Report Overview

An increasing demand for food flavors in processed food products and increased consumers’ willingness to experiment with new flavors are projected to propel the expansion of the India food flavor and enhancer market during the forecast period between 2023 and 2029.

India Food Flavor and Enhancer Market - Industry Trends & Forecast Report, 2029

India food flavor and enhancer market size was estimated at USD 7.87 billion in 2022. During the forecast period between 2023 and 2029, the size of India food flavor and enhancer market is projected to grow at a CAGR of 6.62% reaching a value of USD 11.56 billion by 2029. Major growth drivers for the India food flavor and enhancer market include the rising need for flavors in processed food products. India's food processing industry is one of the largest globally, encompassing production, consumption, and imports. The country's diverse cultural landscape contributes to a wide array of cuisine, creating a strong demand for food flavors and enhancers to enhance taste. The Indian food culture prominently features the use of spices and herbs, resulting in a consistent demand for food flavors. This demand is further fueled by the increasing popularity of ethnic packaged foods, health-conscious options, and the growing consumption of convenience, processed, and ready-to-eat meals.

India Food Flavor and Enhancer Market – Overview

India food flavor and enhancer market refers to the industry encompassing the production, distribution, and sale of various substances and ingredients used to enhance the taste, aroma, and overall sensory experience of food products. Food flavors and enhancers are used in a wide range of applications, including snacks, beverages, confectionery, bakery products, and savory items. These ingredients are designed to improve the palatability, visual appeal, and overall consumer experience of food products. The market is driven by factors such as changing consumer preferences, increasing demand for unique and exotic flavors, advancements in food science and technology, and the growing emphasis on natural and clean-label ingredients. Also, India holds a prominent position in the global spice industry as both a significant exporter and consumer. According to data from the Spice Board of India, India commands a dominant market share of 46%, solidifying its status as a key player in the worldwide spice trade. Notably, out of the 109 varieties recognized by the International Organization for Standardization (ISO), India proudly produces approximately 75 distinct types, showcasing its vast and diverse spice production capabilities.

India Food Flavor and Enhancer Market

Growth Drivers

Increasing Demand for Food Flavors in Processed Food Products

In Indian cuisine, a wide range of herbs and spices, such as chilies, asafetida, and cinnamon, are utilized as food flavors and enhancers. Recent trends have shown a high demand for flavors like coriander, ginger, and garlic powder in the Indian kitchen. With the growing working population, there is an increased need for processed and ready-made food products with appealing flavors and enhanced taste. Snack food manufacturers, including chips, instant noodles, and biscuits, seek food flavors and enhancers to differentiate their products. Also, the use of chocolate as a flavor in various food items has gained popularity. The demand for clean-label ingredients has also risen, driven by consumer preferences for novel flavors, convenience, and natural elements in food products. Manufacturers are incorporating new natural flavors to enhance nutritional and sensory profiles, catering to the demand for safer and healthier components.

Restraints

Fluctuating Raw Material Prices

The India Food Flavor and Enhancer Market may face constraints due to fluctuations in the prices of raw materials. Raw materials, such as herbs, spices, and other natural ingredients, play a crucial role in the production of food flavors and enhancers. Any significant price fluctuations in these raw materials can impact on the overall manufacturing costs and profitability for market players. Moreover, unstable prices can also affect the pricing of end products, potentially impacting consumer demand. Manufacturers in the industry need to closely monitor and manage raw material costs to mitigate the effects of price fluctuations and maintain competitiveness in the market.

Impact of COVID-19 on India Food Flavor and Enhancer Market

COVID-19 pandemic adversely affected the India food flavor and enhancer market. The crisis disrupted supply chains, leading to challenges in sourcing raw materials and ingredients. Travel restrictions, lockdown measures, and social distancing protocols affected the production and distribution of food products. Also, changes in consumer behavior, such as increased home cooking and reduced dining out, altered the demand for flavor and enhancer products. Despite the obstacles posed by the pandemic, it also created opportunities for innovation, particularly in the development of flavors for packaged and convenience foods. Market players had to adapt to changing consumer needs and ensure the resilience of their supply chains during these challenging times.

India Food Flavor and Enhancer Market

Segmental Coverage

India Food Flavor and Enhancer Market – By Type

By type, the India food flavor and enhancer market is divided into Natural Flavor, Synthetic Flavor, Nature Identical Flavoring, and Flavor Enhancers segments. The flavor enhancers segment holds the highest market share by type. Food flavor enhancers will be increasingly used in the production of snacks, savory, and seasoning items, which is expected to contribute to the industry's sustained growth. Snack consumption and spice manufacturing are both rapidly increasing. To attract more customers, manufacturers are launching innovative and new items in this market area. Market participants are mostly focused on developing flavor enhancers for the vegan population. The aim is to develop flavor enhancers that will increase the juiciness and savoriness of vegetarian food products.

India Food Flavor and Enhancer Market – By Application

By application, the India food flavor and enhancer market is divided into Dairy, Bakery, Confectionery, Processed Food, and Beverage segments.

Competitive Landscape

Major players operating in the India food flavor and enhancer market include Givaudan, DuPont, Firmenich, NILON'S, International Flavors & Fragrances, Inc., Flavaroma, Symrise AG, Flavors India (P) Ltd, and Kerry Group plc. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In November 2022 - Mane SA opened a flavor innovation center in Hyderabad, Telangana, India. The innovation center, which is set out over 13,900 square feet at Hitech City, will focus on end-to-end flavor development to service the food and beverages sector in India and other Asia-Pacific countries.

Scope of the Report

By Type

• Natural Flavor

• Synthetic Flavor

• Nature Identical Flavoring

• Flavor Enhancers

By Application

• Dairy

• Bakery

• Confectionery

• Processed Food

• Beverage