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Natural Aroma Chemicals Market for Flavours Industry size exceeded USD 280 Million in 2020 and is estimated to grow at over 7% CAGR from 2021 to 2027 owing to the rapid urbanization and increasing disposable incomes of middle-class population have positively influenced the bakery & confectionary industry.
Rising preferences towards natural ingredients in food industry driven by increasing consumer knowledge is supproting the business expansion. Rapid economic development and considerable population growth will strenghthen the bakery & confectionary industry which is likely to propel the natural aroma chemials utilization.
Rising consumption of beverages and packaged food products is expected to boost the demand for food flavours worldwide. Flavors used to maintain aroma, taste, add color, and increase shelf life of the food products. Food flavours includes both natural aroma chemicals and synthetic aroma chemicals obtained from various origins. Growing preferences of natural aroma chemicals over synthetic owing to increasing health conciousness and conumer awareness is expected to drive the natural aroma chemicals market share for flavours industry.
Report Attribute | Details |
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Base Year: | 2020 |
Natural Aroma Chemicals Market Size in 2020: | 283.73 Million (USD) |
Forecast Period: | 2021 to 2027 |
Forecast Period 2021 to 2027 CAGR: | 7.6% |
2027 Value Projection: | 472.65 Million (USD) |
Historical Data for: | 2016 to 2020 |
No. of Pages: | 598 |
Tables, Charts & Figures: | 474 |
Segments covered: | Product, End-Use |
Growth Drivers: |
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Pitfalls & Challenges: |
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Increasing usage of chemicals such as natural acids, aldehyde, ketones, esters, and other components which are used as flavouring agent will drive the market. These chemicals are used to mask or implant pleasant and unique aroma to the end-use products. Packaged food products like ready to eat meal, breakfast cereals, dairy products, meat products use aroma chemicals to enhance the product texture and taste and to increase their shelf life. Thus, rising adoption of convenience food and ready to eat food products is driving the natural aroma chemicals market for flavours industry demand.
Enhanced financial support from the government for research & development of natural arpma chemicals through funded drives and projects will further boost the natural flavors market growth. Further, the private flavors, and fragrances associations such as EFFA in Europe and IOFL on the global level can also provide aid to the market growth from the socially conducting drives. However, stringent government policies and regulations concerning the unsuitability risks of certain chemical substances and ingredients in the flavors production processes can pose a challenge for the industry.
Natural bulk items such as acids, alcohol, aldehyde, esters, ketones, and lactones are highly used in natural aroma chemicals. Natural acetic acid is belongs to acid family under natural bulk items. Increasing usage of natural acetic acid owing to unique aroma and taste will promote product demand and thus stimulating business growth. Natural acetic acid used as flavor masking ingredient and taste modulator in dairy product, confectionary items, baked goods, and beverages. Further, it is used to improve taste, aroma and nutritional value of final product. Rising inclination towards low-calorie food, diet carbonated drinks, and sugar substitutes is boosting the production of natural acetic acid.
Natural aroma chemicals are highly used in beverage industry to enhance the color, aroma, and provide unique taste and flavor. Growing awareness about health conciousness and health benefits around the world has increased the consumption of functional beverages and hence will boost business growth. Beverages such as coffee, energy shots, functional tea, sports & performance drinks, and fortified fruit drinks have gained momentum in recent years.
Natural aroma chemicals are used to add color, taste, along with essential nutrients such as minerals, protiens, and vitamins in consumable product. Hence, increasing demand of functional beverages will accelerating the market growth in the predicted time frame.
Europe natural aroma chemicals market accounted for more than 2.3 kilo tons of the overall industry share in 2020. Rising inclination towards adoption of natural ingredients and functional food has boosted the demand for product in European region. The market is mainly driven by the expanding food & beverage industry, along with well-established retail sector. Also, free of chemical additives products which is obtained from natural sources are gaining traction in Europe owing to its health benefits.
Further, presence of key manufacturers and exporters of natural aroma chemicals as well as natural flavors is supporting the industry expansion in Europe. Furthermore, development in labelling norms for increasing consumer confidence is augmenting the natural aroma chemicals usage in flavors.
Global natural aroma chemical industry share is a fragmented market owing to the presence of various global companies regulating industry growth. Some of the key players in the market include
The key players in the market are mainly focusing on new product launches, acquisition, and expansion in developing and developed economies to capture a good market share.
In June 2021, BASF SE launched two new products including Spongolit pure 10, a clean-label and premium natural aroma that enhances the texture of cakes and Lamequick, which improves taste and texture of desserts, whipping creams, and ice creams.
In December 2021, Ennolys signed agreement with Afyren, manufacturer of natural, low carbon products. This agreement helps company to offer their customers quality natural ingredients and capture more market in various regions.
The Global natural aroma chemicals market for flavors industry report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Tons and revenue in USD Million from 2016 to 2027 for the following segments:
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