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FOOD FLAVORS MARKET Marketsandmarkets MarketsandMarkets http://www.marketresearch.com/MarketsandMarkets-v3719/ Publisher Sample Phone: 800.298.5699 (US) or +1.240.747.3093 or +1.240.747.3093 (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST Email: [email protected] MarketResearch.com FOOD FLAVORS MARKET BY TYPE–NATURAL (Natural Extract, Aroma Chemical, Essential Oil) & SYNTHETIC (Savory, Citrus, Fruit), APPLICATION (Beverage, Savory & Snack, Bakery & Confectionery, Dairy & Frozen), & GEOGRAPHY — Global Trends & Forecast to 2018 MarketsandMarkets [email protected] www.marketsandmarkets.com Food Flavors Market - by Type–Natural & Synthetic, Application, & Geography — Global Trends & Forecast to 2018 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace & defence, advanced materials, automotives and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright © 2014 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. MarketsandMarkets 2 Food Flavors Market - by Type–Natural & Synthetic, Application, & Geography — Global Trends & Forecast to 2018 1 EXECUTIVE SUMMARY Flavors are used in wide ranges of products that include bakery, snacks, confectionery, meat, poultry, seafood, etc. The food flavors market includes natural and synthetic flavors. The market is driven by changing consumer trends and food preferences. The food & beverage (F&B) processing industry also influences the food flavors market. F&B manufacturers widely use synthetic flavors to provide the product with the desired taste. However, synthetic flavors may result in adverse reactions when exposed to sensitive consumers. FDA regulates the concentration range of synthetic flavors in food products and has banned synthetics that are harmful upon consumption. The awareness among consumers that are related to these risks of food additives impacts the food flavors market. The market is characterized by the growing demand for natural food flavors. The trend of natural flavors originated from the appeal of European nations to market clean label food products that are free of additives, especially synthetic variants. Hence, the changing lifestyle and the booming food and beverage industry have driven the demand for natural flavors. The leading F&B manufacturers demand natural flavors to extend their product quality. Consequently, various new food flavors extraction technologies are employed in combination with natural food flavors to add desired tastes and flavors in food. MarketsandMarkets 3 Food Flavors Market - by Type–Natural & Synthetic, Application, & Geography — Global Trends & Forecast to 2018 FIGURE 1 FOOD FLAVORS MARKET VALUE, BY TYPE & GEOGRAPHY, 2012 ($MILLION) XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX Market value 2012 ($million) Market value 2012 ($million) XX XX North America Europe Asia- Pacific ROW North America Europe Asia- Pacific ROW Natural Synthetic Source: MarketsandMarkets Analysis The food flavors market was dominated by artificial flavors in 2012. The natural flavors market was dominated by Europe that was worth $XX million in 2012. The natural flavors market is projected to grow with increasing consumer demand for natural food and for products with minimal synthetic additives. In 2012, North America accounted for the largest share, followed by Asia-Pacific in the food flavors market. Emerging markets such as China and India drive the Asia-Pacific market. The North American and Asia-Pacific food flavors markets, together accounted for a value share of about XX% in 2012. Leading players in the market include companies such as Givaudan (Switzerland), Firmenich (Switzerland), IFF (U.S.), Takasago International Corporation (Japan), Symrise (Germany), etc. The leading companies invest in the development and innovation of lead molecules from natural sources such as plants and animals, and are a healthier alternative to synthetic flavors. MarketsandMarkets 4 Food Flavors Market - by Type–Natural & Synthetic, Application, & Geography — Global Trends & Forecast to 2018 2 PREMIUM INSIGHTS FIGURE 2 FOOD FLAVORS MARKET SEGMENTATION FOOD FLAVORS MARKET TYPE APPLICATION GEOGRAPHY . Natural . Beverages . North America . Synthetic . Savory & snacks . Europe . Bakery & . Asia-Pacific confectionery . ROW . Dairy& f rozen . Others* *- Sauces, dressings, etc. Source: MarketsandMarkets Analysis The global food flavors market is segmented in