Organic Flavors Market Trends

Growth Drivers

• Growing Consumer Inclination towards Organic and Clean-label Products to Boost the Market Growth
  Since a large number of consumers are looking for healthier and clean-label food options, they are gaining interest in foods with exotic and ethnic flavors which increases the demand for natural and organic flavor blends. Moreover, global ongoing natural food trends and introduction of new sources of flavors has led to a rise in the demand for natural and organic flavor globally. According to the statistical survey report titled “Organic Industry Survey”, published by the Organic Trade Association (OTA), stated that in the year 2019, the U.S. organic food sales reached USD 47.9 billion, which was an increase by 5.9 percent from its previous year. Further, adoption of advanced and innovated technologies in raw material processing as well as increased research activities in flavor extraction provides ample business opportunities for the food and related industry. This is anticipated to significantly expand the global natural and organic flavor market.
• Rising Health Awareness Among the Population to Drive the Market Growth
  Increase in the number of people preferring healthy and natural food products that contain organic and naturally-derived food ingredients, along with the offering of unique, newer and tastier flavors by the manufacturers are some of the factors anticipated to fuel the growth of global market. Further, owing to the carcinogenic properties present in artificial flavorings, majority of the population checks the food labelling of a product before buying it. Additionally, as natural and organic flavor offer several health benefits, there is an increasing demand for the replacement of synthetic ingredients with natural and organic flavor amongst the consumers. Such factors are projected to drive the growth of the global natural and organic flavor market over the forecast period.

Challenges

• High Production Costs and Regulatory Constrains
  Despite the growing usage of flavors in food products, high cost involved in the preparation of these food and beverage chemicals coupled with the legal obligation to abide by the regulatory standards is estimated to hinder the growth of market in the future.
• Perishable and Lower Stability
  Natural and organic flavor, being perishable in nature are less stable during processing, handling, and storage when compared to synthetic flavors and thereby they may decrease the shelf life of products, which is further projected to hamper the growth of the global market.