Beverage Flavoring Systems: Growth in Beverage Fortification Demand to Drive the Market for Advanced Beverage Flavoring Systems

Beverage flavoring systems are a mix of different components, based on natural, nature-identical, or artificial ingredients being combined to create novel flavors. Beverage flavoring systems are regarded as semi-finished products having a limited shelf life and are manufactured according to the highest quality requirements, making production procedures easier, by providing customized flavor solutions for the beverage industry.

With the growing awareness, consumers are looking for healthy alternatives with functional properties and are more inclined toward drinks with natural flavors, natural ingredients, and those that serve functional properties, while also avoiding high-sugar consumption. Natural flavors required in functional drinks should be derived and added from herbs, trees, fruits, or flowers. This promotes the growth of clean-label flavor systems with natural ingredients for various beverage applications.

Some statistics reflecting the growth in fortified drinks consumption are mentioned below:

According to Natural Product Insider, energy drink consumption in the US among the 27 to 37 age group population increased from 55% in 2014 to 61% in 2015.
According to the 2013 Energy Drinks Report published by the European Food Safety Authority (EFSA), about 41% adolescent and 52% adult population in Europe consume energy drinks during sports activities.
According to a report published by Beverage Industry magazine in 2017, the sales of juice concentrates in the US increased by 4.5% in 2017 as compared to 2016.

The global beverage flavoring systems market was valued at USD 3,692.2 million in 2017. It is projected to grow at CAGR of 6.1% from 2018 to reach USD 5,215.6 million by 2023. This growth is attributed to the growing demand for beverages including fortified and non-fortified drinks across the world.

The beverage flavoring systems market, by beverage type, is segmented into alcoholic and non-alcoholic beverages. The market was dominated by the non-alcoholic beverages segment in 2017. The non-alcoholic segment is projected to grow at a significant rate due to the growing consumption of carbonated soft drinks, fruit- & vegetable-based juices, and functional drinks. The carbonated soft drinks and juice industries are major application areas of flavoring systems to enhance the taste of certain drinks. Consumer demand for innovative tastes encourages flavor manufacturers to launch new flavor products. Unusual flavors such as tropical fruits, herbs & spices, floral flavors, beer-flavored non-alcoholic beverages, smoked flavor beverages, and vegan dairy flavors are receiving global attention.

Inquiry before buying @
https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=138195769

The use of flavoring agents is estimated to dominate the beverage flavoring systems market in 2018

The various components of the beverage flavoring systems include flavoring agents such as flavors, taste modulators & taste-masking agents, flavor carriers, flavor enhancers, and other ingredients, which include curing & pickling agents, preservatives, acidity regulators, emulsifiers, and stabilizers. Flavoring agents are additives that are used to enhance and modify the flavors of beverages. These are further sub-segmented into flavors and taste modulators & taste-masking agents and are an integral part of any flavoring system. For instance, flavor masking agents are required to mask the harsh taste of functional ingredients such as proteins or high-intensity sweeteners present in the beverages. Firmenich (Switzerland) offers Mask-IT, a flavor masking agent, which can be used to mask bitterness. The flavoring agents segment accounted for the largest share of the beverage flavoring systems market.

Key Developments in the Market:

Sensient Technologies (US), Givaudan (Switzerland), International Flavors and Fragrances (IFF) (US), Firmenich (Switzerland), and Symrise (Germany) are among the key players in the market. The market players focused on various development strategies such as new product launches, expansions & investments, acquisitions, partnerships, mergers, and collaborations in the last few years to meet the growing demand for beverage flavoring systems.

Some of the major developments in the market are listed below:

In August 2018, ADM (US) opened its new technical innovation center in Shanghai, China, to support the development and creation of innovative and nutritious products. This center would help the company to accommodate the increasing demand for nutritional food & beverage products in the Asia Pacific region.
In September 2018, Givaudan (Switzerland) acquired Naturex (France), with an aim to cater to the customers across the food & beverage, nutrition, and health & personal care sectors with natural, clean labeled, and organic products.
In June 2018, Firmenich (Switzerland) launched its Natural and Clean Label platform through which it would provide the natural, authentic, and traceable products to gain customer and their trust.

