The flavor industry is a service industry directly relying on the food, beverage and related consumer product manufacturers for its outlets. The products themselves are dictated by the needs of the users. Although these industries have been somewhat less affected by the recent recession, there has been a significant cutback in development activities and an even greater reduction in the financing of longer-term research projects. The cost of introducing a new product onto the market is now more expensive and the potential for successful sales is much less secure than it was five years ago.
In line with other aspects of business, many manufacturers have computerized their product formulations and material stock controls so that the introduction of a new flavoring, material or product is not received enthusiastically unless it shows outstanding quality attributes. It can not merely match something that already exists from another supplier. New flavor products have to be unusual in their profiles. They must have highly desirable technological advantages and unrestricted availability at a cost saving to offset the expense of administrative change of existing computer data and to offer economic advantages in real terms. This is asking a lot of any new flavoring and is why the flavor industry is not making as much headway as it would like.
The indications are that it will take an enormous upturn in the economy before the marketing attitudes for new food products change; until this happens the flavor industry must patiently improve its products and continue to work in close harmony with the development departments of the user industries.