The North America Food Flavors Market size was valued at $4,060.5 million in 2022 and is projected to reach $4,915.3 million by 2032, growing at a CAGR of 1.9% from 2023 to 2032.
Food flavors are compounds or mixtures of substances that are incorporated into food and beverages to improve their taste, scent, or overall sensory experience. They impart particular flavors and scents that are associated with various food products. Food flavors can be derived naturally from fruits, vegetables, herbs, spices, and other botanical extracts, or they can be manufactured artificially using synthetic molecules that resemble natural flavors.
Food flavors can be found in a variety of forms, such as extracts, powdered substances, essential oils, and concentrated versions. They are often added throughout the production process in tiny amounts to food and beverage mixes to impart unique tastes or fragrances. Flavors can range from basic one-note profiles like vanilla or strawberry to complicated and multi-layered concoctions that taste like specific fruits, sweets, or savory food.
The food & beverages industry requires flavors for different purposes such as new product development, adding new product lines, and changing the taste of existing products. High demand for new flavors from the food & beverages industry and continuous innovation drives the growth of the North America food flavors market. In addition, an increase in requirements from the fast-food industry is expected to provide food flavors market growth in the during the forecast period.
The rise in concern among consumers about the long-term health effects of artificial ingredients and additives in food products has increased the demand for natural and healthy ingredients in food products, which majorly drives the North America food flavors market demand. Other major drivers in the market include an increase in demand for processed food & beverages with growth in disposable incomes, a rise in demand for unique flavors in various food applications, and a surge in the popularity of exotic flavors.
The COVID-19 pandemic has impacted food flavor firms' supply chains all over the North American region. Furthermore, the pandemic's impact on society and the economy has been witnessed as a result of lockdowns, labor mobility restrictions, travel restrictions, airline suspensions, and, most importantly, an economic slowdown, which has seriously impacted the sustainability of supply chains acquiring raw materials from across the world. COVID-19 has caused various new challenges in the North America food flavors market, including safety, labor shortages, crisis management and response, awareness, re-forming business models, product innovation, and other unforeseen effects.
Apart from this, food flavor manufacturers have been adopting new technologies to produce better varieties of natural and artificial flavors to increase their stability and suitability. For instance, producing fruit flavors is a complicated task as the original taste and flavor is reduced during the extraction process, which makes it difficult to retain the original flavor.
Therefore, to retain its flavor, manufacturers are inventing and adopting advanced technologies such as solid-liquid extraction (SLE), supercritical carbon dioxide extraction, supercritical fluid extraction, and others. Thus, technological advancements help develop innovative flavors to cater to the change in customer taste requirements, which contributes toward the North America food flavors market Opportunities.
The availability of ready-to-eat and processed food products such as beverages, savory, dairy products, and others in the market has attracted consumers for the past two to three decades. Currently, North American consumers expect the best quality of food & beverage products offered by manufacturing companies. Pre-cooked or ready meals are extremely convenient, less time-consuming, and cost-efficient, and less effort is necessary for meal preparation.
These benefits have increased the demand for ready meals, particularly among the working population and students. According to the United Nations Children's Fund (UNICEF) in 2019-2020, school-aged teenagers consumed processed food with 42% consumed carbonated sugary sodas at least once a day, and 46% ate fast food at least once a week. The increased demand for processed packaged food is driving the need for food flavors by the food manufacturing companies to carry on the production to cater to the market demand. The rise in demand and surge in sales of processed food fuel the growth of the North America food flavors market.
Furthermore, food flavors play an important role in the processing of food & beverage items, and they help improve the quality of the product and add texture & flavor. Food manufacturing companies are trying different combinations of food flavors in their food that would help increase overall production. Therefore, the rise in the sales of RTE and packaged food is fueling the growth of the North America food flavors market.
The North America food flavors market is segmented into type, end user, and country. By type, the market is classified into natural and synthetic. By end user, the market is categorized into beverages, dairy, nutrition & health, savory, sweet goods, and others. Country-wise, the market is analyzed across the U.S., Canada, and Mexico.
According to the North America food flavors market analysis, on the basis of type, the synthetic segment gained a major share of the North American market in 2022 and is expected to sustain its market share during the forecast period. The increased demand for exquisite and distinctive taste sensations is one of the primary factors driving the synthetic food flavor industry. Consumers are seeking flavors that are different from the norm, and synthetic flavors allow producers to experiment and develop new taste experiences. Furthermore, synthetic flavors can improve the durability and shelf life of food & beverage items, making them a good choice for applications in different food and beverages.
By Type
Natural segment would exhibit the highest CAGR of 2.4% during 2023-2032, owing to the increased demand by consumers due to its nutritional benefits.
According to the North America food flavors market trends, on the basis of end user, the beverages segment gained a major share of the market in 2022 and is expected to sustain its market share during the North America food flavors market forecast period. Customers are constantly looking for healthier alternatives, such as beverages manufactured from natural components and devoid of artificial additives. This tendency has increased the demand for natural flavor options in the beverage industry. Furthermore, the increasing acceptance of functional beverages, including those aimed at energy, gastrointestinal health, or psychological wellness, has opened up new avenues for flavor development.
