Brazil Food Flavor and Enhancer Market - Growth, Trends, Forecast for the period (2018 - 2023)
The Brazil food flavor and enhancer market is expected to reach USD 850 million by 2023, registering a CAGR of 4.73%. Synthetic flavor holds a major share in the market closely followed by natural flavors. The use of natural flavors such as citrus peels and juices, essences of fruits, spice vanilla sugar, coffee flavorings, etc. in various applications such as beverages and processed foods is driving the market. Natural flavors and enhancers are quiet expensive, which increases the production cost. Nature-identical flavors, being of the same nature as the natural flavor, have lower cost compared to natural ones.
Increasing Market for Natural Food Additives in Brazil
The increasing consumer interest in nutritionally enriched products and all natural foods is promoting the demand for high value premium and natural additives. The flavored products and alternative sweeteners remain the largest product type in the segment. For instance, Central and South America was responsible for 2% of world consumption in 2014 with Brazil leading the world MSG consumption in 2014 and is expected to continue to drive the demand for growth over the forecast period.
There is a rising demand for fat replacers and sweeteners in the Brazilian weight control market, which is giving an opportunity to the major manufacturers in the country to incorporate naïve flavors in their products in order to affect the consumers buying decision based on their taste preferences.
Across the global market, the consumers are looking for healthy choices of food and ingredients. This pressure of meeting consumer demands have forced the manufacturers to invest their interest in utilizing healthier and natural food ingredients in food items. Demand for processed food with perfect taste, texture and ‘mouth feel’ along with natural origin is on the rise and gaining popularity all across.
The trend of naturally sourced ingredients has been spreading like wildfire throughout the South American region especially in countries like Argentina and Brazil. The food and beverages companies has been largely affected, with almost all international and local players forced to remove artificial flavors and additives form their product lines.
Synthetic Flavor Holds a Major Share in the Market
The Brazil food flavor and enhancer market is dominated by synthetic food flavors with 50.2% followed by natural flavors and nature identical flavors. The market for synthetic flavors by volume is quiet higher compared to natural flavors but natural flavors being priced in the higher end, the both the segments are very close by value in the Brazilian food flavor and enhancer market. With the rise in demand for organic and natural food, additives and ingredients, the market for natural flavors is projected at a higher growth rate. Synthetic flavors are easily and abundantly available in the market at a lower price. The market is also affected by the presence of many local and global players in the synthetic flavors market.
The food flavor and enhancer market in Brazil is segmented by application as: processed food, Dairy, beverages, bakery, confectionary, and others. The market is dominated by the beverage followed by processed food segment as there are numerous applications in alcoholic and non-alcoholic beverages and processed meat, vegetables, cut fruits, etc.
In 2017, Givaudan acquired Vika B.V. and Activ International, and are successfully integrating these businesses into their portfolio. They also announced the acquisition of the Nutrition Division of Centroflora Group.
In 2017, Corbion plans to expand in the bakery market for high market penetration of their already strong business in North America, by focusing on the fast growing segments of sweet goods, tortillas and foodservice
Kerry group and Givaudan are the most active companies in terms of mergers and acquisitions. The mergers and acquisitions is widely being used as a strategy by these players in order to collaborate their expertise with other market players for a more transparent understanding of consumers desire and deliver the best to the consumers. Seeing an opportunistic market, the major manufacturers like Corbion and International Flavors and Fragnances Inc. are paying more attention to expansion of their offerings or improvising their local and global footprints to acquire a major market share.
Key players: Givaudan, Firmenich, Corbion, Archer Daniels Midland Company, Kerry Group, BASF, International Fragrance and Flavours, Inc., Sensient Technologies.
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Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
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