The global market for flavours as an ingredient in food and drink is currently worth $7.8bn with natural flavours now valued at $3.3bn accounting for a 43% share of the total global flavours market according to the latest research from RTS.
While demand for synthetics has stalled, natural flavours have been growing rapidly at a rate of 9.1% per year as food and drink manufacturers across the world respond to consumer and retailer pressure and replace synthetic flavours with natural, and generally more expensive, alternatives.
Growth markets
Unsurprisingly, the largest markets for natural flavours are USA and China where volume food consumption is high followed by UK and Germany where the move towards natural flavours is well advanced. According to our research, the product categories which are forecast to offer significant growth potential for natural flavours are soft drinks, confectionery, ice cream and frozen desserts.
However, suppliers of flavours are also looking to emerging markets such as Brazil, India, and Russia where demand for natural flavours is growing rapidly.
Further analysis
For more information download our new free report The Future of Natural and Health Ingredients. This food ingredients industry report examines the shift from synthetic to natural flavours and highlights key opportunities and growth areas.
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Source : RTS global food and ingredients market database. All data (C) Copyright RTS Resource 2011 and must not be reproduced without express permission from the publishers.