The U.S. Organic Food Flavors market was valued at $112.0 million in 2020, and is projected reach $234.3 million by 2026, registering a CAGR of 13.3% from 2021 to 2026. Organic food flavor is an ingredient produced by specific methods perceiving the stringent standards of organic farming. The standards of organic farming vary globally, whereas, ecological balance, health benefits, and conservation of biodiversity are the factors supporting the trends for organic food products. The U.S. organic food flavors market is analyzed on the basis of its prospect and potential. The U.S. organic food flavors market growth is expected to increase over the coming years.
The consumer demand for organic products is at its peak in the U.S. in the present situation. According to the Organic Trade Association (OTA), the organic food revenue crossed over $56 billion in the U.S. in 2020, registering a growth rate, up by 12.8%. It is the all-time high figure in the history of the U.S. The penetration of fast-food chains such as Burger King, Domino’s, Pizza Hut, and KFC is highest in the U.S. According to the U.S. Center for Disease and Control Prevention, around 37% of the American population consumes fast food on daily basis. The frequent consumption of fast food containing chemically processed artificial flavors cause numerous problems, such as dizziness, nervous system depression, chest pain, fatigue, allergies, headaches, brain damage, nausea, and seizures. Therefore, increased health awareness and rise in demand for healthy food has forced the U.S. consumers to shift toward pure organic foods. Therefore, the extensive growth and popularity of organic food items is expected to augment the demand for the organic food flavors in the U.S. during the forecast period.
Rise in awareness has been witnessed among the global population regarding the bad effects of artificial flavors. Many incidences of diseases have been reported due to prolonged consumption of artificial flavored foods. Consumers are therefore becoming alert, and demanding organic & natural foods impacting the U.S. organic food flavors market trends positively. In the U.S., the global food chain market witnessed 0.5% growth in 2013 as compared to 3.2% in 2012. The food industry in the U.S. witnessed shift due to the presence of health-conscious buyers. Thus, the demand for organic food flavors is anticipated to increase among the food manufacturers during the U.S. organic food flavors market forecast period.
Globalization and interaction between different cultures boost the demand for tasty and highly nutritious food products. The quick spread of market chains and fast-food restaurants is strengthening the aforementioned patterns which highly consume such organic ingredients in the market. Innovation of enhanced flavors and consistent improvement in the technology fuels the growth of the market in the U.S. Many companies with their promising R&D initiatives are expecting a positive response from the food flavor industry.
However, shortage in supply of raw materials to the flavor manufacturers is posing a serious restraint in the market. The main raw materials for manufacturing organic food flavors include organic fruits, vegetables, meat, herbs, and spices. Though the consumption of organic food products is high, there is shortage of supply for the adequate raw materials for organic flavors. According to the USDA (U.S. Department of Agriculture), the adoption rate of organic items is high but the adoption level is low. Around 0.64% of the total cropland and pasture was certified organic in 2011 and this level is somewhere around 1% in the present time. Therefore, there is a shortage of organic sources of raw materials for organic food flavors manufacturing. Moreover, direct consumption of organic foods is gaining traction in the U.S. and hence the availability of raw materials is less for the production of organic food flavors. This is a major restraint hampering the growth of the U.S. organic food flavors market.
Segment review
The U.S. organic food flavors industry is segmented on the basis of source and application. By source, it is segmented into fruit & vegetable, spices, herbs, meat, seafood, & poultry, and others. By application, the market is classified into dairy products, sweets, beverages, savory snacks, nutrition & supplements, and others.
By Source
Fruit & vegetable would exhibit the highest CAGR of 14.5% during 2021-2026, owing to the greater availabilty and rise in awareness of its benefits.
By source, the U.S. organic food flavors market size is segmented into fruit & vegetable, spices, herbs, meat, seafood, poultry, and others. The fruit & vegetable segment dominated the market in 2016, closely followed by the spices & herbs segment. The food & vegetables are estimated to remain dominant in the U.S. organic food flavors market share throughout the forecast period as it is expected to be the fastest-growing segment, growing at a highest CAGR of 14.5% from 2021 to 2026.
By Application
Nutrition and supplements segment would exhibit the highest CAGR of 14.3% during 2021-2026, owing to the increased adaption of healthy and nutritious supplements.
Depending upon application, the U.S. organic food flavors market include dairy products, sweets, beverages, savory snacks, nutrition & supplements, and others. Beverages was the dominating segment in 2016 followed by the dairy products and savory snacks segment. The nutrition & supplements segment is estimated to witness fastest-growth rate during the forecast period, owing to the rise in usage of flavors in nutritional supplements.
Key Benefits For Stakeholders
- The report provides an extensive analysis of the current & emerging trends and opportunities in the U.S. organic food flavors market.
- It provides detailed qualitative and quantitative analyses of current trends and future estimations, which help understand the prevailing market opportunities.
- U.S. organic food flavors market analysis of factors that drive and restrict the growth of the U.S. organic food flavors market is highlighted in the study.
- An extensive analysis of the U.S. organic food flavors market is conducted by following key product positioning and monitoring the top competitors within the market framework.
U.S. Organic Food Flavors Market Report Highlights
| Aspects | Details |
 By Source |
|
 By Application |
|
 Key Market Players | AROMATECH SAS., ALLEN FLAVORS, INC., MONSTER BEVERAGE CORPORATION, ARCHER DANIELS MIDLAND COMPANY, BLUE PACIFIC FLAVORS, INC., NATURES FLAVORS, INC, FIRMENICH SA, SOVEREIGN FLAVORS, SYMRISE AG, GOLD COAST INGREDIENTS, INC. |
Analyst Review
Rapid urbanization, increase in health awareness among consumers, globalization along with rise in living standards play a major role in changing the dietary preferences across the globe, which in turn fuel the demand for organic and natural food ingredients in the U.S. The consumers in the country are steadily inclining toward organic diet due to which the food manufacturers are intensively focusing on the development of organic ingredients such as food flavors, colors, additives, and others.
Globalization and interaction between different cultures boost the demand for tasty and highly nutritious food products. The quick spread of market chains and fast-food restaurants is strengthening the aforementioned patterns which highly consume such organic ingredients in the market. Innovation of enhanced flavors and consistent improvement in the technology fuels the growth of the market in the U.S. Many companies with their promising R&D initiatives are expecting a positive response from the food flavor industry. However, stringent regulatory framework and low availability of raw materials are expected to hamper the market growth during the forecast period.
The U.S. organic food flavors market was valued at $112.0 million in 2020, and is projected reach $234.3 million by 2026, registering a CAGR of 13.3% from 2021 to 2026.
The forecast period in the U.S. Organic Food Flavors Market report is 2021-2026.
The year 2020 is the base year calculated in the U.S. Organic Food Flavors Market report.
Firmenich SA, Symrise AG, The Archer-Daniels-Midland Company, Nature's Flavors Inc., and Sovereign Flavors are few of the top companies which hold the market share in the U.S. Organic Food Flavors Market.
Fruit & vegetables segment is estimated to witness the fastest growth in the U.S. Organic Food Flavors Market report.
NA. It’s a country report.
The company profiles have been selected on the basis of company’s market share, revenues, geographical presence, product portfolio, and other growth indicators.
The U.S. organic food flavors market was valued at $112.0 million in 2020.
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