Natural Flavors Market By Type (Natural Extracts, Aroma Chemicals, Essential Oils), By Application (Bakery & Confectionery, Beverages, Dairy Products, Savory Foods, Pharmaceuticals & Dietary Supplements, Oral Care Products) - Growth, Future Prospects And Competitive Analysis, 2016 - 2023

This report, titled "Natural Flavors Market: Growth, Future Prospects, and Competitive Analysis, 2016–2023," offers strategic insights into the trends in the natural flavor market along with the market size and forecast for the duration of 2013–2023. The said research study incorporates an in-depth analysis of multiple market segments based on type, application, and geographical distribution.

Changing consumer preferences, the development of technically advanced flavors, and supply chain improvements are some of the factors fueling the natural flavor market's growth globally. The global market for natural flavors is increasingly witnessing competition, with a growing number of strategic alliances between market players to gain an international footprint and enhance their product offerings. In addition, several players are also focused on improving their product portfolios in the market.

The global market for natural flavors is divided into three segments based on type: natural extracts, aroma chemicals, essential oils, and other natural flavors. Based on applications, the global market for natural flavors is segmented into bakery and confectionery, beverages, dairy products, savory foods, pharmaceuticals & dietary supplements, oral care products, and others. The market size and forecast for all the segments considered are presented in this report for the period 2013–2023, along with their respective CAGRs for the forecast period 2016–2023 in terms of value).

In terms of geographical distribution, the global market for natural flavors is studied for five major regions, namely, North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. Market size and forecasts for each regional and country-level market are included in the report for the considered periods.

To clarify further, the geographical distribution of the global natural flavor market is as follows:

  • North America
  • U.S.
  • Canada
  • Europe
  • U.K.
  • Germany
  • Rest of Europe
  • Asia-Pacific
  • Japan
  • China
  • Asia-Pacific region
  • Middle East and Africa
  • Latin America 

Along with the quantitative information sets, this report also provides qualitative information, such as market dynamics and an executive summary, for the global natural flavor market. The report also includes tools to help readers with competitive mappings, such as competition assessment and appealing investment propositions. This study concludes with a company profile section. This section includes major information about the key companies engaged in the development of natural flavors.

Based on type, the global market for natural flavors is segmented as follows:

  • Natural Extracts
  • Aroma Chemicals
  • Essential Oils
  • Other Natural Flavors

Different types of natural flavors include natural extracts, essential oils, aroma chemicals, and other natural flavors. Of these, the natural extracts and essential oils segment collectively dominate the market in terms of revenue contribution, followed by aroma chemicals. Factors such as the requirement of health benefits, including weight control, improved resistance, gut health, enhancing immunity, and others, have led to increasing popularity among consumers of natural-based products. Thus fueling demand for natural flavors, especially essential oils and natural extracts, as sources to mitigate the rising demand among end-use consumers.

In addition, demand for natural flavors as essential oils is driven by growing consumer inclination for better fragrance products with natural ingredients coupled with side effects associated with synthetic flavor or compound usage. The expanding food and beverage industry represent a potential market for natural flavors, but declining beverage consumption, particularly of carbonated beverages, limits the market growth. Furthermore, companies are engaged in developing product formulations to offer better and enhanced products to end users. The aroma chemicals segment is anticipated to record significant growth during the forecast period, which is attributed to the demand for aroma chemicals in the overall flavor and fragrance industry.

On the basis of application, the natural flavor market is categorized into the following:

  • Bakery & Confectionery
  • Beverages
  • Dairy Products
  • Savory Foods
  • Pharmaceuticals and Dietary Supplements
  • Products for Oral Care
  • Others

Of the different applications, the beverages segment holds the largest market share and is expected to maintain its dominance throughout the forecast period. This is attributed to the inclination of consumers toward flavored beverages, especially those with natural ingredients. Consumers are buying products with ingredients, preferably fruits and vegetables, owing to the advantages of their being rich in antioxidants. Furthermore, beverages contribute a significant share of the overall food and beverage industry, so demand for natural flavors is anticipated to be significant in the segment.

Demand for natural flavors in dairy food products is further expected to remain significant throughout the forecast period due to demand for nutritious and healthier food products. The dairy products segment is expected to record the highest growth, which is also attributed to the increasing consumption of these products, leading to the development of ingredients and flavors that suit the end-use consumer requirements, thereby fueling natural flavor market growth across the globe. In addition, new product development with customized formulations stimulates the natural flavor market's growth. The oral care products segment is expected to record moderate growth in the next five to six years. This is attributed to increasing product launches with different flavors and consumer inclination towards advanced personal care products.

The global market for natural flavors is divided into three segments for the purposes of this study:

  • North America
  • Europe
  • Asia Pacific
  • Latin America (LATAM)
  • Middle East and Africa (MEA)

At present, North America and Europe are the two largest regional markets for natural flavors. The U.S. remains a prime contributor to the growth of natural flavors in North America, supported by extensive research and development by companies operating in the market. In Europe, the U.K. and Germany are identified as potential markets for natural flavors.

This is attributed to increasing consumer inclination towards specific flavors in food and beverages, along with stringent regulations by the European Union for the use of artificial ingredients across varied applications such as food and beverage, personal care, and pharmaceuticals, among others. The region's easy access to raw materials and consumer demand for natural products make Asia-Pacific a highly profitable market for natural flavors. China and India are anticipated to be the most prominent country-level markets for natural flavors during the forecast period.

In addition, demand for organic food products among consumers has led manufacturers to adopt advanced technologies and, thus, develop products that suit the needs of end-user companies. Natural flavor market growth in the Middle East and Africa is anticipated to be steady during the forecast period.

Frequently Asked Questions:

The market for Natural Flavors Market is expected to reach US$ 7.7 Bn By 2023.

The Natural Flavors Market is expected to see significant CAGR growth over the coming years, at 5.8%.

The report is forecasted from 2016-2023.

The base year of this report is 2015.

Takasago International Corporation, Frutarom Industries Ltd., Kerry Group PLC, Sensient Technologies Corporation are some of the major players in the global market.

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Published Date:  Dec 2016
Category:  Food & Beverage
Report ID:   58291
Report Format:   PDF
Pages:   120
Rating:    4.3 (70)
Delivery Time: 24 Hours to 48 Hours   
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