to 2034)	5.6% CAGR
Key Companies Profiled	Givaudan SA; Symrise AG; International Flavors & Fragrances Inc.; Kerry Group; CP Ingredients; Sensient Technologies Corporation; FONA International Inc.; Flavor Producers, LLC; Innova Flavors; ADM; Cargill, Incorporated; A&B Ingredients; Ajinomoto Group; DPO International Sds. Bhd.; Koninklijke DSM N.V.

What is Pushing Sales of Food Flavors Across the World?

“Increasing Popularity of Citrus Flavors Key Market Growth Driver”

Citrus flavor food ingredients are gaining popularity around the world. This is attributed to their well-balanced and delicate flavor profile, which harmonizes acidity and sweetness. These flavors are generally found in pastries, confectionaries, and beverages and are becoming more popular among millennials and older consumers preferring more mature tastes.

Several manufacturers of alcoholic beverages, such as vodka, spritzer, beer, and some other options and flavored water, are using citrus flavors to attract more consumers. In addition, more manufacturers of alcoholic beverages are using citrus flavors for producing premium category products.

“Growing Preference for Plant-based Flavors and Food Options”

More consumers are inclined to social media and information technology about the impact of food consumption on the environment. Animal cruelty and health concerns, especially in industrialized regions are impacting the purchasing decisions of more consumers. This is resulting in rising demand for natural and organic products.

More individuals are becoming conscious about their eating habits and non-communicable illnesses. They are eliminating meat from their food option to reduce the risks associated with health disorders, such as obesity and cancer. Certain other consumer attitudes, such as the conservation of water and reducing carbon emissions are pushing demand for plant-based food options.

What Obstacles are Food Flavor Manufacturers Tackling?

“Less Preference for Artificial Food Flavors and Price Fluctuations”

Declining acceptance of artificial options is creating challenges for market growth. More consumers are opting for nutrients in their diets; however, changing preferences, intense competition, and limited awareness are restraining market expansion. In addition, higher vulnerability in the cost of plant-based food flavors is adversely impacting their demand. Their production depends on weather conditions and seasonality, which is ultimately impacting prices.

How are New Companies Penetrating This Business Landscape?

“Emphasis on Sustainability and Innovations”

Start-ups are emphasizing sustainability practices and innovations for offering more effective food flavors. New market players need to adapt to constantly changing consumer preferences and regulations, which is creating opportunities for market players to offer a wide variety of food flavors.

Advancements in food technology are revolutionizing the food flavor market. Several techniques, such as microencapsulation and encapsulation are enabling the controlled release of several food products. Thereby, an increased demand for food flavors is witnessed in dairy products, beverages, and even pharmaceuticals.

Country-wise Insights

Fact.MR, a market research and competitive intelligence provider, in its report, mentioned that North America is evaluated to possess a share of 24.3% of the global market by 2034-end. Growing consumer emphasis on clean-label and natural products is stimulating market players to align well with wellness and health trends. These factors are contributing to the increasing demand for organic and natural flavor solutions.

What is Benefitting Manufacturers of Food Flavors in the United States?

“Growing Popularity of Exotic and Ethnic Flavors”

Attribute	United States
Market Value (2024E)	US$ 1.46 Billion
Growth Rate (2024 to 2034)	5.3% CAGR
Projected Value (2034F)	US$ 2.46 Billion

The United States is analyzed to occupy 45.6% share of the North American market by 2034. More people in the country are consuming exotic and ethnic flavors. Thereby, some of the leading market players are investing significantly in R&D activities to cater to these evolving tastes and address concerns related to artificial additives. Further, labeling requirements and regulatory changes are also contributing to a noteworthy shift to natural flavors.

Which Factor is Positively Influencing Demand for Food Flavors in China?

“Rising Demand for Convenient Foods Opening New Doors for Market Players”

Attribute	China
Market Value (2024E)	US$ 1.5 Billion
Growth Rate (2024 to 2034)	4.9% CAGR
Projected Value (2034F)	US$ 2.43 Billion

China is expected to hold a share of 47.5% of the market in East Asia by 2034. Increasing demand for convenient food options is contributing to the rising consumption of food flavors. In addition, the growing use of natural products, such as food flavors in several food & beverages is generating lucrative opportunities for market players.