The market for nature-identical flavoring systems is growing worldwide due to cheaper sources of these flavoring systems. Nature-identical flavoring systems are preferred by the industry, because they are less expensive than the natural ones, easily available, and have a molecular structure similar to the natural flavors. It is impossible to meet the large demand for natural ingredients due to lack of availability of required quantities. This is fueling the demand for nature-identical products in the market.

Market Drivers:

Growth in demand for a variety of innovative flavors in soft drinks

With the growth in the soft drinks market, the demand for innovative beverage flavoring systems is also rising at a fast pace due to consumer inclination toward innovative flavors.

Some of the latest innovative beverage flavor system launches in the market are as follows:

In June 2017, IFF (US) launched its Tastepoint program to offer a differentiating taste in alcoholic and non-alcoholic beverages.
- In July 2017, Tate & Lyle (UK) launched ‘Taste for Adventure’ flavor range, which includes dark soft brown, organic dark soft brown, golden caster, organic golden caster, and demerara.
- In June 2018, Firmenich (Switzerland) launched its natural and clean label platform through which it offers natural flavor systems for beverage manufacturers.

Launch of advanced technologies for flavor processing

Companies are adopting new technologies such as advanced extraction and non-thermal processes to produce better varieties of beverage flavoring systems with natural and synthetic ingredients for more stability and suitability.

Some other technologies used in beverage flavoring systems for various functions and that have fueled the market growth are as follows:

Dry blending
- Retorting
- Tunnel pasteurization
- Spray drying
- Agglomeration
- Encapsulation

Consumer inclination toward clean-label and organic products

The growth in demand for plant-based or natural origin flavor systems is attributed to consumer awareness about clean-label products. This has led beverage manufacturers to adopt flavor systems incorporated with clean-label ingredients. According to a study published by the Journal of Food Science in 2017, consumers are willing to pay more for food products labeled as “all-natural” as compared to products without labels. This factor fuels growth of the beverage flavoring systems market players to launch innovative natural products.

Speak to Analyst @
https://www.marketsandmarkets.com/speaktoanalystNew.asp?id=138195769

Asia Pacific is projected to dominate the market through 2023

The Asia Pacific market dominated in 2017 due to the increasing demand for carbonated soft drinks across the region. The region is an emerging market with investments from several multinational manufacturers, especially in countries such as China, India, and Japan; these are the major markets in the region. According to the World Economic Forum, the per capita consumption of carbonated soft drinks has been increasing in India, which is a potential market for carbonated soft drink flavor system manufacturers.

Cannabis: Increasing medicinal use driving market growth

Cannabis is a drug derived from the cannabis sativa, cannabis indica, and hybrid strains. Although cannabis is composed of different cannabinoids, the two main cannabinoids that are considered to be the most active compounds are tetrahydrocannabinol (THC), the psychoactive compound, and cannabidiol (CBD), the non-psychoactive compound. The market definition for cannabis, in this study, takes into consideration both medical as well as recreational cannabis.

The use of medical cannabis and the implementation of cannabis-derived compounds for treatment and therapy have been widely debated, globally. Furthermore, there are several opposing notions associated with the use of cannabis for medical purposes, owing to its societal and ethical implications. However, the adoption of cannabis has continued to evolve, with a growing gradual acceptance of its use by a number of states. The least contentious extract of cannabis is derived from its hemp plant and is known as CBD (cannabidiol). CBD is currently touted as the safest and most potent form of cannabis and is effective for medicinal use.

According to MarketsandMarkets, the global cannabis market is projected to grow from USD 10.30 billion in 2018 to USD 39.35 billion by 2023. The growth of this market is attributed to the growing number of medicinal applications and increasing legalization of cannabis. The complex regulatory structure for the use of cannabis is restraining market growth. The cannabis market is projected to grow at a CAGR of 30.7% from 2018 to 2023.

What is driving the growth of Cannabis?

