The beverage flavouring systems market is set to grow from its current market value of over $4 billion to over $5 billion by 2025, as reported in the latest study by Global Market Insights, Inc.
The rapid expansion of the beverage industry owing to changing consumer preferences, coupled with product diversification among key manufacturers, is anticipated to drive the beverage flavouring systems’ market size.
Positive applications outlook in protein-based beverages, naturally-brewed tea, soft drinks, alcoholic and flavoured water will propel the product demand. The global beverage demand was estimated to be over 950 billion litre in 2018, and is likely to witness prominent growth over the projected timeframe.
Growing consumer awareness pertaining to common health issues, including obesity and diabetes, will boost the demand for low-sugar or sugar substitute drinks.
As per industry experts, the demand for non-dairy plant milk has witnessed significant growth between 2000 and 2016, while the global per capita fluid milk consumption decreased by close to 23 per cent.
The increasing necessity for essentials minerals and enzymes which promote healthy digestion among athletes will surge the demand for plant-based sports drinks.
Stringent government regulations in line with consumer safety and product labelling has urged the beverage companies to incorporate natural flavours in their final product.
Consumers are likely to scrutinise the product labels for natural ingredients before purchase and willing to pay premium prices.
Henceforth, manufacturers are anticipated to give more emphasis on natural flavours rather than their synthetic counterparts to boost their product sales.
Alcoholic beverages accounted for over 28 per cent of the beverage flavouring systems market share in 2018.
Premium wine and spirits, along with craft beers, are among the preferred products in the alcoholic beverage segment.
Rising millennial spending on alcoholic beverages to maintain social status will provide a positive business outlook for flavour manufacturers.
Rapid expansion of large-scale breweries in major countries, including France, Italy, Germany and the UK will also provide positive business outlook for industry participants.
The natural beverage flavouring systems market is anticipated to witness fastest growth between 2019 and 2025.
Increasing demand for organic and sustainably sourced ingredients as well as taste modulators to sustenance the sugar, salt and fat reduction in likely to fuel the segment growth.
Health-conscious consumers are likely to drive innovation among key drinks manufacturers by demanding more organic products from the brands that they consume over the projected timeframe.
North America beverage flavouring systems market, by ingredient, 2018 and 2025, (kg tonne)
The Asia Pacific beverage flavouring system market is expected to register a CAGR (compound annual growth rate) over 5.5 per cent up to 2025.
Rising carbonated soft drinks production is expected to fuel the demand for artificial sweeteners, caffeine, vitamins, preservatives, fruit extracts, and added flavours and colours in the region.
Increasing consumer consciousness regarding wellness and healthy lifestyle will surge the demand for bottled water, fruit juices and other ready-to-drink beverages.
The growing demand for beverages with exotic flavours and new product development by key manufacturers, including PepsiCo and Coca-Cola, will foster market development.
Global beverage flavoring systems are competitive in nature due to the presence of multinational and regional, large and small manufacturers.
Key industry players in the industry are Cargill, International Flavours and Fragrances, Firmenich, Tate and Lyle, MANE, Dohler, Archer Daniels Midland Company, Givaudan, Sensient Technologies, Kerry, Flavourchem Corporation and Bell Flavours and Fragrances.