Flavor Masking Agents for Food and Beverages Market Size & Forecast 2030

[Research Report] The flavor masking agents for food and beverages market size is projected to grow from US$ 134.32 million in 2022 to US$ 211.98 million by 2030. The market is expected to record a CAGR of 5.9% from 2022 to 2030.

Market Insights and Analyst View:

Flavor masking agents are ingredients or additives used to mask undesirable flavors in various food and beverages such as bakery and confectionery, dairy and frozen desserts, meat alternatives, dairy alternatives, meat and seafood products, and savory snacks. The agents enhance the palatability of food by masking the off-notes such as bitterness, sweetness, saltiness, sourness, fat-flavor, metallic off-notes, chalkiness, beany and grassy flavors, and others. Flavor masking agents also include various flavor systems, including taste modulators, bitterness suppressors, sweetness suppressors, and fat modulators.

Growth Drivers and Challenges:

Many processed fortified foods such as dairy items, meat products, and bakery and confectionery items contain vitamins, protein, and other functional ingredients with unpleasant odors and tastes. Flavor masking agents are widely used in these products to get the desired flavor and taste. Additionally, the agents allow for a reduction in the sugar, salt, and fat content of processed foods. Thus, increased consumption of processed foods propels the need for flavor masking agents. Moreover, the growing interest of consumers in healthier lifestyles drives demand for fortified, functional, and other convenient, functional foods and beverages, such as products with less sugar. However, the boosting functional benefits can hamper the taste and flavors of the end product. Thus, to get the desired flavor, functional and convenient food manufacturers use flavor masking agents. For instance, flavor masking agents are significantly used in protein-based food products to eliminate or neutralize the off-flavor or undesirable flavor of protein. Thus, a wide array of applications of flavor masking agents in various food and beverages boosts the global flavor masking agents for food and beverages market growth.

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Flavor Masking Agents for Food and Beverages Market: Strategic Insights

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Report Segmentation and Scope:

The global flavor masking agents for food and beverages market is segmented on the basis of type, application, and geography. The flavor masking agents for food and beverages market, by type, is segmented into sweet, salt, fat, bitter, and others. Based on application, the market is segmented into bakery and confectionery; dairy and frozen desserts; beverages; meat, poultry, and seafood; meat substitutes; dairy alternatives; RTE and RTC meals; and others. The flavor masking agents for food and beverages market, based on geography, is segmented into North America (the US, Canada, and Mexico), Europe (Germany, France, Italy, the UK, Russia, and the Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America).

Segmental Analysis:

Based on type, the flavor masking agents for food and beverages market is segmented into sweet, salt, fat, bitter, and others. The bitter segment holds a significant share of the market. The demand for bitter flavor masking agents is growing primarily due to consumers' sensitivity to bitterness and the expansion of products with bitter components. As consumer preferences evolve and the market diversifies with the introduction of new beverages, functional foods, fortified food and beverages, and health-focused products, the need for effective bitter flavor masking agents increases. These agents enable the creation of a broader range of palatable products that cater to various consumer segments, addressing the demand for better-tasting, bitter-sensitive-friendly options in the market. These factors drive the market growth for the bitter segment.

Regional Analysis:

Based on geography, the flavor masking agents for food and beverages market is segmented into five key regions—North America, Europe, Asia Pacific, South & Central America, and the Middle East & Africa. Asia Pacific dominated the global flavor masking agents for food and beverages market; the market in this region was valued at US$ 50,557 million in 2022. The market in Europe is expected to register a CAGR of 6.8% during the forecast period. Developed and developing countries in Asia Pacific witness growth in urbanization, coupled with the rising middle-class population, offering several opportunities for the market players. The diverse and multicultural nature of Asia Pacific has resulted in dietary restrictions and preferences. The region reports increased demand for plant-based food products coupled with an upsurge in the vegan population. Flavor masking agents play a crucial role in enabling manufacturers to create plant-based food products with exciting and novel flavor combinations, enhancing the appeal of their products to a wider consumer base. These factors propel the flavor masking agents for food and beverages market growth in Asia Pacific.

North America accounts for the second-largest share of the flavor masking agents for food and beverages market, accounting for nearly ~25% market share. The demand for flavor masking agents is upsurging as consumers become health-conscious and actively seek food products with low sugar, low fat, low sodium, and low salt. This rise in demand for reduced salt and sugar products has led to increased usage of artificial sweeteners and sugar substitutes, which can have distinct aftertastes, requiring masking. Due to this factor, the demand for flavor masking agents is rising in North America.

Industry Developments and Future Opportunities:

Initiatives taken by key players operating in the flavor masking agents for food and beverages market are listed below:

1. In June 2023, Kerry announced the launch of its next-generation Tastesense Advanced portfolio of solutions that aims to redefine the low and zero-sugar product market by delivering incomparable sweetness and full-bodied mouthfeel, as well as sustainability benefits.  

COVID-19 Pandemic Impact:

The COVID-19 pandemic adversely affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America, and the Middle East & Africa (MEA) hampered the growth of several food and beverage manufacturing companies operating in the bakery & confectionery, dairy & frozen desserts, and meat & dairy alternatives industries. The shutdown of manufacturing units disturbed global supply chains, production activities, delivery schedules, and essential and nonessential product sales. Various companies witnessed delays in product deliveries and a slump in their product sales in 2020, which hampered the flavor masking agents for food and beverages market. The shortage of workforce and limited supply of raw materials also led to a halt in operations and processes across the globe during the COVID-19 pandemic. These factors negatively impacted the market growth in the pandemic.

With a shift in consumers' focus on adopting plant-based food owing to increasing veganism trends and rising health and wellness concerns during this health crisis, the demand for flavor masking agents has increased in the last few years. In 2021, various economies resumed operations as several governments revoked the previously imposed restrictions, which positively impacted the global marketplace. Moreover, manufacturers were permitted to operate at full capacities, which helped them overcome the demand and supply gaps.

Flavor Masking Agents for Food and Beverages Market Regional Insights

The regional trends and factors influencing the Flavor Masking Agents for Food and Beverages Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Flavor Masking Agents for Food and Beverages Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Flavor Masking Agents for Food and Beverages Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Flavor Masking Agents for Food and Beverages Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Flavor Masking Agents for Food and Beverages Market are:

1. Sensient Technologies Corp
2. Firmenich International SA
3. Tate & Lyle Plc
4. Archer-Daniels-Midland Co
5. Kerry Group Plc

Disclaimer: The companies listed above are not ranked in any particular order.

Competitive Landscape and Key Companies:

Sensient Technologies Corp, Firmenich International SA, Tate & Lyle Plc, Archer-Daniels-Midland Co, Kerry Group Plc, Carmi Flavor & Fragrance Co Inc, Synergy Flavors Inc, Virginia Dare Extract Co Inc, GEO Specialty Chemicals Inc, and Koninklijke DSM NV are among the prominent players operating in the global flavor masking agents for food and beverages market. These market players adopt strategic development initiatives to expand their businesses, further driving the flavor masking agents for food and beverages market growth.