U.S. Market for Flavors
It’s no secret that today’s grocery shoppers demand fresh, fast, and healthy foods. They also want flavor, and plenty of it. Bold and exotic flavors are in: sriracha is becoming a household word, tangy flavors like lime and tomatillo are cropping up in snacks and sauces, and unexpected pairings of herbs and spices, like vanilla-cardamom, or cilantro-basil are bolstering sauces or desserts.
While their taste preferences spiral to bold and adventurous, consumers are also highly health conscious. No longer looking to avoid simply salt, fat, or trans-fat, today’s shoppers are also wary of long ingredients lists, names they can’t pronounce, and artificial flavors, artificial flavor enhancers, and other synthetic additives. The transition of food products to recognizable and natural ingredients, including natural flavors and spices/herbs, presents a significant and fast-growing opportunity. Shortening ingredient lists and substituting artificial and unrecognizable ingredients with natural or recognizable ingredients continues to be a winning strategy for many packaged food manufacturers.
The continued transition to clean labels brings significant challenge and also significant opportunity to the flavors industry. Natural ingredients and natural food additives often impart their own, unexpected flavors and properties to foods. Natural flavors also tend to suffer from limited shelf stability. As a result, many packaged food products recipes must be completely reformulated when transitioning to clean label. This transition continues to drive substantial scientific and market development in the flavor industry. Companies that have positioned to take advantage of the clean label transition have fared well, and many have done extremely well, posting low to mid double-digit growth in recent years. Other key trends include:
U.S. Market for Flavors evaluates the existing size and anticipated future growth of the U.S. flavors market, with breakdowns for the following categories of flavors: flavor additives, flavor enhancers, sugar substitutes, and spices (including herbs). Markets and market growth potential are evaluated for up to 12 categories of common center store food categories based on data for mass-market channels, corporate earnings reports, and other available data, combined with market trends and growth factors discussed above and within the report.
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