The North American flavor and fragrance market is anticipated to register a CAGR of 4.5% during the forecasted period 2020 - 2025.
· The market is driven by the growing demand for processed foods with new and exotic flavors. Players in the industry are bringing in various innovative flavors in order to attract a wider consumer base.
· Natural flavors and fragrances are trending in the market with the growing health-conscious consumers. However, synthetic flavors and fragrances hold the major share owing to their cheaper cost.
· The beverage segment is the major application area of flavors attributed to the constant innovations and developments acknowledging the market. Food manufacturers in the region are increasingly introducing beverages with different flavors to attract consumers.
Key Market Trends
Growing Demand for Plant Derived Ingredients
The unceasing innovation and developments in the flavor market have been tapping the emerging food and beverage industries. Plant-derived vegan flavors in the food ingredients market have emerged as a boon for businesses dedicating operations for vegan products. Moreover, the rising vegan population in the region remains the primary factor boosting the market studied. Underlying concerns about animal welfare majorly influences consumers to switch to a proclaimed healthier diet, as does the longing for people to manage their weight. This scenario welcomes progressive food product launches, eventually uplifting the demand for cruelty-free natural food colorants, preservatives, and flavors.
United States Hold the Major Share in the Market
The flavors and fragrances market in the United States is a major market as the consumers in the country are open to trying new food products, which shows the affinity of US consumers for ethnic flavors and dishes. The Asian and Hispanic populations are rising in the country, which has led to the emergence of ethnic new flavors and flavor profiles. Such factors provide a great opportunity for the flavor manufacturers to launch natural ethnic flavors, such as fish sauce, doenjang, garlic chives, ginger, and lapsang souchong to boost their growth opportunities in the country. For instance, Sensient Technologies, an American company, is providing Asian Flavors Kit or World of Chili Peppers under its Savory Flavors segment. There is also growth for exotic fragrances from the personal care segment. Players in the market are bringing various product offerings with new innovative fragrances in the market.
The flavor and fragrances market is consolidated, with few players holding a major share in the market. The major players operating in the market are Givaudan, IFF-Frutarom, Firmenich, Symrise, Takasago, and Sensient Technologies, etc. Product innovations are the major strategy adopted by the players operating in the market, in order to occupy a major market share.
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