The Revenue Of Flavor Market In India have Enhanced At a CAGR of 9.9% During FY’2010-FY’2015 – Ken Research
The flavor and fragrance industry has witnessed tremendous growth over the past few years especially during FY’2010-FY’2015 in India. The consumers in the country are steadily moving towards the packed and canned foods, which has heightened the growth of flavor segment in India.
The flavor and fragrance industry has witnessed tremendous growth over the past few years especially during FY’2010-FY’2015 in India. The consumers in the country are steadily moving towards the packed and canned foods, which has heightened the growth of flavor segment in India. Various factors such as economic growth, rising prosperity, incline in urban class population and busier lifestyles have contributed to an inclining growth for flavors. Moreover, busier lifestyles in the country have triggered increase in consumption of ready to eat foods. For consumers unwilling to compromise on taste, health or convenience, flavor companies have been bent on innovating new products. The demand for flavors has widely enhanced over the last couple of years.
According to the Research Analyst, Ken Research The India flavor market is diversified across several fragrance families such as vanilla, butterscotch, exotic flavors, blackcurrant, kesar and others. The market was dominated by vanilla flavor which remained the largest demanded flavor of the flavor market in India. Exotic flavors are also demanded at a wide scale, although it is a newer product line but still the demand is very high as compared to other flavors. These flavors generally include flavors such as strawberry, cranberry, mulberry and many more. Butterscotch and black currants were the third and fourth largest contributor to the overall fragrance market.
Flavor market in India has been segmented on the basis of types of applications which comprise beverages, bakery, confectionery, dairy, pharmaceuticals, tobacco and others. The Flavors used in the beverages have grossed the highest revenues for the flavor market. Confectionary has been the second largest revenue contributing segment to the overall flavor market in India during FY’2015. Dairy is the third largest product in flavor market of India, This product has witnessed a huge spike in terms of revenues owing to higher demand of flavored milk especially among urban households. The demand for pharmaceuticals products and tobacco have enhanced during the span of last five years, according to the Research Analyst, Ken Research.
The demand for flavors has been catered by two distinct sources: imports and domestic production. The demand for flavors in India is accomplished largely through domestic procurement. On the other side, the import demand for flavors was very low. In the coming years, it is expected that import demand for flavors products is likely to augment, which is anticipated to be driven through surge in personal disposable income, rising urbanization levels and growing preferences for foreign flavors.
The flavor market in India has been segmented on the basis of synthetic and natural flavors. Natural chemicals are those which are created from the edible products such as essential oils, oleoresins, fruits, leaves and several others. However, synthetic flavors are processed in laboratories using inedible things such as petroleum. It has been estimated that during FY’2015, synthetic flavors accounted majority of the overall flavor sales in India. The major reasons of the domination of synthetic over natural flavors is that the cost incurred and time taken in production is less in comparison to that of natural flavors , according to the Research Analyst, Ken Research.