Biotech Flavor Market Size, Share & Trends Analysis Report By Type (Vanilla, Fruity), By Application (Beverages, Nutraceuticals), By Form, By Region, And Segment Forecasts, 2019 - 2025

Industry Insights 

The global biotech flavor market size was valued at USD 36.0 billion in 2018 and is expected to register a CAGR of 7.0% from 2019 to 2025. Increasing production of flavor compounds with the help of biotech methods as a substitute for organic synthesis is supporting the manufacturing of healthier food products. Growing consumer preference for natural and chemical free food is expected to drive the manufacturers to infuse biotech flavors, thereby spurring the growth of the global market.

Advancement in food flavors driven by the demand for natural formulations is anticipated to drive the global market. In addition, consumer awareness about ill effects of synthetic ingredients is likely to boost the market growth in the next few years. Growing penetration of natural flavoring due to advancement in various types of beverages has been driving the demand for the global market. Beverages infused with biotech flavors help boost energy level, metabolism, and other bodily functions. Flavors such as lemon and cucumber help in stimulating liver functions and strengthening veins.

Growing trend of convergence between biotech and nutraceuticals driven by increasing application of ingredients claims to have various health benefits. For instance, Robertet introduced Xtreme Flavors with high impact, true fruit, authentic, and natural flavoring that can be infused in various beverage preparations. Some of the flavors are plum and plum sugar, pear, watermelon, and apple.

Countries such as U.K., India, and China witnessed an increase in demand for biotech flavor due to increasing shift in preferences for natural intakes than chemical ones. However, low shelf life and issues pertaining to their stability are some of the factors challenging this industry. Ennolys, a Europe based company, launched a natural vanilla flavoring, obtained by biotransformation of ferulic acid found from certain cereals.

Type Insights

In 2018, vanilla led the global market and generated a revenue of USD 17.8 billion. Companies such as Advanced Biotech are providing various food products such as cupcakes, rum, and liquor distilleries with a quality that can help ensure a delicious taste. People prefer vanilla extracts due to their benefits such as powerful antioxidant, antibacterial, anti-inflammatory, and cholesterol stabilizers. For instance, Rhodia launched Govanil vanilla flavor range, majorly for bakery and confectionery products made with CRF technology.

Fruity flavor is expected to expand at a CAGR of 7.3% over the forecast period. Fruit flavors consist of orange, strawberry, and cherry that are mostly used in the production of dairy, beverages, and various other industries. Application of fruity flavors in the form of jams, cakes, drinks, juices, creams, candies, and chocolate bars has been increasing, thereby boosting the segment demand in the market.

Application Insights

Beverages was the leading application segment in 2018, accounting for 35.4% share of the overall revenue. People prefer energy drinks, vegetable and fruits juices, and sodas infused with natural flavoring due to their nutritional benefits. Rising consumption of flavored beverages around the world is boosting the segment growth. For instance, Olvi Group launched some innovative healthy flavors such as vitamineral waters and aura active shake, which has berry mix and cherry variants.

The nutraceuticals application segment is expected to expand at a CAGR of 7.8% over the forecast period. Rise in demand for medicines due to increasing number of diseases is expected to remain a key factor driving the segment growth over the forecast period. Consumer health divisions are increasingly focusing on supplements from major companies such as Bayer, Mead Johnson, Merck, and Pfizer and medical food from companies like Abbott.

Form Insights

The powder form segment held the largest share in 2018 and generated a revenue of USD 17.1 billion. This segment consists of energy drink powder, yogurt powder, and butter powder with features that are applicable in maintaining health. Powder is used for dry mix production as it provides easy scaling, low water content, and general disbursement by dry blending.

Liquid form is expected to expand at a CAGR of 7.4% over the forecast period. The major application of liquid form lies in the production of beverages such as fruits and vegetable juices and energy drinks. In non-dry mixes, oil and water based liquid flavors provide easy disbursement and volume measuring. For instance, GLCC Co. came up with flavors such as blueberry, passionfruit, guava, RSP cherry, McIntosh apple, and guanabana.

Regional Insights

In 2018, North America accounted for the largest share of 39.5% in terms of revenue. Demand for the product is increasing in U.S. due to rising penetration of these products, rapid adoption, growing awareness and popularity of the product benefits, and presence of major biotech flavor providers such as IFF and Sensient Technologies Ltd. This, in turn, will boost the market growth in North America.

Asia Pacific is anticipated to emerge as the fastest growing regional market with a CAGR of 7.4% owing to growing health and wellness trend. Consumers are ready to spend money on biotech flavored ingredients than synthetic chemical ingredients as these products are compatible with body without causing any harm.

Increasing health consciousness and awareness about the negative health impacts of artificial food flavors, along with the benefits of natural flavors in countries like India and China, have led to an increase in demand for biotech flavors. Companies such as Sapiro Biotech Pvt. Ltd. provide all types of natural flavors for dairy, bakery and confectionery, and other industries.

Biotech Flavor Market Share Insights

Various major companies are indulged in mergers and acquisitions with other companies for the technology development and further expansion. Moreover, it helps them to enhance their capabilities and product offerings. For instance, Powderpure, acquired by IFF to gain the expertise in drying technology, uses minimal processes that has been used to repurpose the valuable materials from other food processing systems by keeping other features of the product intact.

Some of the key players operating in the global market are Givaudan; Firmenich SA; IFF Inc.; Symrise AG; Wild Flavors; Takasago International Corporation; Mane Flavors; Frutarom; Sensient Technology Ltd.; and Roberetet.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global biotech flavor market report on the basis of type, application, form, and region:

• Type Outlook (Revenue, USD Billion, 2015 - 2025)

  • Vanilla

  • Fruity

  • Others

• Application Outlook (Revenue, USD Billion, 2015 - 2025)

  • Dairy

  • Bakery & Confectionery

  • Beverage

  • Nutraceuticals

  • Others

• Form Outlook (Revenue, USD Billion, 2015 - 2025)

  • Liquid

  • Powder

  • Paste

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)

  • North America

    • U.S.

  • Europe

    • U.K.

  • Asia Pacific

    • India

    • China

  • Central & South America

  • Middle East & Africa

    • Israel