Beverage flavoring systems market size has been expanding rapidly in the recent decades due to the rising interest in beverages that not only cater to an expanding taste palette but also satisfy various nutritional demands. For instance, Symrise, one of the most notable flavors and fragrances producers, started to offer a collection of specialty flavors in 2018 that would deliver tastes of coffee and tea to dairy products.
According to Symrise, the strategy of combining unusual ingredients, especially outside of the usual flavors, has proved to be exceptionally successful in the dairy industry. The demand for unusual as well as well-known flavors in beverages ranging from health drinks to alcohols has created immense growth impetus for beverage flavoring systems market.
Escalating health issues like diabetes & obesity are boosting the demand for low-sugar or sugar-substitute drinks. Beverage manufacturers are investing in products such as iced tea or bottled water and are generally trying to reduce the added sugar content in formulations. However beverage formulators still want to preserve taste profiles while catering to these evolving trends of low to no sugar, thereby opening growth scopes to beverage flavoring systems market.
According to surveys, nearly 71% of consumers check sugar content on the nutritional facts panel of beverages and though all of them are looking to consume less sugar, most of them are unwilling to sacrifice on taste. Beverage flavoring systems market is therefore forging new growth scopes through beverage manufacturers who are looking to provide taste solutions by adding flavors and thus navigating the complex space of reduced sugar beverages. In many cases a combination of natural flavors are being used to restore sweetness perceptions that is lost in reduced sugar beverages.
The case of rising health awareness is possibly the most evident in the skyrocketing popularity of tea and flavored teas has depicted potential to attract consumers who are trying to maintain a healthier lifestyle by moving away from sugary beverages and alcohol. Companies are making the move easier by introducing flavored herbal teas so that consumers are still able to adopt healthier lifestyles.
Natural beverage flavoring systems market is predicted to witness fastest growth over 2019-2025. Increased demand for organically sourced ingredients and alternative taste enhancers is likely to fuel the segment growth.
When it comes to purchasing alcohol, millennials across the globe are prioritizing quality over price. Rising spending on alcoholic beverages to maintain social status and an exponential demand for superior & premium alcoholic beverages will provide impetus to global growth of the alcoholic beverages market. Some of this impetus has been witnessed in the beverage flavoring systems market as well due to the fact that flavored alcohols are becoming more popular.
Consumers have demonstrated increased preference for tried and tested alcohol flavors like citrus, watermelon, raspberry and green apple while also experimenting with new and intriguing flavors like dragon berry, banana and coconut.
A surge in beverage flavoring systems market growth is expected to be recorded in Asia Pacific, a region that is undergoing rapid urbanization and where a considerable portion of the population is garnering greater purchase power. Tea consumption has been recording growth particularly in emerging economies of China and India, countries which has shown a marked interest in specialty items, flavored gourmet teas and fruit fusion.
A new clientele of young, urban tea drinkers are willing to pay a premium for specialty teas and are more aware of the origin, quality and sustainability of the products they consume. Upper class consumers who are looking to integrate fashionable products into their lifestyles are also adding stimulus to beverage flavoring systems industry while consuming flavored beverages in exclusive cafes, hotels and restaurants.
Owing to mounting demand for flavored alcoholic as well as nonalcoholic beverages and sugar-substitute drinks, considerable growth is expected to be witnessed in beverage flavoring systems industry the size of which by 2025, is estimated to exceed USD 5.7 billion.