Market Insights

The key building blocks in the food and beverages industry are the food flavors and enhancers. Growing innovation in this highly competitive market can be attributed to the growth in this segment. Region wise and country specific adoption to flavors & flavor enhancers by manufacturers is the trigger to innovation. The global market size in 2016 was estimated USD 9.2 billion and is estimated to increase at a compound annual growth rate (CAGR) of 3.7% and reach nearly USD 12 billion by 2023. South Africa market is expected to grow at a CAGR of ~ % during the period 2018-2023.

Market Dynamics

Globalization and modernization, has changed the lifestyle of the people which in turn changed the food habits, thus increasing demand of the flavors and enhancers. Previously people used natural herbs and spices in culinary to get a tinge of flavor in their food which become an industrial need to cater to the big food processors. Due to increasing working women population there is a high demand for processed food which the food manufacturers need to cater to the increasing population, using different flavors and enhancers. Consumption of a low fat, low salt and low carbohydrate foods are also a key drivers to increase the consumption of flavors and enhancers. As flavors are region and country specific, manufacturers are constantly innovating to hold a larger share of the pie in the market.

Increasing consumer awareness on health is a major constraint in artificial flavors market like monosodium glutamate. MSG slowly deteriorates health and causes health issues as time passes. As in when consumers realize and grow aware about the negative side of the artificial flavors, there is a decrease in demand for artificial flavors and uptick in demand for the natural flavors. As massive natural resources are required to extract flavors, many of the new entrants face a challenge in the flavor and enhancer industry. The changing taste preferences of the consumer are also constant constraints for the manufactures. There are many regulatory bodies that are banning the use of artificial food flavors and enhancers. South Africans and other sub Saharan region consumers still lack awareness on ill effects of artificial flavors.

Market Segmentation

The food flavor and enhancer market is segmented as natural, fruit and monosodium glutamate. The market for natural flavor accounted for nearly 35% in 2015. There is a constant decrease in demand for the artificial food flavors and enhancers from past several years. By application, African beverage industry consumes the lion share followed by confectionary, soup and bakery products. The major constraint in the natural flavors industry is the need of huge amount of natural resources to extract the flavor and enhancers according to the consumer preferences.

Key Developments

2017- PureCircle (PURE.LSE), the world’s leading producer and innovator of great-tasting stevia sweeteners for the global beverage and food industry, notifies the market that today it is launching new stevia leaf-based flavor enhancers. These flavor enhancers significantly augment both vanilla and cocoa flavors, enabling companies to produce products at a manageable price point.

The key players of Africa food flavor and enhancer market includes Givaudan, Firmenich, IFF, Stymies Ag. And rest other Quest, Takasago, Sensient, Danisco, and Mane 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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