A new report by Allied Market Research forecasts the global flavours market to reach $15.2bn by 2020 at a CAGR of 4.3% from 2015 to 2020. In 2014 the natural flavours segment took over the lead to hold the majority of share in terms of value. Strong demand for organic processed food and beverages remained the major growth thrust for the natural flavours market segment. The growth outlook for natural flavours remains strong, but synthetic flavours may witness negative growth.
Demand for organic and healthy food products, changing consumer preferences, introduction of new and enhanced flavours, and demand growth of processed food products has been instrumental in the growth of flavours market. Further, expanding purchasing powers, changes in eating habits, hectic work schedules and improper diets would supplement the market growth. To the contrary, factors such as stringent food safety regulations and few adverse effects on human health would pose a major challenge for the market growth. However, natural flavours have been able to address such concerns and would be growing further on this account.
North America currently is the largest consumer of natural flavours. However, by 2020, Asia-Pacific will catch up and marginally lead the natural flavours market segment. In addition, the developing and advance developing nations would render the faster growth for the natural flavours market. Nevertheless, North America and Europe will continue to hold over half of the revenue share for natural flavours segment till 2020. Despite overall negative growth in synthetic flavours market, the outlook will remain slightly positive in Latin America, the Middle East and Africa. Asia-Pacific will remain the largest market for synthetic flavours by 2020.
The flavoured beverage product segment is the largest in terms of revenue, closely followed by the bakery and confectionery, and savoury and snacks flavour segments.
Article sourceAllied Market Research forecasts the global flavours market,