Market Trends of Flavor And Fragrance Industry
Escalating Demand For Flavor Ingredients For Vegan And Meat Alternatives
Food flavor and enhancer manufacturers have turned to plant-based sources such as plant extracts or vegetable powders in their quest for organic, vegetarian, and vegan products. In addition, the vegan community has been growing in recent years, leading to enhanced demand for plant-based food flavors and enhancers. For instance, in 2022, according to the International Food Council, a survey revealed that 15% of American consumers prefer purchasing products labeled as 'plant-based.'In addition, 12% of Americans follow a plant-based diet, and 2% of consumers follow a vegan diet. With a rising desire for meat substitutes among flexitarians, the demand for products besides traditional meat, fish, and dairy products has soared in recent years. Surging demand for vegan and meat alternative products, along with the increasing willingness of consumers to spend more on plant-based food products, is setting the bar for innovation in vegan meat cuisine globally. In 2021, according to a study conducted by DuPont, over 75% of APAC consumers were willing to spend a similar price on meat for plant-based alternatives. The increased consumption of processed foods pushed the food flavor industry, wherein plant-based/vegan flavors are commonly used, as these ingredients are perceived to have low-fat, low-salt, and low-carbohydrate content.
Asia-Pacific Dominates the Market
Since China is the fastest-growing food and beverage market in Asia, the flavors industry here is highly competitive and moderately fragmented. The rising popularity of Chinese cuisine across other Asian countries has triggered the demand for traditional food flavors that are popular in China.
India has always been a land of olfactory indulgence, where aromatherapy, incense, and ittar have existed since ancient times, and essential oil perfume was a part of the old royal lore. The earliest scents used were the healing scents introduced through Ayurveda, which recommended aromatic herbs and fragrant plants for mental well-being, beauty, treatment of ailments, hygiene, and age control, which are well known even today. The rapidly evolving retail landscape and the influx of multiple brands across various product categories have boosted the food flavors market in the country.
Japanese food has been influenced by North American and European dietary habits in recent years, promoting the food flavors market. However, the Japanese are more reserved for their refined food culture, which includes the concept of healthiness, thus regulating the market for natural ingredients over artificial ones.
