Beverage Flavoring System Market Regional Industry Size, And Company Financial Performances 2028

Beverage Flavoring System Industry Overview

The global beverage flavoring system market size is expected to reach USD 7.0 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 5.3% from 2020 to 2028. The increasing demand for both alcoholic and non-alcoholic beverages across the globe especially among the adult population is primarily driving the market growth. The developing economies are majorly supporting the growth through their economic development and growing purchasing power of residents.

U.S. beverage flavoring system market size, by beverage type, 2018 - 2028 (USD Million)

Beverage Flavoring System Market Segmentation

Grand View Research has segmented the global beverage flavoring system market based on ingredients, beverage type, flavor type, form, origin, and region:

Based on the Ingredients Insights, the market is segmented into Flavoring agents, Flavoring carriers, Flavor enhancers, Others.

  • The flavoring agents segment dominated the market for beverage flavoring systems and held the largest revenue share of 71.4% in 2020. These agents are also estimated to maintain their dominance throughout the forecast period. These agents are added to modify, magnify, or complement the taste and aroma of the beverages. Some of the common flavoring agents utilized in the formation of beverages include alcohols, esters, aldehydes, MSG, protein hydrolysates, and ketones.
  • The flavoring agents are made up of natural and artificial origin substances. Natural flavoring agents are derived from plants and animals, whereas, artificial flavoring agents are manufactured from varied chemicals. Artificial flavoring agents are copies of natural flavors and are manufactured to smell and taste like them. These are easily available and less expensive as compared to their natural counterparts. In spite, artificial flavoring agents are having a lesser share in the market as compared to the natural flavoring agents.

Based on the Beverage Type Insights, the market is segmented into Alcoholic and Non-alcoholic.

  • The alcoholic beverages segment is projected to experience the fastest growth over the forecast timeframe. The increasing demand for flavored alcoholic drinks like rose-flavored vodka, gin, and beer is projected to support the fastest growth during the estimated timeframe. Manufacturers are focusing on the development of new and different flavors of alcoholic beverages, thereby propelling the growth of the segment.
  • The non-alcoholic segment dominated the market for beverage flavoring systems and held the largest revenue share of about 75.9% in 2020. The wide range of products under the non-alcoholic segments such as energy drinks, flavored milk, flavored water, mocktails, and juices, among others are contributing to the dominating share of the segment. The increasing varieties of aforementioned product types under non-alcoholic beverages are further supporting the maximum revenue share of the segment in the market for beverage flavoring systems.

Based on the Form Insights, the market is segmented into Dry and Liquid.

  • The liquid form segment dominated the market for beverage flavoring systems and held the largest revenue share of about 73.7% in 2020. The segment is also projected to maintain its dominance over the forecast period. The ease of processing associated with the liquid flavors is primarily contributing to its dominance in the market for beverage flavoring systems. This easy mixing capability offers increased stability that leads to its preference by the beverage manufacturers.
  • The liquid segment is also projected to exhibit the fastest CAGR of 5.4% from 2020 to 2028. The rapidly increasing demand for beverages in the market is contributing to the fastest growth of the segment in the market for beverage flavoring systems. The wide range of beverages and their respective liquid flavors for essences, extracts, and emulsions are supporting the fastest growth in the near future.

Based on the Origin Insights, the market is segmented into Artificial and Natural.

  • The natural origin segment dominated the market for beverage flavoring systems and held the largest revenue share of about 57.5% in 2020. The health benefits associated with the natural flavors since they are sourced from naturally available products such as parts of plants or animals is the primary factor contributing to the maximum revenue share. Commonly, these flavors are extracted from varied sources like fruits, leaves, pods, or the roots of plants. Some of the ingredients used to derive natural flavors include orange, mango, rose, coffee, and ginger.
  • The natural-origin flavors are safer for human consumption as compared to their chemical counterparts. Chemically synthesized flavoring ingredients often result in health hazards such as allergies or chronic diseases such as cancers. Additionally, natural-origin ingredients are also eco-friendly because they don’t contribute to severe environmental pollution as compared to the artificial flavors while production or disposal.

Beverage Flavoring System Regional Outlook

  • North America
  • Europe
  • Asia Pacific
  • Central & South America
  • Middle East and Africa (MEA)

Key Companies Profile & Market Share Insights

The market is highly competitive as flavor manufacturers are focusing more on distribution and supply chain strategies. The flavor manufacturers have also been keeping the track of emerging trends in the beverage industry, which is helping them to cope up with the future demands from their customers. The continuously changing preference of the consumers about taste and flavor is the key aspect for the flavor manufacturers.

Some of the prominent players operating in the global beverage flavoring system market include,

  • ADM
  • Givaudan
  • Sensient Technologies Corporation
  • Kerry Group
  • International Flavors and Fragrances Inc.
  • Firmenich SA
  • Takasago International Corporation
  • Flavorchem & Orchidia Fragrances
  • Tate & Lyle
  • MANE
  • Döhler
  • Symrise

Order a free sample PDF of the Beverage Flavoring System Market Intelligence Study, published by Grand View Research.

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