The market for natural flavours in food and drink has grown by more than $1.2bn over the past five years, driven by the move to ‘clean-label’ ingredients, global recipes and the rising cost of raw materials. This rapid growth in demand for natural flavours means the market is now worth $3.3bn, up from $2.1bn in 2005.
However, given rising cost of raw materials and the issues of sustainability and stability it is doubtful that natural flavours will ever completely replace synthetics.
Rapid growth
Growing consumer interest in natural ingredients and the power of multiple retailers has made natural flavours one of the fastest growing food ingredient markets of the past five years, with growth at 9.1% per year, ahead of fat replacers and seasonings.
Sustainability and future supply
‘Natural flavours is one most dynamic food ingredient markets, offering significant growth to suppliers and manufacturers. However, while growth is rapid, it is extremely patchy with only certain markets and product categories delivering value opportunities,’ says Jamie Rice, Director of RTS. ‘Sustainability is the next critical issue, there a simply not enough resources for the global food industry to 'go natural' and this, coupled with rising prices, is why forward looking companies are taking another look at flavours from synthetic sources.'
Outlook and opportunities
What is the outlook for this growing market and where will the major opportunities lie? Find out in our free fact sheet - click the button or image below to download your copy.
Source: RTS from the RTS global food ingredients market database.
Definitions
Product categories: Fruit & vegetables, carcase meats, meat & savoury products, ready meals, fish & seafood, flour, pasta, rice, noodles, bread & morning goods, biscuits/cookies, cakes & pastries, breakfast cereals & bars, milk & milk drinks, milk powders, butter & yellow fats, cheeses, cream & condensed milk, yogurt & desserts, ice creams & frozen desserts, confectionery, snacks, soups & bouillon, culinary & condiments, baby foods, pet foods, hot beverages, juices, soft drinks & carbonated, alcoholic drinks.
Countries: Western Europe Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Portugal, Spain, Sweden, UK Eastern Europe Bulgaria, Czech Republic, Hungary, Poland, Romania, Russia, Slovakia, Ukraine Middle East & Africa Egypt, Israel, Republic of South Africa, Saudi Arabia, Turkey, UAE North and Latin America Canada, Mexico, USA, Argentina, Brazil, Chile, Venezuela Asia Pacific Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Thailand, Vietnam