The term artificial flavor refers to a material which adds flavor and taste to the food product, and which is derived from different sources. The flavors industry has achieved remarkable growth in the beverages and processed food segment in the past few years. This has brought about positive changes to the vegetable and fruit ingredients market growth. Beverages and food (which differs according to the provinces) play an important role in the processed food industry. Flavors can be mainly classified as synthetic and natural flavors. Natural flavors are manufactured from edible substances such as vegetables, fruits, and leaves, and synthetic flavors are manufactured from inedible substances such as petroleum and are processed in labs to create flavors through different chemicals.
Any substance or food has a sensory impression called as Flavor, which is determined by senses of smell and taste. The natural identical flavoring is less expensive and great opportunity for manufactures of flavors. With the rise of food industry and restaurants, the flavors sales has increased in the food sector.
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Flavors have major share in the food industry, and are at the threshold of remarkable growth. The market can be characterized as technical, innovative, and specialized in nature. Growth of the flavors market is driven by changed lifestyle of consumers, higher demand for food which is convenient, and development of the global beverage industry in terms of safe and packaging logistics, for example, self-chilling beverage cans. However, raw material prices, bargaining power of suppliers and customers, price pressure, and high entry barriers on manufacturers hampers market growth. Small-scale industries expanding by developing technical service centers and facilities in various regions provide opportunities for growth of the market. This growth strategy is crucial for smaller companies, enabling them to expand their technical capability through precise research and development infrastructure provided by key players in the industry.
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The food flavor market thrives on different factors such as increasing demand for natural and clean-label products (due to adulteration of food and harmful effects of adulterated food on the human body). Artificial flavors are made of harmful chemicals, these chemicals have ill effect on human body, the products should be made considering health benefits and maintaining the taste of the food product. The major factor restraining the food flavor market is lacking stability and higher cost. Flavors made of natural ingredients are expensive because of their quality and the products used to prepare them. However, this market has opportunities for growth during the forecast period, in terms of new source of raw materials, Greenfield ventures in Asia Pacific and Latin America, and increasing number of color shades and multifunctional flavors, maintaining the taste and quality of the flavors used. Yet, this market still has to deal with challenges related to lack of transparency in patent protection laws.
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Key players in the food flavor market are Archer Daniels Midland Company, Royal DSM N.V., Kerry Group PLC, FMC Corporation, International Flavors & Fragrances Inc, Symrise AG, Sensient Technologies Corporation, Takasago International Corporation, Givaudan SA, and Chr. Hansen Holding A/S.
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