Market Challenges And Opportunities

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 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.