Global Natural Flavour Market Overview
Natural Flavour Market Size was estimated at 15.07 (USD Billion) in 2022. The Natural Flavour Market Industry is expected to grow from 15.87(USD Billion) in 2023 to 25.34 (USD Billion) by 2032. The Natural Flavour Market CAGR (growth rate) is expected to be around 5.34% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Natural Flavour Market Trends Highlighted
The natural flavors market is primarily being fueled by growing consumer preference for natural and clean-label ingredients, increased urbanization, and a wider acceptance of natural flavoring agents in the food and beverage sector. The merits of these flavors include clean flavors, no synthetic ingredients, and ideologies that are cheap and attractive to the customer. Furthermore, the increasing consumer demand for plant-based and organic products has also increased the need for natural flavor ingredients as they help to improve the taste of these products.
The forward prospects for the consumers of natural flavors are in the identification of new sources and the creation of effective, green solvents. Market actors are increasingly looking for other natural sources in order to develop their product range as customers’ appreciation and expectations change. Moreover, the trend of sustainability in terms of natural flavor extraction and production is gaining ground due to the increase in focus on corporate social responsibility.
The new trends in the natural flavors market are the increasing interest of consumers in the unique and exotic natural flavors due to the consumers’ culinary and cultural curiosity. Consumers are seeking out flavorful foods and beverages that are based on regional and international dishes. Natural flavors are also increasingly being used in line with certain wellness requirements, with such trends as more or less sugar or calories and allergen-free flavors being in great demand.
Natural Flavour Market Drivers
Rising Demand for Natural and Organic Food Products
The growing demand for natural and ecologically friendly food products and the tendency to consume organic food is a recent trend. Both aspects drive the growth of the natural flavour market industry. As people tend to believe that consuming natural products is beneficial for health and the environment, it increases the demand for natural flavors, which are used to improve the taste and flavor of food without using synthetic substances.There is a range of reasons that cause the growth. However, the major one is the rising demand for natural and organic food products. Thus, the natural flavour market industry is expected to expand over the forecast period.
Growing Popularity of Clean Label Products
Consumers are becoming increasingly interested in clean-label products, which are products that are made with recognizable and natural ingredients. This trend is driving demand for natural flavors, which are perceived to be cleaner and more natural than artificial flavors. The Natural Flavour Market Industry is expected to witness significant growth over the forecast period, driven by the growing popularity of clean-label products. The increasing demand for transparency and simplicity in food labeling is also contributing to the growth of the market.Furthermore, the growing number of consumers who are allergic to or intolerant of artificial ingredients is expected to support the growth of the market over the forecast period.
Increasing Applications in Various Industries
Natural flavours are used in a wide range of industries, including the food and beverage industry, the pharmaceutical industry, and the cosmetics industry. The growing demand for natural flavours in these industries is expected to drive the growth of the Natural Flavour Market Industry over the forecast period. The increasing use of natural flavours in food and beverage products to enhance taste and aroma is a major factor driving the growth of the market.Furthermore, the growing demand for natural flavours in the pharmaceutical industry for the development of new drugs and supplements is also contributing to the growth of the market. The increasing use of natural flavours in the cosmetics industry for the development of new products is also expected to support the growth of the market over the forecast period.
