BIO-TECH FLAVOR MARKET ANALYSIS

Definition of Market/Industry:

Bio-tech flavors are basically produced from advanced food science technology such as biotechnology. This method is the best alternative process of synthetically prepared flavors by using chemicals. Bio-tech flavors have numerous health benefits such as enhanced anti-oxidants level and reduced risk of the metabolic disorder as these flavors do not contain any artificial preservatives. Apart from food and beverage bio-tech flavor also finds application in the nutraceutical products. However, bio-tech process flavors are claimed to have a very low shelf-life.

The global bio-tech flavor market is estimated to be valued at US$ 1,548.6 Mn in 2021 and is expected to exhibit a CAGR of 11.0% over the forecast period (2021-2028).

Recent Developments:

• In September 2020, Firmenich, one of the largest privately-owned Perfume and Taste company expanded its operation by inaugurting its new biotechnology and naturals pilot plant and laboratory in Geneva.
• In August 2020, DolCas Biotech and IFF Health, part of International Flavors & Fragrances Inc. came into partnership agreement for the sale and marketing of Curcugen. The Curcugen is a next-generation, natural turmeric extract for dietary supplement and food and beverage industries.
• In February 2021, IFF Health and DuPont merged with one another. With the help of this merger both the companies will merge their expertise of food flavors and fragrances and DuPont leading expertise in probiotics, enzymes and food protection.

North America region held dominant position in the global bio-tech flavor market in 2020, accounting for 34.91% share in terms of value, followed by Europe and Asia Pacific respectively.

Figure 1. Global Bio-Tech Flavor Market Value (US$ Mn), by Region, 2020

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Drivers:

Uncertain weather condition coupled with the political barriers associated with the natural food product is expected to foster the market growth of the bio-tech flavors. Unfavorable weather conditions may lead to irregular supply of raw materials due to seasonal or crop violation and political instability are some of the major factors that are propelling the demand for flavor production by using bio-tech process as this technology can overcome such challenges and also reduce the cost of the flavor, thereby fueling the market growth.

The rising number of players entering into biotechnology process flavor market is expected to serve as one of the major driving factors to the market of bio-tech flavors. For instance, in September 2019, BASF strengthens biotechnology footprint by acquiring Isobionics, an innovation leader in biotechnology which is serving the global market for natural flavors and fragrances (F&F), and through a cooperation agreement with Conagen to enter the market for natural F&F ingredient.

Market Opportunities

Increasing demand for spicy flavors is expected to offer potential growth opportunities over the forecast period. For instance, in May 2019, Doritos launched new spicy wings flavor. The new flavourful Spicy Wings Flavour is Doritos’ newest invention that will see the band launched into the meaty flavor segment, thereby pushing the envelope of corn snacks. Hence, increasing the launch of spicy such hot chili flavor is expected to propel the market growth of the bio-tech flavor over the forecast period.

Increasing usage of bio-tech flavor in alcoholic beverages is expected to fuel the market growth in the near future. For instance, in June 2021, Diageo India announced the launch of Epitome Reserve, India’s first- ever small-batch, artisanal craft, 100% rice whisky. Therefore, rising demand for flavored alcoholic beverage is expected to foster market growth.

Market Trends

Increasing demand for protein-based flavor among athletes is gaining traction in the market, for this major player is introducing protein-based flavor, which in turn propelling the market growth over the forecast period. For instance, in March 2019, CytoSport Inc., the makers of EVOLVE® plant-based protein products announce the launch of their new Protein & Greens product line. CytoSport's EVOLVE® brand is part of the leading sports nutrition company's portfolio that also encompasses MUSCLE MILK® premium protein products.

Shifting consumer preference towards a new blend or combination of flavors such as heat and tangy flavors due to growing popularity for different and unique flavors especially Europe and East Asia is expected to fuel the market growth in the near future. At present, beef jerky and snack products such as chips heat are being available in heat and tangy flavor is a major trend in U.S and Europe region. Hence, shifting preferences of consumers towards a unique and new combination of flavor is expected to propel the market growth.

Figure 2. Global Bio-Tech Flavor Market Share, By Flavor Type, 2020

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Key Takeaways of the Graph:

The vanilla & vanillin segment held dominant position in the market and accounted for 35.84% share in the global bio-tech flavor market in 2020. The segment is expected to reach US$ 1,205.0 million in 2028, owing to wide availability of the product.

Market Restraints

Low shelf-life of the bio-tech based flavor is expected to hinder the market growth of the bio-tech flavor. Bio-tech flavors have a lower shelf life because it doesn't contain any artificial preservatives that increase the shelf life and average shelf life of bio-tech product is around six months to one year. Hence, lower shelf-life of the bio-tech based flavors is expected to restrict the adoption of across consumer, thereby restraining the market growth.

The high cost of the raw materials used in bio-tech based flavor is projected to inhibit the market growth. Moreover, bio-tech flavors are comparatively expensive than artificial flavors due to high cost related to processing, production, and preservation of natural and bio-tech flavors are expected to restrict the demand for bio-tech based flavor. This factor is expected to hinder the market growth of bio-tech flavor over the forecast period.

Competitive Section:

Company Names 

Players active in the market are Givaudan S.A, International Flavors & Fragrances Inc., Firmenich SA, Symrise AG, Takasago International Corporation, Sensient Technologies Corporation, Kerry Group, and Frutarom Industries Ltd.