What is Paving the Way for Food Flavor Manufacturers in Japan?

“Strong Demand for Clean-label and Natural Flavorings”

Attribute	Japan
Market Value (2024E)	US$ 889.6 Million
Growth Rate (2024 to 2034)	5.4% CAGR
Projected Value (2034F)	US$ 1.5 Billion

Japan is projected to contribute 29.4% share of East Asian market revenue by the end of 2034. More consumers in the country are becoming affluent in their food choices, which is further increasing demand for exotic and unique flavors. Availability of diverse cuisines from delicate sushi to spicy curries is contributing to increased demand for several types of food flavors. Moreover, the growing preference for clean-label and natural flavorings is pushing manufacturers to capitalize on this trend while offering authentic and innovative flavor solutions.

Category-wise Insights

There is an increased demand for liquid flavors in product formulation, which need a more delicate flavor profile or a particular moisture content. Their ability and versatility for seamless blending with several ingredients is contributing to increased popularity in foods & beverages, further setting food flavor market trends.

Why are Liquid Food Flavors Preferred Over Others Forms?

“Rising Use of Liquid Variants for Intense and Immediate Flavor Impact”

Attribute	Liquid Food Flavors
Segment Value (2024E)	US$ 7.5 Billion
Growth Rate (2024 to 2034)	5% CAGR
Projected Value (2034F)	US$ 12.24 Billion

Liquid food flavors are approximated to account for 55.2% share of global market revenue by 2034. These flavors offer unique advantages and allow consistent and easy dispersion through several products, such as dairy, confectionery, sauces, and beverages. Liquid flavors are well-known for their ability to offer a more intense and immediate flavor impact owing to their homogenous distribution. This contributes to their wide suitability for applications where the intensity of flavor is crucial, such as juices, soft drinks, and flavored water.

Which Application of Food Flavors is Generating High Revenue Streams?

“Growing Use of Food Flavors in Beverages for Ability to Enhance Aroma and Taste”

Attribute	Beverages
Market Value (2024E)	US$ 3.32 Billion
Growth Rate (2024 to 2034)	4.1% CAGR
Projected Value (2034F)	US$ 4.97 Billion

Beverages containing several food flavors are forecasted to capture a share of 22.4% of global market revenue by 2034. The rising consumption of food flavors in beverages is attributed to their contribution to enhancing the aroma and taste of products, such as fruit juices, soft drinks, alcoholic beverages, and sports drinks. More consumers are opting for refreshing and unique flavor profiles in beverages. Fruit-based and natural flavors are becoming more popular with increasing consumer preference for healthier options.

Competitive Landscape

Key players in the food flavor market are investing in R&D activities for product development to enrich their existing portfolio. In addition, mergers, acquisitions, collaborations, partnerships, and other strategies are also helping market players secure a position for themselves.

For instance

• Givaudan, in February 2022, launched PrimeLock. This newly launched product helps in addressing challenges related to ingredients and natural flavors.
• Symrise AG, in July 2021, acquired Giraffe Foods Inc. This will assist the company in tapping into the nutrition and flavor segment of Giraffe Foods in North America. Giraffe Foods Inc. is well known for its offerings in custom flavor solutions, especially in the quick-service restaurant and foodservice sectors. Integration of Giraffe Foods into Symrise will help in gaining direct access to distribution channels and established relationships.

Fact.MR provides detailed information about the price points of leading manufacturers of food flavors positioned across the world, sales growth, production capacity, and speculative technological expansion, in this newly published market report.

Segmentation of Food Flavor Market Research

• By Type:

  • Citrus Flavors
  • Vegan Flavors
  • Dairy-derived Flavors

• By Nature:

  • Natural
  • Artificial

• By Form:

  • Powder
  • Liquid

• By Application:

  • Food Industry
  • Beverages
  • Pharmaceuticals
  • Nutraceuticals
  • Foodservice Industry

• By Region:

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