Market Trends of South America Flavors & Fragrances Industry
Rising Demand for Convenience Food Products
- Due to the fast-paced lifestyle of today's generation, there is an increasing trend towards convenience food products, such as instant soups, sauces, noodles, baked goods, and other ready meals. These products are preferred due to their instant nature, which saves preparation time and makes them easy to handle. However, consumers are unwilling to compromise on flavor despite the convenience factor.
- For instance, to cater to this demand, market leader Symrise offers distinct culinary flavors for various products, including soups, bouillons, ready meals, sauces and dressings, processed meat, instant noodles, and alternative protein products. Ready-to-eat products such as instant noodles, ice creams, and soups are highly susceptible to flavor experimentation, and consumers are constantly seeking new and different flavors.
- For example, hot and spicy chicken are among the most popular flavors in instant noodles. In Argentina, per capita expenditure on processed meat is approximately USD 59.5, and meat snacks are the fastest-growing segment in the ready-to-eat category. Flavor innovations are driving growth in this segment, with flavors like whiskey bourbon, Korean barbeque, and rosemary gaining popularity in products such as beef or chicken jerky.
- The growing market for convenience and ready-to-eat meals, as well as health and wellness foods, coupled with technological advancements, is expected to fuel the growth of the flavor and fragrance market in South America.
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Brazil Holds a Prominent Market Share in the Market
- As frozen and processed food continues to gain acceptance in Brazil, flavor manufacturers have numerous opportunities to expand their brands and establish deeper connections with consumers. Encapsulated flavoring is a popular trend in the Brazilian market, particularly in bakery, cereal, hot drinks, confectionery, culinary, meat, and savory applications.
- According to the Brazilian Association of Portal Supermarkets, in 2021, meat sales accounted for approximately 12.4 percent of the Brazilian retail market. The Brazilian government's reduction of import duties has incentivized innovation in the food and beverage industry, resulting in a positive impact on food flavor manufacturers worldwide. For instance, the volume of juice imported into Brazil was approximately 1.8 thousand tons in 2022, according to Comex Stat (Brazil).
- In addition to the food and beverage industry, Brazil is also a significant market for fragrances in the beauty and personal care sector. This is due to the population's growing emphasis on personal growth and social living standards.
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