Asia is largest natural flavors market

FROM an estimated USD21.15 billion in 2017, the flavors and fragrances market is forecast to reach USD24.13 billion by 2022, growing at a CAGR of 2.67%. MarketsandMarkets™ shares this in a new report that covers natural and synthetic ingredients for food and beverage, consumer products, and fine fragrances.

The rapid growth brought about by urbanization and other megatrends, coupled with increasing awareness of better natural ingredients will drive the Asian market during the forecast period 2017-2022. Countries to watch for are Indonesia, South Korea, India, and China.

(Photo: Dreamstime)

Natural ingredients are extracted from plants and animal sources. As more of these are developed especially for food and beverage, the need is also increasing especially for confectionery, bakery products, snacks, and beverages. Consumers are aware that part of living a healthier lifestyle is choosing products that contain natural ingredients. They are also trying to avoid products with synthetic ingredients. This consumer mindset is a major factor driving the natural ingredients market.

According to the report, the following sectors are the biggest consumers of natural ingredients: beverage, savory & snacks, bakery, dairy products, confectionery, consumer products, and fine fragrances. Beverages accounted for the largest end-use segment of the flavors market in 2016. Demand for sports drinks and soft drinks in emerging markets like South Africa and Brazil, as well as increased demand dietary drinks in Japan, the US, UK, Germany and France will continue to boost the flavor sector.