Market Trends of Food Flavor & Enhancer Industry
Increasing Demand for Natural Flavors
There is a rising demand for natural food flavors as consumers are avoiding artificial colors and flavors due to the increasing health hazards. The use of natural flavors, such as citrus peels and juices, essences of fruits, spice vanilla sugar, coffee flavorings, etc., in various applications, such as beverages and processed foods, is driving the market. Different government authorities like the WHO, FDA, EFSA, and FSSAI are banning the use of artificial flavors in food products due to their carcinogenic effects. To cater to the growing demand among manufacturers, the market players are expanding their product reach with strategies like mergers and acquisitions. For instance, in July 2021, Ingredion Incorporated acquired PureCircle Limited, one of the world's leading producers and innovators of plant-based stevia sweeteners and flavors for the food and beverage industry.
Asia-Pacific is the Fastest-growing Segment
Asian cuisine/foods are among the most popular at the global level. The range of flavors that can be found in Asian cuisine is incredibly high. Japanese, Chinese, Indian, and other Asian dishes offer a varied range of functional ingredients. In Japan, flavors and enhancers are controlled by the Food for Specified Health Use (FOSHU) regulatory requirements approved by the Ministry of Health and Welfare. The busy lifestyles of people have resulted in the replacement of homemade meals with processed foods, which are easily available in nearby stores. Packaged sauces, ready-to-cook, and instant meals are gaining popularity in the region. Japanese and Chinese manufacturers are more focused on increasing the production of processed foods, including better natural ingredients like flavors and preservatives, thus helping consumers store them for a longer period. Considering the increasing demand, the market players are opening new facilities to increase production. For instance, in September 2021, Archer Daniels Midland Company opened a new facility in China to meet the growing demand.
