With growing interest in nutritional products coupled with evolving food consumption patterns globally, beverage flavoring systems market has been witnessing exponential growth over the past few years. Consumers are gradually accepting new products and the beverage industry is consistently working to adopt innovative approaches by adding naturally-sourced fruit juice and ingredients in numerous non-alcoholic offerings and sports drinks.
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Several beverage flavoring companies have begun to step out from their comfort zones with the motive to explore realistic and unconventional taste experiences to attract customers. Nowadays, people are seeking out functional but flavorful beverages, with a large number preferring drinks that contain natural flavors, thereby augmenting product demand.
From blueberry-flavored protein drinks to chocolate-flavored teas, the demand for flavor-rich products is rapidly growing as more and more customers are inclining towards beverages with product formulations that offer health benefits. These trends have encouraged the production of organic products and will positively transform beverage flavoring systems market dynamics in the imminent future.
Floral flavors like hibiscus have gained immense popularity in recent years, widely used in tea, yogurt, chocolates, and beer, being considered as one of the healthiest and low sugar-sweetened alternatives that also provide novel and flavorful taste experience to people. Lately, these ingredients are being included in new natural products so that consumers can experience new flavors while simultaneously leveraging certain health benefits.
Natural beverage flavoring systems market is expected to witness the fastest growth over the 2019-2025 forecast timeframe. Expansion of Canadian beverage outlets and stores has boosted the country’s economic growth and offered new investment avenues. Amongst several popular product choices, the tea segment in Canada seems to have doubled in the past few decades.
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Canadians are experimenting with new and strong flavors such as Oolong, which has a flavor that lies between green and black tea, in addition to other small sub-segments like rooibos and white tea. At present, companies are trying out tons of new flavors for white tea like blueberry and pomegranate which are alluring consumers and subsequently, businesses are rushing to try new and innovative tea blends.
Mergers and acquisitions are being undertaken on a consistent basis to expand the natural and nutritional portfolio of companies and enhance value of appetizing beverages. This will help meet the demand of natural flavors from consumers, ensuring that beverage flavoring systems market will gain significant traction in the forthcoming years.
Archer Daniels Midland Company (ADM), the US based global food processing and commodities trading firm, had reportedly taken over the Ziegler Group in 2019, which is a prominent supplier of natural citrus flavor ingredients in Europe. The deal was announced soon after ADM had completed the addition of U.S.-based citrus flavor provider Florida Chemical. The combination of Florida Chemical and Ziegler had immediately positioned ADM for growth as a worldwide leader in natural citrus ingredients with wide-ranging systems for beverage and food customers.
Döhler is a global producer and provider of technology-based natural ingredients and solutions for the food and beverage industries. Recently in 2018, It introduced customized soft drinks for adults, beer-mixes with new flavors, and other exciting premium concepts which would increase the adoption rates of organic products and propel the interest in eco-friendly food products. The Double Brew beer-mixes become popular among consumers due to authentic taste profiles, which combines two components, brewed lemonade and beer.
Beverage flavoring systems industry holds vast potential across both alcoholic and non-alcoholic applications. Most beverage flavoring companies perceive a rapid trend among consumers as they are shifting focus on health-related food products. Some of the most popular observations of 2018 which could outline preferences over the coming years include the use of ingredients like mushroom, collagen, and functional botanicals.
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Consumer interest is increasingly drawn towards functional beverages as these drinks deliver healthy ingredients like aloe vera, matcha, activated charcoal, and melatonin. Beverage industry is able to bring vital supplements and vitamins through natural ingredients which benefit users in the long run.
Owing to augmented demand for flavor-rich products and functional beverages, beverage flavoring systems market is anticipated to surpass USD $5.7 billion in annual revenues by 2025. Continuous infusion of different types of unique flavors into products that are filled with natural ingredients and offer considerable health benefits will create immense growth opportunities for the overall beverage industry.