Market Trends of Global Natural Food Flavors Industry
This section covers the major market trends shaping the Natural Food Flavor Market according to our research experts:
Resurgance of Natural Food Products Among Consumers
The demand for global natural flavors is broadly driven by surging consumer consensus to perceive food products as healthy if derived from natural ingredients. With consumers now using both the terms synonymically, it often influences them to skip products formulated with artificial ingredients, further benefitting the market studied. It ensures that the same consumers are even keeping a constant check on food labels before purchasing. Several organizational surveys on consumer buying behavior reveal the rising consumer interest to probe for superior ingredients in the food label. According to the study published by the International Food Information Council Foundation, in 2019, about 59% of Americans claimed to always read labels on packaged food before buying it for the first time, with about 24% of them specifically look for specific claims, including natural formulation in the food product. This changing consumer behavior and market dynamics for food flavorings are pushing food manufacturers to quit formulating artificial additives in food products. Moreover, major food companies, such as Kellogg's, General Mills, Nestle, Campbell, and Kraft, have assured to restrict the use of artificial additives and flavors from their product formulations, portraying a promising future of natural flavors during the forecast period.
Asia Pacific Emerges As the Fastest Growing Market
The natural food flavor industry in Asia Pacific is exhibiting the highest growth rate oowing to the rising consumer awareness regarding the negative effects of synthetic flavors coupled with the growth in the spending abilities of the consumers in the region. The rising prominence of clean label ingredients with the label claims such as 100% natural, non-GMO, and organic in the Asian countries like China is boosting the demand of natural food additives such as natural food colorants, natural food flavors among others. The demand for these natural ingredients is increasing, due to the increasing health concerns of the customers, regarding the adverse health effects of artificial ingredients. Over the recent years, the demand for natural food flavors has increased among the Chinese consumers due to the influence of western-style cooking in China, which can be observed in the growing import for flavoring products, along with domestic consumption. For instance, in May 2020, PepsiCo is putting local culture and comfort at the heart of its NPD strategy in China with the launch of its first domestic market-inspired launch - an Osmanthus-flavored soft drink. Furthermore, amid the COVID-19 outbreak, the consumption of plant-based and natural products has increased drastically, owing to the huge demand for healthy food ingredients, and significant rise in the consumer awareness, boosting the demand for natural flavors in the region.
