According to the recent report by Future Market Insights (FMI), the food aroma market size is estimated to stand at USD 1,595.72 million by 2033. Over the forecast period, the market is assessed to trail at a CAGR of 6.6%. For the year 2023, FMI has estimated the market to be worth USD 842.14 million.
The Market is Deriving its Demand from the Following Factors:
Factors that Might Dampen Market Growth Prospects:
Investment Opportunities in the Market:
| Attributes | Details |
|---|---|
| Food Aroma Market Value (2023) | USD 842.14 million |
| Food Aroma Market Forecast Value (2033) | USD 1,595.72 million |
| Food Aroma Market CAGR (2023 to 2033) | 6.6% |
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The market generated a revenue of USD 790 million in 2022. Looking forward, the market is set to register a CAGR of 6.6% to reach USD 842.14 million in 2023. By 2033 end, the market is anticipated to reach a market valuation of USD 1,595.72 million.
In the short run, i.e., from 2022 to 2025, the market is expected to generate market revenue of USD 956.97 million by the end of 2025. The growing interest in F&B experiences, in line with the surging demand for unique and memorable gastronomic experiences is anticipated to boost the demand for food aroma and flavor enhancers. By incorporating food aroma chemicals, end users can elevate the sensory experience of food and beverages.
By the end of the mid-term growth period, i.e., from 2025 to 2028, the market is expected to attain USD 1,159.23 million. Technological upgrades in the delivery and extraction methods of food aroma are expected to render food aroma cost-effective and accessible for businesses. Technological innovations have the potential to drive up the adoption of food aroma among F&B retailers and manufacturers.
In the long run, i.e., from 2028 to 2033, the market is predicted to amass a total of USD 1,595.72 million by 2033 end. Growing concerns for environmental sustainability are expected to accelerate the use of organic and natural food aroma extracts in the forecast period.
The synthetic segment attained USD 530 million in 2022. Artificial flavors are available at reduced prices and involve less processing, which make them an affordable investment for food conglomerates.
Synthetic aroma chemicals easily capture the scent of natural aroma chemicals for carbonated sodas, snacks, and candies. These aroma products are also capable of imparting flavors to dairy products like ice creams, milkshakes, and yogurts. These are generally employed in the baked goods sector to duplicate natural flavors or develop new ones.
The easy availability of synthetic food aroma products is also accelerating segment growth. Even though consumers are shifting toward the consumption of naturally extracted food aromas in a bid to conserve the environment, the market share of synthetic ones reigns supreme. This can be attributed to the low availability and high cost of naturally extracted aromas. Take for example,
The pristine form of vanilla derived from bourbon vanilla is expensive and easily exhaustible. As a result, consumers are opting for synthetic and identical-to-natural alternatives.
The terpene segment led the market in the historical period, by a significant percentage. The dominant position of this segment can be attributed to the natural availability and surging utilization of terpenes resin in chewing gums and other food products. The medicinal properties of terpene, like antimicrobial, anti-carcinogen, and antiseptic are also pushing its utilization in the food industry. Due to the distinct and intense aroma profile of terpenes, they find many applications in the food industry as food flavorings.
Terpenes are widely utilized in a variety of ways in food products like baked goods, confectionery products, and beverages. For example, significant use of limonene, a type of terpene, to infuse beverages and sweets with citrus flavors. Additionally, linalool, a terpene placed in lavender, is deployed to incorporate a floral tone in numerous food products.
Terpenes are generally recognized as safe (GRAS) by the USA FDA and have been utilized in food and beverage products for several years. As a consequence, they are finding extensive use in the F&B sector to impart appealing and distinct scents to a range of food items.
The growing application of food aromas in beverages is expected to foster segment growth. The surging popularity of multitudinous aroma compounds in the food and beverages industry to develop innovative taste experiences is boosting the demand for food aromas. For instance, Solvay, a Belgian MNC, introduced new authentic vanillin flavors to be used in the food and beverages industry in September 2022.