Growing medicinal application of cannabis

CBD-dominant strains of cannabis have little or no amount of THC (tetrahydrocannabinol), the chemical that is responsible for psychological alterations. As a result, when the extract is used for treatment purposes, the benefits such as relief from insomnia, anxiety, spasticity, epilepsy, and pain, have been observed with little or no alteration in consciousness. Another important and extensive use of cannabis for medical purposes is observed for pain control. Although the use of cannabis is not strong enough for severe pain, its use remains potent for chronic pain. Cannabis remains especially effective in easing the pain caused by multiple sclerosis and nerve-related issues. It also acts as a muscle relaxant and could be used to lessen the tremors caused by Parkinson’s disease.

Therefore, CBD, being non-psychoactive in nature, has highly garnered favor for being used for the treatment of a number of ailments. There are various studies confirming the anti-inflammatory, anti-pain, and antipsychotic properties of CBD wherein its use has been proven effective. To further establish its effective use amongst consumers, the pharmaceuticalized form of CBD, Epidiolex, was approved by the US Food and Drug Administration in June 2018 as a treatment for seizures associated with two rare and severe forms of epilepsy. According to the data published in the New England Journal of Medicine, the use of the drug could help reduce seizures by about 40%. Additionally, GW Pharmaceutical’s drug, Sativex, which contains both CBD and THC, is available as a treatment for multiple sclerosis-related spasticities, in Canada, Australia, and a majority of the European and South American regions. Furthermore, the infusion of CBD in edible products has also been developing as an emerging wellness trend in many countries, which is further expected to impact the market for cannabis positively.

Increasing legalization of cannabis

Cannabis legalization is often viewed upon with dual perceptions wherein its legalization has been proven to be met with skepticism associated with possible abuse. While supporters of cannabis legalization have argued that its prohibition has not been successful at reducing access to and the use of cannabis, it has been presumed that legalization could, in turn, allow people to practice safe substance use while also reaping its medicinal benefits. As a result, there is an increase in the number of states that are gradually legalizing the use of cannabis across the globe. As of November 2018, it is legal to smoke marijuana for medical use in 33 states in the US, whereas nine states will still be requiring a doctor’s prescription to do so. The recreational use of cannabis is, in turn, legalized in 10 of these states. Similarly, Uruguay became the first country to legalize marijuana fully, outside the US, in 2013. Similarly, Canada too legalized the complete use of marijuana in 2018.

While most countries across the globe have still not legalized the use, the approach to the use and sales has been relaxed over the years. For example, the Netherlands allows citizens to store and cultivate some amount of marijuana while they are also permitted to be sold via coffee stores as long as they are not sold to minors. Additionally, Spain permits the use of marijuana in clubs while it still remains illegal to be traded. While marijuana legalization is still at a nascent stage, globally, its growing use for medicinal and therapeutic purposes has been gradually driving a number of countries toward its legalization. As more countries move toward its partial or complete legalization, the market for cannabis will be experiencing a positive trajectory.

Speak to Analyst @ https://www.marketsandmarkets.com/speaktoanalystNew.asp?id=201768301

Medical cannabis is expected to be the most widely used application of cannabis

The use of cannabis is being legalized across countries for medical purposes for the treatment of various illnesses and ailments. CBD or cannabidiol, which is a major component of cannabis, is not psychoactive in nature and provides various medicinal benefits associated. In addition, regulatory bodies in various countries are legalizing medical cannabis, as the compound is considered safe for use compared to other medications prescribed for the treatment of similar ailments. Over the past few years, countries such as Australia, Argentina, Mexico, and Germany have legalized the use of medical cannabis. Furthermore, with the use of medical CBD in the form of oils, topical pain relief treatment solutions and edibles could also dissuade its smoke intake among patients while being equally effective medically. Medical cannabis remains the most effective, as they are also used for various health conditions which include pain management, neurological health management, and mental health management.

Based on region, the cannabis market is segmented into North America, Europe, South America, and the Rest of the World.

North America accounted for the largest share, with a value of USD 6,122.7 million, in 2017. This market is projected to grow at a CAGR of 30.8% during the forecast period. Canopy Growth Corporation (Canada), Aurora Cannabis Inc. (Canada), and Medical Marijuana Inc., (US) are a few key players who occupy a significant share in the global market for cannabis.
The growing legalization of cannabis for both medical and recreational purposes all over North America and the increasing awareness among consumers regarding the health benefits of cannabis have driven the cannabis market in the region.