The natural food flavors market is evaluated at US$5.890 billion for the year 2019 growing at a CAGR of 5.53% reaching the market size of US$8.134 billion by the year 2025.
Natural food flavors are those types of flavoring ingredients that are extracted from natural sources such as plants and animals. These flavoring agents are used in various types of foods for enhancing and balancing the taste. The market for natural food flavors is anticipated to witness a healthy growth during the next five years which may be attributed to the fact that the demand for clean labeled products is increasing in both developed and developing economies owing to the growing awareness among the consumers regarding the consumption of organic products. There has been an inclination of consumers towards the consumption of naturally sourced food products due to which food manufacturing companies are increasingly using naturally sourced flavors that is one of the prime factors propelling the market growth during the next five years. This combined with the changing lifestyle of the people particularly across the developing economies due to rapid industrialization and urbanization has further created a significant demand for processed food, thus playing a significant role in shaping up the market growth over the next five years. However, the market is projected to be restrained by the fact that the presence of substitutes such as artificial and natural-identical food flavoring substances will have a negative impact on the market growth to some extent during the forecast period.
The outbreak of the novel coronavirus disease will have a moderate negative impact on the market growth that too during a short period of six to eight months. The key factors such as a halt in the manufacturing activities across the food and beverage industry and a slump in the bakery and confectionery sector globally is projected to inhibit the growth during the short run.
Growing demand for clean labeled products
One of the prime factors that is playing a significant role in bolstering the demand for natural food flavors is the constantly growing demand for clean labeled and natural food products particularly in the emerging economies owing to the increasing purchasing power of the people and the growing awareness regarding the intake of healthy and nutritious food. Thus, the manufacturers across the food and beverages sectors are continuously working to enhance their product portfolios with naturally sourced products as the demand is high. Since there has been a growing health-savvy population globally, the demand for organic food has been positively impacted, which in turn is also propelling the natural food flavors market growth during the next five years.
Rising demand for convenience products
The additional factor supporting the demand for natural food flavors is the globally growing demand for convenience food and beverage products. In emerging economies such as India, China, and Vietnam among others, the rapid urbanization and industrialization of further led to an enhancement in the purchasing power of the people living across these economies. Thus, the improvements in the standards of living have further propelled the demand for processed and ready-made foods due to the changing hectic lifestyle of the people.
Bakery and Confectionery to witness a healthy growth
By application, the natural food flavors market has been segmented into dairy, beverages, bakery and confectionery, and others. The bakery and confectionery segment is anticipated to grow at a significant pace during the next five years owing to the increasing usage of natural flavors in bakery products. Additionally, the growing bakery and confectionery sector globally will further support the growth of this segment during the next five years. The beverages segment is expected to hold a promising market share over the course of the next five years owing to the wide applications of natural flavors across the beverage industry. Moreover, the growth of this segment is attributed to the increased focus of the consumers on natural beverages coupled with the increased focus of the manufacturing companies to launch products with reduced fat, sugar, and salt content. In addition, the growing concerns regarding the maintenance and reduction of weight along with management of diabetes are considered to be the prime factors driving the demand for low-calorie food and beverages.
APAC to witness the fastest growth
Geographically, the distribution of the global market has been done into North America, South America, Europe, Middle East and Africa, and the Asia Pacific. The Asia Pacific region is anticipated to witness a healthy growth during the next five years which may be attributed to the increased purchasing power of the people in countries like India and China among others. Moreover, the increased demand for convenience food further drives the market growth in the APAC region throughout the forecast period. Moreover, the European region is expected to hold a significant share in the global market during the next five years on account of the presence of a high number of health-savvy people.
The players in the natural food flavors market are implementing various growth strategies to gain a competitive advantage over its competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the natural food flavors market.