Delivering taste and texture in food and beverages [Report]

Page 4

Natural flavour trends across categories Naturally sourced flavours have become increasingly important, and a growing number of companies has moved to remove artificial flavours from their products, including market leaders like Nestlé4 and Danone5. A 2016 Nielsen survey found that about three-quarters of global consumers were worried about the effect of artificial ingredients on their health6 - and artificial flavours topped their concerns, with 62% of respondents saying they aimed to avoid them. According to the Netherlands’ CBI, the Centre for the Promotion of Imports from developing countries:

“Natural flavours are in high demand in the European market partly because of their relatively low costs and rising consumer demand for natural products. They have become mainstream in some European countries, partly because of the burgeoning organic food market and rising demand for processed foods.”7 The latest data from Foodtrending shows significant growth of the market in Europe for natural flavours, industrial seasonings and flavouring materials – all of which are considered natural flavours. The market is still expected to grow throughout 2020.8

Seasonings: Mixtures and blends of herbs, spices. Used widely in snacks, meals, and meat products. Europe, as defined.

Industrial seasoning, herbs & spices

Seasonings: Mixtures and blends of herbs, spices. Used widely in snacks, meals, and meat products. Europe, as defined.

Industrial seasoning, herbs & spieces

2018

18 $m 486 $m 18 $m

CAGR 2018 - 2020

Confectionery

3.7%

Snacks

4.4%

Soft drinks

9.5%

2019

19 $m

ings: Mixtures and blends of herbs, spices. Used widely in snacks, meals, and meat products.519 $m 19 $m , as defined. 2020

strial seasoning, herbs19&$mspieces

m

FLAVOURS (NATURAL)

530 $m FLAVOURS (NATURAL)

21 $m

0

50

100

150

m

200

250 300 486 $m

Confectionery

350

Snacks

Confectionery 400 450 500 Snacks

550

Soft drinls drinks

600

NOTES: Industrial food ingredients only. Usage via retail and foodservice channels excluded, except where in the form of an industrially-manufactured food product. CAGR 2018 - 2020 Zeros = little discernable usage. 3.7% Values converted at average exchange rates. 4.4% All numbers rounded 9.5%

m 519 $m NOTES: Source: Foodtrending 20209 Industrial ingredients only. Natural flavours: Flavouring substances from plant or rawfood materials. Predominately used in soft drinks and dairy products. Usage via retail and foodservice channels excluded, Europe, as defined.

m

m

m 150

200

250 2018

100

530 $m

Natural flavours

Confectionery

300

350 400 40 $m

29 $m Snacks

450

Soft drinls

500

550

600

except where in the form of an industrially-manufactured FLAVOURS (NATURAL) food product. Zeros = little discernable usage. Confectionery Snacksrates. Values converted at average exchange All numbers rounded Soft drinks

CAGR 2018 - 2020 7.2% 6.1% 6.0%

282 $m

020

2019

44 $m NOTES: $m plant or raw materials. Predominately used in soft drinks and dairy Industrial l flavours: Flavouring substances31from products. food ingredients only. 301 $m Usage via retail and foodservice channels excluded, , as defined. 4 | L earn more about Fi Europe CONNECT: except where in the form of an industrially-manufactured 46 $m FLAVOURS (NATURAL) CAGR 2018 - 2020 ral flavours food product. 33 $m Confectionery 7.2% = little discernable usage. Zeros

fi-europe.com


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