South America Food Flavor Market - Growth, Trends, and Forecasts (2020 - 2025)
South America's food flavor market is expected to record a CAGR of 6.8% during the forecast period 20202025.
The rising demand for convenience and readytoeat 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 the establishment of new 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 innovative technologies, for the development of enhanced flavors.
Key Market Trends
Rising Demand for Natural Ingredients
A significant number of consumers have gained interest in purchasing clean label goods, which offer a wide scope for naturally sourced ingredients, hence, propelling the demand for natural food flavors. In order to address the increasing demand for natural flavors, manufacturers are offering products free from artificial flavorings and gradually shifting toward natural ingredients. Continuing interest in foods with exotic or ethnic flavors is one of the key factors driving the demand for natural flavor blends. In recent years, artificial flavorings, such as benzophenone, ethyl acrylate, pyridine, and styrene, are identified as carcinogens, and thus, are being replaced by natural flavorings across the global market.
Rising Demand For RTE Food Products
Owing to the fastpaced lifestyle of the generation, consumers are increasingly inclining towards convenience food products, including instant soups, sauces, noodles, baked goods, and other ready meals, owing to their instant nature i.e. lesser preparation time and easy handling. However, despite the need to rely on comfort foods, consumers are reluctant to compromise on flavor. Younger age groups in precise, are the primary consumer base constantly willing to discover varied culinary traditions, in the interest of their taste buds. Moreover, RTE products, such as instant noodles, ice creams, and soups, are few of the most vulnerable food cuisines to be experimented based on flavors.
The food flavor market in South America is competitive. Kerry Group, Cargill Inc., and BASF are the major players present in the market. Major companies are adopting strategies, such as introducing clean label and organic flavor ranges and acquiring and partnering with local players to increase market penetration in the untapped markets.
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