Beverage Flavouring Market Size, Share & Industry Analysis, By Type (Natural, Synthetic), By Application (Non-alcoholic Beverages [Functional Beverages , Dairy Beverages, Tea & Coffee, Fruits & Vegetable Juices, Carbonated Beverages] Alcoholic Beverages)And Regional Forecast, 2024-2032

The robust growth of beverage industry in recent years has propelled the advancements and innovations in beverage flavouring space. The rising consumer interest in trying exotic and contemporary flavours in variety of beverages fuels the development of beverage flavouring industry. Flavours are either used to mask the taste of certain ingredients or to enhance overall organoleptic properties of beverages. The increasing demand for premium and craft beverages is expected to propel the growth of the beverage flavouring industry. Technological advancements to develop heat stable, stronger and concentrated flavours is expected to fuel the growth of the market in forthcoming years.

The increasing popularity of functional beverages containing various active ingredients has positively contributed to the development of innovative flavours that mask the unpleasant tastes of these functional ingredients. Natural flavours extracted from fruits, vegetables and flavours are gaining popularity attributed to their perceived health benefits. The increasing interest in super fruit flavours such as goji berry & acai and spices such as cinnamon & ginger is expected to drive the market growth. Floral flavours are also finding application in variety of beverages such as green tea & black teas.

The ever-growing popularity of flavoured beverages across the globe is primarily driving the growth of the beverage flavouring market. Consumers nowadays look for exotic flavours in their beverages to experience enhanced taste. The growing interest in nutritional beverages and energy drinks has necessitated manufacturers to utilize wide range of flavours to mask the bitter taste of functional ingredients. The emerging trend of natural, organic and plant-based products is expected to fuel the demand for natural flavours in the market. Technological advancements and innovations to develop pure and shelf-stable flavours are projected to drive the market growth in foreseeable years.

Key Market Driver -

Rising Popularity of Flavored Beverages

Key Market Restraint -

Processing-related Challenges Faced in Beverage Flavoring

In recent years, the utilization of natural flavours has increased due to the growing popularity of natural beverages. The challenges faced maintaining the stability of natural flavours during processing acts as a key restraint for the growth of the market. Natural flavour extraction is costlier as compared to the production of synthetic flavours. The difficulties faced to increase the shelf-life of natural flavours impede market growth.

Key Players Covered:

Koninklijke DSM N.V., Dohler GmbH, Synergy Flavours, Kanegrade Limited, Bickford Flavours, Carmi Flavour & Fragrance Co., Inc., Firmenich S.A., Beverage Flavours International, Keva Flavours Pvt. Ltd. and Apex Flavours, Inc. are the key players operating in the global beverage flavouring market.

Natural flavours are expected to exhibit robust sales performance owing to the rising popularity of natural products. Naturally extracted flavours are perceived to be safer and healthier as they do not contain chemicals. These flavours find extensive applications in functional beverages as they fit perfectly with all the health claims and mask the unpleasant taste of functional ingredients present in the beverage. Synthetic flavours are typically used in carbonated beverages. The growing popularity of fruit and vegetable flavours is expected to drive the demand for natural beverages.

Non-alcoholic beverages are projected to witness strong growth owing to their wider application spectrum. The increasing demand for functional beverages is expected to contribute to the promising growth of the segment. The growing popularity of various tea types drives the demand for innovative fruit and floral flavours.

Regional Analysis:

North America is projected to exhibit substantial growth due to the rising popularity of functional beverages owing to their health benefits. The growing popularity of exotic flavours such as spices, flowers, and herbs in variety of beverages such as tea, coffee, fruit juices and many others fuels the growth of the market in the region. The emerging trend of healthy hydration is expected to propel the growth of the market in foreseeable years.

Europe is expected to witness promising growth owing to the rising interest in botanical extracts-based flavoured drinks due to their perceived health benefits. The increasing demand for flavours for taste masking is projected to drive the market growth. The emerging trend of non-alcoholic craft beverages in the region is expected to fuel market growth. The beverage flavouring market in Asia Pacific is expected to witness promising growth because of the flourishing food & beverage industry in the region. The increasing popularity of innovative alcoholic beverages has contributed to the new product developments utilizing various exotic flavours. The growing millennial population drives the demand for energy drinks, carbonated beverages and functional beverages in the region.

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Segmentation

Key Industry Developments

• In January 2020, McCormick & Co. collaborated with Blue Pacific Flavours to launch encapsulated natural flavours that offer better taste, solubility and shelf life to beverages.


• In June 2019, Synergy Flavours, a leading flavour company launched a new range of hop essences that deliver the aromatic and taste profile of several hop varieties.