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Summary and extracts
1 Market Overview
1.1 Definition and presentation
Food flavorings are used as additives to modify and improve the flavor of regular food products; they change the properties of solutes, causing sweetness, acidity, and opacity. They change or improve the flavor of natural foods such as meat and vegetables, or create a flavor for foods that do not have the desired flavor. They are additives used during food preparation to alter or improve the taste and smell of food products. These additives are required in small proportions and should not be consumed alone.
The value of the global food flavorings market is estimated at $14.67 billion in 2024 and is expected to reach $18.72 billion by the end of 2029 with a compound annual growth rate (CAGR) of 5 percent over the period and an overall increase of 27.58 percent. Growing demand in a variety of applications is driving global market growth. Market expansion is driven by a combination of changes in consumer preferences, innovations in the food industry, and an increasing focus on health and ingredient quality.
The European food flavoringsmarket is valued at $3.94 billion in the current year and is expected to register a CAGR of 4.6 percent over the forecast period until reaching $4.93 billion in 2029.
The Italian market between 2024 and 2029 is projected to grow at a compound annual growth rate (CAGR) of 2.80%, representing an increase of 14.8% total. The Italian aromatic market is mainly characterized by consumer attraction to naturalness . This trend is leading to a strong interest in natural flavors, sought after both for their health and environmental benefits and for their ability to add flavor to modern, healthy and natural cuisine. Companies in the market are therefore working to expand their offerings to meet these new needs and anticipate future trends.
In recent years, however, there are negative data inherent in the production made and sold of food flavorings, recording a decrease of 70 percent and 68 percent, respectively. Such a significant drop in production and sales signals a crisis in the market that requires careful analysis and strategic response by companies to mitigate the negative effects and seek new opportunities for growth.
1.2 The global market
the value of the global food flavorings market is estimated at $**.** billion in **** and is expected to reach $**.** billion by the end of **** with a compound annual growth rate (***) of * percent over the period and an overall increase of **.** percent. Growing demand in a variety of applications is driving global market growth. Market expansion is driven by a combination of changes in consumer preferences, innovations in the food industry, and an increasing focus on health and ingredient quality.
Global Food Flavor Market Value World, ****-****, in billions of $ MarketDataForecast Food flavorings are used as additives to modify and improve the flavor of regular food products; they change the properties of solutes, causing sweetness, acidity, and opacity. They change or improve the flavor of natural foods such as meat and vegetables, or create a flavor for foods that do not have the desired flavor. They are additives used during food preparation to alter or improve the taste and smell of food products. These additives are required in small proportions and should not be consumed alone.
In ****, the market shares of food flavorings show a significant distribution. Asia Pacific dominates with **.**%, followed by Europe with **.**%. The rest of the world accounts for the ...
1.3 The European market
The European food flavorings market is valued at $*.** billion in the current year and is expected to register a CAGR of *.* percent over the forecast period until it reaches $*.** billion in ****.
Since the onset of the global COVID-** pandemic, the annual growth rate of the European food flavorings market has declined. This has been followed by government restrictions and significant production and supply chain disruptions. However, the market also experienced a slow but steady increase in demand during the period when the restrictions were lifted, as more people around the world began buying more food products, including food and beverages.
European Food Flavor Market Value Europe, ****-****, in billions of $ MondorIntelligence
In ****, Ireland led the export of food flavorings to Europe with ***.* thousand tons, almost twice as much as Germany, which ranked second with **.* thousand tons. France and the Netherlands followed with **.* and **.* thousand tons, respectively. Hungary and Spain exported smaller quantities, **.* and **.* thousand tons respectively. Switzerland and Turkey are in the last places with **.* and **.* thousand tons. Major exporters of food flavorings Europe, ****, in thousand tons UNComtrade
In ****, France was the top importer of food flavorings in Europe with **.* thousand tons. The Netherlands and Germany followed with **.* and **.* thousand tons ...
1.4 The Italian market
In ****, the value of the Italian market is estimated at $***.** million, rising at a compound annual growth rate (***) of *.**% each year until it reaches $***.** million in ****. This represents an increase of **.*% total.
This estimate is derived from the value of the European market.
