Global flavors market was valued at US$11.50 billion in 2015, and is expected to reach US$15.60 billion in 2021, growing at a compound annual growth rate (CAGR) of 7.5% during 2016 and 2021, according to a report by Zion Market Research.
In terms of volume, the global flavors market stood at 587.0 million tons in 2015.
Flavor is primarily utilized to enhance and accelerate the taste, smell and color of the products. It is available in two categories i.e. natural and synthetic.
However, natural flavors are in great demand due to the shifting preferences for natural flavors rather than the synthetic.
Natural flavors are derived from fruits, vegetables and other substances, while synthetic flavors are obtained from chemicals.
It has many diverse applications such as food and beverages, oral care industry, beer industry, etc.
The major driving factor of global flavors market is growing demand for convenience food across the globe.
Secondly, the demand for various flavors is increasing from the beverages industry which is expected to fuel the demand for flavors during the years to come.
However, stringent rules and regulations imposed by regulatory bodies on flavors are likely to hinder the growth of market.
Furthermore, new raw material sources are projected to open new opportunities for flavor market in coming years.
Natural versus synthetic flavors
The global flavors market is bifurcated in natural and synthetic flavors.
In 2015, natural flavors were in great demand across the globe and it accounted over 50% share of the entire market.
Additionally, the dominance of the segment is expected to prolong within the forecast period owing to rising demand towards heath concerns.
Beverages was the foremost application accounted over 25% share of the market and further it is predicted to continue this trend due to growing demand for beer consumption across the globe.
The beverage application is expected to grow at CAGR of 10.0% in near future.
Moreover, emerging market is likely to grow the demand for dairy and savory & snacks within the forecast period.
In 2015, North America dominated the market for flavors with 30.0% market share followed by Europe.
This was mainly contributed by heavy consumption of beverages in this region due to the climatic condition in the region.
Asia Pacific is likely to experience high-growth over the period due to the growing demand for flavors used in sauces and seasonings, especially in emerging economies such as China, India, Bangladesh and Sri Lanka.
Moreover, Latin America, Middle East and Africa also projected to have moderate growth for flavors market in coming years.