Southeast Asia Food Flavor & Flavor Enhancer Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Southeast Asian market for food flavors and flavor enhancers is expected to register a CAGR of 7.1% and 4.1% respectively, during the forecast period, 2018-2023. Japan and China are the dominant markets for food flavor & flavor enhancer, driven by strong preference of consumers in the region for regional flavors.

Asia-Pacific dominates the global market of flavor enhancers, occupying about 80% of the market share, with China leading the market.

Growing Demand for Ethnic Flavors

The Southeast Asian market for food flavors is categorized into natural flavors, synthetic flavors, and nature identical flavors. Chinese Szechuan, Indian tikka masala, Korean sushi, etc., are the popular flavors in the global market, which have driven the market. Asian consumers are very sensitive to regional flavors and tastes, which has accelerated the sale of ethnic flavors. For instance, Nestle has introduced more than 300 flavors of their products in Japan; for instance wafer-and-chocolate snacks. Increased tourism and consumer preference for traditional flavors are the major factors driving the flavor market in Southeast Asia. However, high price of vanilla and natural ingredients is likely to restrict the expansion of the food flavor market.

By application, the flavor market is segmented into beverage, dairy, savory, bakery & confectionery, and others. The beverage segment holds the major share of the market, with 34%, followed by savory & snacks. There is an increased demand for spray-dried flavors in the beverage segment, owing to their instant solubility.

Consumer Preference for “Umami” Taste

Umami is the ethnic flavor profile in most of the Southeast Asian cuisines, which is associated with glutamate flavor. Asian cuisines involves the use of glutamate salts for enhancing the taste of processed food and other food products.  Southeast Asia flavor enhancer market is segmented into MSG (monosodium glutamate) and others, which includes nuceotides. MSG dominates the market due to its wide consumption in food products. It is an essential component of Japanese soups and the traditional cuisine of the region. In addition, the combination of glutamates and nucleotides is used to reduce the salt content in food products without compromising on their taste. However, the increasing strict regulation on MSG in countries, such as India, acts as a major restraint for the market. Flavor enhancers are used in various food products, such as noodles, soups seasonings, and condiments. Noodles hold the major share in the flavor enhancer application due to their increased consumption in Southeast Asia.

Thailand and South Korea Possess Significant Growth Potential

China dominates the market in flavor enhancer consumption, driven by its increased consumption of seasonings and noodles. However, Japan has a significant presence in the flavor market. The untapped markets in Southeast Asia, such as Indonesia, Thailand, and South Korea, are growing at a faster rate in the flavor market.

Key Developments in the Market

• Sappe introduces exotic flavors – durian, sticky rice at SIAL China
• In January 2017, Givaudan acquired Activ International, which offers a range of natural and organic flavors, marine extracts, and seafood and vegetable-based culinary systems

Major Key Players: GIVAUDAN, FIRMENICH, IFF, SYMRISE, ADM, TAKASAGO, AJINOMOTO, AND SHANDONG FUFENG GROUP OF CHINA, AMONG OTHERS.

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