Market Trends of Food Flavor Industry
This section covers the major market trends shaping the Food Flavor Market according to our research experts:
Rising Demand for Natural Ingredients/Flavors
'Clean labeling" is no longer a trend but has become a highly rated consumer demand that the global food industry is responding to by putting additional emphasis on these aspects during the processing of a food product. Consumers are becoming more aware of the adverse health effects associated with the consumption of various synthetic or artificial food additives, owing to various research projects as well as bans and limits introduced by governments. Such a preference shift towards clean label and natural ingredients is primarily due to government authorities, such as the WHO, FDA, EFSA, and FSSAI, who have recognized the hazardous effects of these ingredients and laid down guidelines for the use of such ingredients in food products with which food and beverage manufacturers must comply. For instance, the FDA removed six synthetic flavoring substances and flavor enhancers (adjuvants) from the food additives list. The six flavoring substances include synthetically derived benzophenone, ethyl acrylate, eugenyl methyl ether (methyl eugenol), myrcene, pulegone, and pyridine. Additionally, Natural Products Canada announced a USD 50 billion investment fund in 2021 to help early-stage Canadian businesses create naturally derived substitutes for synthetic products in order to boost the penetration of natural ingredients and replace their synthetic counterparts. A significant number of consumers have gained interest in purchasing clean-label goods, which offer a wide scope for naturally sourced ingredients, hence propelling the demand for natural food flavors.
To meet the growing demand for natural flavors, companies are making products without artificial flavorings and slowly switching to natural ingredients. For example, Edlong Corporation grew its line of real dairy-based flavors by putting more effort into applications, sensory characteristics, and research and development. The product line includes things like real cheese and buttermilk flavor profiles, which come from natural dairy and have different benefits. One of the main things that keeps people wanting natural flavor blends is their interest in foods with unusual or ethnic flavors. Natural flavorings are replacing artificial flavorings like benzophenone, ethyl acrylate, pyridine, and styrene in recent years due to their identification as carcinogens.
Europe Holds the Major Share in Food Flavor Market
The United Kingdom continues to dominate the natural food flavor market as there is a continuous demand for organic products in the country. For instance, the sales of organic foods and drinks in the United Kingdom increased at a significant rate in the last few years. One in every three products launched in the United Kingdom contains natural food ingredients, including natural flavors.
According to the World Data Atlas, France has the third highest per capita consumption of cheese after Denmark, Iceland, and Finland. Thus, manufacturers, such as Kerry Group and Flavorchem Corp., among others, are offering dairy flavors to meet the consumers' everlasting demand for cheese. Also, functional food additives, such as natural flavors, are utilized in various culinary applications in Germany, including baked goods and other processed foods.
Compared to their European counterparts, Russian consumers are more aware of labeling rules than they used to be. This is because clean labeling is becoming more popular. On January 10, 2019, Russia notified the World Trade Organization (WTO) of draft amendment No. 2 to the Technical Regulation (TR) of the Customs Union, "Safety Requirements for Food Additives, Flavorings, and Technological Aids." This change adds and changes a number of definitions for food additives and sets new rules for these products. Thus, the demand for clean labels has been one of the underlying factors driving the market for natural flavors in Russia.
