by The natural and organic flavors market is witnessing growth driven by increasing health consciousness among consumers. Natural flavors offer several advantages over artificial flavors such as no added preservatives, colors or artificial ingredients. Growing demand for clean label and organic products has significantly boosted the sales of natural flavors.
Natural and Organic Flavors Market Demand are derived from natural sources including plants, fruits, vegetables, spices, herbs, meat and seafood through physical and natural extraction processes without chemical modifications. They are used in a wide variety of food & beverage products including functional foods and beverages, dairy, bakery, confectionery and savory products to enhance taste and appeal to health-conscious consumers.
The global natural and organic flavors market is estimated to be valued at US$ 8.81 Bn in 2024 and is expected to exhibit a CAGR of 9.3% over the forecast period between 2024 to 2031.
Key Takeaways
Key players operating in the natural and organic flavors market are Givaudan S.A., International Flavors Fragrances Inc., Firmenich SA, Symrise AG, Takasago International Corporation, Sensient Technologies Corporation, Kerry Group Plc., Frutarom Industries Ltd., Archer Daniels Midland Company, Döhler GmbH. Strong distribution networks and vast product portfolios of these players have enabled them to lead the market.
The growing demand for clean label, organic and healthier processed food products is driving significant growth of the natural flavors market. Increasing health awareness and focus on wellness are compelling consumers to opt for food products with natural ingredients over artificial or synthetic additives.
The market is also witnessing expansion in emerging economies of Asia Pacific and Latin America due to rising disposable incomes, changing consumer tastes and growing preference for western brands. Growth in online sales of healthy and organic products is another key factor promoting the global reach of natural flavors.
Market key trends
Consumers are increasingly demanding flavor solutions from natural sources that deliver authentic, great tasting experiences. There is a notable trend where brands are highlighting natural flavors labels to appeal to health-conscious buyers. Growing popularity of plant-based, vegan, paleo-friendly and gluten-free diets also works in favor of the natural flavors industry.
Porter’s Analysis
Threat of new entrants: Relatively high capital requirements for R&D and production prevents many new companies from entering the market.
Bargaining power of buyers: Large buyers can negotiate lower prices however the threat of substitutes is low due to niche market.
Bargaining power of suppliers: As natural and organic flavors raw materials come from farming, suppliers have moderate bargaining power over prices.
Threat of new substitutes: Substitutes exist but natural and organic flavors have developed a niche in the health-conscious market that is not easily substituted.
Competitive rivalry: Major players dominate the market but many small specialist companies exist so competition is moderate.
Geographical Regions
North America currently accounts for the largest share of the global natural and organic flavors market, valued at over US$ 3 Bn in 2024. This is driven by health trends and large organic food industries in the United States and Canada creating strong demand. Growth is sustained by continued marketing of organic lifestyles in the region.
Asia Pacific excluding Japan is projected to grow at the fastest rate until 2031, anticipated to double market value. Factors propelling this include rising health consciousness of consumers, greater acceptance of premium products, and expansion of international food companies targeting emerging markets like India and China. Production is also developing in Southeast Asia supported by suitable climates and lower costs of production compared to other regions.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
About Author - Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
