South America Food Flavor Market - Growth, Trends, and Forecasts (2017 - 2022)
The South American food flavor market size in 2016 was estimated to be USD X.X billion and is projected to reach USD X.X billion by 2022, recording a CAGR of 6.7% over the forecast period.
The rising demand for convenience and ready-to-eat meals, health and wellness foods, accompanied by technological advancements, are expected to boost the growth of the flavor market in South America. Low labor cost in the region is also expected to encourage companies towards establishment of ventures, thereby augmenting the growth of the flavor market.
Ease of widespread distribution channels in the South American food flavor market is strengthening the position of companies and offering huge scope for investments in innovation technologies, for the development of enhanced flavors. Conversely, rigid regulatory framework and rising health awareness among the people might prove to be hurdles for the growth of the market. For instance, Europe and North America have rendered a moderate development in the food flavor industry, especially for artificial flavors.
Based on type, the food flavor can be categorized into natural synthetic and natural identical flavorings. The natural flavor segment contributed to nearly 35% of the market in 2015, although the last few years have witnessed a constant decrease in the demand for artificial food flavors.
Aroma chemicals are projected to cover a market share of approximately 62% of revenue by 2022. This is anticipated to be met by increasing research expenditure on the development of fragrance compounds. Essential oils are expected to emerge as the largest and fastest growing natural product segment. Notably, the demand for orange essential oil was valued at USD 1,404.8 million in 2015.
Flavor application is always region specific and varies as per the consumer’s requirement. The South American food flavor market displayed considerable growth, due to the rising demand for consumption of packaged in developed economies. Besides, there has been a tremendous increase in the consumption of fitness and wellness flavor solutions, which is fueling the growth of the South American food flavor market.
The key flavor manufacturers in South America are –
International Fragrance and Flavours Inc. (IFF)
Frutarom has initiated a collaboration with local agriculture partners, to encourage South American local women farmers to grow annatto in their fields and support them from mother plantation, in terms of educating and training, including technical support on how to grow and harvest high-quality annatto. The collaboration will result in a consistent supply of natural annatto coloring.
The report on South American food flavor market covers the following:
Market, trends, and dynamics
Latest news and developments
Porter’s five forces analysis