Flavor Masking Agents Market Analysis and Opportunities by 2030

[Research Report] The flavor masking agents market size is projected to grow from US$ 235.64 million in 2022 to US$ 383.01 million by 2030; it is expected to register a CAGR of 6.3% from 2022 to 2030.

Market Insights and Analyst View:

Flavor masking agents are additives and compounds that mask the undesirable flavor of certain ingredients in processed food and beverages, pharmaceutical drugs, dietary supplements, and pet food. The flavor masking agents market has witnessed significant growth owing to the increasing consumption of processed foods. Moreover, increasing demand from the sports nutrition industry is estimated to boost the flavor masking agents market in the coming years.

Growth Drivers and Challenges:

Consumers are highly concerned about their diet. They pay attention to product labels and additives used in processed foods and beverages. The popularity of organic products is increasing owing to their perceived health benefits. They are free of pesticides, chemical fertilizers, and genetically modified organisms (GMOs), which increase their appeal among consumers who are ready to pay higher prices. Moreover, consumers increasingly prefer clean-label food products free of synthetic colors, flavors, and other additives. Further, they focus on holistic and conscious consumption and prefer products made with ethically sourced additives. Thus, the demand for natural additives is increasing in the food & beverage industry. Kerry Group, one of the known manufacturers of flavor masking agents, offers ‘Prolamin Coating,’ a natural flavor masking agent. It is a known masking agent for bitter taste masking. Prolamin is a plant storage protein found in the seeds of cereal grains such as rice and oats and accounts for ~5–10 % of the total proteins in those plants. Thus, an upsurging demand for natural additives is expected to create a new trend in the flavor masking agents market in the coming years.

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Flavor Masking Agents Market: Strategic Insights

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Report Segmentation and Scope:

The "Global Flavor Masking Agents Market" is segmented into type, application, and geography. By type, the flavor masking agents market is segmented into sweet, salt, fat, bitter, and others. In terms of application, the market is categorized into food and beverages, pharmaceuticals and nutraceuticals, and others. The food and beverages segment is further segmented into bakery and confectionery; dairy and frozen desserts; beverages; meat, poultry, and seafood; meat substitutes; dairy alternatives; RTE and RTC meals; and other food and beverages. Geographically, the flavor masking agents market is segmented into North America (the US, Canada, and Mexico), Europe (Germany, France, Italy, the UK, Russia, and the Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America)

Segmental Analysis

Based on type, the flavor masking agents market is segmented into sweet, salt, fat, bitter, and others. The bitter segment held the largest share of the flavor masking agents market; the sweet segment is expected to register the fastest CAGR during 2022–2030. The demand for bitter flavor masking agents is experiencing notable growth primarily due to consumers' sensitivity to bitterness and the expansion of products with bitter components. As consumer preferences evolve and the market diversifies with the introduction of new beverages, functional foods, fortified food & beverages, and health-focused products, and dietary supplements the need for effective bitter flavor masking agents increases. These agents enable the creation of a broader range of palatable products that cater to various consumer segments, addressing the demand for better-tasting, bitter-sensitive-friendly options in the market.

Based on application, the flavor masking agents market is segmented into food and beverages, pharmaceuticals and nutraceuticals, and others. The food and beverages segment held the largest market share in 2022. Flavor masking agents are widely used in bakery and confectionery, dairy and frozen desserts, meat substitutes, dairy alternative products, Ready-to-eat (RTE) and Ready-to-cook (RTCmeals, and meat and seafood products. Many processed fortified foods such as dairy items, meat products, and bakery and confectionery items contain vitamins, protein, and other functional ingredients with unpleasant odors and tastes. Flavor masking agents are widely used in these products to get the desired flavor and taste. Additionally, flavor masking agents allow for a reduction in the sugar, salt, and fat content of processed foods. Thus, increased consumption of processed foods propels the growth of flavor masking agents market.

Regional Analysis:

Based on geography, the flavor masking agents market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global flavor masking agents market was dominated by Asia Pacific, which accounted for US$ 84.53 million in 2022. North America is a second major contributor, holding approximately 29% share of the global market. Additionally, Europe is expected to grow considerably at a CAGR of 7% from 2022 to 2030. Countries such as China and Japan are the largest market for sports nutrition industry in Asia Pacific owing to rising consumer interest in health and sports and continued presence of international sports festivals such as Olympics and Commonwealth Games. The consumption of nutritional supplements, including fortified food products with proteins, vitamins and minerals, is rapidly increasing. Manufacturers of nutritional supplements heavily rely on flavor masking agents to overcome the undesirable flavor of these supplements. Thus, rapidly growing sports nutrition industry in the region and growing interest of consumers in health and fitness are among the key factors anticipated to propel the flavor masking agents market growth during the forecast period.

Industry Developments and Future Opportunities:

Various initiatives taken by the key players operating in the flavor masking agents market are listed below:

1. In May 2021, Synergy Flavors acquired Innova Flavors from Griffith Foods Worldwide. The acquisition aimed at expanding the savory capabilities of Synergy Flavors in alignment with the exciting new product development happening in meat alternatives, sauces, side dishes, and snacks.
2. In June 2023, Kerry announced the launch of its next generation Tastesense Advanced portfolio of solutions, which aims to redefine the low and zero-sugar product market by delivering incomparable sweetness and full-bodied mouthfeel, as well as sustainability benefits. Tastesense Advanced is a low-cost alternative to sugar and stevia that promotes the development of sweetness closer to sugar and well above 30 Brix sucrose sweetness equivalence, with improved flavour, mouthfeel, and fewer off-notes.

Flavor Masking Agents Market Regional Insights

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

Flavor Masking Agents Market Report Scope

Flavor Masking Agents Market Players Density: Understanding Its Impact on Business Dynamics

The Flavor Masking Agents 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 Flavor Masking Agents Market are:

1. Sensient Technologies Corp
2. Firmenich International SA
3. Tate & Lyle Plc
4. Archer-Daniels-Midland Co
5. Kerry Group Plc

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

COVID-19 Impact:

The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) hampered the growth of several industries, including the food & beverages and pharmaceuticals & nutraceuticals industries. The shutdown of manufacturing units disturbed global supply chains, manufacturing activities, delivery schedules, and essential and nonessential product sales. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2020.

However, in the wake of the pandemic, consumers increased the consumption of dietary supplements and multivitamins that boost immunity and support overall wellbeing. Flavor masking agents are widely used in dietary supplements to mask the off flavors of vitamins, minerals, proteins, and other fortification ingredients. This factor has a positive impact on the growth of flavor masking agents market. Further, the demand for plant-based meat and dairy products increased after the outbreak due to increased sustainability concerns and increased awareness of health benefits of plant-based products. Flavor masking agents and taste modulators are vital ingredients in plant-based meat and dairy products to mask the undesirable flavor and aroma of soy, pea, and other plant-based proteins. This factor also positively influenced the flavor masking agents market growth.

Competitive Landscape and Key Companies:

The top 10 companies operating in the global flavor masking agents market are Sensient Technologies Corp, Firmenich International SA, Tate & Lyle Plc, Archer-Daniels-Midland Co, Kerry Group Plc, Carmi Flavor & Fragrance Co Inc, Synergy Flavors Inc, Virginia Dare Extract Co Inc, GEO Specialty Chemicals Inc, and Koninklijke DSM NV. These players are focusing on developing plant-based, natural, organic, and clean-label flavor masking ingredients, which is expected to open new growth opportunities in the coming years.