Natural Flavors Market

Natural Flavors Market Outlook (2024 to 2034)

The Global Natural Flavors market will be valued at US$ 7,402.3 million by 2024 end and has been forecasted to expand at a noteworthy CAGR of 8.7% to end up at US$ 17,047.6 million by 2034. Liquid of Natural Flavors will be worth around US$ 5,344.5 million in 2024 and account for a 57.0% share of the global market.

The worldwide natural flavors market is expected to grow substantially owing to the increasing preference for clean label food and beverages which are plant and environment friendly. Natural flavors are obtained from natural and organic sources and have endeared themselves to many, especially health conscious individuals who shun synthetic chemicals.

Various sectors including beverages, dairy, and snacks use flavors to improve the appeal of the products while being in the range of green trends. More so, plant-based diets are increasing in demand, and there are laws banning the use of artificial flavors, which also contribute to the growth of this market. As innovations in extraction techniques continue significantly, and a demand for sustainability across many sectors, this is bound to maintain and increase the natural flavors market growth.

The developments in biotechnology and extraction techniques have enhanced the performance and diversity of natural flavors; hence, their practical application and production on a commercial scale have become much easier. The presence or potential presence of regulatory limitations on artificial constituents encourages companies to use natural ingredients instead, forcing this phenomenon to play a very important role in the product development strategies of various products such as beverages, snacks, dairy, and others.

Report Attributes	Details
Natural Flavors Market Size (2023A)	US$ 6,758.3 Million
Estimated Market Value (2024E)	US$ 7,402.3 Million
Forecasted Market Value (2034F)	US$ 17,047.6 Million
Global Market Growth Rate (2024-2034)	8.7% CAGR
East Asia Market Share (2024)	23.6%
United States Market Growth Rate (2024-2034)	10.4% CAGR
Key Companies Profiled	Givaudan SA.; Robertet SA; Döhler GmbH; Huabao International Holdings Limited; T. Hasegawa Co., Ltd; Koninklijke DSM NV; Axxence Aromatic GmbH; Gold Coast Ingredients, Inc.; Zymus International Ltd; Treatt Plc; Blue Pacific Flavors, Inc.; International Flavors & Fragrances Inc.; Unique Flavours & Fragrances USA Inc; Symrise AG; Other Prominent Players

Sales Analysis of Natural Flavors (2019 to 2023) vs. Market Forecasts (2024 to 2034)

The value of the Natural Flavors market was US$ 4,695.9 million in 2019 and it will increase to US$ 6,758.3 Million by 2023, expanding at a CAGR of 7.5%

• Short Term (2024 to 2028): Between the years 2024 and 2028, Consumers are increasingly opting for clean-label and natural ingredients in food products. The major factors giving rise to these trends include health consciousness, rising acceptance of organic food products and dislike for artificial food preservatives. The healthy consumption trends are very impactful in sectors such as the beverages, dairy, bakery and snacks segments. Asia-Pacific accounts for the fastest-growing market primarily due to the high rise in the income levels and a shift in the preferences of customers. The major players are concentrating on the development of natural flavors from plant sources in a natural way and in an ingenious manner with plenty of funds being allocated towards Research and Development.
• Medium Term (2028 to 2030): Between the years 2028 and 2030, there is an increasing inclination towards vegetarian and vegan food products which in turn demands the use of natural flavors for enhancing taste profiles without the inclusion of animal based ingredients. Also, the developing health and wellness sector, which is focusing on functional foods with organic ingredients is bound to increase demand. Development in the technologies for the extraction of natural flavors, for example, enzyme-assisted extraction as well as the increased outspreading of foreign and gourmet foods will also be of utmost importance for the market growth.
• Long Term (2030 to 2034): During the period from 2030 to 2034, advancements in technology include the expansion of precision fermentation and lab-made natural flavorings to meet the needs for eco-friendly and efficient flavor solutions. This technique which is still on most developments allow the synthesis of complex flavor molecules without any contact with traditional agriculture thereby reducing the worldly impacts of such activities even further. Additionally, the use of AI in flavoring is another trend that is just coming up, allowing companies to easily create new flavors as per the preferences of the consumers.

On the back of the aforementioned facts, the Natural Flavors market is anticipated to grow at a CAGR of 8.7% during the forecast period from 2024-2034, according to the Fact.MR, a market research and competitive intelligence provider.

Market Dynamics

What are the factors propelling global sales of natural flavors?

