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Oil Soluble Flavors Market Size - By Flavour Type (Fruit Flavors, Herb & Spice Flavors, Nut Flavors, Sweet Flavors), Application (Food and beverage, Cosmetic and personal care, Pharmaceutical), Form, Distribution Channel & Global Forecast, 2023 – 2032

  • Report ID: GMI7502
  • Published Date: Nov 2023
  • Report Format: PDF

Oil Soluble Flavors Market Size

Oil Soluble Flavors Market size was valued at USD 1.47 billion in 2022 and is estimated to observe 5.6% CAGR from 2023 to 2032, due to changing consumer expectations for distinctive and flavorful experiences across several sectors. The rising popularity of convenience meals and beverages has increased the demand for high-quality flavorings that can resist production processes while maintaining a consistent taste character. Oil-soluble flavors have become a popular choice among food and beverage producers due to their stability and versatility.
 

Oil Soluble Flavors Market

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Furthermore, the worldwide food and beverage business, which includes confectionery, bread, dairy, and savory snacks, is increasing need for oil-soluble flavors. Manufacturers are exploiting these tastes to differentiate their products and fulfill the rising demand for creative and premium offers as consumer palates become broader and more sophisticated.
 

The high cost of raw materials is a key impediment to the expansion of the oil soluble flavors market's revenue. Oil-soluble flavor production frequently relies on specific and high-quality raw ingredients, such as natural extracts, essential oils, and other taste components. Price fluctuations in these raw materials can have a significant influence on firms' overall production costs. Furthermore, variables such as weather, geopolitical events, and supply chain interruptions can all contribute to raw material price volatility. The increased expenses are subsequently passed on to consumers, which may hinder market growth, particularly in price-sensitive areas.
 

COVID-19 Impact

The COVID-19 pandemic has had an uneven influence on the market for oil soluble flavors. While the supply chain and production processes were disrupted in the early stages, the market displayed resilience as customer demand for packaged and processed goods soared amid lockdowns. The increased emphasis on home cooking and the consumption of comfort meals resulted in an increase in demand for flavor enhancers. The foodservice sector, on the other hand, witnessed a slowdown, hurting demand for oil-soluble flavors used in restaurant and hotel industry goods.
 

Oil Soluble Flavors Market Trends

The increased emphasis on sustainability and natural sources is a key trend in the oil-soluble flavors industry. Manufacturers are introducing sustainably produced and organically derived oil-soluble flavors into their formulations as customers choose clean label products and eco-friendly options. As customers seek genuine and ecologically responsible culinary alternatives, this trend coincides with the wider drive toward openness in ingredient source.
 

Oil Soluble Flavors Market Analysis

Oil Soluble Flavors Market Size, By Flavor Type, 2021 - 2032 (USD Billion)

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Based on flavor type, the fruit flavors segment held over USD 0.48 billion revenue in 2022. Customers are drawn to food and drink items that provide a true flavor experience, and oil-soluble fruit flavors are excellent at providing the deep, authentic flavors that modern palates are seeking. These flavors are often used to improve the overall sensory appeal of a wide range of items, including dairy, confectionery, and fruity drinks and snacks. Oil-soluble fruit flavors are essential for producers that want to satisfy consumers' growing demands for natural ingredients, clear labels, and distinctive flavor profiles because of their adaptability and consistency.
 

Oil Soluble Flavors Market Revenue Share, By Application, (2022)

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Based on application, the food and beverage segment accounted for 78.4% of the oil-soluble flavors market share in 2022. Oil-soluble flavors are flavoring agents that may be dissolved in oil or fat. They may be found in a wide range of food and beverage products, including as baked goods, dairy products, confectionery, and snacks. Several reasons are driving the need for oil-soluble flavors, including expanding consumer demand for processed foods and drinks, the growing popularity of natural and organic flavors, and growing awareness of the health advantages of oil-soluble flavors. They can improve the flavor, fragrance, and texture of these items. They can also be utilized to develop novel flavor profiles.
 

Based on Form, the oil soluble flavors market from liquid segment is anticipated to grow at 6% CAGR through 2032. Liquid oil-soluble flavors offer versatility in application, allowing manufacturers in the food, beverage, and personal care industries to easily incorporate them into various products. The liquid form facilitates precise dosage and blending, enabling the creation of unique flavor profiles with a consistent and enhanced sensory appeal.
 

