According to Future Market Insights, the global dairy flavors market is poised to accumulate a market value of US$ 20 billion by the end of 2023, and will eventually reach US$ 48 billion in 2033, accelerating at a CAGR of 9.1%. As consumer food preferences continuously evolve, food & beverage manufacturers are looking for avenues wherein they can experiment with flavor combinations, thus widening the popularity of dairy-based flavors.
Although the COVID-19 pandemic saw a return to more nostalgic and traditional flavors, consumers are becoming increasingly adventurous with their cooking and eating habits. Manufacturers are therefore looking to introduce bolder and more exciting tastes that appeal to consumers. Innovative, nutritious berry blends and flavors such as cranberry, blueberry, or even honeyberry, are making their way into dairy product offerings, such as yogurt.
Classic mood-inspiring flavors such as chocolate, vanilla, strawberry, dessert & bakery-inspired flavors are likely to be in high demand while formulating dairy flavored foods. This is why a plethora of manufacturers are expected to break even in the forthcoming decade. Strategies such as capacity expansion, collaborations with universities, government entities, and other manufacturers, as well as introducing new and innovative products are some core strategies followed by the market players.
In October 2022, International Flavors & Fragrances Inc. (IFF) and Florida Polytechnic University laid the foundation of the new Citrus Innovation Center, situated on the University campus in Lakeland. The 30,000-square-foot facility is expected to support citrus research and development and will include sensory and experience venues, research labs, processing, analytical departments, a fully equipped citrus garden, and amenities for hosting customers and partners.
Synergy Flavors Inc., a prominent supplier of flavors, extracts, and essences for the global food and beverage industry offers Dairy by Nature, a portfolio of custom taste solutions. Introduced in 2019, the portfolio combines Synergy’s natural flavor extraction and creation expertise with the proprietary dairy technology of its parent company, Carbery. Dairy by Nature is a natural taste solution, developed to address the formulation needs of dairy-based as well as plant-based applications trending with today’s consumers.
Stakeholders in the dairy flavors industry are likely to accrue maximum benefits from the clean-label portfolio. With consumers increasingly demanding food and beverage products with transparent and ethical origins, manufacturers are incorporating sustainable practices at every point in the supply chain. Many consumers are actively seeking ways to make better choices, with 30% of consumers willing to pay a premium price for sustainably sourced produce. When it comes to clean-label and sustainable dairy products, Edlong is at the forefront.
In 2021, Edlong announced the extension of its partnership with Future Food-Tech as a Gold Partner. The extension came amid renewed consciousness about dietary patterns in the post-pandemic era, with an unprecedented demand for more efficient, nutritious and sustainable solutions. Edlong is a pioneer in forging the future of plant-based dairy flavors and innovations. Through a summit held in March 2021, the company re-emphasized the importance of switching over to a plant-based diet, and the benefits it would accrue to the environment as a whole.
Dairy manufacturers can leverage the natural and nutrient-rich sweetness of high-quality fruit and vegetable ingredients such as berries or tomatoes to differentiate their plant-based innovations. For example, Japanese company Morinaga Oishii has created a tomato-flavored yogurt designed to provide an unusual flavor experience, especially for tomato consumers. At the same time, French supermarket Carrefour introduced a plant-based coconut yogurt that uses strawberries as a natural and tasty sweetener.
| Data Points | Key Statistics |
|---|---|
| Expected Market Value in 2023 | US$ 20 billion |
| Projected Market Value in 2033 | US$ 48 billion |
| Growth Rate (2023 to 2033) | CAGR of 9.1% |
As consumer preference for flavors has amplified over past half a decade, manufacturer and suppliers of dairy products to optimize their product offerings in sync with the consumer demand.
Flavour is one of the high growth segment in overall food ingredients market, and preference for dairy flavours by consumers coupled with willingness of manufacturers to capitalize the opportunity in this niche business translated into the increased demand dairy flavours across the globe.
The phenomenon is very prominent in developed markets, particularly in Europe, where in 2019 out of every seven new beverage product launch - one was labelled as dairy. Manufacturers experienced increased sales of existing product, labelled as natural or organic, and consequently introduced new product ranges with natural or organic ingredients including flavours to respective markets.
Since, applications of dairy flavours has been creating value for manufacturers, plus number of companies engaged in dairy business are anticipated to launch products with similar ingredient over the next five years.
In addition, manufacturers are likely to market their products with lactose-free and cholesterol-free labels, thus attracting existing and targeting new customers. This will result into an increased demand for dairy food products, which in turn is likely to create the positive market conditions for dairy flavours.
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Dairy flavours have significant raw material in demand for products in the USA market. USA snacks market is expected to grow at a substantial growth rate over the forecast period. The United States have relatively high opportunity for dairy flavours market, attributed high demand for dairy flavours in snacks, bakery, and dairy products as well as in alcoholic beverages.
Consumers in USA, eat snacks four to five times a day at an average, whereas consumers in global market eat snacks three times a day. This creates a potential segment for the dairy flavour in snacks segment in the North America. Owing to increased adoption of Japanese trend to use dairy flavours in the various food products as well as in beverages along with other flavours such as fruit flavours and caramel flavours.
Consumer taste and preferences changes by the time, hence leading companies are driving the dairy flavors market growth by introducing innovative flavors. These manufacturers have been continuously investing huge amounts in research and development activities in order to cater to the evolving needs of customers seeking authentic flavoured food.
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Some of the key players operating their business in the global Dairy Flavors market are
Multitasking flavors are being used across the end user industry, which is also a current trend for dairy flavors market worldwide. Lactose intolerance is the major issue for many consumers, lactose-free alternative milk made from nuts is an opportunity to increase the revenue of global dairy flavors market.
Fresh nut milks are highly nutritious and rich in fiber, protein, vitamin B, monounsaturated fats, magnesium, and iron.The Dairy Flavors market report offers a comprehensive evaluation of the market. It does so via in-depth qualitative insights, historical data, and verifiable projections about market size.
The projections featured in the report have been derived using proven research methodologies and assumptions. By doing so, the research report serves as a repository of analysis and information for every facet of the Dairy Flavors market, including but not limited to: regional markets, nature, flavor type, form, and application.
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The Dairy Flavors market report has been compiled through extensive primary research (through interviews, surveys, and observations of seasoned analysts) and secondary research (which entails reputable paid sources, trade journals, and industry body databases).
The report also features a complete qualitative and quantitative assessment by analysing data gathered from industry analysts and market participants across key points in the industry’s value chain.
A separate analysis of prevailing trends in the parent market, macro- and micro-economic indicators, and regulations and mandates is included under the purview of the study. By doing so, the Dairy Flavors market report projects the attractiveness of each major segment over the forecast period.
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