Increasing Demand for Functional Foods Spurs the Natural Flavors Market

Functional foods are foods which provide added health benefit beyond the traditional nutrients. The functional foods are laced with nutrients such as protein, vitamins, and minerals that are beneficial for the harmonious functioning of the human body. As consumers are getting aware of vital nutrient deficiencies, they are turning towards functional food consumption to compensate their nutrient insufficiency. North America and Europe the major markets for functional foods mainly due to the heightened health consciousness and considerable preference to the nutritious products. Nutraceutical and nutricosmetic products also come under the purview of functional foods.

The overall functional food market was valued at over $150 billion in 2014 and is estimated to grow at the CAGR of 6.7% through 2015-2020. Burgeoning market of functional foods spurs the usage of natural flavors as end product manufacturers typically use natural ingredients to enhance the nutritional and natural profile of their offerings. Vitamins such as Vitamin A and Vitamin C are anti-oxidant in nature have anti-aging benefits on the skin. Although the functional foods are rich in nutrients, in order to make them palatable for consumers the manufacturers need to add flavor to these products.  In addition, the broader consumer trend of avoiding products with artificial ingredients has been supporting the large scale usage of natural flavors.

European countries which are characterized with aging population are the major markets for functional foods as the consumers are keen on intake of products which aids in reducing the early sign of aging and aid in maintaining youthful appearance. The further consolidation of many packaged foods into functional food category will propel the market for natural flavors. Beverages laced with protein and vitamins are a major functional food category and accounts for around 20% of the functional food market. Similarly beverages as end use application of natural flavors is the major market and accounts for approximately 60% of the natural flavor market. Driven by all these favorable factors, the global natural flavors market is estimated to reach $6,295.3 by 2020.