A report from Grandview Research on the global beverage flavoring system market indicates that the market is expected to grow at a 5.3% CAGR through 2028. The availability of a wide variety of beverages, the increasing consumption and rising trends on social media are driving the demand for the market.
Per the report, the global beverage flavoring system market is highly competitive as flavor manufacturers are focusing more on distribution and supply chain strategies. The flavor manufacturers have also been keeping track of emerging trends in the beverage industry, which is helping them to cope with future demands from their customers. The continuously changing preference of the consumers regarding taste and flavor is a key aspect for the flavor manufacturers.
The continuously rising stress levels of people are boosting demand for drinks that can provide relief or boost mood. Ingredients like botanicals, adaptogens, CBD, and L-theanine are used in manufacturing relaxation drinks. Social media trends, like combining non-typical flavors in a beverage experiment, are creating growth opportunities, particularly in the non-alcoholic section, which held the largest revenue share (75.9%) in 2020. The wide range of products under the non-alcoholic segments contributed to the dominating share of the segment. The benefits associated with non-alcoholic beverages over an alcoholic one is another major factor supporting segmental growth. However, alcoholic beverages are projected to experience the fastest growth of any segment in the market.
The flavoring agents segment also dominated the market in 2020 and is expected to maintain that dominance throughout the forecast period. Some of the common flavoring agents utilized in the formation of beverages include alcohols, esters, aldehydes, MSG, protein hydrolysates and ketones.
Liquid form held the largest revenue share in the form segment for beverage flavoring systems (73.7%) in 2020. The ease of processing associated with the liquid flavors is primarily contributing to its dominance in the market for beverage flavoring systems. The liquid segment is also projected to exhibit the fastest CAGR of 5.4% from 2020 to 2028.
The Asia Pacific region dominated the market for beverage flavoring systems and accounted for the largest revenue share of 37.9% in 2020, due to its high population base and the number of ready-to-drink beverages.
The North American region accounted for more than 28% of the revenue share in 2020. The demand for alcoholic beverages is high in the United States, which accounted for the largest revenue share (76.3%) in the region in 2020.