The trend of naturally sourced ingredients has been spreading across the South American region, especially in Argentina and Brazil. Food and beverage companies have been largely affected with almost all international and local players forced to remove artificial flavors and additives from their product lines. In parallel, the clean label affected the country's flavor market, wherein producers have responded with high innovation and investments in research and development activities. As consumers are highly skeptical about artificial additives, the rise in consumer's concern on the usage of food additives and preservatives led to the demand growth for transparency and clean labels, thus, hindering the artificial flavor and additive segments of the market.

Natural flavors are substances that are extracted from plants, herbs and spices, fruits, vegetables, or microbial fermentation. The increasing interest in the nutritionally enriched and natural products promoted the demand for natural flavors in the market. Natural herbs and spices were earlier used only in domestic cooking for flavors, which are now used at an industrial level by various players. Additionally, various companies have their own special authentic flavors. Thus, launches of new innovative natural and exotic flavors by the key players are fueling the market growth. Rosemary extracts have a growing demand in the market for its antioxidant property.