The Global Natural Flavor market size reached USD 6400.0 million in 2022, worldwide demand for Natural Flavour recorded year-on-year growth of 6.6% in 2023 and thus, the sales are expected to reach USD 7402.3 million in 2024. Over the projection period (2024 to 2034), global Natural Flavour sales are projected to rise at an 8.5% compound annual growth rate (CAGR) and reach a sales size of USD 17,636.5 million by 2034-end.
The health benefits attached to the consumption of food and pharmaceutical products and using cosmetic products with natural flavors as an additive are supporting the strong growth of the target domain. Nowadays, consumers become more aware and concerned about the ingredients and additives used in the products they use due to research-based social media content. So they unsurprisingly shifted their preferences to natural flavors and clean label ingredients products and increased their focus towards the purchase of products with the organic label certification and containing ingredients that are natural and free of pesticides and chemicals.
| Attributes | Description |
|---|---|
| Estimated Global Natural Flavor market value (2024E) | USD 7,402.30 million |
| Projected Global Natural Flavor market Value (2034F) | USD 16,736.5 million |
| Value-based CAGR (2024 to 2034) | 8.5 % |
Consumers are also increasingly concerned about sustainability and sourcing practices employed to produce the end products with natural flavors and the impact it has on the environment. Therefore, manufacturers must focus on the growing demand for such practices and trade them well. For instance, key players such as Keva Flavours, Mane, and others are investing heavily to innovate the technology programs dedicated to natural flavor extraction which solves the sensory, regulatory, and economic challenges to manufacturing and providing natural flavors to the end-use industry while reducing the environmental footprint while their production.
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The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global natural flavor industry. This analysis reveals crucial shifts in business performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the domain growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 | 4.7% (2023 to 2033) |
| H2 | 5.3% (2023 to 2033) |
| H1 | 5.4% (2024 to 2034) |
| H2 | 5.5% (2024 to 2034) |
?????The above table presents the expected CAGR for the global natural flavors sales growth over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 4.7%, followed by a slightly higher growth rate of 5.3% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 5.4% in the first half and remain relatively moderate at 5.5% in the second half. In the first half (H1) the sales witnessed a decrease of 20 BPS while in the second half (H2), the target sales witnessed an increase of 10 BPS.
Growing use of natural flavors in bakeries, confectionery, various beverages, and dairy products
Flavors and fragrances are vital ingredients in various end products such as food products, pharmaceuticals, and the daily use of cosmetics to increase their palatability and acceptability. Different types of flavors are being used in the different end products depending upon the product's nature. However due to increasing demand and natural ingredients trends across the globe manufacturer increasingly using natural flavors in their products such as bakeries, confectionary, Ready To Drink (RTD) beverages, and various dairy products. This increased application is due to the high acceptability of natural flavors because of their raw form or the minimal processing without using any chemicals throughout its manufacturing process making it a clean label ingredient.
Rising popularity of natural extracts, aroma extracts, and essential oils
Continuous increase in the demand for the product which has the natural origin concerning their initial raw material. Consumers are more aligned towards products that contain natural flavors, essential oils extracted from various fruits, vegetables, spices, tea, coffee, and vanilla beans, etc. due to the growing awareness and the importance of a healthy lifestyle and the increasing acceptance of natural products have contributed to the rising natural flavors industry over the year. The manufacturer also increases their product portfolio with natural extracts, infusions, aroma extracts, and essential oils. For this manufacturers are sourcing top-quality raw materials from across the globe for extraction.
Increasing demand for tailor-made natural flavors for different end-use applications
Many end-use industries are demanding high-quality natural flavors and tailor-made natural flavoring solutions for their specific products. So the key industry players are becoming more skilled with their flavorists and the technology at the lab scale and at the large-scale production line at deciphering the chemistry between flavors and their end-use application, thus ensuring top-notch sensory delight. These tailor-made natural flavors are useful for the development of a new product or increasing the sensory part of the existing product in the field with the touch of natural flavors. Manufacturers are developing the most advanced natural flavor extraction technology beyond traditional distillation and fractionation. This advancement from biotechnology with highly critical fluid extraction techniques in the flavors industry has been useful in manufacturing tailor-made natural flavors for end users.
