Food flavor production is expected to reach 1,741,884 tons in 2025

The International Organization for the Fragrance Industry (IOFI) defines edible flavors from the perspective of the flavor and fragrance industry: edible flavors are concentrated preparations that can contain or do not contain solvents and carriers, which only impart the flavor of food, but not salty, sweet and harmonious Sour taste, not directly consumed in the form of flavor.

There are many varieties of flavors, and the speed of innovation is very fast. The industry believes that in order to gain a foothold in the fiercely competitive market, flavor manufacturers must continue to develop new products. In the process of developing new products, edible flavor companies should operate according to customer needs. Before developing new products, the staff of the flavor company must conduct research in food companies, supermarkets and shopping malls that sell food, and listen carefully to customers' opinions.

Food flavors are divided into natural flavors and artificial flavors. The market share in 2018 was 80.20% and 19.80% respectively. At present, the world's major edible flavor manufacturers are Givaudan, Firmenich, Wild Flavors, Dezhixin and Takasago Flavors, and their market shares in 2018 were 20.49%, 11.89%, 11.19%, 8.14% and 5.44%, respectively.

The edible flavor market is mainly used in beverages, snacks, dairy products, desserts, and others. The market shares in 2018 were 30.79%, 38.48%, 15.84%, 8.61% and 6.28%, respectively. The proportion of applications in the snack food field will increase slightly in the future.

In terms of downstream applications, the application in the dessert field has the fastest growth, with a CAGR of 9.69% from 2018 to 2025. The sales volume of edible flavors in this field in 2018 was 82,885 tons, and this figure is expected to reach 158,337 tons by 2025.

In 2018, the world's production of edible flavors reached 962,663 tons, of which 24,3030 tons were produced in Europe, accounting for 25.25% of the global share. It is estimated that in 2025, the global production of edible flavors will reach 1,741,884 tons, while the production and market share in Europe will reach 496,494 tons and 28.50%, respectively. The global output value in 2018 reached 16,115 million U.S. dollars, and is expected to reach 24,845 million U.S. dollars by 2025.

In the short term, the market position of large foreign companies entering the Chinese market cannot be shaken. China's domestic edible flavor market has formed a diversified competition pattern. It is a wise choice to enter when the market concentration is low. However, in the foreseeable medium and long-term, the market will inevitably be further concentrated, and then reach a higher level of market concentration. By then, new entrants will have difficulty competing with the powerful opponents already in the market.