Biotech Flavors Market Size, Share, Growth, and Industry Analysis, By Type (Vanilla and Vanillin, Fruity Flavor, Other Flavors), By Application (Dairy Products, Beverages, Confectionery Products, Non-Dairy Ice-cream, Bakery Products, Nutraceuticals, Others), Regional Insights, and Forecast To 2031

Updated On: 29 April 2024

Biotech Flavors Market Report Overview

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The global biotech flavours market size was USD 35980 million in 2022 & the market is projected to touch USD 59259 million by 2031, exhibiting a CAGR of 5.7% during the forecast period.

By metabolically designing biosynthetic pathways, biotechnology can produce single ingredients or fermentation products with complex flavours and smells. The food product's flavour is improved by the biotech flavours, which also ensure its constant availability and provide nutritional benefits. This enables the food producers to guarantee a steady supply of food goods to fulfil the rising demands. Since they are a healthier alternative to synthetic flavours for adding flavour to food goods, natural flavours have gained favour in recent years. This has caused a lot of firms to lean towards natural flavours and increase their emphasis on producing extremely stable natural biotech flavours in the market.

COVID-19 Impact: Imposed Restrictions in the Economy Resulted in Decline in the Market

The COVID-19 outbreak caused temporary business closures as well as supply chain and manufacturing disruptions, which in turn reduced the development of telecom infrastructure and had a negative effect on the sales and marketing efforts of rugged phone companies competing in the market. The effects were severe, particularly for startups and small- to medium-sized businesses operating in this industry. Companies did, however, make a lot of restructuring efforts to address the supply chain difficulties and improve collaboration with suppliers and partners to lessen the negative market impact.

LATEST TRENDS

"Growth of the market in recent years"

High consumer knowledge of the nutritional advantages of biotech flavours and increased consumer health consciousness are two reasons driving the global market for biotech flavours. Additionally, the market for biotech flavours is propelled by biotech procedures like plant tissue culture, microbial fermentation, and bio-conversion, which allow the flavouring of fruits and vegetables without degrading their nutritional content. Additionally, manufacturers are anticipated to use biotech flavours due to rising customer demand for natural, chemical-free foods, which will fuel the expansion of the global market. Additionally, in the next years, market growth is projected to be boosted by consumer knowledge of the negative consequences of synthetic components.

Biotech Flavors Market Segmentation

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• By Type

Based on type the global biotech flavors market is classified as vanilla and vanillin, fruity flavor, other flavors.

• By Application

Based on application the global biotech flavors market is classified as dairy products, beverages, confectionery products, non-dairy ice-cream, bakery products, nutraceuticals, others.

DRIVING FACTORS

"The Utilization as a Catalyst to Boost the Market Growth"

The market is expanding because to the increasing use of biotech flavours in a variety of food goods, including cakes, ready-to-eat meals, chocolates, and others, in order to provide consumers with genuine, clean-label, end-to-end traceable products. Additionally, the producers have been persuaded to use such biotech tastes in place of synthetic components due to consumers' growing environmental concerns. Additionally, the independence of biotech tastes from harvesting methods is anticipated to fuel market expansion.

"Extensive Application in Laundering Process to Multiply the Production and Market Growth"

One of the main factors propelling the market for biotech flavours is customers' growing preference for natural and chemical-free food ingredients. Chemical synthesis was traditionally used to extract chemicals from plants and create flavourings. For instance, just 1% of the flavour comes from the actual vanilla plant; instead, vanillin, the molecule that gives vanilla its distinctive flavour, is created through a petrochemical process. The health risks associated with these chemically created flavours, such as unpleasant taste and diabetes, are increasing consumer demand for natural flavours.

RESTRAINING FACTORS

"Several Challenges Associated with the Local Irritation to Restrain the Market"

Solid food product consistency, texture, and taste issues arise as a result of substituting natural, healthier ingredients for conventional ones, which is the key factor limiting industry growth. For instance, using stevia as a sweetener in cake mix will make it sweet but cannot replicate the taste, texture, and mouthfeel that sugar imparts. The widespread use of flavourings in beverages will likely cause food and beverage to overtake all other application segments as the main sector. Due to their convenience and nutritional value, consumers overwhelmingly favour naturally flavoured beverages such juices, carbonated drinks, energy drinks, and ready-to-drink beverages. Additionally, the increased consumption of beverages is anticipated to fuel market expansion in the upcoming years.

Biotech Flavors Market Regional Insights

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"North American Region to Dominate the Market with Extensive Utilization and Multiplying Manufacturers"

Due to the rise in demand for premium, natural flavouring agents, North America is predicted to experience significant market expansion. Consumption of high-sugar goods has been linked to an increase in health problems, which has caused customers to turn to natural alternatives. Nearly 10.5% of Americans have diabetes, according to the Centres for Disease Control and Prevention (CDC)'s national diabetes statistics for 2019. Along with this, it is anticipated that the expanding market penetration and usage of these goods due to the presence of significant companies like Sensient Technologies Ltd. and IFF will further propel regional market growth.

Due to the growing research into and interest in the creation of natural flavours, Asia Pacific is expected to have a significant market growth potential during the forecast years. According to the India Brand Equity Foundation, 2017 India is one of the top 12 biotech locations in the world and accounts for 2% of the global biotech market. Global flavour producers are growing their operations in the region. For example, Givaudan SA in 2019 extended its flavour manufacturing facility in India, which is anticipated to support the expansion of the regional market.

KEY INDUSTRY PLAYERS

"Financial Players to Contribute Towards Expansion of Market"

This market is extremely competitive and consists of various global and regional players. Major players are involved in strategizing various plans such as mergers and acquisitions, partnerships, introduction of new and enhanced products, along with joint ventures. The report is extensive research of a list of market players who contribute towards the expansion of the market. The information is a collusion of latest technological developments, trends, production lines mergers and acquisitions, market study and others. Other factors such as regional wise analysis and segment wise analysis are also considered to understand the market share, product growth, revenue growth and others during the forecasted period.

List of Market Players Profiled

• Givaudan (Swiss)
• Sensient Technologie (US)
• Bell Flavors and Fragrances (Germany)
• Symrise (Germany)
• International Flavors & Fragrances (US)
• Takasago International (Japan)
• Frutarom Industries (Israel)
• Naturex (France)
• Firmenich (Switzerland)
• Kerry (Ireland)
• Kunshan Asia Aroma (China)
• Mane (Germany)
• Solvay (Belgium)
• Synergy Flavors (UK)
• Shank's Extracts (US)

REPORT COVERAGE

The SWOT analysis and information on future developments are covered in the study. The research report includes a study of several factors that promote market growth. This section also covers the range of numerous market categories and applications that could potentially affect the market in the future. The specifics are based on current trends and historical turning points. The state of the market's components and its potential growth areas over the following years. The paper discusses market segmentation information, including subjective and quantitative research, as well as the impact of financial and strategy opinions. Additionally, the research disseminates data on national and regional assessments that take into account the dominant forces of supply and demand that are influencing market growth. The competitive environment, including market shares of significant competitors, is detailed in the report along with fresh research methodology and player strategies for the anticipated time.