Focus on expanding production capacities and investing in R&D activities
The key industry leader is focusing and investing huge amounts of money from their budget to research and develop new natural flavors and processing methods to scale up to the trade demand. Their shift to the expanding product portfolio and production capabilities with modern technology due to a surge in the natural flavors demand across the globe. Key industry leaders also collaborate with academic institutions and research institutes across the globe to share knowledge and technology for further development.
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Global Natural Flavour sales increased at a CAGR of 6.6% from 2019 to 2023. For the assessment period of 2024 to 2034, the projections showcase that the sales value will expand at a CAGR of 8.5%.
A slow and steady increase in the sales of Natural flavors in recent years can be attributed to the rising awareness of the need to eat or use natural and healthy products and avoid synthetic ingredients. With the rising consciousness about health and wellness among consumers expanding the natural flavors industry, the demand for such flavors has skyrocketed.
With the evolving flavor extraction methods and the rise of advanced processing techniques such as advancement in biotechnology with high critical fluid extraction techniques beyond traditional distillation and fractionation methods, it has become easier for companies to produce high-quality natural flavors in a shorter period, catering to the diverse consumer as per their demands. Manufacturers develop the raw material integration to source the raw material from several places with traceability to ensure the quality and safety of flavors.
The global natural flavors market has many big players or MNCs such as International Flavors & Fragrances Inc., Firmenich SA, Givaudan, Keva Flavours, Sensient Technologies Corporation, Mane SA., Corbion N.V., Cargill, Tate & Lyle PLC many more that comprise a significant share of the global sales. These companies have numerous manufacturing facilities. These distinguish themselves based on supply chains or distribution networks that allow them to supply their products worldwide. They maintain quality checks across the processing line and throughout the supply chain and reduce costs due to advanced manufacturing technology with high efficiency. These big players often engage in partnership and collaboration to develop tailored natural flavor solutions that meet specific consumer needs and industry trends.
Local players on the other hand, often concentrate on certain limitations based on their product type and the end-use applications with the distribution and supply chains network and have formed strategic partnerships with other companies to expand their reach. They may not have advanced technology and wide global reach. They operate with a local presence and serve a niche industry. Such players focus on product quality with traditional processing technology and customer satisfaction rather than commercialization.
However, the industry is proceeding towards fragmentation as more and more players are entering the field from various parts of the globe. The sector is also heavily influenced by government regulations. Overall, the industry comprises a dynamic and complex nature, with MNCs playing the role of a trendsetter.
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The following table shows the estimated growth rates of the top three countries. China and India are set to exhibit natural flavors sales, recording CAGRs of 8.2% and 8.5%, respectively, through 2034.
| Country | CAGR 2024 to 2034 |
|---|---|
| United States | 6.9% |
| Germany | 7.2% |
| China | 8.2% |
| India | 8.5% |
| Australia | 9.8% |
The area for the natural flavors industry in the United States is projected to exhibit a CAGR of 6.9% during the assessment period of 2024 to 2034. By 2034, revenue from the sales of Natural Flavor sales in the country is expected to reach USD 4100.5 million.
Customers in the United States are well aware of health and wellness as well as nutrition regarding the food products and their additives due to widespread access to health information and the adverse effects caused by artificial flavors in food has led to a change in their preference for natural flavors. With a high disposable income of consumers, they are willing to spend on premium health-oriented products that contain natural ingredients such as natural flavors.
The presence of key manufacturing companies of natural flavors in the United States with the widespread distribution network led to an increase the natural flavors sales in the United States.
Consumption of natural flavors in China is projected to increase at a value CAGR of 8.2% over the next ten years. By 2034, the sales size is forecasted to reach USD 3,748.5 million, with China expected to account for an industry share of around 22% globally.
Multinational companies and local manufacturers are focusing on the production of natural flavors with the patented advanced manufacturing process with more cost-effectiveness. Developing advanced machinery to scale up the process to supply products with the increasing trend with more efficiency has led the business growth in China for the target product. Also, these natural flavors are readily used in traditional Chinese dishes as well as in modern cuisine. Such factors are leading the target sales.
The natural flavors market in Germany is projected to exhibit a CAGR of 7.2% during the assessment period of 2024 to 2034. By 2034, revenue from the sales of the natural flavor sales in the country is expected to reach USD 1673.7 million.