terms of geography, types, and applications. In terms of geography, the market is divided into North America, Europe, Asia-Pacific, and Rest of the World (ROW), where North America emerges as the global leader, followed by Asia-Pacific and Europe. Key food flavors types include natural and synthetic. Food flavors find wide applications in the food and beverage industry such as beverages, bakery and confectionery, dairy & frozen food, and meat products. MarketsandMarkets 5 Food Flavors Market - by Type–Natural & Synthetic, Application, & Geography — Global Trends & Forecast to 2018 FIGURE 3 FOOD FLAVORS MARKET VALUE ANALYSIS, BY GEOGRAPHY, 2012–2018 ($MILLION) XX XX XX XX XX XX 2018) XX – XX XX XX XX CAGR (2013 % XX XX XX XX XX XX XX XX XX XX XX Market value, 2012 ($million) *Bubble size indicates Market value, 2018-p ($million) p - Projected Source: MarketsandMarkets Analysis The global food flavors market is projected to reach $XX million by 2018, growing at a CAGR of XX% from 2013 to 2018. North America led the market with XX% of the share in 2012 and is projected to reach $XX million by 2018, followed by the Asia-Pacific market. Due to the increasing use of processed food, Asia-Pacific has the fastest projected growth, with a CAGR of XX%, followed by Europe, which is projected to witness the second-fastest growth at a CAGR of XX%. MarketsandMarkets 6 Food Flavors Market - by Type–Natural & Synthetic, Application, & Geography — Global Trends & Forecast to 2018 3 INDUSTRY ANALYSIS 3.1 INTRODUCTION Market forces play a predominant role in the growth of the flavor industry despite there being an economic slowdown globally in 2012. The taste of most of the canned and frozen food along with most of the beverages is enhanced by the flavors added to it. Flavors are also used in oral care and the pharmaceutical industry. The demand for food flavors had increased phenomenally in recently, the reason being a considerable increase in the food choices of consumers wherein the food flavor is the main ingredient that influences the choices of consumer. There is an increase in demand for the consumption of food that consists of different flavors, globally. This demands a highly cost effective and innovative ways of production of flavors to be added as an ingredient. The production of natural food flavors turns out to be expensive when compared to synthetic food flavors. Across the globe, the flavor industry is functioning in the environment where high competition and innovation persists. However, it is one of the most established industries in the world. The market of flavors varies from country to country and is also regiocentric within the country as the flavors in demand differ from place to place. For example, roasted meat flavor is of high demand in most of the parts of Europe, but the Chinese population is fond of boiled meat flavor whereas India has hardly any market for the aforesaid flavors. Therefore population plays a vital role in the flavor industry, which makes flavor companies trigger upon the densely populated geographical regions that increases the scope of regions such as Asia-Pacific, Latin America, Africa, and the Middle East. There is an increasing importance for dairy flavors such as Indian Lassi, Finnish Kefir, and Greek Yoghurt. The dairy flavor industry is routing itself more towards ethnic and exotic flavors such as banana, chocolate, vanilla, or strawberry. In the developed markets, there is a growing significance for savory snacks, soups, and ready-to-eat or canned food, which in turn led to a huge demand for savory flavors. Sauces and seasonings are the premium lines for growth of the flavor industry. Consumers prefer sauces and seasoning for a fine-dine experience. Also, in addition to domestic purposes it is also used in the restaurant industry that MarketsandMarkets 7 Food Flavors Market - by Type–Natural & Synthetic, Application, & Geography — Global Trends & Forecast to 2018 results in an increased demand for savory flavors. There is a dire need for the companies present in the flavor industry to capitalize the demand that prevails for the aforesaid flavors and innovate new cost effective methods of production, which will help increase the tight profit margins of the flavor industry. 3.2 SUPPLY CHAIN ANALYSIS FIGURE 4 FOOD FLAVORS MARKET SUPPLY CHAIN ANALYSIS Basic Intermediate Food flavors Food flavors
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