Flavors in Beverages Industry - Market Trends and Insights

Overview of the current trends in beverage flavors supply situation. Categories of natural flavors are essential oils and natural extracts. Artificial flavors are chemically derived. Flavors are widely used by beverage manufactures and the trend of natural versus cost and marketing benefits are discussed. Trends in consumption and regional variances are parameters of high importance for FMCG as well as ingredient manufacturers. Cases in beverages and industrial activities in the sector are discussed in the report.

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Key Findings

Why was the report written?

This report was written as synthesized flavors towards natural flavor extracts are trending. 

What is the current market landscape and what is changing?

Generally beverages within US and Europe are predominantly using natural flavors, however in other world regions there’s still significant room for growth. The markets also differ in flavor popularity which creates dynamics for suppliers of new natural trending flavors. 

What are the key drivers behind recent market changes?

Key drivers are clean label and natural claims within Western markets, both due to consumer demands as well as more precise differentiation in regulations of “natural“ vs. “artificial”.

What makes this report unique and essential to read?

The report investigates flavor in beverages, drivers and market options, suppliers, as well as regional issues. It furthermore informs about the regulatory situation as well as patent activities. The report further looks at current soft drinks categories and the use of flavors as well as presents product cases.

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Synopsis

• Natural flavors are well implemented in most beverage categories, however Latin America and Asia have room for reformulating with these flavor types. The report discusses natural flavors and product formulation constraints and marketing regulatory boundaries for particularly the beverage industry. 
• Whereas mainstream flavors as cola, coffee and citrus fruits are global., new flavors are trending in various markets, and the variation from continent to continent is markedly different. 
• Identify new market opportunities for flavors in beverages and brand owners consumption status.

Reasons To Buy

• Overview of food flavor ingredients issues, supplier’s activities, current consumptions and trends for beverages.
• Natural flavors are trending in all markets – but the flavor types demonstrating most growth dynamics per continent differ significantly.
• The suppliers of flavors have very proprietary technologies and skills, and globalization has caused increasing consolidation of the market leaders via acquisitions for natural flavor operators and expansions of geographic activities.
• Beside the proprietary flavor of market leader Red Bull, there’s a diversity of herbal and fruit flavors in the energy drinks market.

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Table of Contents

1. Introduction

1.1 Report Description

1.1.1 Why a Report on Flavors?

1.1.2 Scope of the Report

1.2 Research Methodology

1.2.1 Secondary Research

1.2.2 Primary Research

2. Executive Summary

2.1 Introduction

2.2 Market Dynamics

2.3 Regulations

3. Introduction to Flavors

3.1 What are Flavors?

3.2 Types of Flavors

3.2.1 Natural Flavors

3.2.2 Nature Identical Flavors

3.2.3 Artificial Flavors

3.3 Difference between Natural and “Artificial” Flavors

3.3.1 Health Benefits of Natural Flavors

3.4 How Flavors Work?

3.4.1 Flavor Creation and Determination

3.4.2 Dietary Restrictions

3.4.3 Flavor Costs

3.5 Regulatory Status of Flavors

3.5.1 Food and Drug Association (FDA)

3.5.2 European Food Safety Authority (EFSA)

4. Applications of Flavors in Beverages

4.1.1 Carbonated Drinks

4.1.2 Categories of Drinks

4.1.3 Regional Trends

5. Supply Overview

5.1.1 Regional Diversity Affects Supply Strategy

5.2 Raw Materials and Ingredient Manufacturing

5.2.1 Extraction Methods

5.3 Ingredient Suppliers

5.3.1 Flavor Market is Dominated by Large Multi-national Companies

5.4 Flavor Selection Criteria

5.4.1 Raw Material Availability

5.4.2 Material Cost and Dosage Levels

5.4.3 Stability And Consistency

5.4.4 Market Volatility

5.4.5 Flavor matching

5.5 Recent Industry Events

6. Consumer Product Manufacturers

6.1 Demand Is Rising Due To Health Claims

6.1.1 Flavor has a Clean Label Potential

6.2 Strong Potential in Functional and Fortified Beverages

6.2.1 Natural Flavors Demand is increasing from Beverage Manufacturers

6.3 Cases

6.3.1 Beverages

6.4 Patents

6.4.1 Global Natural Flavors Patents by Country

6.4.2 Global natural Flavors Patents by Company

6.4.3 Global Natural Flavors Patents by Year

7. Appendix

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