Italian food flavoring market value Italy, ****-****, in millions of US$ Elaborated by Businesscoot, MondorIntelligence
The latest report by AISPEC (***), which also consists of a Food Essences Committee, estimated the latest most important numbers of the Italian food flavoring market. These numbers, were also found with the support of IFRA, the international association representing the industry, which works closely with regulators and stakeholders to create and update high safety standards.
Source: ****
*Note, the value expressed in the table is for the broad sector of flavorings, including fragrances, synthetic and natural flavorings.
1.5 Imports and Exports
Between **** and ****, Italian food flavor exports grew from $***.* million to $***.* million, an increase of **.*%. Imports, over the same period, increased from $***.* million to $***.* million, an increase of **.* percent. The coverage ratio increased from *.** in **** to *.** in ****, indicating an improvement in Italy's ability to cover imports with its exports, although imports remain higher than exports.
Exports, Imports and Food Flavor Coverage Rate Italy, ****-****, in US$ million UNComtrade
In ****, the U.S. was the main recipient of Italian food flavorings exports, accounting for **.** percent of the total. It was followed by the UK and Germany with *.**% and *.**% respectively. France, Ireland and Poland each received just over * percent of Italian exports. Spain imported *.**%, while the "Others" category accounted for **.**%, indicating significant distribution to smaller or diversified markets as well. Main destination countries for food flavorings exports Italy, ****, in % UNComtrade
In ****, almost half of Italy's food flavorings imports came from Ireland, with a share of **.**%. Germany and France followed with **.**% and **.**% respectively. Spain and the Netherlands contributed *.** percent and *.** percent. Imports from Belgium and Slovenia were more modest, accounting for *.**% and *.**%. The "Others" category covered the remaining *.** percent. Main countries of origin of food flavorings imports Italy, ****, in % UNComtrade
1.6 Inflation suffered by the sector
Inflation has affected the food sector broadly, affecting not only basic necessities but also snacks, beverages, confectionery, packaged goods and flavorings. Increases in raw material costs, problems in the supply chain, and higher energy costs are among the main factors. Companies have responded by passing costs on to consumers, reducing package sizes or improving production efficiency. Consumers, in response, have reduced purchases of unnecessary products, chosen cheaper brands, and taken advantage of promotions to save money.
Producer price index of other food products [***] by industry - monthly data - base ****=*** Italy, ****-****, index Istat
The producer price index of other food products in Italy shows an increasing trend from January **** to December ****. The index increases from ***.* in January **** to ***.* in December ****, registering an overall increase of **.** percent. Looking at the monthly data, there is continuous growth until November ****, when it reaches ***.*, followed by a peak of ***.* in February ****. Since then, the index stabilizes around *** with slight fluctuations. The sharpest growth occurred in the first half of ****, while in **** the trend remained more stable.
2 Demand analysis
2.1 Overview of demand
Between **** and ****, the average monthly expenditure of Italian households on food flavorings showed a slight fluctuation. From **** to ****, spending remained stable at around *.** euros. In ****, there was a decline to *.** euros, probably influenced by the pandemic. Expenditure rose again to *.** euros in ****, but dropped significantly in **** to *.** euros, marking a **.* percent decrease from ****.
This spending item is based on consumer activities.
Average monthly household expenditure item for food flavorings Italy, ****-****, in current &euro Istat
Between **** and ****, food flavorings production in Italy showed considerable variability. In ****, production was **,*** tons, falling to **,*** tons in ****. In ****, there was a recovery to **,*** tons, followed by a significant increase to **,*** tons in ****. However, in ****, production dropped to **,*** tons and reached a low of *,*** tons in ****. Overall, from **** to ****, production decreased by **%.
Realized production of food flavorings [***] Italy, ****-****, in tons Istat
Between **** and ****, the sold production of food flavorings in Italy showed considerable fluctuation. In ****, the sale was **,*** tons, falling to **,*** tons in ****. In ****, it rose again to **,*** tons and to **,*** in ****. However, in ****, the sale dropped to **,*** tons, reaching a low of *,*** in ****. In total, from **** to ****, production sold decreased by ** percent.
Sold production of food flavorings [***] Italy, ****-****, in tons Istat
In ****, the ...
