The global natural flavors market is estimated to reach 6,295.3 USD million by 2020
The global food flavors market has been witnessing accelerated growth in recent years. Based on the source, food flavors are categorized into artificial and natural food flavors. There has been tremendous growth in the market for natural flavors over the past couple of years owing to the rise in health awareness coupled with emerging middle class across the globe. Natural flavors are used in food and beverages to enhance the quality and taste of the end product. Several natural and volatile compounds make up the aromas and flavors of the food products that we consume in our day to day lives.
The growing demand for natural flavors along with the easy availability of natural flavors are major driving forces for the natural flavors market. However, factors such as the rise in the cost of raw materials coupled with issues related to stability and sustainability of artificial flavors over artificial flavors are major restraints of the natural flavors market. Major trends in the global natural flavors market include the growing demand for clean-label products categories such as confectionery and soft drinks and growth in R&D for the stability of natural flavors.
The Business Challenge[spacer height=”20px”]
The client– A leading player in the food and beverage industry, specializing in the manufacture of natural flavors
Objective– To assess industry attractiveness of the natural flavors sector and its impact on business performance.
An international player in the food and beverage industry, specializing in the natural flavors segment, wanted to gain detailed knowledge regarding the economic marketplace. As such, the client approached our team of experts to leverage Infiniti’s industry analysis solutions to gain detailed market insights.
The client wanted to conduct consumer surveys to learn about new products and services that could have high demand in the marketplace. The natural flavors manufacturer was also looking at estimating the profit margins they can generate from their business operations. Additionally, the client also wanted to develop unique capabilities that could lead to a competitive advantage by identifying the risks and opportunities facing their businesses.
Results– The industry analysis engagement helped unearth a series of findings that played a key role in improving the client’s market value. Our solution also helped the natural flavors manufacturer in discovering a market niche not currently being met by other companies.
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The Journey[spacer height=”20px”]
The industry analysis experts at Infiniti carried out extensive research comprising of interviews and discussions with leading stakeholders across the food and beverage industry to help the client improve business efficiency. The experts at Infiniti further compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums to help the client understand the global competitive scenario.
The Solution and the Business Impact[spacer height=”20px”]
With the help of Infiniti’s industry analysis solution, the natural flavors manufacturer assessed the market value of their competitors in the food and beverage industry. The solutions offered by our experts also enabled the client to discover a niche market segment. Moreover, our industry analysis solution helped the client in finding a unique position in the industry, where they could best defend themselves against the competitive forces.
The Future[spacer height=”20px”]
The global demand for natural flavors is expected to grow further, as leading players in the food and beverage industry have started leveraging the use of natural flavors in an attempt to remove artificial flavors and additives from their products. Alongside this trend, harsh scrutiny has been cast on the use of synthetic flavors and ingredients in food products. The growing demand for naturally-derived food products among the global population is anticipated to fuel the overall growth of the natural flavors market. This will also offer new market opportunities for players in this sector.
Natural flavors industry drivers:[spacer height=”20px”]
- Technological strides– The emergence of advanced technologies offer innovative and novel tastes in food products. Strides are being developed with web platforms and apps to put food to good use. Also, technological strides make it possible to develop innovative flavors to cater to the changing preferences in customer taste requirements.[spacer height=”20px”]
- Growing awareness– Rise in side effects of artificial flavors have increased the demand for natural The chemicals used to make synthetic flavors are generally sourced from other volatile chemicals. They lead to several health problems including nervous system depression, allergies, brain damage, chest pain, fatigue, headaches, and seizures, and nausea.