Beverage Flavoring Systems Market 2020 Forecast to 2029 By (Includes Business Impact of COVID-19)

  • TBI542599
  • November 28, 2020
  • Global
  • 132 pages
  • Lucintel

Abstract, Snapshot, Market Analysis & Market Definition: Beverage Flavoring Systems Market

Industry / Sector Trends

Global Beverage Flavoring Systems Market size was worth over USD 4 billion in 2019 and is projected to witness more than 5% CAGR from 2019 to 2026. Growing health consciousness along with the 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 to the robust demand for the 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 business expansion.

Market Segmentation, Outlook & Regional Insights: Beverage Flavoring Systems Market

Beverage Flavoring Systems Market, By Ingredient

Flavoring agents account for more than 35% of the overall volume share in 2019. They are food and beverage additives derived from natural products such as fruits, vegetables, plants, and herbs, or from a mix of synthesized chemicals like esters, pyrazine, phenolics, etc. Flavoring agents impart better taste and aroma to the product. Strong growth in fruit production accompanied by increasing demand for natural flavoring is surging the segment share. Demand for concentrated flavors to match the desired taste profile will fuel the product penetration up to 2026. Carriers or solvents are projected to witness the fastest growth in the global beverage flavoring systems market from 2019 to 2026. The commonly used carriers in the commercial flavors production include propylene glycol, ethyl alcohol, triacetin, and vegetable glycerin. Flavoring agents can be diluted using carriers or can be bound to carriers through encapsulation. Enhanced demand for encapsulated flavors will drive the segmental growth over the forecast timeframe.

Beverage Flavoring Systems Market, By Type

UK Beverage Flavoring Systems Market, By Type, 2019 Natural flavors are projected to witness gains at over 5.5% CAGR from 2019 to 2026. The key factors attributing to segmental growth include increasing consumer awareness on product quality & ingredients, a shift in trend towards a healthy lifestyle, and willingness to pay for premium products. The increasing availability of natural raw materials such as citrus fruits including grapes, oranges, limes, and lemons owing to a rise in production rates is shifting the preference towards natural flavors. Further, consumer-driven movements such as ˜clean label have urged the F&B manufacturers to use natural additives in their products. Artificial flavors dominate the global beverage flavoring systems market in 2019. Artificial flavors are significantly lower prices than their counterparts, thus improving the profit margins of manufacturers. Further, the ability of the manufacturer to replicate the taste of natural flavors supported by the ease in product availability is among the primary aspects of higher product adoption rate.

Beverage Flavoring Systems Market, By Beverage

India Beverage Flavoring Systems Market, By Beverage, 2019

Non-alcoholic beverage flavoring systems are projected to surpass 440-kilo tons by 2026. High economic growth coupled with rising disposable income will surge millennial spending on premium products. Rising demand for the non-alcoholic beverage segment owing to increasing health awareness and changing lifestyles will surge the industry share. An increasing number of consumers common health issues including obesity and diabetes will surge the demand for non-alcoholic drinks with low-sugar, low-salt, and fewer calories. Rising demand for carbonated soft drinks will foster the market share for beverage flavoring systems. Alcoholic beverage flavoring systems will observe significant gains up to 2026. Growing preference for fruit-based alcoholic beverages supported by product innovation with new flavors will surge the business development. For instance, in April 2019, Smirnoff launched a low-alcohol spirit with real fruit essence and natural flavors. Further, strong demand for low-alcohol or dealcoholized beverages such as craft beer, non-alcoholic wine, and non-alcoholic beer with a variety of flavors are expected to boost the industry expansion.

Beverage Flavoring Systems Market, By Form

The liquid flavor segment is projected to account for over USD 4.2 billion by 2026. Liquid flavors are widely accepted by beverage manufacturers as they are easy to blend and mix with the product. They provide homogenous distribution of flavors with other ingredients thus improving the product quality. Growing demand for fruit juice, carbonated drinks, and healthy energy drinks in emerging economies will drive the demand for liquid beverage flavoring systems market. Powder beverage flavoring systems are expected to witness 5.0% CAGR over the forecast timeframe. Dry flavors are easy to handle and have a greater shelf life. Emerging technologies in flavoring systems such as spray drying and extrusion process for encapsulation are creating better avenues for business expansion. Flavor powders find high scope in applications such as instant dry mixes as they can dissolve quickly in water. However, the additional cost of processing of dry flavors may restrain product adoption.

Beverage Flavoring Systems Market, By Region

Asia Pacific Beverage Flavoring Systems Market, By Country, 2026 The Asia Pacific region is anticipated to hold over a 35% share in the global beverage flavoring systems market by 2026 driven by countries including China, India, and Japan. Significant demand in the region is attributed to growth in the beverage processing industry accompanied by rapid urbanization, economic development, and a rise in population. Ease in raw material procurement, and availability of labor at lower rates are among the key factors contributing to the reduced cost of beverage flavoring systems in the region. The majority of consumers are inclined towards low-alcoholic beverages with a wide variety of flavors along with the trend for diversified cocktails. The region witnesses product launches in flavored water, iced tea, carbonated soft drinks, and sports drinks categories. Increasing competitiveness in the beverage industry supported by favorable trade policies is positively influencing business expansion. Growing consumer demand for healthier drinks and changing labeling regulations will positively impact the beverage industry.

