Dairy Flavors Market Growth Opportunities and Forecast by 2028

The dairy flavors market size is expected to grow from US$ 1,962.45 million in 2022 to US$ 2,552.19 million by 2028; it is estimated to grow at a CAGR of 4.5% from 2022 to 2028.

Dairy flavors are flavoring agents added to various food products and beverages to impart the flavor of dairy products such as butter, cheese, cream, and milk. Dairy flavors are gaining traction in the food & beverages industry as they aid in imparting dairy flavor without adding to the calories or fat content of the product. Dairy flavors are processed and manufactured from dairy products such as milk, butter, cheese, and cream and are available in liquid, powder, and paste formats. These flavors are intended to enhance the taste and intensity of various food products by providing them with an array of flavor profiles such as buttery, cheesy, creamy, and several other sweet and savory tastes. Dairy flavors are used in various food products such as bakery & confectionery, sweet & savory snacks, soups & sauces, dips & dressings, and frozen desserts.

In 2021, Asia Pacific held the largest share of the dairy flavors market and is estimated to register the highest CAGR during the forecast period. The market growth in this region is mainly attributed to rising health awareness and increasing focus on tasty food in countries such as India, China, and Japan due to the growing disposable incomes. Consumers are willing to pay higher prices for dairy flavor products in these countries. India stands as one of the fastest-growing markets in Asia Pacific, where consumers are not willing to compromise on the taste and health factors of the food. There is a massive demand for regional and traditional flavors from the Indian subcontinent, which is fueling the market growth.

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Impact of COVID-19 Pandemic on Dairy Flavors Market

Before the pandemic, the growing demand for processed food and the increasing consumer requirement for a variety of flavors and tastes of the product were the key factors that boosted the growth of the dairy flavors market. The dairy flavors market was driven by the food & beverages industry incorporating a variety of flavors in its products. Moreover, consumer shift toward natural flavors and increased consumption of ready-to-eat products among the population were among the other factors positively influencing the market growth. However, industries experienced unprecedented challenges after the onset of the COVID-19 pandemic in 2020, including supply chain constraints caused by nationwide lockdowns, trade bans, and travel restrictions. The supply chain disruptions created a shortage of raw materials, which affected the production and distribution of various products, leading to increased prices.

In 2021, various economies resumed operation as governments of various countries announced the relaxation of the previously imposed restrictions, which boosted the global marketplace. Further, manufacturers were permitted to operate at full capacity, which helped them overcome the demand and supply gap and other repercussions. As numerous citizens of many countries were fully vaccinated by 2021, the dairy flavor manufacturers focused on increasing their production to revive their businesses.

Market Insights

Strategic Developments by Key Players Favor Dairy Flavors Market Growth

In June 2020, Edlong expanded its dairy-based natural flavors segment by including a line of high-intensity cheese and cultured profiles for use in sauces, dressings, and dips. In May 2021, Synergy Flavors Acquires Innova Flavors from Griffith Foods Worldwide. This acquisition provides considerable benefits to Synergy customers by giving them access to a proven variety of flavors to address the growing demand for natural flavors and savory ingredients. Such strategic developments by key players in the market are expected to surge the growth of the dairy flavors market. In addition, some of the key players in the region are involved in strategies such as mergers and acquisitions to expand their geographical presence.

Flavor Profile Insights

Based on flavor profile, the dairy flavors market is segmented into cheese, butter, cream, and others. The cheese segment held the largest market share in 2021 and is expected to register the highest CAGR during the forecast period. The popularity of cheese flavor is based on its use in popcorn, potato chips, cookies, crackers, dips & spreads, and sauces, among other products. Elevating demand for food products, growing retail outlets, and increasing preference for fast food are bolstering the requirement for cheese flavors.

Application Insights

Based on application, the dairy flavors market is segmented into bakery and confectionery; dairy and frozen desserts; soups and sauces; dressings, dips, and spreads; beverages; and others. Bread, cookies, cakes, and fillings are among the primary bakery and confectionery applications of dairy flavors. Confectionery manufacturers are increasingly using natural flavors in their products. Dairy-based flavors are increasingly being used in bakery products such as cookies and cakes.

Jeneil, Flavorjen, The Edlong Corporation, Givaudan S.A., Kerry Group, Sensient Technologies, Symrise, Synergy Flavors, Bluegrass Ingredients Inc., and Flavorade India are among the major players operating in the dairy flavors market. These companies mainly focus on product innovation to expand their market size and follow emerging market trends.

Dairy Flavors Market Regional Insights

The regional trends and factors influencing the Dairy Flavors Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Dairy Flavors Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Dairy Flavors Market Report Scope

Dairy Flavors Market Players Density: Understanding Its Impact on Business Dynamics

The Dairy Flavors Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Dairy Flavors Market are:

1. Jeneil
2. Flavorjen
3. The Edlong Corporation
4. Givaudan S.A.
5. Kerry Group

Disclaimer: The companies listed above are not ranked in any particular order.

Report Spotlights

• Progressive industry trends in the dairy flavors market to help companies develop effective long-term strategies
• Business growth strategies adopted by the dairy flavors market players in developed and developing countries
• Quantitative analysis of the market from 2022 to 2028
• Estimation of global demand for dairy flavors
• Porter’s Five Forces analysis to illustrate the efficacy of buyers and suppliers in the dairy flavors market
• Recent developments to understand the competitive market scenario
• Market trends and outlook, as well as factors driving and restraining the growth of the dairy flavors market
• Assistance in the decision-making process by highlighting market strategies that underpin commercial interest
• Size of the dairy flavors market at various nodes
• Detailed overview and segmentation of the market and growth dynamics of the dairy flavors industry
• Size of the dairy flavors market in various regions with promising growth opportunities