BusinessIndustry

Growing Demand for Natural Food Flavors Due to Increasing Consumer Awareness Drives the Growth of the Food Flavors Market

The food flavors market is projected to grow at a CAGR of 4.8%, to reach USD 17,096.4 million by 2023. Manufacturers are planning marketing campaigns to increase consumer awareness regarding health benefits of food products incorporated with natural flavors. Natural and organic concepts are two tools that are predominantly utilized in the food industry by marketers to increase the demand for natural flavors in the market. Consumers are ready to pay premium prices for the natural ingredients, and the majority of the population thoroughly checks for the labeling for the same. This is one of the major driving factors for the food flavors market from natural origin. Technological advancements such as microencapsulation and non-thermal techniques such as HPP and PEF support the flavors market to a great extent by dealing with critical functions such as product protection and timely delivery of core material. Sensient Technologies Corporation (US) has been active in developing new encapsulated flavors for ice teas, carbonated soft drinks, and still drinks.

What are the opportunities in emerging markets with increasing spending power?

An increase in the working population and the dominance of nuclear double-income families, especially in urban areas are trends that affect existing consumer lifestyles. Development in living standards has also contributed to the development of the convenience food market. Therefore, the market for food flavors is estimated to demonstrate high growth potential.

According to International Monetary Fund, World Economic Outlook Database, April 2017, the FMCG market in India is estimated to grow at a CAGR of ~14.7% from 2012 to 2022, to reach USD 37 Billion, which is considered to be a high growth. Urbanization has been driving the Indian processed food market which has increased from 27.8% in 2001 to 31.2% in 2011. The country has huge number of regional flavor manufacturers where the key players can strategize in the partnerships and acquisitions.

For More details on this research, Request Free Sample of this Report

What are the challenges in complying with quality and regulatory standards?

The food flavors industry faces a legal obligation to abide by the norms and standards of various regulatory standards. These regulatory standards vary by country; however, they have a common goal of ensuring the safety of consumers. The regulations set by different countries also emphasize on the usage of flavors and proper labeling of food products. These stringent regulations can delay or prevent the launch of new products, increase the prices of any new product introduced in the market, and may lead to product recalls. Therefore, implementation of new regulations and modifications in the existing regulations negatively affect the growth of the market.

Synthetic flavoring can be a combination of hundreds of individual chemicals, several of which are derived from petroleum. Even as extensive toxicity testing is done, it could be ignored. For instance, vanillin continues to be listed as GRAS, despite its ability to inhibit the liver enzyme dopamine sulphotransferase by 50%.

Synthetic flavorings are used as low-cost substitutes for natural flavorings. The most popular is vanillin (imitation vanilla), widely used in chocolate as well as in vanilla-flavored items. Consumers may perceive their allergy to chocolates as an effect of the reaction caused by artificial flavoring. One source of vanilla flavoring is the waste product of paper mills, and another is petroleum. Although vanillin is technically identical to one of the chemicals in pure vanilla flavoring, the manufacturing methods result in high levels of sulfites and other contaminants. In this way, the compliance with regulations is required to maintain quality standards, which is thereby creating a challenge for market growth.

Consumer inclination toward clean-label and organic products drives the natural food flavors market

Marketing using a clean label is common in the natural flavors industry. With rising health awareness, consumers are moving towards natural food products. Natural flavors offer varied health benefits and are widely accepted by consumers who are ready to pay premium prices for natural foods. It has been observed that a majority of the population thoroughly checks the label of a product before buying it. This awareness among consumers has prompted manufacturers to undertake the replacement of synthetic flavors with natural flavors.

Manufacturers are planning marketing campaigns to increase consumer awareness regarding health benefits of food products incorporated with natural flavors. Natural and organic concepts are two tools that are predominantly utilized in the food industry by marketers to increase the demand for natural flavors in the market.

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

The major reason to replace synthetic flavors with natural ones is their ill-effects on health, such as nervous system depression, dizziness, chest pain, headaches, fatigue, allergies, brain damage, seizures, and nausea. According to the Environmental Working Group (EWG), it was found that a few synthetic flavors obtained from petroleum have a permanent impact on an individual’s health. For instance, amyl acetate, which is a prime contributor to banana flavors, causes nervous problems, headaches, and indigestion. Such factors are increasing demand for natural flavors in food & beverage applications.

About MarketsandMarkets™

MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.

Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the “Growth Engagement Model – GEM”. The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write “Attack, avoid and defend” strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.

MarketsandMarkets’s flagship competitive intelligence and market research platform, “Knowledgestore” connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.

Contact:
Mr. Shelly Singh
MarketsandMarkets™ INC.
630 Dundee Road
Suite 430
Northbrook, IL 60062
USA : 1-888-600-6441
Email: newsletter@marketsandmarkets.com

Tags

Related Articles

error: Content is protected !!
Close