Natural Food Flavors and Additives are important for attributing the desired combination of taste, aroma and attractiveness of food, beverages and others. According to Indian traditional of food system there are six type of tastes such as sweet, bitter, pungent, salty, sour and astringent. Furthermore, to make any food and beverages attractive to the consumer, synthetic or natural colors are added. There are several types of flavors and colors available in the market as a flavoring and coloring agents to food and beverages products. Moreover, Natural Food Flavors and Additives are gaining popularity and significant importance due to a rise in consumer health awareness as synthetic color and flavors cause health problems such as allergic reaction, food hypersensitivity, vomiting, diarrhea and others. For instance, according to Nielsen, there are global respondents that avoid artificial flavors and artificial colors about 62% and 61% respectively. Additionally, 69% of American consumer believes that on natural flavor and color additives for food preparation.
Natural Food Flavors and Additives market is segmented into food flavor type, food color type, application, distribution channel and region. Based on food flavor type, Natural Food Flavors and Additives market is categorized into natural extracts, aroma chemicals and essential oils. Based on food color type, Natural Food Flavors and Additives market is characterized into caramel, carotenoids and anthocyanins. Based on application, Natural Food Flavors and Additives market is classified into food, beverages, bakery, confectionary, dairy and frozen, meat products and others. Based on distribution channel, Natural Food Flavors and Additives market is classified into supermarket, specialty market, online platforms, retail and wholesale traders. Based on region, Natural Food Flavors and Additives market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East and Africa.
Market Dynamics and Factor:
An increase in the health awareness among the people about the usage of Natural Food Flavors and Additives the Natural Food Flavors and Additives market is expected to be in demand during the forecast period. Furthermore, natural colors have high health promoting properties which include low fat content which is the objective for many new or improved food formulations, replacing fats with thickeners and other food additives, shifting consumers preference to organic food with various variety of products and beverages are positively influencing the market growth in the upcoming years. Additionally, CO2 extracted natural flavors in foods and beverages gaining the popularity in the market due to their unique properties such as they are free from microorganism like bacteria, mold and others, they are homogeneous consistency and character, as food additives they are much less bulky when compared to raw spices which leads to market growth during the forecast period. Furthermore, governments in various countries often fostering the use of natural colors as processing they are biodegradable and do not cause contamination which helps to grow the natural flavor and color market over forecast period. Moreover, the new trend and opportunities towards colors and flavors such as the clear-label trend, focusing on sugar reduction while making food and beverages which is expected to market growth in upcoming years. However, there is lack of health awareness about natural and organic products among the people and some regions due to changing lifestyles towards fast food-ready to eat food, switching to natural colors is not simple due to lack of availability for natural raw materials, improper government assistance in terms of campaign and financial support, and others are hindering the market growth during forecast period.
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Geographically, Natural Food Flavors and Additives market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East and Africa.
In North America and Europe, consumer is shifting towards organic and natural products due to increasing health awareness. Additionally, high purchasing capacity of consumer to comfort, affordable and functional food which leads to growth of the market. Furthermore, presence of major key players being located in these regions such as DuPont (US), Archer Danial Midland (US), The Foodie Flavors Ltd (UK) are also hastening market growth during forecast period.
Due to high population in developing countries in Asia Pacific region such as India, China and demand for all types of food dominates the natural food colors and flavors market during the forecast period. Additionally, increases the urbanization in the region have helps to spur the market growth. Furthermore, rising health awareness and increasing the popularity towards natural products has also positive effect on the food culture in the region.
In Middle East and Africa, have an unfavorable weather conditions for the construction of manufacturing facilities resulted in relatively high prices for natural colors and flavors with compared to other main region affects the market growth during the forecast period.
Rising health awareness about the natural and organic products in the South America region is expected to growth of the market in upcoming years.
Some of the key players of Natural Food Flavors and Additives market is Amar Bio-Organics India Pvt Ltd (India), DuPont (US), Archer Danial Midland (US), Kerry Group Plc (Ireland), International Flavors and Fragrances (IFF) (Israel), The Foodie Flavors Ltd (UK), T. Hasegawa (Japan), Aroma Group (Italy).
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Key Industry Developments:
In June 2019, Kerry Group (Ireland) opened its production facility in India with an investment in the expansion of taste and nutrition profiles segments.
In March 2019, Archer Daniels Midland (ADM) (US) recently announced an agreement to acquire the Ziegler Group (Germany), a leading European natural citrus ingredients provider company. The company offered its citrus flavors and produced citrus oils, extracts and concentrates. This collaboration would benefit ADM in finding a strong footing in the citrus flavoring market.
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