According to the latest market report published by Persistence Market Research titled “Natural and Organic Flavors Market: Global Industry Analysis and Forecast, 2016-2024”, globally, the revenue generated from the sales of natural and organic flavors is estimated to be valued at US$ 4,608.6 Mn by 2016 end, and is expected to increase at a CAGR of 7.6% during the forecast period (2016-2024).
Increasing health consciousness among consumers, rapid urbanization, introduction of new flavors with more sensational taste, growing disposable income, and increasing emphasis on uniqueness in taste in processed food and beverages products are some of the key trends in the global natural and organic flavors market.
On the basis of source, fruits and fruits juices remain a key source for natural and organic flavors. The segment is expected to dominate the market, accounting for a share of 56.2% in 2016. The plants & botanicals segment is estimated to be the second-largest in terms of revenues. This segment is further divided into spices, herbs, and others (including bark, bud, root, leaf etc.); the spices sub-segment is anticipated to witness a high growth rate in 2016, with overall revenues growing by 7.3%.
On the basis of flavor type, the natural flavor segment is estimated to hold the highest value share in the global natural and organic flavors market, accounting for 96.2% revenue share in 2015. The segment is expected to maintain its dominance throughout the forecast period.
In terms of volume consumption, Asia Pacific is consider to be the fastest growing market, and is expected to witness a growth rate of 8.3% in 2016. This is mainly attributed to factors such as increasing applications in beverages, confectionaries, and savories end use products during the forecast years 2016-2024.