“Growing use of natural flavors in bakeries, confectionery, various beverages, and dairy products”

Flavors and fragrances are essential components in numerous end products, for instance, food items, medicinal drugs, and cosmetics, to enhance their taste and overall acceptability. Many categories of flavors are being incorporated in different end products in view of the nature of the product.

However considering the rise in the need and people’s preferences for naturally sourced ingredients in most parts of the world, it is obvious that manufacturers of bakeries, confectionary, ready-to-drink (RTD) beverages, and a host of other dairy products are increasingly adding natural flavors to their products. This enhanced usage is attributed to the better consumer preference of these natural flavors as they can be crude or least processed with no addition of any synthetic chemicals making it a clean label product.

“Increasing demand for tailor-made natural flavors for different end-use applications”

Increasingly sought natural flavors of good quality, together with natural flavored solutions that meet even their most specific products. Hence, the key industry players are advancing their flavorists and the technology in the lab and on the production line on the chemistry of the flavors and their use application to ensure maximum satisfaction of the sight. These cuisine natural flavors can assist either in enhancing an existing product within the same field or in creating a finished good from scratch.

The latest technologies for the producing of natural flavor extracts are being developed by many manufacturers instead of the simple distillation and fractionation methods. These advancements within the flavors industry, particularly in tailor-made natural flavor manufacture for consumers, have been made possible with biotechnological advancements in highly critical fluid extraction techniques.

What role does blockchain traceability play in preventing cross-contamination risks?

“Cross-contamination risks during processing requiring strict quality control measure implementation”

Cross contamination during processing has become a significant threat that affects both the high operational levels and the confidence of the market. This is why all the players in the respective industry appreciate more that products on sale within the global natural flavor market are linked to much more keeping the processing environments clean and quality control measures very effective. The very nature of production of most natural flavors does not favor product integrity because of the processing of different plant materials and different extraction techniques in the same facility.

Thus, manufacturers have started large-scale deployment of advanced air handling systems, processing lines with dedicated functions, and advanced cleaning techniques among other aspects. It is no longer possible to do without such systems, especially given the fact that management of allergens is gaining paramount importance in the manufacture of natural flavors. However, these ensure critical health standards are maintained and also inhibit the prevailing of certain conditions at an extra cost to the operations and affect the market pricing strategies.

Country-wise Insights

The United States Leading the Global Natural Flavor Industry?

“Leading food manufacturers prioritizing natural flavors in new product development cycles”

The market in the United States is estimated at US$ 701.6 million in 2024 and is projected to expand at a CAGR of 10.4% through 2034. This market is projected to generate a US$ 1,187.4 million absolute opportunity from 2024 to 2034.

Global natural flavor market has managed to grow beyond its geographical boundaries. Manufacturers have realized that clean-label products are in great demand and have contributed much to the sales of the global natural flavor market. Hence senior management in manufacturing firms is now investing more and more in the research and development of different natural flavors, as it has become an essential aspect of the fight for consumers.

The time lags between new product development and market introduction have been rather cut down as many producers have embraced agile principles which allows them to respond to the changing market demand with quality products in no time. This implied the reorganization of the supply chain for all the stakeholders since this style encouraged suppliers to improve their innovative approach and their ability to provide natural flavoring agents in large volumes.

How has technological advancement in China impacted global natural flavor markets?

“Manufacturing innovations strengthen China's position in global natural flavor markets.”

Growth in the natural flavor manufacture processes in China has become a central driver in the Global Natural Flavor Market’s restructuring structure as a factor of production and market competition. The sales of products of Global Natural Flavor Market have gone through the roof as Chinese innovators grasp advanced technologies, such as AI quality control systems, advanced extraction techniques and robotic assembly lines. This technological renaissance has made it possible for expansion in production levels but with strict observance of the international quality levels.

Global corporations and indigenous enterprises are concentrating on the production of natural flavors using patented advanced manufacturing processes in a more cost-efficient manner. Capital investment in developing advanced machinery to scale up the process of target product supply in tandem with the increasing demand has contributed to the business growth of the target product in the People’s Republic of China target product. Moreover, these natural flavors find their application in Chinese classical food integration as well as contemporary cuisines. Such factors promote the target sales.

Category-wise Insights

How do liquid natural flavors enhance efficiency and boost sales in the Global Natural Flavor Market?

“The food and Beverage Industry Dominates the end-use application for natural flavors.”

