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Soft drinks drive global demand for flavours
The total market for flavours (sweet and savoury, as defined) was worth $6.14bn in 2005 according to RTS research, and is forecast to reach $7bn by 2010. In terms of volume usage, this is equivalent to 315,000 tonnes in 2010, up from 280,000 tonnes in 2005.
However, to 2010 a slowdown in the growth of flavour usage is expected. Whilst the value and usage of top note flavours will grow slightly ahead of the food market as a whole, performance will be suppressed due to a shift towards naturals and natural flavour alternatives (such as herbs and spices), especially in mature markets where the drive is to reduce the number of chemicals that have to be declared.
Regional trends
The USA will continue to dominate global usage, accounting for 27% of the total market, although this share will decline slightly as emerging markets develop.
The fastest growing markets are forecast to be the emerging markets of Asia-Pacific and Eastern Europe. Together, these two regions currently account for 24% of global value of flavour sales but, by 2010, this should increase to 26%.
Table 1: Global usage of all flavours by region, 2005
| tonnes | 2005 |
| EU(15) | 62,226 |
| EE(8) | 21,522 |
| NAFTA | 106,061 |
| CSA | 26,786 |
| ASIA-PACIFIC | 52,394 |
| AME | 10,661 |
| TOTAL | 279,650 |
Usage by segment
By segment, soft drinks is by far the greatest user of top note flavours. 300 billion litres of soft drinks are consumed globally each year and the main reason behind the continuing growth of this segment can be attributed to the growing number of flavoured products being launched on the market, coupled with the growing level of available disposable income with which to purchase them.
For more information please contact us or ask about our latest series of RTS Express reports, Top Note Flavours 2011, available from RTS Resource Ltd, priced 230. For more information please call +44 (0)1902 422282 or e-mail sales@rts-resource.com.
Notes: EU(15) = the original 15 members of the EU. EE(8) are the 8 largest markets of Eastern Europe. NAFTA = North American Free Trade Association of Canada, Mexico and the USA. CSA = Central and South America. AME = Africa and Middle East. Soft = soft drinks. Cakes = cakes & pastries. Confect = confectionery. Yog & dess = yogurt & desserts. Meat & sav = meat & savoury foods. Source: RTS Resource Ltd from RTS research. Keywords for this Research: Flavours, flavors (US)
Figure 1 Global share of usage of all flavours by segment, 2005 % share of volume (total = 279,650 tonnes)
