The Beverage Flavoring Systems Market is estimated to be valued at USD 3.8 billion in 2018 and is projected to reach USD 5.2 billion by 2023, growing at a CAGR of 6.1% during the forecast period. The growing demand for a variety of innovative flavors in soft drinks, the launch of advanced technologies in flavor processing, increasing consumer inclination toward clean-label and organic products, and favorable regulatory environment for fortified products are some of the driving factors of this market.
By ingredient, the flavoring agents segment is projected to account for the largest share in the beverage flavoring systems market
Since consumers are becoming more health conscious, the demand for low-salt, low-sugar, and low-fat beverages is high; this has been fueling the demand for taste modulators and taste-masking agents. The growth of this segment is also attributed to the growing consumption of fortified beverages, owing to their nutritional values. To cater to consumer demands for natural products combined with preservatives, beverage manufacturers are focusing on the application of natural flavoring ingredients such as natural stabilizers including pectin. Pectin is used for a wide range of applications such as fruit beverages and soft drinks.
The non-alcoholic segment, by beverage type, is projected to account for the largest market size during the forecast period
This segment holds a larger market due to the growing consumption of carbonated soft drinks, juices, and functional drinks. The carbonated soft drinks and juice industries are major application areas of flavoring systems. Consumer demand for innovative tastes encourages flavor manufacturers to launch new flavor products. The use of various types of flavors in beverage applications is largely attributed to the introduction and combination of different flavors to create an elegant and aromatic taste. For instance, flavors of fruits vegetables and spices blended with beverages such as coffee and chocolate shake create a sweet and spicy, warm fall flavor.
The liquid segment in the beverage flavoring systems market is projected to record a faster growth during the forecast period
The dominance of the liquid segment is attributed to the ease of mixing and blending of liquid flavor ingredients. Liquid flavors can be easily mixed together to provide a homogeneous distribution of each flavor component. This is why most beverage manufacturers prefer the usage of liquid flavors. The market for liquid flavoring systems is projected to grow in the Asia Pacific region due to the growing demand for fruit juices, energy drinks, and carbonated drinks. Encapsulation is a major trend driving the liquid segment in the beverage flavoring systems market.
Asia Pacific is projected to account for the largest market share during the forecast period
The region is an emerging market, with investments from several multinational manufacturers, especially in countries such as China, India, and Japan; these are the major markets in the region. Emerging economies and the growing carbonated soft drinks market have been driving the growth of the beverage flavoring systems market in this region. The Asia Pacific region is a growing market for carbonated soft drinks. According to the World Economic Forum, from 2015 onward, China and India have been growing in terms of consumption of carbonated soft drinks.
The key players in the beverage flavoring systems market are Cargill(US), Archer Daniels Midland Company (ADM) (US), Givaudan (Switzerland), Sensient Technologies (US), Kerry (Ireland), International Flavors and Fragrances (IFF) (US), Firmenich (Switzerland), Tate Lyle (UK), MANE (France), Döhler (Germany), Takasago (Japan), Flavorchem Corporation (US), and Frutarom (Israel). These companies are focusing on new service technology launches as well as acquiring the leading market position through the provision of a broad portfolio, catering to the varied requirements of the market, along with a focus on the diverse end-user segments.