Food Aroma Market Analysis

Global Food Aroma Market Overview

Food Aroma Market Size was valued at USD 0.81 Billion in 2023. The Food Aroma industry is projected to grow from USD 0.87 Billion in 2024 to USD 1.47 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.80% during the forecast period (2024 - 2032). Growing consumer demand for unique and authentic flavors and the expanding food and beverage industry seeking innovative product differentiation through scent profiles are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Food Aroma Market Trends

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  Changing consumer preferences and demand for unique flavors is driving the market growth.

  
  

Market CAGR for food aroma is being driven by a changing consumers preference. Modern consumers are increasingly seeking unique and authentic flavor experiences. This shift in consumer preferences can be attributed to several factors. Firstly, globalization and increased exposure to diverse cuisines through travel, social media, and food shows have expanded consumers' palates and created a desire for more exotic and authentic flavors. As a result, people are becoming more adventurous and willing to experiment with new and exciting tastes. The health and wellness trend also drives the demand for unique flavors. Consumers seek healthier and natural alternatives to traditional ingredients like salt, sugar, and artificial flavor enhancers. They are turning to natural aromas and flavor extracts to enhance the taste of their food and beverages.

Technological advancements and innovations in the extraction, encapsulation, and delivery of food aromas have played a critical role in the growth of this market. These advances have enabled the creation of more authentic and stable aroma compounds. For example, advancements in essential oil extraction methods, such as steam distillation and cold-press extraction, have improved the quality and purity of natural aromas, making them more suitable for a wide range of food applications.

The growth of the food and beverage sector is also a key factor providing impetus to food aroma market growth as it has a direct and significant impact on the need for aroma ingredients and cutting-edge taste solutions. The industry is highly competitive, with countless brands and products vying for consumer attention. Companies use aroma ingredients to differentiate their product by creating distinctive and memorable flavor profiles.

For instance, Reliable estimates indicate that India's fast-food sector is growing at more than 40% annually, increasing the need for food aromas in the local market. As convenience food progressively becomes a mainstay in diets throughout industrialized countries, like the US, it is anticipated to give the business a larger growth boost. Thus, driving the Food Aroma industry revenue.

Segment Insights

The Food Aroma market segmentation, based on Type includes Natural and Synthetic. The natural segment dominated the market, accounting for more than half of market revenue. There has been a significant shift towards natural and clean-label products due to consumer demand for healthier and more authentic flavors. As a result, natural aroma ingredients have gained popularity.

Food Aroma Product Insights

The Food Aroma market segmentation, based on Product includes Benzenoids as Food Aroma, Terpene as Food Aroma, and Musk Chemical as Food Aroma Others. The benzenoids as food aroma segment dominated the market, accounting for more than one-third of the market revenue. This is attributed to sweet and fruity aromas of Benzenoid compound, making them versatile and extensively utilized in a variety of food and beverage applications. They are frequently used in bakery products, confectionery, and beverages to impart pleasant and appealing scents. This versatility and consumer preference for sweet and fruity flavors contribute to the dominance of benzenoids in the food aroma.

Food Aroma Application Insights

The Food Aroma market segmentation, based on Applications includes Beverages, Bakery, Dairy, Confectionery, Snacks, and Other Application. The beverages segment dominated the market, accounting for more than a quarter of market revenue.  Beverages rely on aroma to enhance the overall sensory experience, from the smell of freshly brewed coffee to the fruity notes in a cocktail. The growing trend of flavored and functional beverages further contributes to the dominance of the beverage segment in the market of food aroma.

Figure 1: Food Aroma Market, by Application, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Food Aroma Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The North American Food Aroma market area will dominate this market. The region's diverse culinary culture, with influences from various parts of the world, has created a demand for a wide range of aroma profiles to match the diverse food landscape.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: FOOD AROMA MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Food Aroma market accounts for the second-largest market share due its rich culinary tradition and is known for its premium food products. This tradition has driven the demand for high-quality aroma ingredients in various food and beverage applications. Further, the German food aroma held the largest market share, and the UK food aroma industry was the fastest-growing market in the European region.

The Asia-Pacific Food Aroma Market is expected to grow at the fastest CAGR from 2023 to 2032. The countries like China and India, has been experiencing rapid economic growth. The expanding middle class has increased disposable income and consumer spending on food and beverages, creating significant opportunities for aroma market growth. Moreover, China’s Food Aroma held the largest market share, and the Indian market of food aroma was the fastest growing market in the Asia-Pacific region.

