The global market for natural flavours is worth $3.3bn and is growing at rate of 9.1% per year, according to a new report from RTS.
However, despite consumer pressure, retailer demand for natural ingredients and globalisation of food and drink products the global market for natural flavours is still highly fragmented.
Flavours - Natural and Synthetic by RTS found that issues such as the sustainability of supply and stability under different processing conditions will prevent natural flavours from overtaking synthetic flavours until 2022.
In fact, at 184,236 tonnes the global usage of high-impact synthetic flavours in food and drink remains larger than that of natural flavours (currently at 132,842 tonnes).
Also, rapid growth in market for natural flavours is set to slow, not only in Europe and North America but also emerging markets of China, India, Mexico and Turkey.
For example, the market in China, which enjoyed 15% year-on-year growth over the past five years, will see this slow to 7.5% year-on-year to 2015.
The report suggests that as these markets develop and competition grows, flavour manufacturers will need to understand and respond to the specific trends for each region in order to succeed in a fragmenting market.
The largest segments of use globally are soft drinks, ice cream while fastest growing are yogurts and confectionery as manufacturers of these products switch to natural alternatives.
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