June 25, 2024
Flavor Enhancer Market

The Global Flavor Enhancer Industry Propelled By Increase In Demand For Convenience Foods

The global flavor enhancer market primarily deals in the production and sales of food additives that help enhance the existing flavor profiles of food products without contributing any distinctive flavor of their own. Flavor enhancers are commonly used across various food applications including snacks, soups, sauces, ready meals, and other processed or packaged food items. They help amplify one or more existing flavors in a food matrix by interacting with taste receptors on the human tongue. Some common types of flavor enhancers used are glutamates, phosphates, and yeast extracts. The usage of flavor enhancers has increased in recent years as they help mask undesirable flavors and tastes during food processing without altering the natural flavor profile. They also allow manufacturers to reduce salt and sugar content in foods.

The global flavor enhancer market is estimated to be valued at US$ 4.22 Mn in 2024 and is expected to exhibit a CAGR of 24% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends observed in the global flavor enhancer market is the shift towards natural and clean label ingredients. Consumers are growing increasingly health-conscious and seeking products with simple and recognizable ingredient lists, devoid of artificial or chemical-sounding components. This has prompted flavor enhancer producers to invest in development of plant-based, naturally-derived formulations that provide similar mouthfeel and flavor enhancement as traditional flavor enhancers. For instance, yeast extracts and hydrolyzed vegetable proteins are gaining popularity as natural substitutes for MSG and hidden sodium sources. Manufacturers are also exploring lesser-known natural sources such as mushrooms, seaweed, and kombu to create clean label flavor solutions for the food industry. This trend is expected to continue and reshape the flavor enhancer landscape in the forthcoming years.

Porter’s Analysis

Threat of new entrants: Low barrier to entry with high capital requirements and well-established companies deterring new entrants.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and undifferentiated products.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to differentiated raw materials and moderate switching costs.

Threat of new substitutes: High with alternative ingredients that can potentiate taste without compromising health.

Competitive rivalry: High with focus on innovation and differentiated products to gain competitive advantage.

Key Takeaways

The Global Flavor Enhancer Market Demand is expected to witness high growth.

Regional analysis comprises the Asia Pacific region dominating the market owing to rising health-consciousness and increasing per capita income in developing countries like India and China. North America is the second largest and fastest growing region.

Key players operating in the flavor enhancer market are BOL Pharma, Tilray, Medreleaf Corporation, Aurora Cannabis, Inc., Canopy Growth Corporation, Insys Therapeutics, Inc., Aphria, Inc., MGC Pharmaceuticals Limited, GW Pharmaceuticals, plc., and Medical Marijuana Inc. Innovation and product differentiation are strategic imperatives for key players. Companies are investing in R&D to develop clean label and natural ingredients based flavor enhancers with added health benefits. Partnerships with food processing companies is another growth strategy adopted by players.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it