Global flavours market to reach USD 15.2 billion by 2020, says Allied Market Research

The global flavours market is forecast to reach $15.2 billion by 2020 at a CAGR of 4.3% from 2015 to 2020, says Allied Market Research.

The Company’s latest report, “Global Flavors (Food and Beverages) Market – Size, Share, Trends, Analysis, Opportunities, Growth, and Forecast, 2014 – 2020“, shows that, in 2014, the Natural flavours segment has taken over the lead to hold the majority of share in terms of value. Strong demand for organic processed food and beverages remained the major growth thrust for the natural flavours market segment. The growth outlook for natural flavours remains strong while synthetic flavours may witness negative growth.

North America currently is the largest consumer of natural flavours; however, by 2020, Asia Pacific will catch-up and marginally lead the natural flavours market segment. In addition, the developing and advance developing nations will render the faster growth for the natural flavours market. Nevertheless, North America and Europe will continue to hold over half of the revenue share for the natural flavours segment till 2020. Despite overall negative growth in the synthetic flavours market, the outlook will remain slightly positive in Latin America, Middle East and Africa. Asia Pacific will remain the largest market for synthetic flavours by 2020.

Givaudan leads the global flavours market

The beverage flavour products segment is the largest in terms of revenue, closely followed by the bakery & confectionery and savory & snacks flavours segments. In contrast, the growth for dairy and frozen product flavours will be highest during the forecast period largely due to high demand of meat flavour products in Asia Pacific and Latin America.

The flavours (food and beverages) industry is largely consolidated with top five players holding about 65% revenue share in 2014. Givaudan SA leads the global market followed by Kerry Group and Firmenich. Other key players such as Symrise AG, Sensient Technologies Corporation, Frutarom Industries, T. Hasegawa Co., International Flavours & Fragrance Inc. (IFF), Wild Flavours, Inc., Takasago International Corporation, and Huabao International have been able to maintain their market positions through innovation and market development strategies.