The use of natural flavors in the development of infant formulas, sports drinks, and nutrition with recognizable and minimally processed ingredients. Fast-growing urbanization as well as increased consumer disposable income has resulted in the growing demand for packaged food, pharmaceutical, and cosmetic products with natural flavors, leading the target sales to flourish in Germany
| Segment | Liquid (By Form) |
|---|---|
| Value Share (2024) | 89.5% |
The natural flavors in the liquid form segment are anticipated to register a CAGR of 6.1% during the assessment period of 2024 to 2034, to reach a sales valuation of USD 14,979.2 million in 2034.
Natural flavors in the liquid form dominate the business across the globe. This is due to the ease of use of the target product in the processing of end-use applications. The liquid product is easy to mix in any matrix or product giving a uniform taste to the product. Also, the storage and transportation of flavors after extraction via a process in the liquid form within the airtight containers is easy and has a long shelf life. This makes the natural flavors in the liquid form dominate besides the powdered flavors.
| Segment | Food and Beverage (By End-Use) |
|---|---|
| Value Share (2024) | 48.5% |
The natural flavors for the food and beverage industry application have dominated the sales which is anticipated to register a CAGR of 6.5% during the forecasted period of 2024 to 2034, to reach the sales value of USD 8117.2 million in 2034.
Food and Beverages including processed foods and Instant foods have the highest demand across the globe due to changing lifestyles and eating patterns. Consumer are becoming more concerned about their health and wellness and demand these food products with more natural ingredients, organic and clean label certification or claims. This changing attitude of consumers towards food products has led the food and beverage segment to more natural flavors.
The key players in the natural flavors industry are continuously innovating to introduce new flavors with more diverse and delightful flavor formulations from the number of raw materials in the field of business. Key manufacturing companies are involved in strategies such as merger acquisitions, partnerships, and collaborations among others in the industry to expand production capacity and cater to a wider audience. They are also educating the consumers and advertising their products through social media and websites to engage the consumers into using their products.
Brands must strategize ways to retain their sales revenue share by prioritizing sustainability, ethical sourcing, and reducing their carbon footprint.
For instance:
As per Form, the industry has been categorized into Powder and Liquid.
This segment is further categorized into Food & Beverages (Processed Foods, Instant Food Products, Soups, Sauces, and Dressings, Bakery & Confectionary), Foodservice (Horeca), Beverages, Others (Infant Formula, Sports Nutrition), Pharmaceuticals, Cosmetic & Personal Care.
Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa.
The global Natural Flavor sales are estimated at a value of USD 7402.3 million in 2024.
Sales of Natural Flavour increased at 6.6% CAGR between 2019 and 2023.
International Flavors & Fragrances Inc., Firmenich SA, Givaudan, Keva Flavours, Sensient Technologies Corporation, Mane SA., Corbion N.V., Cargill, Tate & Lyle PLC are some of the leading players in this industry.
The North American sales are projected to hold a revenue share of 29.2% over the forecast period.
The sales are projected to grow at a forecast CAGR of 8.5% from 2024 to 2034.
1. Executive Summary
2. Industry Introduction, Including Taxonomy and Market Definition
3. Market Trends and Success Factors, Including Macro-Economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Form
6.2. End-Use
6.3. Region
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Form
7.1. Powder
7.2. Liquid
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End-use
8.1. Powder Food & Beverages
8.1.1. Processed Foods
8.1.2. Instant Food Products
8.1.3. Soups
8.1.4. Sauces and Dressings
8.1.5. Bakery & Confectionary
8.2. Foodservice (Horeca)
8.3. Beverages
8.4. Others (Infant Formula, Sports Nutrition)
8.5. Pharmaceuticals
8.6. Cosmetic & Personal Care
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region
9.1. North America
9.2. Latin America
9.3. Western Europe
9.4. Eastern Europe
9.5. East Asia
9.6. South Asia and Pacific
9.7. Middle East and Africa
10. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
11. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
12. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Sales Forecast 2024 to 2034 by Category A, Category B, and Category C for 30 Countries
18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
19. Company Profile
19.1. International flavors & Fragrances Inc.
19.2. Firmenich SA
19.3. Givaudan
19.4. Takasago International Corporation
19.5. Sensient Technologies Corporation
19.6. Mane SA.
19.7. Cargill
19.8. Tate & Lyle PLC
19.9. Associated British Foods plc
19.10. Corbion N.V.
19.11. Keva Flavours
19.12. Others
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Natural Flavors Market
