Market Insights

The European food flavor market is estimated to register a CAGR of 4.2%, during 2018-2023 (the forecast period).

Some key food flavor market players, such as, Synergy Flavors, are investing on the use of botanical herbs in the food & beverage domain. These botanical herbs are a good source of protein, vitamin, and other minerals.

Market Dynamics

Globalization and modernization have accelerated the need for flavors and food processing industries. Additionally, the rise in consumption rate of a low fat, low salt, and low carbohydrate food is the key driver for the increasing food flavors’ consumption/demand. As flavors are region and country-specific, manufacturers are focusing on acquiring a larger market share, by producing customized flavors.

The major challenge in the food flavor market is the rising awareness regarding the harmful effects of synthetic flavors, which is accelerating the demand for natural flavors. For instance, monosodium glutamate (MSG) was found to be slowly deteriorating health among individuals.

Several regulatory bodies are banning the use of artificial food flavors, especially in regions,  like Europe. Hence, an increased requirement of extraction of natural resources is expected to be witnessed, which would act as an opportunity for companies. Additionally, due to the changing consumers’ preferences, the manufacturers are facing restraints, which is expected to hinder the European food flavor market growth.

Market Segmentation

Based on type, the European food flavor market is categorized into natural, synthetic, and natural identical flavorings. In 2015, the natural flavor segment accounted for around 35% of the market share. Moreover, there has been a constant decrease in demand for the artificial food flavors, since past several years. Europe and North America are the major manufacturing hub worldwide, constituting the major market shares.

In the European market, beverage occupies around 31% of the share, snack and confectionery 14%, meat and savory 12%, bakery 13%, and culinary 5%, among others. Europe is a mature market and has several regulatory bodies to regulate the use of food flavors while taking care of the consumers. Germany constitutes the major share of 24%, followed by the United Kingdom (23%), Spain (10%), the Netherland (5%), and Italy (9%). In 2014, the market size for synthetic food flavors, in terms of value, valued at USD 823 million and around USD 755.65 million for the natural ones.

Key Developments

• 2017- Firmenich, along with Danone and Mars, has invested in a large-scale and innovative vanilla farming model in Madagascar, which comprises of 3,000 vanilla producers. The project is organized through the Livelihoods Fund for Family Farming (Livelihoods 3F) and aims to offer high-quality, sustainable, and fully traceable vanilla produced, over the last decade, and also guarantee farmer’s food security and triple their revenues.       
• 2017- Ajinomoto started the third stage of its USD 2 billion global acquisition campaign in Europe. The company aims at takeover deals, with specific attention to the areas, such as, the United Kingdom, Germany, and France.       

The key food flavor manufacturers in Europe includes Givaudan, Firmenich, International Fragrance and Flavours, Inc (IFF) and Frutarom amongst others.

Reasons to Purchase the Report

• Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
• Market dynamics, which essentially consider the factors that are impelling the present market scenario, along with growth opportunities of the market in the years to come
• Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
• Regional and country-level analysis integrating the demand and supply forces that are influencing the growth of the market
• Competitive landscape involving the market shares of major players along with the key strategies adopted for development in the past five years
• Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
• 3 month analyst support, along with the Market Estimates sheet (in excel)

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