The scope of our recent study, titled "Aroma Ingredients for Food and Beverages Market Forecast to 2030 - Global Analysis - by Type, Application, and Geography," includes the description of factors fueling the aroma ingredients for food and beverages market growth, estimation and forecast of revenue, and identification of significant market players and their key developments, along with market share analysis.
The aroma ingredients for food and beverages market are expected to grow from US$ 1.21 billion in 2022 to US$ 1.67 billion by 2030; it is expected to record a CAGR of 4.1% from 2022 to 2030.
The market is majorly driven by an increasing importance of aroma in food and beverages industry and strategic initiatives by key market players. In the food & beverages industry, aroma ingredients have become increasingly vital for enhancing the sensory experience. Consumers are becoming more discerning and seeking products that taste good and have an appealing aroma. Moreover, in an industry characterized by huge competition, differentiation is a key to capturing consumers' attention. This demand has resulted in manufacturers understanding the importance of creating high-quality aroma ingredients for food and beverages to taste delicious and evoke positive sensory responses to attract consumers. Aroma ingredients offer a unique opportunity for manufacturers to differentiate their products. By experimenting with diverse aroma profiles and incorporating novel fragrance combinations, food and beverage companies can create innovative offerings that cater to evolving consumer preferences. This emphasis on differentiation through aroma allows and builds a loyal customer base, thereby driving the demand for a wide array of aroma ingredients
Aroma ingredient manufacturers in the food & beverages industry are significantly involved in mergers and acquisitions, collaborations, and other strategic developments to attract consumers and enhance their market position. Increasing demand for aroma ingredients from various food and beverage establishments that produce and sell bakery and confectionery, dairy, frozen desserts, and other items has resulted in key players adopting strategic initiatives to strengthen their market position globally. For instance, in November 2023, BASF SE announced the launch of two new natural aroma ingredients: Isobionics Natural alpha-Bisabolene 98 and Isobionics Natural (-)-alpha-Bisabolol 99. Such product developments are contributing to the market growth.
Key players in the market are expanding their production facilities and entering into agreements with distributors to strengthen their market position. For instance, in December 2021, Tilley Distribution, Inc. announced the merger with Phoenix Aromas and Essential Oils. The merger will help provide high-quality products to new and existing consumer bases with teams experienced in providing regulatory and technical support. In addition, in July 2021, Symrise AG acquired Canada-based Giraffe Foods Inc., a Canadian producer of customized sauces, dips, dressings, syrups, and beverages. The acquisition will expand Symrise's Flavor & Nutrition segment in North America, boosting its market position and customer intimacy. Thus, strategic initiatives by key market players fuel the global aroma ingredients for the food and beverages market growth.
The production and use of aroma ingredients in various food and beverage applications are regulated by various government agencies. Regulatory bodies such as the Food and Drug Administration (FDA) and European Food Safety Authority (EFSA) impose strict guidelines and standards on the use of aroma ingredients to ensure consumer safety and product quality. For instance, the United Nations Environment Programme has regulated the use of food aromas. This regulation provides for all necessary conditions for the correct, controlled, and safe use of flavorings and aromatic ingredients or aromas in foods. Additionally, the Food and Drug Administration (FDA) imposed a regulation on food aroma that can be used in and on food. Meeting these regulatory requirements comes with extensive testing and documentation processes, which can be time-consuming and cost-intensive for manufacturers. The approval process for aroma ingredients can be lengthy and complex, further hindering innovation and product development within the industry.
By type, the market is bifurcated into synthetic and natural. The synthetic segment is further segmented into terpenes, aldehydes, aliphatic, and others. The natural type segment is further divided into essential oils, herbal extracts, oleoresins, and others. In 2022, the synthetic segment held a larger aroma ingredients for food and beverages market share. The natural segment is expected to register a higher CAGR from 2022 to 2030. Synthetic aroma ingredients are chemical compounds that mimic natural flavors found in foods and beverages. The surge in the demand for these ingredients in the food & beverages industry can be attributed to several factors. First, synthetic aroma ingredients provide consistency in flavor profile, ensuring that products taste the same every time, regardless of variations in natural ingredients. This consistency is crucial for brand identity and consumer satisfaction. Second, they offer cost-effectiveness compared to natural aroma ingredients, making them more accessible to manufacturers, particularly in large-scale production. Additionally, advancements in flavor science have led to the development of synthetic ingredients that closely replicate natural flavors, satisfying consumer preferences for familiar tastes while offering unique flavor combinations. In conclusion, concerns regarding the stability and availability of natural ingredients and regulatory pressures have further propelled the adoption of synthetic aroma ingredients in the food & beverages industry.
Based on geography, the aroma ingredients for food and beverages market report is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. Asia pacific accounted for the largest aroma ingredients for food and beverages market share. In Asia Pacific, developed and developing countries are witnessing growth in urbanization, coupled with the rising middle-class population, offering several opportunities to the market players. The region is experiencing demand for diverse and innovative food and beverage options. The vast cultural diversity in Asia Pacific has resulted in varied dietary preferences. The region reports increased demand for plant-based food products due to the surge in vegan population. In addition, changing consumer preferences toward healthy alternatives and surging environmental concerns post-COVID-19 pandemic have resulted in the demand for plant-based foods. According to Biospringer, around 24% of consumers in Asia Pacific are limiting their meat consumption for environmental convictions. Aroma ingredients play a crucial role in enabling manufacturers to create plant-based food products with exciting and novel aroma combinations, enhancing the appeal of their products to a wider consumer base.
1.1.1 Aroma Ingredients for Food and Beverages Market Breakdown - by Region
The report segments the aroma ingredients for food and beverages market as follows:
The global aroma ingredients for food and beverages market analysis is carried out by considering the following segments - type, application, and geography. Based on type, the market is segmented into synthetic and natural. The synthetic segment is further segmented into terpenes, aldehydes, aliphatic, and others. The natural type segment is further categorized into essential oils, herbal extracts, oleoresins, and others. In terms of application, the market is divided into bakery and confectionery, dairy and frozen desserts, beverages, sweet and savory snacks, RTE and RTC meals, and others. By geography, the aroma ingredients for food and beverages market is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America.
Contact UsContact Person: Sameer Joshi
Phone: +1-646-491-9876
Email Id:
sales@premiummarketinsights.com