Natural Flavour Market Segment Insights
Natural Flavour Market Type Insights
The Natural Flavour Market revenue is segmented by Type into Nature-Identical Flavors, Natural Flavors, and Artificial Flavors. Nature-identical flavors are chemically identical to their natural counterparts, but they are produced synthetically. They offer a cost-effective alternative to natural flavors while still providing a similar taste and aroma. Natural Flavors are derived from plant or animal sources and are considered to be more premium and authentic than nature-identical flavors. They are often used in high-end food and beverage products.Artificial Flavors are synthetically produced and are designed to mimic the taste and aroma of natural flavors. They are typically used in processed foods and beverages, as they are more cost-effective than natural or natural-identical flavors. In 2023, the Natural Flavour Market segmentation by Type was dominated by Nature-Identical Flavors, which accounted for approximately 45% of the market share. Natural Flavors followed with a market share of around 38%, while Artificial Flavors held the remaining 17% of the market share. The market growth for Nature-Identical Flavors is driven by their cost-effectiveness and wide range of applications.Natural Flavors are expected to witness steady growth due to increasing consumer demand for natural and authentic products. Artificial Flavors are projected to grow at a slower pace as consumers become more aware of their synthetic nature and potential health concerns. Overall, the Type segment of the Natural Flavour Market is expected to continue to grow in the coming years, driven by increasing demand for natural and authentic flavors in food and beverage products.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Natural Flavour Market Source Insights
The Natural Flavour Market segmentation by source is anticipated to witness a robust expansion in the forthcoming years. Fruit and vegetable flavors are projected to hold a dominant market revenue share, valued at 6.34 Billion USD in 2023 and estimated to reach 9.87 Billion USD by 2032, exhibiting a 5.43% CAGR during the forecast period. Consumers' growing health consciousness and demand for natural and organic products are driving the growth of this segment. Dairy flavors are another promising segment, with expectations of growing at a CAGR of 4.85% and reaching a valuation of 2.98 Billion USD by 2032.Meat and poultry flavors, herb and spice flavors, and nut and seed flavors are also anticipated to contribute significantly to the overall market growth.
Natural Flavour Market Application Insights
The increasing demand for natural and clean-label products, coupled with growing health consciousness among consumers, is driving the market growth. Beverages hold the largest share of the market due to the extensive use of natural flavours in carbonated drinks, juices, and other beverages. Dairy products and confectionery applications are also witnessing significant growth, driven by the increasing popularity of flavoured yogurts, ice creams, and candies. Bakery products, snacks, meat products, and poultry and seafood also contribute to the market growth, with unique flavor profiles being developed to cater to evolving consumer preferences.Other food products, including sauces, dressings, and seasonings, are also expected to witness notable growth during the forecast period as consumers seek natural and flavorful options to enhance their culinary experiences.
Natural Flavour Market Function Insights
The Natural Flavour Market segmentation by Function consists of Flavoring Agents, Aroma Enhancers, Sweeteners, Taste Modifiers, and Preservatives. Among these segments, Flavoring Agents held the largest market share in 2023, accounting for around 42.5% of the Natural Flavour Market revenue. The demand for natural flavoring agents is primarily driven by the rising consumer preference for clean-label and minimally processed food products. Aroma Enhancers are projected to witness the fastest growth during 2024-2032, owing to their ability to enhance the overall appeal and palatability of food and beverages.
Natural Flavour Market Regional Insights
The Natural Flavour Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in 2023, accounting for around 35% of the revenue. The region's large food and beverage industry, coupled with the growing demand for natural and organic products, is driving the market growth. Europe is expected to be the second-largest market, followed by APAC. The APAC region is expected to witness significant growth in the coming years, owing to the increasing disposable income and changing dietary patterns.South America and MEA are also expected to contribute to the growth of the natural flavour market.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Natural Flavour Market Key Players And Competitive Insights
Major players in the Natural Flavour Market industry are focusing on expanding their presence in emerging markets and developing innovative products to meet the evolving consumer demands. Leading Natural Flavour Market players are also investing in research and development to improve the quality and functionality of their products. The Natural Flavour Market development is being driven by the increasing demand for natural and organic products, as well as the growing awareness of the health benefits associated with consuming natural flavours. The Natural Flavour Market Competitive Landscape is expected to remain highly competitive in the coming years, with major players vying for market share through product innovation, strategic partnerships, and acquisitions.One of the leading companies in the Natural Flavour Market is Firmenich. The company is headquartered in Switzerland and has a presence with operations in over 100 countries. Firmenich offers a wide range of natural flavours, including fruit, spice, and herb flavours. The company has a strong focus on innovation and has developed a number of proprietary technologies for extracting and processing natural flavours. Firmenich also has a strong commitment to sustainability and is working to reduce its environmental impact.A major competitor in the Natural Flavour Market is Givaudan. The company is headquartered in Switzerland and has a presence with operations in over 100 countries. Givaudan offers a wide range of natural flavours, including fruit, spice, and herb flavours. The company has a strong focus on innovation and has developed a number of proprietary technologies for extracting and processing natural flavours. Givaudan also has a strong commitment to sustainability and is working to reduce its environmental impact.
