Download Sample, Biotech Flavours are Becoming Popular as a Healthier Alternative to Synthetic Flavours
Biotech flavours provide nutritional benefits and improve the flavour and consistency of the food product. This enables food companies to ensure a steady supply of food products to meet rising demand. Natural flavours gained popularity over synthetic flavours in recent years as they are a healthier alternative to add flavour to foodstuffs. As a result, many processing companies are moving towards natural flavours and focusing their efforts on producing stable natural biotech flavours in the global marketplace. The increasing use of biotech flavours in various food items such as cakes, ready-to-eat meals, chocolates and others to provide consumers with authentic, clean-label, end-to-end traceable products is further propelling market expansion. Moreover, increasing environmental concerns among consumers have encouraged processing companies to replace synthetic chemicals in foods with biotech flavours. Furthermore, biotech flavours are not dependent on harvest processes for product manufacturing so this aspect is anticipated to boost market expansion.
Rising Consumer Preference for Natural Flavourings Leads to Market Expansion
The market in North America is expected to develop significantly due to increased demand for high-quality and natural flavoring agents. The growing health concerns due to the intake of high-sugar products have driven people to look for natural alternatives. According to the Centers for Disease Control and Prevention (CDC), almost 11.3% of the U.S. population has diabetes. Additionally, the presence of key players like International Flavors & Fragrances Inc. and Sensient Technologies Corporation has led to a growth in consumption and market penetration of these products and is expected to drive regional markets for biotech flavors.
Due to increased research and interest in the development and processing of natural flavors, Asia Pacific is expected to offer enormous potential for market growth throughout the forecast period. According to the India Brand Equity Foundation, India is one of the top 12 biotechnology locations in the world. The amount of biotech startup registrations has increased across the country in 2021, with approximately 1,128 new startups registered. Leading biotech flavor processing companies are increasing their operations in the region, including Givaudan SA, the world's top flavor and fragrance manufacturer, which inaugurated a new flavors manufacturing facility in Pune, India, in 2019. The CHF 60 million factory is the company's biggest investment in India and demonstrates commitment to harnessing Asia Pacific growth potential.
Due to increased research and interest in the development and processing of natural flavors, Asia Pacific is expected to offer enormous potential for market growth throughout the forecast period. According to the India Brand Equity Foundation, India is one of the top 12 biotechnology locations in the world. The amount of biotech startup registrations has increased across the country in 2021, with approximately 1,128 new startups registered. Leading biotech flavor processing companies are increasing their operations in the region, including Givaudan SA, the world's top flavor and fragrance manufacturer, which inaugurated a new flavors manufacturing facility in Pune, India, in 2019. The CHF 60 million factory is the company's biggest investment in India and demonstrates commitment to harnessing Asia Pacific growth potential.
Recent Trends in the Biotech Flavours Industry
- Natural and organic food products that offer clean-label attributes.
- Cost-effective and scalable production of biotech flavours to enhance availability and variety in the market.
- High investment in research and development to explore new flavour profiles.
- Customized flavours to cater to specific health conditions or nutritional requirements.
- Sustainable production methods to reduce the environmental impact of flavour manufacturing.
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High Processing Costs and a Short Shelf Life are Becoming Threats to Market Participants
The biotech flavour's short shelf life is anticipated to hamper the biotech flavour market growth. Biotech flavours have a shorter shelf life as it doesn't have any artificial preservatives that extend shelf life. The usual shelf life of a biotech product is six months to one year. As a result, the shorter shelf-life of biotech flavours is expected to limit consumer adoption, thus, limiting market growth. The high cost of raw materials used in biotech flavours is expected to restrict market expansion. Furthermore, due to the high expenses associated with the processing, production, and storage of natural and biotech flavours, it is expected to be more expensive than artificial flavours. These aspects are expected to restrict the growth of the biotech flavour market over the forecast period.
Novel Innovations, Mergers and Investments are Expected to Encourage Market Growth for Biotech Flavours
Over the forecast period, rising demand for spicy flavours is anticipated to present new growth opportunities. Frito-Lay North America, Inc. (Doritos) collaborated with Buffalo Wild Wings, INC. in 2021, and introduced Doritos Spicy Sweet Chili Flavoured Sauce. The market expansion of the biotech flavour is therefore expected to be driven by an increase in the launch of spicy flavours. Novozymes A/S, a Danish biotech company, launched an eco-friendly umami flavour in Jun 2020 by breaking plant protein with engineered enzymes. The product was designed to fulfil rising consumer demand for more natural, less harmful chemical products. Firmenich SA, a perfume and taste company, announced the opening of its new biotechnology and naturals pilot plant and laboratory in Geneva in Sep 2020. International Flavors & Fragrances Inc. and DuPont de Nemours, Inc. (DuPont Nutrition and Biosciences) joined as a megamerger in Feb 2021. The merger combines IFF's expertise in food flavours and fragrances with the DuPont division's leadership in probiotics, enzymes and food protection.
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Biotech Flavours Market is Being Driven by the Nutritional Benefits
The growing consumer preference for natural and chemical-free food components is a major driver of the biotech flavours market. Flavourings were originally created by chemically synthesising molecules extracted from plants. Chemically manufactured flavours have negative health effects such as unpleasant odour and diabetes, that is increasing demand for natural biotech flavours. Due to the widespread use of flavourings in beverages, food and beverage is expected to be the dominating segment. Owing to its convenience and nutritional characteristics, consumers prefer naturally flavoured beverages such as juices, carbonated beverages, energy drinks and ready-to-drink beverages. Furthermore, rising beverage consumption is likely to boost biotech flavours market expansion in the coming years.
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The report provides a detailed overview of the biotech flavours market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the biotech flavours market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the biotech flavours market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the biotech flavours market. Some key countries and regions included in the biotech flavours market report are as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Central America Countries, Caribbean Countries, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Sweden, Austria, Norway, Denmark, Czech Republic, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Thailand, Bangladesh, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Ethiopia, Algeria, Israel, Iran, Iraq, Kenya, Rest of MEA |
Biotech Flavours Market Research Report Covers In-depth Analysis on:
- Biotech flavours market detailed segments and segment-wise market breakdown
- Biotech flavours market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in biotech flavours industry)
- Current, historical and forthcoming 10 years market valuation in terms of biotech flavours market size (US$ Mn), volume (Tons), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Biotech flavours market demand analysis
- Biotech flavours market pricing analysis over the forecast period (by key segment and by region)
- Biotech flavours market regional insights with the region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the biotech flavours market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in the biotech flavours market
- Biotech flavours market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on the biotech flavours market forecast by countries
- Mergers and acquisitions in the biotech flavours market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the key factors driving the demand for biotech flavors in the market?
The demand for biotech flavours is driven by growing consumer preference for natural ingredients, increased health-consciousness, and the shift towards clean-label and sustainable products in the food and beverage industry.
What challenges are faced by the biotech flavours market?
Challenges include the high production costs associated with biotech processes, regulatory hurdles for new ingredients, and competition from synthetic flavouring agents, which are often more cost-effective for manufacturers.
What is the future outlook for the biotech flavours market?
The biotech flavours market is expected to experience robust growth due to increasing consumer demand for sustainable, natural, and clean-label products. Technological advancements in biotechnology will continue to support this growth trajectory.
