North America Food Flavors Market is Expected to Reach $4.9 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “North America Food Flavors Market by Type, and End User: Opportunity Analysis and Industry Forecast, 2023–2032,” 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 additives used to improve or alter the taste and scent of food items. They are substances created to mimic or duplicate natural flavors found in food such as fruits, vegetables, spices, and herbs. Food flavors are utilized to create a desirable experience of taste for customers, making food more pleasurable and enticing.

The industry for food flavor is wide and has a large number of market players to keep up with the competition, hence, the usage of low-quality raw material is used in the manufacturing of food flavors. For the past decade, there has been an increase in consumer demand for fresh and nutritional products. As a result of greater understanding and conscience, customers are examining food and beverage labels these days, and food ingredients especially, food flavors are no exception. To meet customer demand, manufacturers are offering clean-label, organic, and natural food ingredients to the market, which is expected to provide the North America food flavors market opportunities for expansion.

According to Roshan Deshmukh, Manager-Research, Food and Beverages at Allied Market Research, “With increased knowledge of health and well-being, customers are becoming more cognizant of the nutritional worth of natural food flavors. As a result, the market players are introducing clean, nutritional, and natural food flavor variants in the market which are anticipated to gain favor among health-conscious customers.”

The market availability of clean-label products is tempting customers and an increase in sales of food products is expected to provide benefits. As the customers are informed and aware of the ingredients used in food products, they can distinguish between organic and low-quality food products on the market. The ongoing trend and demand for clean-label products from North American consumers are forcing manufacturers to improve their products to meet the consumer's requirements. The artificial flavors used in food products are fully processed without having any natural quality left in them and it requires low cost to manufacture.

Hence, it is cheaper to manufacture a food product with artificial flavor which provides the desired taste, with minimal or zero nutritional value. Increased usage of synthetic flavoring is stifling the growth of food and beverages since it has been related to dental issues in consumers as a result of long-term consumption. According to the American Dental Association, artificial flavoring essences such as citrus flavors that contain citric acid affect the teeth and lead to erosion. The prolonged consumption of artificially flavored beverages dissolves the layer of enamel and affects structural integrity.

The damage further leads to hypersensitivity and increases the chances of formation of cavities, and tooth erosion. On the other hand, synthetic flavor affects the pH level of the beverage, and it tends to keep it lower than the neutral pH level limit. The pH of a beverage is the most important factor in determining its ability to affect the teeth. A pH of less than 4 is regarded to be harmful to oral health. Flavored carbonated beverages contain carbonic acid, which combines with the synthetic flavor essence to lower the pH level below 3.

Overall, consumers are becoming more aware of the importance of maintaining good dental health, which is preventing them from drinking flavored beverages containing synthetic flavors. This is hindering the North America food flavors market growth.

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. Players operating in the North America food flavors market 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 Fermanich 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.

Key findings of the study

• According to North America food flavors market trends, by type, the synthetic segment dominated the North America food flavors industry in 2022 and is expected to retain its dominance throughout the forecast period.
• According to North America food flavors market analysis, by end user, the beverages segment dominated the market in 2022 and is expected to retain its dominance throughout the North America food flavors market forecast period.
• Country-wise, the U.S. accounted for the highest share in the North America food flavors industry in 2022 and is expected to grow at a CAGR of 1.2%.