Health and wellness trend to boost global flavors market: Report
An emerging middle class and growth in living standards in countries such as China and India in recent years has led to a booming food processing industry, and many of the world’s largest food companies have been looking to capitalize on these emerging markets. In addition, an aging western population has become increasingly interested in foods containing added health and wellness ingredients, leading to new opportunities for the flavor industry.
In its latest report, World Flavors and Fragrances, Freedonia said that although the United States is set to remain the largest market for flavors and fragrances in the coming years, most growth for the sector will come from developing markets, particularly in the Asia Pacific region.
The US accounted for a quarter of world flavor and fragrance demand in 2009, the market research organization said, but added that advances in Asia, Central and South America, Eastern Europe and the Africa/Mideast region will outpace the global average.
“The expansion of fortified foods – as well as beverages – will provide opportunities, since flavors are often used to cover up the off-tastes of vitamins, minerals, antioxidants and other added ingredients,” the report said.
Additionally, trends toward fast food, and other convenience foods such as snack products are also likely to boost flavor demand, Freedonia said.
“These highly processed items often require stronger flavor loadings,” the report said.
The research organization said it expects the global market for flavors and fragrances to grow at a rate of 4.3 percent per annum, to reach $23.5bn by 2014.
The report also noted that the world flavors and fragrances market is highly concentrated with just four firms – Givaudan, IFF (International Flavors and Fragrances), Symrise and Firmenich – accounting for 53 percent of total sales.