Sales in the sector are majorly influenced by the fact that liquid natural flavors are the most preferred form due to ease in processing. The manufacturers in the food and beverage and even pharmaceutical industries highly prefer these liquid forms since they are easy to dissolve and mix with other components. This leads to improved efficiency during production processes hence minimizing the cost incurred due to excess processing.

Liquid natural flavors are in demand in most parts of the globe. This is because the intended product can be easily adapted and utilized in use applications of the finished product. The ready-to-use product can be incorporated easily in any pod or matrix yielding a consistent flavor to the pod. Moreover, the resultant flavors after extraction in the liquid form contained in sealed containers transport and store safely for long periods. This explains why natural flavors liquid dominated powder flavors.

Food and Beverage Industry: Leading End-Use Sector in Natural Flavor Sales?

“The food and Beverage Industry Dominates the end-use application for natural flavors.”

Food and Beverages such as processed and instant foods are very much in demand across the world owing to the changes in lifestyle and eating habits. Demand for processed food across the globe has increased as consumers are more health and wellness driven which provides them with products that are more organic, free from guilt or clean label. Such behavior aimed at food products by consumers has shifted the food and beverages industry to more of internalization of natural tastes.

Food and beverage makers have been more and more using natural flavors in their products due to the increasing demand for organic, non-GMO, plant-based offerings-and the desire to do away with artificial flavors. Natural flavors are dominant from savory snacks and beverages to bakery products for the purpose of increasing the attraction of the products as well as for staying competition.

Such extensive use has easily led to the high figures being realized for the Global Natural Flavor Market product sales as there is an emphasis by companies on innovation and enhancement of flavors to meet the fast-changing consumer needs.

How do plants and botanicals serve as key sources in the Global Natural Flavor Market?

“Marked shift towards natural ingredients derived from herbs and spices”

The Global Natural Flavor Market is heavily reliant on Plants and botanicals as they are the main sources of authentic and healthy flavored products. Given consumers’ understanding of the harmful effects of synthetic additives, the primary focus has to be on ingredients obtained from natural undertakings including fruits, vegetables, herbs and spices. This is not simply a phase owing to its inclusion in clean labeling that is a wider coverage of the need for natural products devoid of any additional or artificial enhancements.

Therefore, National Flavors Market products are gaining acceptance owing to the positive attributes of taste augmenting flavors with active nutritional properties. In the wake of development in extraction methods and instruments, manufacturers can take advantage and create new taste possibilities targeting the health respecting consumers.

Competitive Landscape & Market Developments

• Robertet SA: In Sep 2024, Robertet SA confirmed its acquisition of Indian flavor producer Sonarome, enhancing its market presence in India and Southeast Asia. This strategic move aims to strengthen Robertet's capabilities in developing natural flavors tailored to local tastes, marking a significant expansion in its international footprint
• Huabao International Holdings Limited: In Oct 2024, Huabao International Holdings Limited launched a new line of herbal-based flavors aimed at the health-conscious consumer segment. This development reflects Huabao's strategy to diversify its product offerings and tap into growing wellness trends
• Zymus International Ltd: By Jan 2024, Zymus International Ltd launched an innovative fermentation process that enhances flavor extraction from natural sources. This technology aims to improve product quality while minimizing environmental impact

Fact.MR has provided detailed information about the price points of key manufacturers of Natural Flavors positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Natural Flavors Market Research

• By Form :

  • Powder
  • Liquid

• By Flavor Type :

  • Natural Flavors
  • Organic Flavors

• By Product Type :

  • With Other Natural Flavors (WONF)
  • From The Named Fruit (FTNF)
    • Essences or Extractives
    • Distillates
  • Oleoresins
  • Meat & Dairy Flavors
  • Essential Oils

• By Source :

  • Fruit & Fruit Juices
    • Berries
    • Citrus
    • Drupes
    • Pepos
    • Pomes
    • Others
  • Vegetable & Vegetable Juices
  • Plants & Botanicals
    • Spices
    • Herbs
    • Others (bark, bud, root, leaf or similar plant material)
  • Meat & Seafood
    • Meat & Poultry (including eggs)
    • Seafood
  • Dairy
    • Dairy Products
    • Edible Yeast

• By Application :

  • Food
    • Dairy Products
    • Bakery Products
    • Confectionery Products
    • Savory Dishes
  • Beverages
    • Alcoholic Drinks
    • Non-alcoholic Drinks
  • Nutraceuticals

• By Region :

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