LIQUID SMOKE MARKET ANALYSIS

Market Challenges And Opportunities

Global Liquid Smoke Market - Drivers

• Rising growth in the processed food industry

Growth in the processed food industry is primarily fueling the market growth of liquid smoke. According to the Invest India, the Indian processed food market is expected to grow from US$ 263 billion in 2019-20 to US$ 470 billion by 2025, professional services firm Food processing industry includes Fruits & Vegetables, Dairy, Fisheries, Poultry & Meat processing, Food retail, and so on. Therefore, the growing processed food industry is propelling the market growth.

• Rising usage of liquid smoke in dairy products

Liquid smoke is also used in dairy products such as cheese to give it a natural smoky flavor rather than actually smoking the cheese. These liquids have been applied in pet food and the main concern of pet owners is to provide the best nutritional support for their pets, increasing the demand for liquid smoke. The demand for aqueous smoke solutions is increasing due to their use in complex food processing such as oil extraction, food applications, and food ingredients such as yeast, malt flour and salt. 

• Increasing demand for meat products in the U.S.

Increasing demand for meat products in the U.S. country is expected to fuel the market growth of liquid smoke. According to the North American Meat Institute, in 2022, the meat and poultry industry is the largest segment of U.S. agriculture. The meat production in the country was totaled 62 billion pounds in 2022 and poultry production was totaled 59.4 billion pounds in 2022. Therefore, the growing demand for meat products is expected to augment the market growth by forecast period. 

Global Liquid Smoke Market - Opportunities

Rising adoption of liquid smoke equipment among major players in order to reduce the overall cost production is expected to offer enormous growth opportunity to the market of liquid smoke. The use of advanced equipment favor has less impact on the environment and is also cost-effective as compared to traditional smoking methods. Hence, this is expected to fuel market growth over the forecast timeframe.

Rising adoption of liquid smoke in various cheese products will favor market growth over the forecast period. Various manufacturers of dairy products are using liquid flavor in cheese product such as provolone, mozzarella, and scamorza, for expanding their range of smoked cheese products. For instance, in November 2018, Norseland introduced Applewood Vegan smoked cheese. Norseland, Incorporated was founded in 1978. The Company's line of business includes the wholesale distribution of dairy products.

Global Liquid Smoke Market - Trends

The rising trend of using liquid smoke in pet treat products is expected to augment the market growth of liquid smoke over the forecast period. For instance, in August 2018, Omaha Steaks, a retailer of steaks, seafood has introduced a new line of premium dog treats in response to the increasing demand for dog treats. This trend is expected to fuel the market growth of liquid smoke over the forecast period.

Shifting preferences of consumers for liquid smoke in hot dogs is projected to accelerate the market growth of liquid smoke in the near future. For instance, in July 2019, Nolan Ryan Beef has announced that it has launched uncured beef franks, to expand its hot dog and frank portfolio. Hence, using liquid smoke in hot dogs is gaining popularity among consumer and this will favor the market growth. Nolan Ryan Beef branded products are available throughout Texas at all Kroger supermarkets as well as several foodservice establishments nationwide. The company's product offerings include Nolan Ryan Angus Beef, Nolan Ryan 34 Prime Beef and Nolan Ryan Signature products.

Global Liquid Smoke Market - Restraints

• Lack of awareness regarding liquid smoke products among consumers

Lack of awareness regarding liquid smoke products among consumers of developing countries is projected to hamper the market growth of liquid smoke. Moreover, few people are allergic to smoked products which are further expected to restrict the adoption of liquid smoke. This, in turn, hindering market growth over the forecast period. Moreover, still few processed meat manufacturers prefer the conventional method of smoking meat products since it provides a strong flavor to meat products such as beef and pork. Moreover, the conventional method of smoking meat also provides a distinct texture. This factor is expected to limit the adoption of liquid smoke which in turn is hindering the market growth.

On the basis of application, meat and seafood dominated the global liquid smoke market in 2022 with around 79.20% of market share in terms of revenue, followed sauces and pet food & treats, respectively. Liquid smoke is widely used in various food products, including processed meats (such as sausages, bacon, and deli meats), sauces, marinades, snack foods, cheeses, and seafood products. Liquid smoke helps enhance the taste and aroma of these products by providing a natural smoky flavor