In Brazil, with the growing acceptance of frozen and processed food, the flavor manufacturers have many opportunities to extend their brands and strengthen connections with Brazilian consumers. The low cost of labor in the region is also expected to encourage the companies in making investments. This factor is augmenting the growth of the flavors market. Many companies in Brazil, like Frutarom-IFF, are focusing on natural products and building market leadership in herbal extracts. The companies are working toward developing and expanding their portfolios of natural products, owing to the consumers’ demands. The regulations pertaining to the food flavors in the South American region are not that strict for the local companies. This factor has provided a competitive edge to the local manufacturers over international companies.

With increasing health awareness, most of the population thoroughly checks the label of a product before buying it. This awareness among consumers has prompted manufacturers to undertake the replacement of synthetic flavors with natural flavors. There has been a growing consumer demand for processed food and the expectations for safer and healthier ingredients have, in turn, increased the need for the introduction of clean label ingredients across diverse applications. An interest in the development of new natural flavor substances has been observed, for their use in the food industry, which is due to the strong consumer demand for more natural products. The health-enhancing properties of natural flavors, combined with the organic properties in natural products, are also increasing their adoption.