Food Aroma Key Market Players & Competitive Insights

Leading market players emphasize developing clean-label, natural, and sustainable aroma solutions to align with evolving consumer demands. Market participants are also adopting number of tactical initiatives to increase their presence, with significant market developments including product differentiation, contractual agreements, mergers and acquisitions, investments, and partnership with other market leaders.  The food aroma industry must offer differentiated products to address different consumers' needs and thrive in this competitive market climate.

Expanding the range of aroma ingredients to cover a broad spectrum of flavor profiles, including traditional, exotic, and fusion flavors is one of the key business tactics manufacturers use in the Food Aroma industry to benefit clients and increase the market share. In recent years, the Food Aroma industry has offered some of the most significant advantages to Consumers. Major players in the Food Aroma market, including Dsm-firmenich, Givaudan, Symrise AG, Takasago International Corporation, Hindustan Mint and Agro Products, and others, are attempting to increase market demand by investing in product development to increase their product line and cater to diverse consumer needs.

DSM-Firmenich is an innovative industry leader in nutrition, health, and beauty. With a focus on pioneering scientific advancements, the company operates across four distinct yet interrelated business segments, each dedicated to delivering solutions that drive progress and positively impact both individuals and the environment. The business segments include Perfumery and beauty, the field of Health, Nutrition and care, and the domain of Animal Nutrition and health. 

In October 2023, Two of Dsm-firmenich's human milk oligosaccharide (HMO) constituents were authorized as fortifiers for newborn nutrition in China, according to the company, a pioneer in health, nutrition, and beauty. This approval marks an important turning point since it will open up new doors for innovation in baby and young child nutrition and make the special advantages of HMOs available to them in China.

Givaudan, a prominent leader in fragrance & beauty and taste & wellbeing, is renowned for its dedication to enhancing the human experience. With an extensive footprint, Givaudan operates in more than 185 locations across 52 countries, boasting a robust network of over 79 production sites. These production facilities are strategically distributed, with 31 in Europe, 17 in Asia-Pacific, 13 in North America, 9 in Latin America, and 9 more stretching across South Asia, the Middle East, and Africa. Givaudan's commitment is firmly grounded in its pursuit of purpose-led growth to generate a positive impact. 

In March 2021, Givaudan Taste & Wellbeing introduced the Aroma Kiosk, an innovative digital sensory insights tool. This tool is designed to engage consumers in dynamic settings, including grocery and department stores, universities, and shopping malls. Its primary function is to collect valuable consumer feedback and provide real-time product recommendations.

Key Companies in the Food Aroma market include

• Dsm-firmenich


• Givaudan


• Symrise AG


• Takasago International Corporation


• Hindustan Mint and Agro Products


• Synergy Flavors


• Aromatech Group


• International Flavors & Fragrances, Inc (IFF)


• Blue Pacific Flavors


• Robertet Group


• Huabao International Holdings Limited


• MANE

Food Aroma Industry Developments

In April 2024, Isobionics®, a brand of BASF Aroma Ingredients, will introduce a novel natural product to the flavor market. Isobionics® Natural beta-Caryophyllene 80 is the most recent addition to the Isobionics® collection, demonstrating a dedication to creating natural flavors based on client demands. Isobionics® Natural beta-Caryophyllene 80 possesses a herbaceous aroma with hints of green, parsley, black pepper, grapefruit, and a subtle clary sage scent. The flavor profile at a concentration of 10 to 20 parts per million (ppm) is characterized by notes of wood, grapefruit, citrus, mango, and pear peel. Isobionics® Natural beta-Caryophyllene 80 is not obtained from clove oil and does not possess any phenolic or eugenol characteristics. This enables the use of citrus flavors such as orange, grapefruit, black pepper, ylang-ylang, and peppermint oils in applications. The product, with a purity level of 80%, is well-suited for a wide variety of uses such as beverages, food, and fragrances. Our state-of-the-art fermentation process enables us to ensure top-notch quality and consistent availability.

August 2021: Taiyo International and ITO EN, a renowned distributor of authentic and highly nutritious tea, entered a collaborative partnership. Their joint effort is focused on distributing premium-grade matcha to various industries within the North American region, including the beverage, food, and supplement sectors.

July 2021: Symrise acquired Giraffe Foods Inc., a leading provider of customized taste solutions for diverse food industry segments. This strategic move by Symrise is part of its broader expansion plan in North America and specifically aims to enhance its presence and offerings within the flavor and nutrition category.

Food Aroma Market Segmentation

Food Aroma Type Outlook

• Natural


• Synthetic

Food Aroma Product Outlook

• Benzenoids as Food Aroma


• Terpene as Food Aroma


• Musk Chemical as Food Aroma


• Others

Food Aroma Application Outlook

• Beverages


• Bakery


• Dairy


• Confectionery


• Snacks


• Other Application

Food Aroma Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  

• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America