2.2 Geographical distribution of demand
In ****, the average monthly expenditure of Italian households on natural flavorings was fairly uniform across geographic areas. The South and Islands recorded the same expenditure of €*.**, slightly higher than the Center, Northeast and Northwest, each with €*.**. This homogeneity indicates a similar distribution of natural flavoring consumption habits across the country.
2.3 Determinants of demand
The demand for food flavorings is influenced by a number of determinants ranging from consumer preferences to market dynamics. The main factors are as follows:
Tastes and Cultural Preferences: Taste preferences vary widely across regions and cultures. Some markets prefer sweet and fruity flavors, while others may prefer spicier or spicy flavors. Food Trends: Food trends, such as the growing interest in healthy and natural foods, influence the demand for natural food flavors over artificial ones. New Products and Flavors: The introduction of new products and flavors to the market can stimulate demand. Companies invest in research and development to create innovative flavors that can appeal to consumers. Personalization: The ability to customize products with specific flavors can increase demand as consumers seek unique culinary experiences. Health Awareness: Growing consumer awareness of health and wellness leads to increased demand for natural flavors, free of additives and artificial preservatives. Regulationsand Food Safety: Regulations regarding the safety and quality of food flavorings can influence demand. Higher standards may increase consumer confidence and thus demand. General Economic Conditions: Economic trends affect consumers' ability to spend. In times of recession, consumers may reduce the purchase of premium flavor products. Price of Flavors: The cost of ...
2.4 Trend in demand for food flavorings
The trend of online searches for "aroma" in Italy between **** and **** shows considerable variation. The index starts at **.* in June **** and peaks at **.* in December ****, an increase of **.**%. Over this period, fluctuations are observed, with moments of significant increase in the fall and winter months, and declines in the summer months. This trend could indicate a seasonality in aroma search, with greater interest during the colder months.
The numbers represent search interest relative to the highest point on the graph in relation to the region and period indicated. A value of *** indicates the highest frequency of search for the term; ** indicates half as many searches. A score of *, on the other hand, indicates that not enough data were found for the term.
Trend of online searches for aroma Italy, ****-****, index Google Trends, Businesscoot elaboration
The geographical distribution of online searches for natural flavorings in Italy from **** to **** shows a predominance in Lazio, with a maximum index of ***. This is followed by Abruzzo (***), and finally Valle d'Aosta/Vallée d'Aoste registers the lowest interest with a value of **. These data reflect a regional variability in interest in natural flavors, with a greater concentration of searches in central and southern Italy than ...
2.5 New trends in demand
New trends in demand for food flavorings reflect changes in consumer preferences. They indicate an evolving market driven by consumers who are increasingly informed and concerned about the quality, health and sustainability of the products they buy. Here is a detailed description of the main emerging trends:
Clean Label: Consumers are increasingly interested in products with clean labels, indicating natural ingredients and free of artificial additives. Natural flavorings are becoming the preferred choice over artificial flavorings. Sustainability: There is a growing demand for sustainably produced flavorings with practices that reduce environmental impact. Culinary Exploration: Consumers are eager to experience new exotic flavors from different parts of the world. Flavors such as dragon fruit, yuzu, cardamom, and other international flavors are gaining popularity. Flavor Fusion: Combining flavors from different cuisines is becoming a trend, with consumers seeking unique and innovative dining experiences. Functional Flavors: There is increasing demand for flavors that not only add flavor but also have health benefits. Examples include flavorings with added probiotics, antioxidants, or herbal extracts with healthful properties. Sugar and Salt Reduction: Flavors that can offset the reduction of sugar and salt in food products are becoming increasingly popular, in line with trends toward healthier diets. Multisensory ...
3 Market structure
3.1 The main players in the market
The main Italian producers of food flavorings in the market are:
Giotti: A Tuscan company founded in ****, specializing in the production of flavorings, extracts and concentrated juices for the food industry. The company has deep roots in Italian tradition and a strong commitment to innovation and quality. The founder, Enrico Giotti, began his business in Florence producing extracts and flavor bases for liqueurs and carbonated beverages. Over the years, the company has grown significantly, expanding its product offerings and developing advanced technologies for the production of natural and organic flavorings. It meets the specific needs of customers in the beverage, bakery, confectionery, and also in the pharma and nutraceutical segments. Research and development are at the core of the company's strategy, enabling it to offer innovative and high-quality products that comply with international standards(***).
