Powdered Flavors Market Size Report | Share & Forecast 2030

The powdered flavors market size is projected to grow from US$ 9,940.36 million in 2022 to US$ 13,841.10 million by 2030; the market is expected to register a CAGR of 4.2% from 2022 to 2030.

Market Insights and Analyst View:

Powdered flavor is one of the commonly used flavor formats among the food manufacturers. Powdered flavors are easily dissolvable and blend well in different formulations, whether dry or liquid. They are easy to transport and store, which reduces the overall warehousing and transportation costs. Due to these benefits, they are highly preferred among the food processors. Powdered flavors are used in a wide range of food products, including baked goods, confectionery, dairy & frozen desserts, savory snacks, soups, sauces, dressings, ready-to-eat meals, nutraceuticals, and meat and meat substitute products. Rising demand for organic food products is influencing the adoption of organic powdered flavors among the food manufacturers, creating huge opportunity for the providers of organic flavors in the powdered flavors market

Growth Drivers and Challenges:

Powdered flavors offer several advantages over other forms, such as liquid, granules, and paste. Powdered flavors are excellent flavor enhancers. They have a better shelf-life than flavors in liquid and paste forms. Powdered flavors easily dissolve and blend in different formulations, whether dry or liquid. They are easy to transport and store, reducing warehousing and transportation costs. Unlike liquid or paste flavors, powdered flavors are less vulnerable to oxidation, microbial decay, and temperature fluctuations, which increases their appeal among food manufacturers.

Powdered flavors are highly concentrated and can be used in small quantities to achieve desired results. This allows food and beverage manufacturers to reduce their overall production costs. Also, powdered flavors result in consistent texture and mouthfeel, making them attractive ingredients in products such as savory snacks, soups, sauces, dairy products, ice creams, and baked goods. Moreover, powdered flavors are usually free of preservatives and other synthetic components, which makes them suitable for clean-labeled food and beverages. Liquid and paste flavors have a shorter shelf life than powdered flavors. They are not suitable for dry product formulations. Thus, the benefits of powder flavor formats over liquid and paste formats are driving the powdered flavors market growth.

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Powdered Flavors Market: Strategic Insights

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Report Segmentation and Scope:

The “Global Powdered Flavors Market” is segmented on the basis of type, category, application, and geography. Based on type, the powdered flavors market is segmented into sweet, savory, and others. Based on category, the powdered flavors market is bifurcated into natural and synthetic. Based on application, the powdered flavors market is segmented into bakery and confectionery; dairy and frozen desserts; soups sauces, and dressings; meat and meat substitute products; snacks and RTE meals; nutritional supplements; and others. The powdered flavors market based on geography 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), 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 powdered flavors market is segmented into sweet, savory, and others. The savory segment holds a significant share of the market. Savory flavors can be used for products such as sauces, soups, dressings, food bases and marinades, ready-to-eat meals, processed meats, and savory snacks. Umami, which is a savory taste, is growing in popularity among the consumers and majorly drives the growth of this segment. According to the data by McCormick Flavors Solutions, there has been a 138% increase in spicy flavors in bakery menus in 2022. Adding peppers such as jalapeno, habanero, and chipotle to bakery items has enhanced the flavor experience. Moreover, the rising trend of consuming spiced snacks is expected to boost the demand for savory flavors. These factors are projected to drive the segment growth in the global powdered flavors market.

Regional Analysis:

Based on geography, the powdered flavors market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global powdered flavors market was dominated by Asia Pacific; the market in this region was valued at US$ 3,178.93 million in 2022. North America is the second major contributor to the market, which holds almost 27% of the global powdered flavors market share. South & Central America is expected to register a CAGR of 5.8% in the powdered flavors market during 2022–2030. North America is one of the significant regions powdered flavors market due to the presence of well-established food & beverages industry, rising demand for convenience food, and increasing demand for powdered flavors in various products such as Bakery & Confectionery, savory snacks, meat and meat substitute products, soups, sauces, ready-to-eat meals, and Dairy & Frozen Desserts. The North America food & beverages industry is growing rapidly owing to the increasing population and busy lifestyle, leading to increased consumption of packaged food and beverages. Moreover, rising working women population in the region and increasing number of dual-income households are driving the demand for convenience food. According to the United States Department of Agriculture Economic Research Service (USDA ERS), the expenditure on food and beverages at retail stores and on away-from-home meals and snacks accounted for US$ 2.12 trillion in 2021. The growth of food and beverage retail sales is providing strong growth potential for the food additives market, including the powdered flavors market.

Industry Developments and Future Opportunities: 

Various initiatives taken by key players operating in the powdered flavors market are listed below:

1. In 2022, Symrise announced a range of natural blueberry ingredients for food, beverage, and consumer health applications.
2. In 2020, Flavorchem announced the opening of the SRS Center for Taste Innovation at its campus in Downers Grove.
3. In 2020, Gold Coast Ingredients Inc launched vegan smoked gouda flavor.
4. In 2020, Fona International Inc introduced TrueTaste, its latest patented flavor technology.

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 & beverage industry. 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.

During the initial phase of the pandemic, the food & beverages industry in the region faced a decline due to the shutdown of manufacturing units and supply chain disruption. The pandemic disturbed manufacturing activities with restrictions imposed by government authorities in global countries such as the US, Canada, Germany, the UK, India, and China. This created a shortage of raw materials, resulting in a demand and supply gap. The powdered flavors market also witnessed similar impacts of the pandemic. As the pandemic disrupted the global supply chains, raw material sourcing was difficult. Moreover, small and mid-scale companies with low inventory levels witnessed a decline in sales which negatively impacted their profitability. However, the pandemic altered the global consumer preferences as health became the top priority. The preference for all-natural, organic, and GMO-free ingredients increased as consumers perceived these products to be healthier than conventional ones. Moreover, the focus on immune health increased dramatically, which is expected to provide lucrative opportunities for immune-boosting flavors such as turmeric powder, ginger powder, and cinnamon.

In 2021, various economies resumed operations as several governments announced relaxation in the previously imposed restrictions, which positively impacted the global marketplace. Moreover, manufacturers were permitted to operate at full capacity, which helped them overcome the demand and supply gap.

Competitive Landscape and Key Companies:

A few of the prominent players operating in the global powdered flavors market are Bell Flavors & Fragrances, Gold Coast Ingredients Inc, Renaissance Flavors, Flavorcan International Inc, Blue Pacific Flavors, CUSTOM FLAVORS, Flavorchem & Orchidia Fragrances, Symrise, Synergy, FONA International Inc, and Robertet Group. These market players are adopting strategic development initiatives to expand, further driving the powdered flavors market growth.