Food aromas and flavors play a vital role in maintaining food and beverage quality. The surging demand for processed food, in addition to the rising customer taste preferences, is expected to boost the beverages segment. Flavors are also used in many non-alcoholic beverages, such as coffee, juices, shakes and smoothies, tea, protein shakes, and health drinks.
The coffee category is also observing huge demand for food aromas. The rising population and strong demand for various coffee beverages the world over have propelled the segment’s growth.
Europe is slated to dominate the market over the forecast period. The region is estimated to expand at 6% CAGR over the forecast period. The regional growth can be attributed to the growing dairy industry in Europe.
As per reliable estimates, the region extracted more than 161 million tons of raw milk in 2021. This represented a year-on-year rise of 0.7 million tons.
Increasing interest in international cuisines has driven the demand for culinary essences in Europe. Consequently, pushing the demand for food aromas to develop distinct recipes and alluring flavors in the region.
The wine, chocolate, confectionery, and cereal-based products accounted for maximum export values in 2021. These items totaled 18% of the overall EU agri-food exports. Additionally, the regional market also benefits from the solid presence of industry players like Solvay and BASF, along with the broad-scale availability of aromas to create complex and distinct flavor profiles.
China market is expected to witness healthy growth in the forecast period. Increasing demand for food aromatics in emerging nations is supporting market expansion. Cuisines in Asia are gaining popularity in developed regions like Europe and North America. The unique spice blends of cuisine in China and the high penetration of food outlets in China are propelling the market growth globally. Other factors shaping China market include the high population count in the country and proliferation of HORECA sector.
The strongly growing food industry in China is propelled by increasing discretionary income and changing food habits.
The United States is a significant market for food aroma. Growing demand for aroma chemicals in the food and beverage industry is fuelling market growth. Beverage products and low-fat food require extra flavors to bolster the taste of the final product. The high incidence rate of obesity in the United States and surging demand for low-calorie food are expected to catalyze demand for multiple flavors, consequently impacting the food aroma chemicals.
Top players in the food aroma market are BASF, Hindustan Mint and Agro Products, Solvay, and Takasgo International Corporation. Several main companies are increasingly focusing on strategies to expand their consumer base across the globe. Take for example, in February 2021, a BASF subsidiary situated out of the Netherlands by the name of Isobionics started a distillation unit to produce new fragrances and flavors at Brightlands Chemelot Campus in the Netherlands. The novel distillation factory is expected to facilitate the company to expand its business whilst catering to its customers’ needs.
Companies are also concentrating their efforts on the development of natural and organic ingredients in light of the soaring consumer base for healthy and sustainable products. Additionally, investments are increasing in research and development activities to develop innovative and distinct food aroma products to satiate changing demand and preferences of consumers.
Top players partner with retailers and food manufacturers to develop and advertise new products. Apart from this, collaborations also help with expanding the customer base and enhancing market share. Another strategy commonly employed by key players includes mergers and acquisitions. The companies are merging and acquiring other companies to expand their access to new products, markets, and technologies, in order to expand their market share.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million/ billion for Value |
| Key Regions Covered | North America; Europe; Asia Pacific; Latin America; The Middle East and Africa |
| Key Countries Covered | The United States, Canada, Germany, the United Kingdom, France, Italy, NORDICS, Spain, Russia, Poland, BENELUX, China, Japan, India, ASEAN, Oceania, South Korea, Brazil, Mexico, Argentina, GCC Countries, South Africa, Northern Africa, Türkiye |
| Key Segments Covered | Type, Product, Application, and Region |
| Key Companies Profiled | BASF; Hindustan Mint and Agro Products; Solvay; and Takasgo International Corporation |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
China, India, the United States, Japan, and Germany are the major countries in this market.
The market is estimated to secure a valuation of USD 842.14 million in 2023.
The projected CAGR of the food aroma market by 2033 is 6.6%.
North America holds a significant share of the food aroma market.
The projected market value for 2033 is USD 1,595.72 million.
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