- By 2024, the global natural and organic flavors market is expected to be worth nearly $8.3 billion, growing at a CAGR of 7.6%, according to a report from Persistence Market Research.
- The growth in the market in Europe and North America will largely be driven by an increase in volume of the flavors, the majority of which will come from the fruits and fruit juice segment. Europe is currently the dominant market in this space — largely because of consumer preference for RTD fruit drinks — and is expected to maintain that position.
- The price range for these flavors is expected to fluctuate due to factors like production, demand, and imports and exports. However, the spices segment is expected to expand at a 8.1% CAGR, and the essential oils segment is expected to continue to hold the market's highest value share.
With everything organic and natural growing in popularity, it is no surprise that flavorings made this way are also expected to grow. Currently, more than half of U.S. households purchase organic produce. People who work with the organic industry say there is currently not enough supply to meet demand. As supply is expected to ramp up, it is easy to predict that use of those items in flavorings will also increase.
Where and how that increase will take place is up to consumers. Manufacturers are trying to build up the U.S. juice market, which currently lags behind that in Europe. A report from Tetra Pak indicates there is an opportunity for 100% juice to made a turnaround, since it aligns with several consumer trends. It's all natural, and innovations like exotic flavors and cold-pressing have made strides to reinvigorate the category.