The natural flavor carrier market place is highly consolidated, wherein leading players including Cargill Inc., Firmenich SA, Givaudan SA and Sensient Technologies Corporation collectively hold around 55-60% of the global market revenue share. While prominent players are engaged in the expansion of their global footprints, especially in the high potential markets of developing countries. Small and mid-size players in the natural flavor carrier market are engaged in introducing a combination of novel and economic alternatives. Key brands are also engaged in introducing features such as affordability in addition to their natural origin to ensure market sustainability amid intense competition.
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Importance of value addition has taken an important place in the food processing industry wherein ingredients that add taste or nutritional factor are being highly sought after. Also, emerging markets are witnessing an increased demand for processed and packaged foods on the back of urbanization, expansion of middle-class and rising living standards, thereby causing a prominent dietary shift toward value-added products. As higher-value-added foods require specialized processing machinery as well as ingredients, demand for specialty flavor ingredients such as natural flavor carriers is likely to grow steadily in the coming years.
While the demand for processed food is increasing significantly, the manufacturers are witnessing pressing challenges of delivering distinct taste with the incorporation of natural ingredients and introduce affordable food products. Flavoring ingredients account for a significant portion of the overall product cost â€" that manufacturers usually avoid the additional expenditure of flavor carriers during the food processing. Well aware of the food processorsâ€™ tendencies, ingredient manufacturers are providing effective carriers that deliver enhanced functionality at lower concentrations, thereby maintaining the properties of flavor ingredients and establishing a good price point of the final product. In a bid to stay cost-competitive in the market, demand for flavor enhancers including natural flavor carriers is set to remain steady in the future.
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The clean label trend has introduced a clear distinction in the food industry wherein manufacturers are forced to focus on their list of food ingredients added. With consumer sentiments growing stronger toward purchasing uncomplicated materials with the clean label, natural food ingredients manufacturers are set to witness profitability. Also, synthetic carriers and other flavor enhancers have faced scrutiny in the food market. While synthetic food ingredients continue to face criticism in terms of health impacts and lower efficacy, natural food ingredients are winning the market competition. This scenario of increased preference for natural ingredients is alluding at industry profitability for natural flavor carrier manufacturers.
While the food ingredients are covered in stringent regulatory standards of different national authorities, organic and natural products altogether face discrimination in terms of distinct categorization as well as legislation. In addition, a lengthy period of authorization presents challenges to faster market entry. Prominent bodies involved in the approval process of flavoring ingredients are the Flavor Extract Manufacturers Association (FEMA), the European Food Safety Authority (EFSA) and the Joint FAO/WHO Expert Committee on Food Additives (JECFA). As processing technologies continue to evolve, flavor ingredients that are categorized under natural label are facing complex definition issues across different countries. As the complexity continues, the changing regulatory landscape will impede the pace of natural labelling, thereby impacting the growth of natural flavor carrier market.
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