Dairy-derived flavours on the up, says report
A recent published report on the dairy-derived flavours market projects the global dairy-derived flavours market is expected to reach around US$860 million (€777m) by the end of 2019 in terms of value, and is forecast to reach approximately US$1.3 billion (€1.17bn) by the end of 2029. According to the Persistence Market Research report, Dairy-derived Flavours Market, increasing adaptation of new and high-end technology is contributing to the growth of the dairy-derived flavours market through 2029.
The demand for these flavours is increasing continuously and the complex process of extraction increases the turnaround time for dairy-derived flavours. Adaptation of new technology will provide the thrust to the production process, and help to fulfill the increasing demand for dairy-derived flavours in 2019 and beyond.
Natural dairy-derived flavours are witnessing exponential demand from mature markets, owing to the side-effects of artificial, dairy-derived flavours and the rising health concerns of consumers. According to the report, consumers are becoming aware of the ill effects of chemical-based artificial dairy-derived flavours. Mature markets are demanding products with natural ingredients and hence, the manufacturers are forced to use natural flavours in processed food. On the other hand, the demand for artificial dairy-derived flavours is remaining bullish in developing markets, reveals the research study.
The demand for dairy-derived flavours continues to rise and the number of new entrants in this market is also increasing. Hence, established players in the market are facing tough competition from new players. The study shows that more than 55% market share is held by the top 10 players in the market. According to the study, the growth opportunity for the top players in the market is to acquire a number of new or smaller businesses. This will help companies to expand their production capacity and market share while creating a strong global footprint in the global dairy-derived flavours market.
For instance, in 2018, International Flavours & Fragrances (IFF) acquired Frutarom, Israel’s leading manufacturer of flavours & ingredients. This acquisition helps the company to bring a new customer base and adjacent product categories to its business. This acquisition is one of the largest purchases by any flavour manufacturer.
The study underlines key opportunities in the global dairy-derived flavours market and finds that the market would exhibit growth at a value CAGR of approximately five per cent during the forecast period.