By End User
Others segment would exhibit the highest CAGR of 2.8% during 2023-2032, owing to the increased demand for food flavors by the pet & animal food manufacturing companies .
By country, the U.S. dominated the North America food flavors market in 2022 and is expected to be dominant during the forecast period. The increase in demand for nutritional and health-focused meals and drinks is boosting the need for premium food flavor in the U.S. Consumers are looking for items that provide additional health advantages in addition to basic nourishment. This has opened up the potential for food flavor firms to provide unique flavor solutions that improve the mouthfeel and perceptual experience of functional items such as fortified drinks or protein snacks.
By Country
Mexico would exhibit the highest CAGR of 3.0% during 2023-2032, owing to the increased demand for food flavors by the food manufacturing companies in Mexico.
Players operating in the North America food flavors industry have adopted various developmental strategies to expand their North America food flavors market share, increase profitability, and remain competitive in the market. Key players profiled in the report Firmenich International SA, Givaudan SA, Huabao International Holdings Limited, International Flavors & Fragrances Inc. (Frutarom Industries Ltd.), Kerry Group Plc, Robertet Group, Sensient Technologies Corporation, Symrise AG, Synergy Flavors, Inc., Takasago International Corporation., and V. Mane Fils SAS.
Some Examples of Acquisition in The Market
- In May 2021, Synergy Flavors Inc., acquired Innova Flavors from Griffith Foods Worldwide to better serve its customers’ growing demands for savory ingredients, natural flavorings, and expanded plant-based offerings.
- In February 2021, Givaudan SA acquired Myrissi, which is a French-based company, Myrissi has developed a patented AI technology that can translate fragrances into color patterns and images, relevant to the consumer as well as predict the end consumer’s emotional response.
Some Examples of Business Expansion in The Market
- In August 2022, Firmenich International SA established a Taste & Beyond Pilot Plant in Anaheim, California, which is a new facility specifically designed for customer food, beverage & nutrition innovation.
- In August 2022, Synergy Flavors Inc. opened a new savory innovation center at Wauconda, U.S., for the prime purpose of flavor development and developing other R&D activities.
KEY BENEFITS FOR STAKEHOLDERS
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the North America food flavors market analysis from 2017 to 2031 to identify the prevailing North America food flavors market Forecast.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the North America food flavors market segmentation assists to determine the prevailing market opportunities.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of North America food flavors market trends, key players, market segments, application areas, and North America food flavors market Demand.
North America Food Flavors Market Report Highlights
| Aspects | Details |
 By Type |
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 By End User |
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 Key Market Players | Firmenich International SA, International Flavors & Fragrances Inc. (Frutarom Industries Ltd.), Givaudan SA, Takasago International Corporation., Kerry Group Plc Robertet Group, Synergy Flavors, Inc., Huabao International Holdings Limited, V. Mane Fils SAS, Symrise AG, Sensient Technologies Corporation |
Analyst Review
According to the CXOs, rapid urbanization and globalization along with the rise in disposable income play a major role in changing dietary preferences across North American countries, which in turn fuel the demand for animal and dairy products, vegetables, fruits, and fats & oils. Rise in disposable incomes triggered a huge demand for rich food products such as butter, cheese, milk, and dairy items such as chocolates and ice creams. Globalization and interaction between different cultures boost the demand for tasty and highly nutritious food products. While the westernization of diets in developing countries is most prevalent in the middle-class population, it is increasing the demand for food flavors by the food manufacturing companies to cater to the ongoing demand from consumers.
The quick spread of supply chains and fast-food restaurants is strengthening the aforementioned patterns and the innovation of enhanced flavors and consistent improvement in technology fuels the growth of the North America food flavors market. Many companies with their promising R&D initiatives are expecting a positive response from the food flavor industry. However, stringent regulatory framework and a rise in health awareness among people are expected to hamper the market growth during the forecast period.
The North America food flavors market size was valued at $4,060.5 million in 2022 and is projected to reach $4,915.3 million by 2032, growing at a CAGR of 1.9% from 2023 to 2032.
The North America food flavors market registered a CAGR of 1.9% from 2023 to 2032
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The forecast period in the North America food flavors market report is from 2023 to 2032.
The top companies that hold the market share in the North America food flavors market include Firmenich International SA, Givaudan SA, Huabao International Holdings Limited, International Flavors & Fragrances Inc. (Frutarom Industries Ltd.), Kerry Group Plc, and Others.
The North America food flavors market report has 2 segments. The segments are type and end user.
By type, natural segment in the North America food flavors market has the highest growth rate at a CAGR of 2.4% from 2023 to 2032.
Post-COVID-19, the North America food flavors market is witnessing new heights of growth and is expected to recover its losses in the next 1-2 years. The change in consumer consumption patterns has increased the popularity of low-calorie products that use natural food flavors in the market.
By country, U.S. will dominate the North America food flavors market by the end of 2032.
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