Key Players, Recent Developments & Sector Viewpoints: Beverage Flavoring Systems Market

The global beverage flavoring systems market share is highly consolidated with the presence of large multinational corporations. Key industry participants include Givaudan, International Flavors & Fragrances, Sensient Technologies, Takasago International Corporation, Symrise, Firmenich, Mane, Dohler, and Robertet SA. The key strategies observed in the industry include new product development, production capacity expansions, and strategic mergers & acquisitions to gain a competitive edge. For instance, in October 2019, International Flavors & Fragrances completed its acquisition of Frutarom, thus expanding its product portfolio and gaining significant market share.

Industry Viewpoint

The global flavoring agents market was around USD 15 billion in 2019 and is projected to witness over 4.5% CAGR up to 2026. Beverages dominate the global flavoring agents market share, accounting for around 33% in 2019. The industry is driven by technological advancements and flavor innovations in natural as well as synthetic category. Developed economies of Europe and North America are among the major consumer of natural flavors. The key factors influencing the industry development include increasing strong growth in the food & beverage industry, increasing population, developing the travel & tourism industry, and rise in disposable incomes particularly in economies of Asia Pacific, Latin America, and MEA.

Global Beverage Flavoring Systems Market Segmentation:

By Ingredients

  • Flavor Enhancers
  • Flavor Carriers
  • Flavoring Agents

By Source

  • Fruits and Vegetables
  • Herbs and Botanical
  • Dairy
  • Chocolates and Browns
  • Others

By Beverage

  • Alcoholic
  • Non-Alcoholic
  • Dairy-Based Beverages
  • Fruit and Vegetable-Based Juices
  • Carbonated Soft Drinks
  • Functional Drinks
  • Others

By Form

  • Liquid
  • Dry

By Origin

  • Nature-Identical
  • Artificial
  • Natural

Key Insights Covered: Exhaustive Beverage Flavoring Systems Market

1. Market size (sales, revenue and growth rate) of Beverage Flavoring Systems industry. 2. Global major manufacturers operating situation (sales, revenue, growth rate and gross margin) of Beverage Flavoring Systems industry. 3. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Beverage Flavoring Systems industry. 4. Market size (sales, revenue) forecast by regions and countries from 2019 to 2026 of the Beverage Flavoring Systems industry.

Research Methodology: Beverage Flavoring Systems Market

  • Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
  • Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
  • Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among others.

1 Report Overview
    1.1 Research Scope
    1.2 Major Manufacturers Covered in This Report
    1.3 Market Segment by Type
        1.3.1 Global Beverage Flavoring Systems Market Size Growth Rate by Type (2019-2025)
    1.4 Market Segment by Application
        1.4.1 Global Beverage Flavoring Systems Market Share by Application (2019-2025)
    1.5 Study Objectives
    1.6 Years Considered

2 Global Growth Trends
    2.1 Production and Capacity Analysis
        2.1.1 Global Beverage Flavoring Systems Production Value 2014-2025
        2.1.2 Global Beverage Flavoring Systems Production 2014-2025
        2.1.3 Global Beverage Flavoring Systems Capacity 2014-2025
        2.1.4 Global Beverage Flavoring Systems Marketing Pricing and Trends
    2.2 Key Producers Growth Rate (CAGR) 2019-2025
        2.2.1 Global Beverage Flavoring Systems Market Size CAGR of Key Regions
        2.2.2 Global Beverage Flavoring Systems Market Share of Key Regions
2.3 Industry Trends
        2.3.1 Market Top Trends
        2.3.2 Market Drivers

3 Market Share by Manufacturers
    3.1 Capacity and Production by Manufacturers
        3.1.1 Global Beverage Flavoring Systems Capacity by Manufacturers
        3.1.2 Global Beverage Flavoring Systems Production by Manufacturers
    3.2 Revenue by Manufacturers
        3.2.1 Beverage Flavoring Systems Revenue by Manufacturers (2014-2019)
        3.2.2 Beverage Flavoring Systems Revenue Share by Manufacturers (2014-2019)
        3.2.3 Global Beverage Flavoring Systems Concentration Ratio
    3.3 Beverage Flavoring Systems Price by Manufacturers
    3.4 Key Manufacturers Beverage Flavoring Systems Plants/Factories Distribution and Area Served
    3.5 Date of Key Manufacturers Enter into Beverage Flavoring Systems Market
    3.6 Key Manufacturers Beverage Flavoring Systems Product Offered
    3.7 Mergers & Acquisitions, Expansion Plans

4 Market Size by Type
    4.1 Production and Production Value for Each Type
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