Natural Flavors Market (By Form: Powder, Liquid/Gel; By Application: Food, Beverages) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global natural flavors market size was estimated at around USD 6.45 billion in 2023 and it is projected to hit around USD 13.33 billion by 2033, growing at a CAGR of 7.53% from 2024 to 2033.

Key Pointers

• North America dominated the market with the largest market share of 25% in 2023.
• Asia Pacific is anticipated to register a CAGR of 8.34% from 2024 to 2033.
• By Form, the powdered natural flavors segment registered the maximum market share of 67% in 2023.
• By Form, the liquid/gel natural flavors segment is poised to grow at a CAGR of 6.75% from 2024 to 2033.
• By Application, the food application segment generated the maximum market share of 66% in 2023.
• By Application, the beverages application segment is expected to witness a CAGR of 7.94% from 2024 to 2033.

Natural Flavors Market Overview

In the contemporary landscape of food and beverage industries, consumer preferences are undergoing a significant shift towards natural and healthier alternatives. This paradigm shift has propelled the natural flavors market into prominence, making it a focal point for both industry players and consumers alike.

Natural Flavors Market Growth Factors

The growth of the natural flavors market is driven by an increasing awareness among consumers regarding health and wellness has fueled the preference for natural ingredients, including flavors derived from botanical sources. Additionally, stringent regulations and growing scrutiny over artificial additives have prompted manufacturers to shift towards natural alternatives. Moreover, the rising popularity of clean label products has further accelerated the adoption of natural flavors across various food and beverage categories. Furthermore, advancements in extraction technologies and flavor development processes have enabled manufacturers to create innovative and high-quality natural flavor solutions, meeting the evolving needs of consumers. Overall, these factors are expected to continue driving robust growth in the natural flavors market in the foreseeable future.

Natural Flavors Market Trends:

• Surge in Demand for Organic and Clean Label Products: Consumers are increasingly seeking products with transparent ingredient lists, leading to a growing demand for natural flavors derived from organic and clean label sources.
• Innovation in Flavor Combinations: Manufacturers are exploring innovative combinations of natural flavors to create unique and enticing taste profiles, catering to diverse consumer preferences and culinary trends.
• Sustainable Sourcing Practices: There is a rising emphasis on sustainability throughout the supply chain, with manufacturers prioritizing ethically sourced and environmentally friendly ingredients for natural flavor production.
• Adoption of Advanced Extraction Techniques: The use of advanced extraction technologies, such as supercritical fluid extraction and enzymatic processes, is becoming more prevalent, enabling manufacturers to extract flavors efficiently while preserving their natural characteristics.
• Growing Interest in Plant-Based Flavors: With the increasing popularity of plant-based diets, there is a growing interest in natural flavors derived from plant sources such as fruits, vegetables, herbs, and spices, driving innovation in plant-based flavor solutions.
• Clean and Simple Labeling: Consumers are gravitating towards products with clean and simple ingredient labels, prompting manufacturers to focus on minimizing the use of additives and artificial ingredients in natural flavor formulations.

Form Insights

In 2023, the powdered natural flavors segment dominated with a share of 67%. These powdered variants offer formulation flexibility, granting manufacturers precise control over flavor intensity and profile. This adaptability facilitates the development of bespoke blends tailored to specific consumer preferences and product applications.

The liquid/gel natural flavors segment is poised to grow at a CAGR of 6.75% from 2024 to 2033. Liquid and gel forms of natural flavors offer seamless integration into a diverse array of food and beverage products. Their easy mixability ensures consistent flavor dispersion, guaranteeing uniform taste profiles across the product range.

Application Insights

In 2023, the food application segment commanded a share of approximately 66%. As consumers grow increasingly aware of the potential health risks associated with artificial additives and synthetic ingredients, they are becoming more discerning about their food choices. Natural flavors, sourced from real food ingredients like fruits, vegetables, herbs, and spices, offer a safer alternative. This heightened health consciousness is driving the demand for natural flavors in food applications.

The beverages application segment is expected to witness a CAGR of 7.94% from 2024 to 2033. Natural flavors deliver authentic and true-to-source flavor profiles, enhancing the taste and quality of beverages. Whether it's fruit-infused waters, flavored teas, or botanical-based sodas, beverages made with natural flavors offer genuine flavor experiences derived from real fruits, herbs, and spices. This resonates with consumers seeking authentic taste sensations.

In July 2023, General Mills launched Häagen-Dazs Cultured Crème, an indulgent addition to the yogurt aisle. Combining the richness of yogurt with the creaminess of ice cream, Cultured Crème offers a unique snacking experience. Crafted with premium ingredients like fresh milk, cream, and real fruit, Cultured Crème is free from artificial colors and flavors. With a blend of dairy cultures in under nine ingredients, each single-serve cup comes in enticing flavors such as black cherry, blueberry, coffee, lemon, strawberry, and vanilla, inviting consumers to savor a decadent yogurt treat.

Regional Insights

In 2023, the natural flavors market in North America captured a share of 25%. Renowned for its dynamic food innovation landscape, the region hosts a plethora of startups and established companies consistently unveiling novel flavors and formats. As consumers prioritize health-conscious choices, the appeal of products featuring natural flavors grows, driven by their perceived health advantages, including freedom from artificial colors and additives. With consumers increasingly exposed to global food trends and actively seeking healthier, natural options, the demand for natural flavors is poised for sustained growth.

The natural flavors market in Asia Pacific is anticipated to register a CAGR of 8.34% from 2024 to 2033. Fueled by escalating disposable incomes and an expanding middle class, consumers across the region are placing greater emphasis on health and wellness. There's a discernible shift towards natural and clean-label products perceived as healthier substitutes for artificial counterparts. Natural flavors align seamlessly with this prevailing trend, catalyzing heightened regional demand.

Natural Flavors Market Key Companies

• Givaudan
• Firmenich SA.
• Symrise
• Sensient Technologies Corporation
• International Flavors & Fragrances Inc. IFF
• Takasago International Corporation
• MANE
• Kerry Group plc
• Huabao Flavours & Fragrances Co. Ltd.
• Robertet Group

Natural Flavors Market Segmentations:

By Form

• Powder
• Liquid/Gel

By Application

• Food
  • Dairy Products
  • Bakery & Confectionery
  • Supplements & Nutrition Products
  • Meat & Seafood Products
  • Snacks
  • Pet Foods
  • Sauces, Dressings & Condiments
  • Others
• Beverages
  • Juices & Juice Concentrates
  • Functional Beverages
  • Alcoholic Beverages
  • Carbonated Soft Drinks
  • Others
• Others

By Region

• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East & Africa