The latest market report published by Credence Research, Inc. “Natural Flavors Market, By Type and Application – Growth, Future Prospects and Competitive Analysis, 2016 – 2023,” the global natural flavors market was valued at US$ 4.9 Bn in 2015, and is expected to each US$ 7.7 Bn by 2023, expanding at a CAGR of 5.8% from 2016 to 2023.
Browse the full Natural Flavors Market – Growth, Future Prospects and Competitive Analysis, 2016 – 2023 report at https://www.credenceresearch.com/report/natural-flavors-market
The overall food flavors market has witnessed robust growth in recent years. Based on the type of source, food flavors are categorized into synthetic and natural food flavors. Rising demand for healthy food and disadvantages associated with consumption of synthetic ingredients have resulted in adoption of natural ingredients among manufacturers. Furthermore, shifting food preferences, attributed to changing lifestyle and growing purchasing power parity of consumers are resulting in demand for healthy, nutritious and natural products among affluent consumers. Thus, natural food flavors are expected to surpass the market share of artificial food flavors in the near future.
Owing to adverse health issues due to consumption of artificial ingredients particularly in processed food products, whose consumption is increasing rapidly; demand for clean label products is anticipated to increase significantly in the next five to six years. This has further led to intense competition among players operating in the natural flavors market, in order to maintain sustainability. Shifting preferences among consumers towards naturally-derived food products has resulted in development of natural ingredients, which is anticipated to fuel the overall natural flavors market growth. However, stability and sustainability issues coupled with high costs associated with natural flavors raw materials are restraining the adoption of natural flavors among manufacturers.
Geographically, North America is dominating the market in terms of revenue share contribution, followed by Europe and Asia Pacific. North America and Europe are collectively accounted for around 65% of the overall natural flavors market share in 2015. Asia Pacific is further expected to record highest CAGR during the forecast period. This is attributed to increasing health consciousness among consumers leading towards consumption of natural-based products and growing food and beverages industry in the region. Growth of natural flavors market in Latin America is expected to be significant throughout the forecast period.
Some of the prominent players identified in the natural flavors market include Givaudan SA, Firmenich SA, Takasago International Corporation, Sensient Technologies Corporation, Kerry Group PLC, Frutarom Industries Ltd., Dohler Group, W, ild Flavors GmbH, International Flavors & Fragrances Inc. and Symrise AG.. Companies are adopting growth strategies such as consolidation activities and entering in long-term contracts with players across the value chain.