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Natural & organic flavour market to reach around US$ 10.6 billion by 2027
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Friday, 20 November, 2020, 16 : 00 PM [IST]
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Our Bureau, Mumbai
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The global natural and organic flavour market is estimated to account for over US$10.6 billion in terms of value by the end of 2027 and is predicted to grow at a CAGR of 8.1 per cent during the forecast period of 2019 to 2027, as highlighted in a report published by Coherent Market Insights.
Growing demand for organic and natural flavors from the food and beverage industry is primarily fueling the market growth of organic and natural flavors over the forecast period. Flavor has a huge demand in the overall food ingredients market due to a high preference for natural or organic flavors by consumers which are expected to fuel the market growth of natural and organic flavors over the forecast timeframe. Moreover, expanding food and beverage industry around the globe due to the entry of various players is further expected to propel the market growth of organic and natural flavours.
Increasing launch of spicy flavours in different edible products is expected to offer ample opportunity area for manufacturer engaged in the food and beverage industry. Consumer preference for hot and spicy flavor is spreading across the world. For instance, in July 2019, Wonderful® Pistachios launched two new flavors to its Wonderful Pistachios No Shells offerings—Chili Roasted and Honey Roasted—two distinctive flavors that allow the brand to reach two contrasting categories of snacking fans; those seeking heat, and those who enjoy a sweet escape.
Less shelf-life of natural and organic flavours compare to artificial flavours as there is no artificial product is added such as preservatives are expected to hinder the market growth of organic and natural flavours. Due to this reason, many end-user companies prefer artificial flavours over natural and organic flavour and this factor is restricting the volume growth of the natural and organic flavours market. Therefore, less shelf-life of the natural and organic flavour is expected to hinder the market growth.
Key Takeaways
On the basis of application, the food segment has dominated the global natural and organic flavour market in 2018, with a 56.2 per cent market share in terms of value, followed by beverages and nutraceutical applications respectively.
Market Trends
According to Coherent Market Insight's study, rising trend of multiuse of flavours such as melon is being used in the alcoholic beverage and also in soft drinks is expected to propel the market growth of natural and organic flavours. For example, coffee is one of the most versatile flavours that is used in various food and beverages application such as beer sports nutrition including RTDsbars; candy and desserts. Hence, the rising trend of multiuse of flavours are propelling the market growth of natural and organic flavours.
The growing popularity of flavoured tea such as matcha, dandelion tea, cascara tea, turmeric tea, and orange ginger tea is expected to augment the market growth of natural and organic flavours. According to the Coherent Market Insights analysis, tea has gained steam in the United States, where retail sales of the beverage grew nearly 20 per cent to $7.3 billion between 2009 and 2014. The Tea Association of the USA cited that 85 per cent of tea consumed in America is iced tea and loose-leaf tea.
Few Recent Developments
DuPont
• In December 2019, IFF and DuPont announced that they have entered into a definitive agreement for the merger of IFF and DuPont’s Nutrition and Biosciences (N&B) business in a Reverse Morris Trust transaction. The deal values the combined company at $45.4 billion on an enterprise value basis, reflecting a value of $26.2 billion
Firmenich SA
• In January 2018, Firmenich acquired Natural Flavours, Inc., a privately-held manufacturer of high-quality organic certified natural flavours.
Symrise AG
• In April 2016, Symrise AG opened a production facility of fragrance and flavour in Tehran, Iran. This production unit helps to expand the company’s footprint in the Middle East region.
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