Key Companies in the Natural Flavour Market Include
- Givaudan
- Kerry Group
- Carmi Flavor and Fragrance
- Kerry Ingredients and Flavours
- Prinova
- Archer Daniels Midland Company
- Frutarom Health Ltd
- Firmenich SA
- Olam International Ltd.
- Symrise AG
- Hasegawa Co. Ltd.
- Flavorchem Corporation
- Naturex
- IBSA Group
- Sensient Technologies Corporation
Natural Flavour Market Industry Developments
The Natural Flavour Market is projected to reach a value of USD 25.34 billion by 2032, exhibiting a CAGR of 5.34% during the forecast period 2024-2032. The market growth is driven by increasing consumer demand for natural and organic food products, rising disposable income, and growing awareness of the health benefits associated with natural flavours. The market is also witnessing a surge in demand from the food and beverage industry, as manufacturers seek to replace artificial flavours with natural alternatives. Recent news developments include the acquisition of Flavorchem Corporation by Firmenich and the launch of a new range of natural flavours by Symrise.
Natural Flavour Market Segmentation Insights
- Natural Flavour Market Type Outlook
- Nature-Identical Flavors
- Natural Flavors
- Artificial Flavors
- Natural Flavour Market Source Outlook
- Fruit and Vegetable Flavors
- Dairy Flavors
- Meat and Poultry Flavors
- Herb and Spice Flavors
- Nut and Seed Flavors
- Others
- Natural Flavour Market Application Outlook
- Beverages
- Dairy Products
- Confectionery
- Bakery Products
- Snacks
- Meat Products
- Poultry and Seafood
- Other Food Products
- Natural Flavour Market Function Outlook
- Flavoring Agents
- Aroma Enhancers
- Sweeteners
- Taste Modifiers
- Preservatives
- Natural Flavour Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
15.07(USD Billion) |
| Market Size 2023 |
15.87(USD Billion) |
| Market Size 2032 |
25.34(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
5.34% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Givaudan, Kerry Group, Carmi Flavor and Fragrance, Kerry Ingredients and Flavours, Prinova, Archer Daniels Midland Company, Frutarom Health Ltd, Firmenich SA, Olam International Ltd., Symrise AG, T. Hasegawa Co. Ltd., Flavorchem Corporation, Naturex, IBSA Group, Sensient Technologies Corporation. |
| Segments Covered |
Type, Source, Application, Function, Regional. |
| Key Market Opportunities |
Growing demand for clean label products Increasing consumer awareness of health benefits Technological advancements in extraction and processing Expansion into emerging markets Growing popularity of functional foods and beverages |
| Key Market Dynamics |
Increasing health consciousness Rising demand for clean-label products Evolving consumer preferences Technological advancements Growing awareness of food safety |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The natural flavor market is expected to reach a valuation of USD 15.87 billion in 2023.
The natural flavor market is projected to reach a valuation of USD 25.34 billion by 2032, growing at a CAGR of 5.34% from 2024 to 2032.
North America is expected to dominate the natural flavor market throughout the forecast period, owing to the increasing demand for natural and organic food products.
Natural flavours are widely used in various applications such as beverages, bakery & confectionery, dairy products, and meat & poultry products.
Some of the key competitors in the natural flavour market include Firmenich, Givaudan, IFF, Symrise, and Sensient Technologies.
The growth of the natural flavour market is driven by factors such as rising consumer demand for natural and organic food products, increasing disposable income, and growing awareness of the health benefits associated with natural flavours.
The natural flavour market faces challenges such as the high cost of raw materials, stringent regulatory requirements, and competition from synthetic flavours.
The natural flavour market presents opportunities for growth in emerging markets, expansion of product offerings, and development of innovative flavours.
Key trends in the natural flavour market include the growing popularity of plant-based flavours, clean label products, and the use of natural flavours in functional food and beverage products.
The future outlook for the natural flavour market is positive, with the market expected to continue growing at a steady pace, driven by increasing consumer demand for natural and organic food products.
