The future of natural flavors & fragrances in food

The food market was the leading outlet for natural flavors and fragrances in 2015, accounting for nearly 34% of total demand at $760 million. Many variables affect the food industry and, in turn, demand for natural flavor blends, essential oils and natural extracts, and natural aroma chemicals.  Demographics pertaining to age and ethnicity, as well as health and wellness trends, play an important role in shaping food preferences that affect flavor demand.  These and other trends are presented in Natural Flavors & Fragrances, a new study from The Freedonia Group.



Flavor demand in the food market is forecast to advance 4.8% per year


Consumer preferences have a significant impact on the outlook for this market.  Additionally, consumer attention to healthy eating, reinforced by the release of the 2015-2020 Dietary Guidelines for Americans by the USDA and the US Department of Health and Human Services, will continue to stimulate the development of more nutrient-rich, lower calorie foods.  “Demand for natural flavors that can compensate for reduced sodium, sugar, and fat in foods will continue to be strong,” states analyst Christine O’Keefe.



Dairy products the first market


Dairy products represented the largest application for natural food flavors in 2015, supported by consumer preference for natural flavors in ice cream and yogurts, as well as growing popularity of yogurt products among American consumers.  Demand in processed food will expand at a rate just above the average of the overall market, fueled by the increasing consumption of ready-to-eat meals and other convenience items that require added flavors to replace or enhance taste lost during processing.  Recent efforts by food manufacturers to improve productivity have in some cases led to the use of techniques that can affect taste; manufacturers are forecast to shift their focus back to flavors now that they have achieved productivity goals.  


Natural Flavors & Fragrances (published 10/2016, 216 pages) is available for $5200 from The Freedonia Group.



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