Flavored Syrup Market Size, Share & Trends Analysis Report By Product (Fruit, Chocolate, Vanilla, Coffee), By Distribution Channel (B2B, B2C), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global flavored syrup market size was valued at USD 51.24 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 3.6% from 2022 to 2030. This growth of the market is attributed to the rise in the demand for customized flavors in the food and beverage sector. Another factor driving the market is rising consumer preference for ready-to-eat and convenience foods. COVID-19 has had a moderate impact on the demand for flavored syrups. The sales of flavored syrups in hotels and restaurants witnessed a decline due to restrictions on consumer movement and outdoor eating. However, the demand for household consumption remained relatively stable in 2020 as the work-from-home culture urged consumers to make various food dishes at home and acquire new ingredients, such as flavored syrups. This factor fueled the growth of the market during the pandemic. The global market is expected to return to pre-lockdown levels as lockdowns ease and people return to hotels and restaurants, thus boosting demand in the sector during the forecast period.

Fruit-flavored syrups have been dominating the global market due to their widespread application in beverage products such as cocktails, cold drinks, soft drinks, and soda. Moreover, the rising consumer inclination towards syrups with high fruit content has been a most important factor accelerating the manufacturers to introduce a wide range of syrups infused with natural ingredients is expected to accelerate the market growth. For instance, the two most preferred fruit flavors include raspberry and orange. Moreover, consumers’ willingness to try out different and unique fruit flavors is inspiring the manufacturers to produce duo-fruit syrups such as Lime-Mint, Raspberry-Mint, and Lime-Ginger, which provides a blend of the sweet, sour, and bitter taste.

Moreover, manufacturers are developing and innovating various flavors in order to cater to the frequently changing taste preferences of consumers, thereby contributing to global market growth. For instance, the Ági fruit syrups range introduced a new product category containing honey with unique flavors such as baked apples with honey, elder-lime with honey, and raspberry-lemon balm with honey.

Moreover, the increasing popularity of flavored syrups in western countries such as the U.S., Germany, the U.K., France, and Canada is fueling growth. In addition to this, rising production and consumption of these products in the above-mentioned countries have been contributing to global market growth. These syrups are majorly consumed as a topping ingredient in desserts, pancakes, various breakfast foods, waffles, ready-to-eat products, and ice cream. Furthermore, the increasing consumption of chocolate-flavored syrups for various bakery, cold beverages, and confectionery products is expected to accelerate the market growth over the forecast period.

Distribution Channel Insights

The B2B distribution channel segment held the largest share of over 80.0% in 2021. The segment includes various industries such as bakery and confectionery, beverages, dairy, and frozen desserts. Beverages, particularly cocktails, hot and cold beverages, and soft drinks are some of the common products that contain flavored syrups as a taste and sweetness enhancer ingredient. For instance, Starbucks uses a wide range of naturally flavored syrups such as caramel, hazelnut, and vanilla in its coffee.

The B2C segment will register the fastest CAGR of 4.2% from 2022 to 2030. This can be attributed to the rising demand for flavored syrups across the globe. Moreover, the increase in sales of flavored syrups mostly through company-owned websites and other e-commerce platforms is expected to accelerate the growth of this segment over the forecast period. The introduction of novel flavors, along with the increasing indulgence among consumers in the APAC countries, is expected to drive the market demand in the next few years.

Product Insights

The fruit segment accounted for the largest share of over 35.0% in 2021. The increasing demand for fruit-infused flavored syrups along with unique tastes is a major factor accelerating the market growth. Moreover, producers have been focusing on developing combined fruit syrups and launching innovative flavors to hold their position in the global industry. Based on consumer inclinations toward pure, natural, and organic products, companies are also introducing syrups infused with fruit content. For instance, common sea-buckthorn, apple, 100% natural sour cherry, and beetroot juice are some of the unique flavors mixed with high-fruit ingredients.

The chocolate segment is expected to register the fastest growth rate of 4.4% from 2022 to 2030. The rising popularity of chocolate syrup in the food and beverage industry is driving the market. The segment is driven by the significant application in cold and hot beverages such as hot and cold coffee, milkshakes, smoothies, and baking and confectionery products such as pastries, cakes, waffles, and pancakes. Developing economies such as India and China have a high preference for chocolate-based products and are expected to be among the target markets for chocolate syrup manufacturers.

Regional Insights

North America emerged as the largest regional market with a revenue share of over 30.0% in 2021 owing to the high acceptance of fruit syrups in the U.S. and Canada and rising consumers’ preference for flavored syrups in daily meals such as snacks, cereals, beverages, and desserts. The bakery industry is expected to witness significant growth in this region due to the ample availability of high-quality ingredients such as toppings, chocolates, flavors, and fillings. This, in turn, is encouraging the use of flavored syrups across the food and beverage industry.

Asia Pacific is expected to expand at the highest CAGR of 4.4% from 2022 to 2030. Bakery products and beverages are widely consumed due to their low prices. Furthermore, consumers’ inclination toward consuming sweet foods has led producers to introduce innovative products infused with various flavored syrups such as fruits and chocolate. Many foreign companies have penetrated the Asian market and were successful to make quick inroads in this industry.

Key Companies & Market Share Insights

Both large and small players are introducing innovative products and expanding their portfolios in order to appeal to consumers. For instance, Starbucks has a wide range of flavored syrups such as toffee nuts, peppermint mocha, cinnamon dolce, and peach. Companies are also focusing on offering sugar-free syrups to cater to the health-conscious segment. For instance, Monin offers sugar-free syrups in various fruit flavors such as raspberry, pomegranate, and peach. Irish cream, almond, and hazelnut are some of the other sugar-free syrups offered by this company. Some prominent players in the global flavored syrup market include:

• The Hershey Company

• The Kraft Heinz Company

• Kerry Group

• Tate & Lyle

• Toschi Vignola s.r.l.

• Monin Inc.

• Fuerst Day Lawson

• Torani

• The J.M. Smucker Company

• Panos Brands

• Amoretti

• Skinny Mixes

• Nature's Flavors, Inc.

• Sonoma Syrup Co.

Flavored Syrup Market Report Scope

Global Flavored Syrup Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global flavored syrups market report on the basis of product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Fruit

  • Chocolate

  • Vanilla

  • Coffee

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • B2B

  • B2C

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Indonesia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa