According to Reports and Data, the global food flavours was USD 16.33 billion in 2020 and is expected to reach USD 23.09 billion in 2028 and register a revenue CAGR of 4.4% during the forecast period, 2021-2028. At 6.3% CAGR, the "Natural Flavours Market" is expected to grow across all regions from 2021-2028.
As experts in Executive Search and Food and Beverage Executive Recruitment, Connect Search looks at the growing demand for authentic and natural flavourings and increasing R&D activities to develop superior quality food flavours are key factors driving market growth. Increasing awareness regarding sugar consumption and rapidly changing preferences for taste and flavours are further fuelling revenue growth.
In addition to their own health, consumers are considering environmental health when choosing food, beverages, and flavours. This has intensified the desire for products that consumers believe are good for themselves, their communities, and the planet. More sustainable, plant-based ingredients are inspiring new applications for botanical, floral, and fresh fruit flavours. Many of these flavours can also signal to consumers that the food or beverage may contain desired functional ingredients, such as citrus linking with ingredients for immune support, chamomile and relaxation, and green tea flavour and mental acuity.
Growing awareness of health issues due to the consumption of artificial ingredients, particularly in processed food products, is shifting consumers towards naturally derived food products, which are expected to exceed the market share of artificial food flavours in the near future.
However, high costs associated with natural flavour raw materials are restraining the adoption of natural flavours. The cost of obtaining raw materials required for the production of natural flavours, along with the seasonal availability of natural sources – which is a crucial factor for the extraction of natural flavours, are key factors expected to peg back market growth.
“The flavours of 2022 will inevitably be influenced by the pandemic and the unpredictable world around us. Tapping into all areas of life, we see flavour being an avenue to health, comfort, nostalgia, adventure, and luxury. Each category has its own flavour profile and delivers a unique value consumer are seeking.” Jennifer Clancy, customer experience marketing leader at IFF (Nutritional Outlook).
Food and Beverage companies have an eager audience waiting to be delighted, comforted, and bolstered by healthier, natural products. Keeping flavours in line with the emotional needs of today’s consumers, in such difficult times, will be key to driving success for any brand.
If you’d like to learn more about the latest trends in the Food and Beverage space, please don’t hesitate to get in touch with Connect Search today. Speak to one of our industry specialists on email@example.com or head to our Contact Us page.