Global Floral Flavors Market - 2021-2028
Floral flavors are syrups, extracts or petals of flowers that are used for flavoring food and beverages. These materials impart their actual flavor to the end product without actually altering the overall attributes of the product. The extractions of different flowers are applied differently in varied food and beverage sectors. The most frequently used floral flavors are jasmine, rose, elderflower, hibiscus, lavender, orange blossom and chrysanthemum. These flavors offer delicate, new and exotic tastes that provide a novel aesthetics to typical products. Additionally floral flavors mix extremely well with fruit flavors and complement the sweet and tangy fruit taste with a flower fragrance. The global floral flavors market valued USD XX million in 2020 and is estimated to reach USD XX million by 2028, growing at a CAGR of XX%.
Due to growing demand for new taste and flavors, food-and-beverage manufacturers are innovating new and unique flavor combinations. Floral flavors are gaining traction among food and beverage processors with application in wide range of products. For instance, lavender and rose are preferred choice of flavors in flavored waters and teas, and are also finding applications in cookies, ice cream, and alcoholic beverages. According to Fona International Inc., between third quarter of 2017 and third quarter of 2018, there were about 4,495 product introductions worldwide using floral flavors. Lately, the cherry blossom has started to be introduced as a flavor ingredient in food & beverages. For example, in February 2019, Japanese Starbucks stores launched a limited-edition Sakuraful Frappuccino and Sakuraful Milk Latte stimulated by sakura in full bloom, both of which attributed a cherry blossom-strawberry sauce. Additionally, hibiscus began rising in popularity in the last few years, finding its application into tea, beer, yogurt, and chocolate. Especially, U.S. consumers love its tart-floral flavor, when mixing it with fruit flavors like in Peach Hibiscus Greek Yogurt. Such type of rapid innovations and promotion is driving the market growth of floral flavors.
Additionally, the younger generations and millennials are pushing the demand. Consumers are now looking at a holistic approach to health in how the body, mind, and environment work together. And in this endeavor, botanical ingredients meet consumers' expectations as they are unique, and they are also natural and clean with unique smell and taste. For example, according to Iconoculture, sales of plant-based foods increased by 20 percent in one year alone, between June 2017 and June 2018, had reached a total of USD 3.3 billion. Due to link with clean label and the overall health and wellness movement, plant-based ingredients are perceived by consumers as both more natural and healthier. This favorable sentiment has positively affected floral and botanical flavors market and is expected to create more opportunity in the future. According to Technomic's 2019 Flavor Consumer Trend Report, approximately 40 percent of those aged range from 18-34 are visiting a variety of restaurants now than to search for new or unique flavors. Actually, 80 percent of all survey respondents said that many of them either "actively seek out flavors to try on a regular basis" or "like trying new flavors some time.
However, factors such as relatively high price, raw material constrain and health issues such as allergies hinder the market up to some extent.
In terms of type, the floral flavor market is divided into jasmine, rose, elderflower, hibiscus, lavender, orange blossom, chrysanthemum and others. Lavender and rose are the most used flavors, and is expected to grow rapidly due to increasing use in bakery and ice cream and alcoholic beverages. Hibiscus is expected to have high growth rate due to its positive effect on health. For instance, Firmenich, which stated hibiscus as its 2019 flavor of the year, has also noted that the flower's tart-floral flavor is rising in popular in yogurt, beer, tea, and chocolates, and is particularly popular in the United States, Brazil, Mexico, and Denmark, with growth also happening in Spain and Italy. Additionally, orange blossom is applied with fruit flavors to bring more intense taste and is getting hold of the floral flavor market. With a subtle taste and a unique versatility, orange blossom is being applied in a range of products both globally and in North America. According to FONA's research, customers distinguish orange blossom as both more premium and unique compared to orange flavor alone.
In terms of end-user, the floral flavor market is segmented in to food and beverages. Again food sector is sub segmented in to bakery, dairy, confectionary, snacks and others. Beverage segment is also segmented in to alcohol, herbal teas, soft drinks, juice, others.
North America is the largest market for floral flavor due to emergence of new floral flavor start-ups, increasing trend of using floral flavors in various food products and increasing health awareness. For instance, according to Mintel's U.S. Flavor and Ingredient Trends 2019 report, hibiscus use as a flavor has increased 55 percent on U.S. menus from 2015 to 2018. Danone North America's Wallaby Organic brand introduced No Sugar Added Aussie Greek Yogurt with Peach Hibiscus and Strawberry Rose as two of the three new flavors in March 2019. Additionally, companies are creating new flavored products by mixing floral flavor in their food products. For instance, in the USA, Curation Foods' Olive Oil & Vinegar brand has an Orange Blossom Vinegar. The vinegar product is made by the combination of gently crushed orange blossom essence and Muscat juice.
Asia-Pacific is expected to have a high growth rate in the floral flavor market due to the increasing interest in the application in various food and increasing disposable market and presence of huge market potential. Additionally, Europe is the second largest floral flavor market, due to presence of many leading flavor market players, demand for novel food products by the consumers and increasing experimentation on new flavors.
The global floral flavor market is fragmented with large number of companies producing wide range of floral flavors. The market competition is intense in the emerging market owing to widening application spectrum, increasing consumer interest towards new flavor and growth of end use industries. The leading players in floral flavor market include International Flavors & Fragrances Inc., Mane SA, Lionel Hitchen, Parker Types, Symrise AG, Firmenich SA, Synergy Flavors, Blue Pacific Flavors, Inc., Abelei inc., Sensient Technologies Corporation and others. These companies are holding considerable share and brand value in the flavors industry
COVID-19 has negatively impacted the floral flavor industry worldwide up to some extent but expected to bring new opportunities for the market in near future. Many companies have suffered loss and reduction of revenue, due to lock down and low demand of flavors in the food service industry, as outdoor food service industry was one of the worst impacted market in the COVID-19 pandemic. For instance, in case of international Flavors and Fragrances Inc., through first eight weeks of 2020 second quarter, sales decreased by 3% on a currency neutral basis and 7% on a reported basis compared to the corresponding period last year, driven by continued pressure in certain end-industry categories, across select countries and mainly with small- and mid-sized customers as a result of the COVID-19 pandemic. At present, the customers are increasingly focusing on the health issues and trying to increase immunity by consuming natural food related products, which is expected to positively affect the floral flavor market.