The global biotech flavor market is expected to grow at a compound annual growth rate of 6.61% over the forecast period to reach a market size of $3.337 billion in 2027, from $2.132 billion in 2020, according to Research and Markets.
According to the market report, there have been certain strategic initiatives by various players in the biotech flavor market space in recent years. Three major consumer demands in terms of food and beverage purchases that remain frontrunners are healthy/functional products, environmentally friendly and enhanced sensorial perception.
Trends Driving the Market
Regulatory updates: Increasing trends in product reformulations that are being made compulsory by various regulatory measures like the need to reduce sodium and sweet content are also expected to propel the growth of the biotech flavor market. The salt reduction priority stems from the growing trend of convenience snaking, which has experienced an upswing during the lockdown period enforced by the various national governments during COVID-19, which is expected to further fuel the demand for developing flavors via biotechnological means.
Premiumization: Permeating across food and beverage categories and ingredients and consumers' desire for exotic flavors. This, too, is expected to pave new opportunities for the players in the biotech flavor space to bring about innovation and consequently lead to healthy growth.
The gradual growth of millennials: There has been a conscientious effort to transition to alcoholic beverages with low alcohol alcoholic content, which is expected to catapult further the demand for alcoholic beverages, which is expected to drive the biotech flavor market growth.