The natural flavors industry in the United States is projected to grow at a compound annual growth rate (CAGR) of 6.9% from 2024 to 2034. By 2034, the industry's revenue is expected to reach USD 4,100.5 million.
NEWARK, DE / ACCESSWIRE / August 12, 2024 / The global Natural Flavor Market is experiencing significant growth, driven by increasing consumer demand for healthier and environmentally sustainable products. In 2022, the market size reached USD 6,400 million, and in 2023, the market recorded a 6.6% year-on-year growth. By 2024, sales are expected to hit USD 7,402.3 million. Over the projection period from 2024 to 2034, the market is forecasted to expand at a robust 8.5% CAGR, ultimately reaching USD 17,636.5 million by 2034.
This growth trajectory is largely attributed to the rising awareness and preference for natural ingredients in food, pharmaceuticals, and cosmetics. Consumers are increasingly conscious of the additives and ingredients used in the products they consume, leading to a shift toward natural flavors and clean-label products that are free from synthetic chemicals and pesticides.
Key Takeaways from the Market Study
The global natural flavor market is projected to reach USD 17,636.5 million by 2034, growing at a CAGR of 8.5% from 2024 to 2034.
Increasing consumer demand for clean-label and organic products is driving market growth.
The market is witnessing a surge in demand for tailor-made natural flavors for specific end-use applications.
Significant investments in R&D and advanced flavor extraction technologies are shaping the competitive landscape.
Liquid form natural flavors dominate the market, expected to register a CAGR of 6.1% during the forecast period.
Liquid natural flavors lead the global market due to their versatility and seamless integration into various end-use applications. Their ease of blending into different product matrices ensures consistent flavor profiles. Additionally, the liquid form simplifies storage and transport, as it is easily preserved in airtight containers with an extended shelf life, giving it a competitive edge over powdered alternatives. - says Nandini Roy Choudhury, Client Partner at Future Market Insights.
Drivers and Opportunities
The natural flavor market is propelled by the growing consumer preference for products with natural and organic ingredients. As awareness about the health benefits of natural flavors increases, so does the demand for products that use these ingredients in various applications, including food, beverages, pharmaceuticals, and cosmetics. Additionally, the rising popularity of natural extracts, essential oils, and aroma extracts is contributing to the market's expansion.
Manufacturers are responding to this demand by investing in advanced flavor extraction technologies and expanding their production capacities. The development of tailor-made natural flavors for specific end-use applications is also creating new growth opportunities in the market.
Competitive Landscape - Regional Trends
The United States is leading the global natural flavor market, projected to grow at a CAGR of 6.9% during the forecast period. By 2034, the U.S. market is expected to reach USD 4,100.5 million. This growth is driven by the high consumer awareness and demand for natural, health-oriented products.
In China, the market is anticipated to grow at a CAGR of 8.2%, with sales expected to reach USD 3,748.5 million by 2034. The adoption of advanced manufacturing processes and the incorporation of natural flavors in both traditional and modern cuisine are fueling this growth.
Restraints
Despite the positive outlook, the market faces challenges such as the high cost of natural flavors and the complexities involved in sourcing and producing these ingredients sustainably. Additionally, stringent government regulations regarding the use of natural flavors in various products may pose barriers to market expansion.
Recent Market Developments
Key industry players are continuously innovating and expanding their product portfolios to cater to the growing demand for natural flavors. For instance, BASF recently launched Isobionics® Natural alpha-Bisabolene 98 and Isobionics® Natural (-)-alpha-Bisabolol 99 under its Isobanics brand portfolio. Similarly, Solvay expanded its Rhovanil Natural CW product line with three new natural flavor ingredients to meet the increasing demand for natural vanillin.
Key Players
International Flavors & Fragrances Inc.
Firmenich SA
Givaudan
Keva Flavours
Sensient Technologies Corporation
Mane SA.
Corbion N.V.
Cargill
Tate & Lyle PLC
Associated British Foods plc
Browse Old Report Links of Natural Flavor Market
Key Segments of Market Report
By Form:
As per Form, the industry has been categorized into Powder and Liquid.
By End Use:
This segment is further categorized into Food & Beverages (Processed Foods, Instant Food Products, Soups, Sauces, and Dressings, Bakery & Confectionary), Foodservice (Horeca), Beverages, Others (Infant Formula, Sports Nutrition), Pharmaceuticals, Cosmetic & Personal Care.
By Region:
Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.
About the Food & Beverage Division at Future Market Insights:
Expert analysis, actionable insights, and strategic recommendations - the food & beverage team at Future Market Insights helps clients from all over the globe with their unique business intelligence needs. With a repertoire of over 1,000 reports and 1 Million+ data points, the team has analyzed the food & beverage industry lucidly in 50+ countries for over a decade. The team provides end-to-end research and consulting services; reach out to explore how we can help.
Authored by:
Nandini Roy Choudhury (Client Partner for Food & Beverages at Future Market Insights, Inc.) has 7+ years of management consulting experience. She advises industry leaders and explores off-the-eye opportunities and challenges. She puts processes and operating models in place to support their business objectives.
She has exceptional analytical skills and often brings thought leadership to the table.
Nandini has vast functional expertise in key niches, including but not limited to food ingredients, nutrition & health solutions, animal nutrition, and marine nutrients. She is also well-versed in the pharmaceuticals, biotechnology, retail, and chemical sectors, where she advises market participants to develop methodologies and strategies that deliver results.
Her core expertise lies in corporate growth strategy, sales and marketing effectiveness, acquisitions and post-merger integration and cost reduction. Nandini has an MBA in Finance from MIT School of Business. She also holds a Bachelor's Degree in Electrical Engineering from Nagpur University, India.
Nandini has authored several publications, and quoted in journals including Beverage Industry, Bloomberg, and Wine Industry Advisor.
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