by The global Flavor Enhancer Market is estimated to be valued at US$ 3.66 Bn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Flavor enhancers are food additives that are added to food products to improve and enhance their taste without adding any flavor of their own. They bring out natural flavors that are already present in the food and intensify, supplement or modify the original taste of the food. Some common examples of flavor enhancers are monosodium glutamate (MSG), hydrolyzed vegetable protein, yeast extract etc. These enhancers help reduce salt and sugar content in food products while maintaining great taste. With the rising health consciousness among people, demand for low-sodium, low-fat and sugar-free food products is increasing. As a result, flavor enhancers find wide applications in beverages, soups, sauces, snacks, bakery products and other food products.
Market key trends:
One of the key trends in the flavor enhancer market size is the growing demand for clean label and natural products. Consumers are increasingly preferring food products with natural, organic and minimally processed ingredients over artificial or chemically produced enhancers like MSG. This has led to innovations in flavor enhancers derived from natural sources like vegetables, fruits, herbs and spices. Companies are focusing on developing clean label enhancers from natural extracts that deliver similar taste-improving properties. Another major trend is the customization of flavors. Manufacturers are offering customized flavor solutions and blending different enhancers to suit diverse regional tastes and cuisines. This has increased innovations in development of new flavor profiles and formulations.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the flavor enhancer market is moderate. Developing and commercializing new flavors involves significant capital requirement and regulatory compliances.
Bargaining power of buyers: The bargaining power of buyers is moderate to high as the market has both captive and non-captive customers. However, buyers have a preference for established brands.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate due to availability of substitutes and differentiated offerings. Buyers can source supplies from multiple suppliers.
Threat of new substitutes: The threat of new substitutes is moderate as flavors are influenced by trends. However, lack of certification limits use of certain natural ingredients.
Competitive rivalry: high due to intensifying competitive landscape among leading flavor companies striving on product differentiation.
Key Takeaways
The global flavor enhancer market is expected to witness high growth, exhibiting CAGR of 5.2% over the forecast period, due to increasing demand for processed and convenience foods.
Regional analysis: Asia Pacific dominates the global market and is expected to grow at the fastest rate during the forecast period. Increasing disposable incomes and growing middle-class population driving the sales of food products in countries like China and India.
Key players: Key players operating in the flavor enhancer market are Cargill Inc.,Tate & Lyle PLC,Corbion N.V.,Firmenich SA,Sensient Technologies,Associated British Foods Plc.,Givaudan,Takasago International Corporation,Mane SA,International Flavors & Fragrances Inc. (IFF),Quest Nutrition LLC,Danisco A/S. Cargill Inc. and Corbion N.V. are the leading players focusing on new product launches catering to the changing consumer preferences.
