Natural flavors are essential oil, essence or extractive, oleoresin, distillate, and protein hydrolysate. These flavors are derived from edible yeast, spices fruit or juice, vegetable or juice, bark, bud, herb, root, leaf or similar plant product, seafood, poultry, eggs, and dairy products. Natural flavor is produced by using irradiation and industrial solvents or synthetic food additives. Organic flavor are produced from the raw materials which are produced organically from cultivation of raw materials to processing and manufacturing of flavors. Moreover, the raw materials should comply with the standard of organic farming which restricts the use of fertilizers and pesticides in farming.
The global natural and organic flavor market is projected to reach around US$ 10.6 billion by the end of 2027, in terms of revenue, growing at CAGR of 8.1% during the forecast period (2019-2027).
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Drivers
Rising health consciousness among consumers around the globe is expected to fuel the market growth of organic and natural flavors. Growing awareness regarding the health benefits of natural and organic flavors among due to high nutritional value of fruits and vegetables are fueling the demand for natural and organic flavor. For instance, in September 2015, Drink Maple, Inc. launched pure the maple-flavored natural drink contains minerals and antioxidants for the health benefits.
Market Opportunities
Increasing application of flavors in alcoholic beverages is expected to offer numerous growth opportunity to the market of natural and organic flavors over the forecast period. For instance, in July 2019, Coca-Cola launch the Lemon-do alcoholic soft drink in Japan. It is available in the lemon-flavored. Growing launch of such flavored alcoholic beverage is expected to fuel market growth.
Market Trends
Growing demand for flavored energy drink among sportspeople is expected to augment the market growth of natural & organic flavors over the forecast period. For instance, in October 2019, Coke announced the launch of the Coca-Cola energy drink to the U.S. market. It will be available in coke energy, zero sugar, cherry, and zero sugar cherry flavors.
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Competitive Section:
Key players operating in global 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, Huabao International Holdings Limited, T. Hasegawa Co., Ltd, Koninklijke DSM NV, Axxence Aromatic GmbH, GOLD COAST INGREDIENTS, INC., Zymus International Ltd, Treatt Plc, Blue Specific Flavors, Inc., and UNIQUE FLAVORS AND FRAGRANCES LTD.
Few Recent Developments
Givaudan S.A.
- In May 2016, the company opened an 800m^2 new laboratory facility with a sales office in Karachi, Pakistan. It offers flavor applications in beverages and food including snacks and sweet goods.
International Flavors & Fragrances Inc.
- In March 2015, The Company is going to expand its flavor facility in Isando, South Africa to meet the increasing demand for natural flavors in the region.
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