FLAVORS AND FRAGRANCES MARKET ANALYSIS

Market Challenges And Opportunities

Global Flavors and Fragrances Market Drivers:

Growing demand for flavor ingredients for dairy, fish and meat alternatives products to augment market growth

There is a high demand for flavor ingredients for dairy, fish and meat alternatives products due to growing vegan population. According to the recent report by Veganz study, a well-known manufacturer of vegan products as well as a supermarket chain in Europe, the number of vegans in Europe has doubled in four years, reaching 1.3 billion in 2016 to 2.6 billion in 2020, accounting for around 3.2% of the regional population. However, the strongest growth is witnessed among the flexitarians, accounting for approximately 22.9% of the European population.

Increasing demand for clean label flavors is propelling market growth

The demand for clean-label flavors is on rise due to growing environmental concerns and increasing adoption of healthy lifestyle. According to Tate & Lyle the demand for clean label claims is increasing by more than 13% in Latin America market and 8% in Middle East & Africa market with claims like ‘natural’, ‘better for you’ and ‘free from’ ascending.

Global Flavors and Fragrances Market Restraints:

Manufacturing and supply chain complexities

Factors such as transportation, infrastructure for storage facilities for various food and beverage products, technological advancement especially to the local demand are restricting the market growth over the forecast period.

Negative impact of Covid-19 on the global economy           

The COVID-19 pandemic has affected the supply chain of the flavors and fragrances market. This has led to the disruption of trading activities, production facilities, hotels, and restaurants. Nevertheless, the introduction of innovative and creative fragrances in hygiene products is expected to drive the market growth.

Global Flavors and Fragrances Market Opportunities:

Growing application of flavors in alcoholic beverages is expected to provide significant growth opportunities. For instance, in August 2022, Monster Beverage Corporation has launched its first flavored alcoholic malt beverage product. The beverage will be called The Beast Unleashed (6% abv) and will initially be available in four flavors.

Increasing use of flavors in bakery is also expected to serve major growth opportunities. Vanilla extracts and flavors have gained high popularity in the bakery segment. For instance, Eurovanillin provides a vanillin flavor developed for use in sweet bakery products like biscuits, cakes, and wafers.