Global Beverage Flavoring Systems Market Size

Global Beverage Flavoring Systems Market size was worth over USD 4 billion in 2018 and is projected to witness more than 5% CAGR from 2019 to 2025.

Growing health consciousness along with increasing prevalence of health issues such as diabetes, obesity and high blood pressure have resulted in consumers shifting to healthier beverages including sugar-free drinks, fruit juices, sports drinks, and functional drinks. Growing consumer consciousness and rising disposable coupled with a rapid increase in population will drive the business expansion. Further increased consumer spending for clean-label and organic products supported by favorable labeling norms and government initiatives to promote organic fruits production will foster the industry share.

Rapid growth in consumption of beverages with low sugars and less artificial ingredients with functionality including hydration, high in nutrients, better immune support and digestive wellness will drive the beverage flavoring systems market. Increasing sports activities and daily yoga regime will surge the demand for fruit juice and healthy drinks. Further innovations & launches in the ready-to-drink segment is positively influencing product penetration. For instance, in February 2019, Coca Cola Introduced a grape juice-based sparkling drink in India to cater the robust demand for non-alcoholic segment.

New technologies developed by the manufacturers to reduce sugar content will foster the market share for beverage flavoring systems. Further, increasing demand for encapsulated flavors supported by manufacturers focuses on increasing the production capacity will escalate the business advancement.  For instance, in May 2019, Symrise expanded its encapsulation capacity in the U.S. Flavor encapsulation is increasingly used by manufacturers to limit the flavor loss during various processes & storage and provide a control-release in a specific environment. However, high investments for installation of encapsulation technology and the high cost of the product may restraint the business expansion.