On the basis of flavor, the global biotech flavor market is segmented into vanilla and vanillin, fruity flavor, and others. Revenue contribution from vanilla and vanillin expected to witness a significant increase over the forecast period. Vanilla & vanillin biotech flavors are expected to gain high demand from nutraceutical-based products such as energy drinks, protein bars, and protein powder. Majority of demand for these ingredients can be met through chemical synthesis process, which involves high cost and meets only 5% of the world’s demand. This, in turn, is expected to shift the focus of food manufacturers towards the adoption of bio-based technology to produce vanillin. On the basis of form, the global biotech flavors market is segmented into liquid, powder, and paste. Powder form is expected to account for a comparatively higher share in the global biotech flavors market. On the basis of application, global biotech flavors market is segmented into dairy products, beverages, confectionery products, non-dairy ice cream, bakery products, nutraceuticals, and others.
Consumer preference for biotechnology-based products is expected to witness a significant increase over the next couple of years. Manufacturers and suppliers of food & beverage products are optimizing product offerings according to consumer demand. Various manufacturers are increasingly entering the biotech flavors market owing to high-profit margins. Many companies are expected to launch biotech flavored products in the next five to six years. Additionally, manufacturers are also expected to market their products with natural and biotech labels, to attract existing, and increase the number of new customers. Entry of new players is expected to drive the growth of the global biotech flavor market to a significant extent over the forecast period.
Biotech processes such as plant tissue culture, microbial fermentation, and bio-conversion enable conversion of fruits and vegetable ingredients into flavors without hampering the nutritional value and thus can be considered relatively more natural than chemically synthesized equivalents.
This report covers trends driving each segment and offers analysis and insights into the potential of the biotech flavors market in specific regions. North America, Asia Pacific, and Europe are expected to register high growth rates between 2016 and2024. Biotech flavors market in the North America region is expected to register significant value over the forecast period. Flavor production technologies based on plant tissue culture (PTC), microbial fermentation, or bioconversion is capable of overcoming various limitations related to the traditional processes, also biotech processes enable consistent quality and higher production capacity at reduced cost. In term of value, North America accounted for 32.1% share of the global biotech flavors market in 2016and is expected to account for 32.3% by 2024. The health and wellness trend prevailing in the region is expected to support North American biotech flavors market. This trend is anticipated to encourage the food manufacturers to enhance the nutritional profile of food and beverages by adding biotech flavors.