Based on distribution channel, the supermarkets/ hypermarkets segment dominated around USD 0.59 billion revenue in 2022. Supermarkets and hypermarkets are important retail venues where customers actively look for flavoring alternatives that are both handy and adaptable for their baking and culinary needs. The availability of a large variety of oil-soluble flavores on these shelves encourages customers to try out new flavors, which fuels the growth in demand for these flavorings.
 

North America Oil Soluble Flavors Market Revenue, 2021 - 2032 (USD Billion)

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North America oil soluble flavors market size reached USD 0.52 billion in 2022. Oil-soluble flavors have gained popularity for their ability to improve the flavor profiles of a wide range of items, including drinks, snacks, and convenience meals, as North American consumers emphasize natural and genuine taste experiences. Furthermore, the increased popularity of premium and gourmet items in North America has prompted the use of these tastes as a vital factor in improving the overall sensory appeal of high-quality food and beverage offerings.
 

Oil Soluble Flavors Market Share

Major companies operating in the oil soluble flavors industry include:

  • Flavor West
  • LorAnn Oils
  • Natures flavors
  • Flavor Concentrates
  • Newport Flavors & Fragances
  • Wizard Labs
  • Goldcoast Ingredients
  • Apex Flavors
  • Capella Flavors
  • Le Melange
  • Bichford Flavors
  • Bell Flavors & Fragrances
  • Mane SA
  • Kerry Group plc
  • Symrise AG
     

Flavor West is a family-owned and operated company that specializes in the production and sale of concentrated flavorings. Flavor West offers a wide variety of concentrated flavorings for a variety of applications. The company's products are used in a wide variety of food and beverage products, including e-liquids, food flavorings, and cosmetics.
 

Oil Soluble Flavors Industry News

  • In August 2023, GNT launched Shade Vivid Orange - OS is the EXBERRY portfolio's first 100% oil-soluble, plant-based color produced from non-GMO paprika. This ground-breaking product is a flexible and brilliant orange tint that may be used to replace paprika oleoresin and artificial colors in a variety of applications, including fat-based sweet and savory items.
     

The oil Soluble Flavors market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Billion & Units from 2018 to 2032, for the following segments:

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Market, By Flavor Type

  • Fruit Flavors
  • Citrus
  • Berry
  • Tropical
  • Orchard 
  • Herb & Spice Flavors
  • Mint
  • Cinnamon
  • Ginger
  • Basil
  • Nut Flavors
  • Almond
  • Hazelnut
  • Coconut
  • Walnut
  • Sweet Flavors
  • Vanilla
  • Chocolate
  • Caramel
  • Butterscotch
  • Others

Market, By Application

  • Food and beverage
  • Cosmetic and personal care
  • Pharmaceutical
  • Others

Market, By Form

  • Liquid
  • Powder
  • Paste

Market, By Distribution Channel

  • Supermarkets/ Hypermarkets
  • Specialty Stores
  • Convenience Stores
  • Online Retail
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • ANZ
    • Southeast Asia 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East & Africa
    • UAE
    • South Africa
    • Saudi Arabia

 

Authors: Kiran Pulidindi, Manish Mohanan

Frequently Asked Questions (FAQ) :

The market size of oil soluble flavors reached USD 1.47 billion in 2022 and is poised to surpass USD 2.54 billion by 2032, due to changing consumer expectations for distinctive and flavorful experiences.
Food & beverage segment held a dominant market share of around 78.4% in 2022, attributed to the growing popularity of natural and organic flavors, alongside the increasing awareness of the health advantages of oil-soluble flavors.
North America market size was valued at USD 0.52 billion in 2022, owing to the increased popularity of premium and gourmet items in the region.
Flavor West, LorAnn Oils, Natures flavors, Flavor Concentrates, Newport Flavors & Fragances, Wizard Labs, Goldcoast Ingredients, Apex Flavors, Capella Flavors, Le Melange, Bichford Flavors, Bell Flavors & Fragrances, Mane SA, Kerry Group plc, and Symrise AG.

Oil Soluble Flavors Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 317
  • Countries covered: 20
  • Pages: 180
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