Flavor Enhancer Market Is Estimated To Witness High Growth Owing To Increasing Demand For Food Addit
Author : Leena Shedmake | Published On : 01 Feb 2024
Flavor enhancers are food additives that are added to food and beverages in order to improve or modify their taste. They improve food flavor without adding a flavor of their own. Some common examples of flavor enhancers are monosodium glutamate (MSG), nucleotides, hydrolyzed plant proteins, and yeast extracts. The use of flavor enhancers has increased significantly in food processing and food service industries as they help manufacturers and chefs to reduce salt and fat content without compromising on taste.
The global flavor enhancer market is estimated to be valued at US$ 4.22 Mn in 2024 and is expected to exhibit a CAGR of 24% over the forecast period of 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The increasing demand for food additives that can enhance taste without significantly changing the nutritional profile of food products presents a major market opportunity for players in the flavor enhancer market. With consumers becoming more health conscious, they prefer food products with reduced fat, sugar or salt content. However, reducing these ingredients can negatively impact the taste. Flavor enhancers help address this issue by amplifying the existing flavors with minimal addition of salt, fat or sugar. Thus, the ability of flavor enhancers to improve taste while maintaining nutritional parameters is expected to drive their increasing demand from the food processing and foodservice industries over the forecast period.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate in the flavor enhancer market. Developing a proprietary formula and scaling manufacturing requires significant capital investments and regulatory approvals.
Bargaining power of buyers: The bargaining power of buyers is high. Buyers have many options to choose from with the presence of several key players. Buyers can negotiate on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Key raw materials such as monosodium glutamate and seasonings have few substitutes but suppliers still do not have significant control over pricing.
Threat of new substitutes: The threat of substitutes is moderate. While some taste enhancers offer similar functionality, few products can match the taste enhancement provided by flavor enhancers.
Competitive rivalry: Competition in the flavor enhancer market is intense.
SWOT Analysis
Strengths: Wide range of product offerings. Strong brand awareness. Established distribution channels.
Weaknesses: High research and development costs. Vulnerability to price fluctuations of raw materials.
Opportunities: Potential for market expansion in developing regions. Growing demand from food processing industry.
Threats: Stringent regulatory framework. Threat from substitutes and private label brands.
Key Takeaways
The Global Flavor Enhancer Market Demand is expected to witness high growth over the forecast period of 2024 to 2031. The market size for 2024 is estimated to be US$ 4.22 Mn.
Regional analysis for the flavor enhancer market includes North America, Europe, Asia Pacific, South America, and Middle East & Africa. Asia Pacific is projected to be the fastest growing as well as the dominating regional market over the forecast period. The high growth can be attributed to rising disposable incomes, growing population, and increasing expenditure on food products in countries such as China, India.
Key players operating in the flavor enhancer market include BOL Pharma, Tilray, Medreleaf Corporation, Aurora Cannabis, Inc., Canopy Growth Corporation, Insys Therapeutics, Inc., Aphria, Inc., MGC Pharmaceuticals Limited, GW Pharmaceuticals, plc., and Medical Marijuana Inc. Strategic collaborations are found to be among the key strategies adopted by leading players.
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