The market for natural flavours has grown tremendously over the past couple of years due to increase awareness of health coupled with emerging middle class across the globe. Flavours are used in food and beverages in order to enhance the taste and quality of the products. Thousands of natural volatile compounds make up the flavours and aromas of the food products that we eat in our day to day life. The definition of “natural flavour” under the Code of Federal Regulations is: “the essential oil, oleoresin, essence or extractive, protein hydrolysate, distillate, or any product of roasting, heating or enzymolysis, which contains the flavouring constituents derived from a spice, fruit or fruit juice, vegetable or vegetable juice, edible yeast, herb, bark, bud, root, leaf or similar plant material, meat, seafood, poultry, eggs, dairy products, or fermentation products thereof, whose significant function in food is flavouring rather than nutritional”. The market is buoyant for the coming years especially in Europe for the natural and clean label flavours.

Natural Flavours Market: Drivers and Restraints
Growing consumer interest in natural ingredients coupled with the strong command of retailers in the supply chain has made natural flavours easily and widely available in the market for consumers and are the major driving forces of the market globally. However, rising cost of raw materials and the issues of sustainability and stability of natural flavours over synthetic flavours are major restraining factor of the natural flavour market. Trends of the natural flavour market includes demands for clean-label products categories such as confectionery and soft drinks and growth in R&D for stability of natural flavour.

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Natural Flavours Market: Segmentation
Natural flavour market is segmented on the basis of product type, application and region. On the basis of product type the market can be segmented into natural extract, aroma chemical, essential oils and other natural flavour. Furthermore, on the basis of application natural flavour market can be segmented into beverages, dairy product, confectionary, oral products, tobacco and others. Beverages was the largest segment in natural flavour market followed by dairy products in 2014. Lastly, on the basis of region the market is segmented into North America, Latin America, Western Europe, Eastern Europe, Asia-Pacific, Japan and Middle East and Africa.

Natural Flavours Market: Region-Wise Outlook
In 2014, North America holds the largest market of natural flavours followed by Europe. However, Asia Pacific and Latin America are key emerging region in natural flavours market and are expected to marginally take a lead in the global natural flavours market by 2025 over developed regions.

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Natural Flavours Market: Key Players
Some of the global key players in the natural flavour market are Givaudan, Firmenich, Takasago International Corporation, Symrise AG, Sensient Technologies Corporation, Kerry Group PLC, Frutarom Industries Ltd. to name a few. Givaudan, a Switzerland based company holds the maxium market share in the global natural flavour market. Big multinational companies in the natural flavour market focus on the acquisition activity in order to expand within the growth areas of natural flavour market. Major Companies such as Givaudan currently marking its footprint by increasing number of production sites, creative centres, an increased marketing and sales force and also opening new offices in Africa and Asia to cater the local demand.

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