Tue, 28-Jun-2022
Friday 12 Jun 2020 , 12:05 pm

Dairy Flavors are Becoming Essential Ingredients in Food & Beverage Industry

The research shows that available variety of dairy flavors and health benefits associated with it are the major factors that are boosting the growth of the global dairy flavors market. Plus, rising health and wellness consciousness among millennials is providing wide market opportunities for the businesses operating in the market.
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Dairy flavors are processed from dairy products such as milk, yogurt, butter, cheese, and cream. In the past few years, it has been observed that the factors such as organoleptic properties of dairy products and rising awareness regarding its health benefits are making these products one of the essential ingredients in the food and beverage industry.

The dairy flavors are often combined with other characterizing flavors to deliver an unique taste to the final product. These days, manufacturers are focusing on introducing new dairy-based flavors due to the increasing demands for organic and natural flavors. The dairy flavors help to cut costs as they proffer similar aroma and taste like original dairy product.

The research report published by the Insight Partners predicts that the dairy flavors market will reach to US$ 3,547.79 million by 2027 and it will grow at a CAGR of 5.3% between 2019 and 2027. The report states that available variety of dairy flavors and health benefits associated with it are the major factors that are boosting the growth of the market. Also, rising health and wellness consciousness among millennials is providing wide market opportunities for the businesses operating in the global dairy flavors market.

Mergers and acquisitions, research and developments, product launch, and patents/approvals are common strategies adopted by companies for the global expansion of their business. Synergy Flavors, Inc., Ornua Co-operative Limited, The Edlong Corporation, and Butter Buds Inc. are some of the main market players implementing these strategies to enlarge the customer base as well as maintain the brand’s name in the global market.

Asia-Pacific Dairy Flavor Market

The Asia-Pacific region has the largest share in the global dairy flavors market. Industry analysts state that market in Asia-Pacific region is expected to rise as demand for tasty food is growing in developed and developing countries. Now, the consumers are ready to pay higher prices for the dairy flavors products in the countries including India, China, and Japan due to the rise in disposable income among consumers.

In Asia-Pacific Dairy flavor market, China contributes to the largest share. The diversification in the application base of products has created a great impact on the demand of dairy flavors in the Chinese market.

North America Dairy Flavor Market

The United States is one of the largest markets for healthy convenience food products. As per the observations, the production as well as consumption of dairy flavors are increasing in the US due to the rising demands for healthy food options with the focus on taste and flavor of product. That’s why the US contributes to the largest share in the North America dairy flavor market.

Based on application, the dairy flavor market is segmented into bakery, soups and sauces, confectionery, dairy products, and beverages, etc. By adding texture, the subtle taste of dairy flavors enhances the drink and adds additional taste. Different dairy flavors are responsible for adding chocolate mixes, coffee concentrates, and sweetness to yogurt-based drinks. That’s why, the beverages segment dominated the North America dairy flavor market in 2018 as per the research data. Experts believe that the segment will grow in coming years too.

Europe Dairy Flavor Market

The United Kingdom contributes to the largest share of the Europe dairy flavor market as the region provides various rewarding opportunities to manufacturers and producers. Dairy flavors-based food products such as flavored ice creams and yoghurts are commonly consumed in the UK. The diversification in the application base of these products has made a significant impact on the demand of dairy flavors in the market.

The dairy flavor market—based on flavor type—is segmented into milk, cheese, cream, butter, yogurt, and others. Data shows that in 2018, the milk segment accounted for the largest share in the Europe’s dairy flavor market. However, the market analysts predict that the market for the cheese segment will grow at the highest CAGR in coming years.

Impact of COVID-19 Pandemic

In December 2019, COVID-19 outbreak began in Wuhan, China and since then it has spread in almost all countries rapidly. The US, Italy, Iran, Spain, the Republic of Korea, China, India, France, and Germany are some of the worst affected countries in terms of confirmed COVID-19 cases and reported deaths till now. The overall scenario is affecting the growth of the global dairy flavor market due to lockdowns, shutting down of factories, disruptions in supply chain, and downturn in world economy.




Neha Mule

Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.

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