Beverage Flavoring Systems Market Growth, Analysis and Global Industry Outlook by 2025

Beverage flavoring nowadays is seen as an innovative segment across the food & beverage industry which has urged the manufacturers to experiment and develop new flavors to cater to the ever-changing tastes of the consumers. For instance, beverage innovations providing ethnic flavors as well as botanical and floral flavors in various alcoholic and non-alcoholic drinks are witnessing a higher adoption. This is likely to provide major momentum to the global beverage flavoring systems market over the coming years.

The elevating consumer demand for organic, gluten-free, non-GMO, and similar product categories on account of increasing health consciousness is strongly driving the trend of natural beverage flavoring.

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In addition, technological advancements pertaining to beverage flavorings such as development of encapsulated flavors, is expected to provide positive growth prospects for the industry. Encapsulation is largely used for applications such as instant drinks, loose tea, tea bags and coffee. It also offers multiple advantages such as controlled release, odor masking, better shelf life, stability and precision in nutrient delivery.

An overview of some of the pivotal trends driving the growth of beverage flavoring systems market is outlined as under:

Strategic initiatives by major industry players

Prominent industry players operating in beverage flavoring systems market such as Givaudan, Symrise, Sensient Technologies, Firmenich, Mane, Takasago International Corporation, Robertet SA, Dohler, etc. are focusing on developing innovative solutions and implementing effective business strategies to gain strong market presence. For instance, in 2018, Firmencih introduced its new clean label and natural platform for developing new products.

Citing another instance, in 2020, Givaudan announced partnership with the University of California, Riverside, in a bid to introduce an innovative virtual reality solution for citrus beverage applications. According to the company, this solution will help in creating flavors and providing educational content regarding fruit origins, groves along with different varieties, sensory attributes and challenges faced by citrus market.

Rising adoption of carriers as ingredient in beverages

Carriers as an ingredient is extensively utilized in beverage production for diluting the flavoring agents according to the required concentration levels. The most widely used carriers in the industry are ethyl alcohol, propylene glycol, vegetable glycerin and triacetin. Another important factor favoring the adoption of carriers is increasing proclivity for encapsulated systems which will positively influence the segment outlook.

Growing inclination towards natural beverage flavoring systems

As health consciousness among the global population is continuously increasing, natural beverage flavoring systems are gaining massive traction across the world and are highly supported by labelling norms. Besides, consumers are also willing to invest in premium quality products that offer important health benefits which is largely fueling the product demand. According to the report, natural beverage flavoring systems segment is estimated to observe a substantial CAGR of 5.5% through 2025.

Mounting popularity of non-alcoholic beverages

Positive outlook for non-alcoholic beverages such as green tea, ready-to-drink 3-in-1 coffee, plant-based drinks, etc. has enormously increased the adoption of beverage flavoring solutions. These beverages are considered as the most innovative segment across F&B sector working towards developing products to effectively serve the changing consumer tastes. For instance, berries and citrus are among the highly preferred flavors in beverages. Non-alcoholic beverages are projected to account for 71% share across global beverage flavoring systems industry by 2025.

Heightened demand for liquid flavors for beverages

Liquid flavors offer easy and quick blending product with a homogenous distribution which helps in maintaining the product quality. They find extensive usage in beverages such as fruit juices, energy drinks and carbonated drinks which is fostering the demand for liquid flavors. Reportedly, liquid flavor segment is estimated to record the sales of more than USD 4 billion by 2025.

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Increasing consumption of cold and hot beverages across Asia Pacific

Beverage flavoring systems are gaining immense popularity across Asia Pacific owing to increased consumer expenditure on hot and cold drinks in the region. With increasing competition in the regional market, several leading beverage manufacturers are focusing on developing new products which is favoring the industry growth. Besides, growing disposable income, increasing urbanization and expanding retail network are some of the prominent factors enhancing the business space. Given the prominence of these factors, the regional beverage flavoring systems market is expected to secure a significant share of over 35% by 2025 with Japan, China and India holding more than 50% of the share.

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