An increased taste for pre-packaged food and drinks is expanding more than just global waistlines. The flavors used to make all manner of ready-to-eat goodies are in relatively high demand, with the Global Flavors and Fragrances Market growing at a CAGR of 5.63 percent from 2013-2018.
Flavors and fragrances mainly refer to a class of compounds such as esters, alcohol, acids, lactones, aldehydes, and ketones. In terms of flavorings, these typically take the form of savory, fruity, cheese and dairy and meat flavors.
Disposable incomes and busy lifestyles are leading many consumers to gravitate towards convenience foods, which are the major end-users of flavor and fragrance products and ingredients. These no hassle products undergo so much processing that any actual foodstuffs in them are generally pretty devoid of flavor, and hence they rely heavily on both natural and artificial flavors to give them punch and make them appealing to customers.
According to research from TechNavio, because of their reliance on each other, the flavors industry clearly and closely mirrors the trends in the Packaged Food and Beverages Market. The common trends include increased consumer preference for premium quality products, the increased adoption of convenience foods and consumer preference for natural and authentic ingredients.
It seems like a bit of an oxymoron—pre-packaged foods that are also healthy? Yes, even with the demand for quick, easy food, it would seem that consumers are still seeking out health-conscious options. In fact, one of the key factors contributing to the growth of the flavors market market is the increasing demand for food products that contain natural flavors.
“There is huge demand for natural flavors across the globe because of the increased awareness about the toxic effects of chemical additives and the changing lifestyles of consumers,” says Faisal Ghaus, vice president of TechNavio.
“European nations have started marketing clean label food products that are free of chemical additives and contain only natural ingredients. In addition, increasing demand for healthy foods and the consumer preference for naturally formulated products are contributing to the growth of the market.”
Additionally, a slew of new and innovative products on the market is driving up demand for flavors. Beverages, specifically, are snapping up real and artificial flavors like it’s going out of style. Between the newfound popularity of flavored alcohol (because in what universe is cake vodka not a good idea?), new and improved flavors of soft drinks and juices, and other nutritionally-questionable but undeniable tasty offerings, the beverages segment actually accounts for a big chunk of the overall flavors market segmentation.
These trends and more will keep the Global Flavors and Fragrances Market afloat over the next four years.