Fratelli Pagani: Italian company with more than *** years of history in the production of flavorings, spices and exclusive ingredients. Established in **** by brothers Filippo and Francesco Pagani in Milan, the company has spanned several generations, always maintaining a strong commitment to innovation and quality. It uses the "Skybridge" method, a structured process involving research and development, quality control, technical support and on-site service, to ensure customized and ...
3.2 Value Chain
*. Acquisition of Raw Materials (***):
This step involves the acquisition of necessary raw materials, such as plants, fruits, herbs, spices and synthetics, which are essential for the production of food flavorings.
*. Research and Development (***):
In this stage, new flavor formulas are developed and existing ones improved through research activities. This includes experimentation with different combinations of ingredients to create unique and palatable flavorings.
*. Extraction and Processing (***):
Raw materials are extracted and processed to obtain the desired flavor components. Techniques such as distillation, solvent extraction and other methods are used to isolate and concentrate flavor compounds.
*. Flavor Creation (***):
This step involves mixing the extracted ingredients to create specific flavor profiles. Flavor specialists formulate these blends to achieve the desired flavor and aroma characteristics.
*. Quality Control and Testing (***):
Rigorous quality control and testing is conducted to ensure that flavorings meet safety, quality and regulatory standards. This includes sensory evaluations, chemical analysis and stability testing.
*. Manufacturing and Packaging (***):
Formulated flavorings are manufactured on an industrial scale and packaged in appropriate formats for wholesale or retail distribution. This step ensures that the flavorings are ready for market.
*. Distribution and Final Use (***):
Final flavorings are distributed to various customers, including food ...
3.3 Research and Development
The flavorings market has been booming in recent years, which is why manufacturers are deciding to invest more and more in research and development (***).AISPEC estimates that this market spends ** percent of its total annual sales on R&D, a significantly high percentage compared to other industries. This investment is driven by the need to continuously innovate to meet consumer needs and respond to global challenges.
One of the most anticipated and important results achieved through these investments is the improvement of the sustainability of raw materials and processing and production processes. Sustainability has become a central issue as consumers are increasingly concerned about the environmental impact of the products they buy and use. Demand for natural, organic and sustainable products is steadily increasing, prompting flavor manufacturers to review their practices and adopt greener technologies.
Companies in the industry are implementing several strategies to improve sustainability. These include responsibly sourcing raw materials, reducing carbon emissions and adopting sustainable agricultural practices. Many companies are working closely with suppliers to ensure that raw materials are grown and harvested sustainably, protecting biodiversity and supporting local communities.
In addition, producers are investing in advanced technologies to improve energy efficiency and reduce waste in their production ...
4 Supply analysis
4.1 Supply segmentation
The natural flavorings market is divided into two macro categories:
Synthetics Naturals
A flavor is synthetic when it is manufactured in a laboratory. This implies that it is composed of different chemical molecules, which can range from *** molecules (***).
To get a clearer idea, the image above represents an example of how a synthetic flavor is structured at the molecular level.
A flavor is natural when all of its ingredients come from nature. This natural product must undergo a transformation to make it more concentrated.
The risks associated with synthetic flavorings should drive demand for natural flavorings. In addition, natural additives also act as preservatives, which, in turn, can increase the shelf life of the product.
4.2 The different types of food flavorings
There is a first fundamental difference between natural and artificial flavor. According to European legislation (***), a flavor can obtain the designation "natural" if everything that makes it up comes directly from nature. It is therefore an aromatic substance extracted from nature.
In contrast, artificial flavor is a product of chemical synthesis. it is produced entirely from flavor molecules. Artificial flavor can copy a natural taste or create a new taste that does not exist in nature.[***]
The following table presents the different flavor categories and describes their main characteristics and examples of use.
Source: ****
4.3 Evolution of prices
The consumer price index for spices and herbs in Italy shows a steady increase from May **** to May ****. The index increases from ***.* in May **** to ***.* in May ****, a total increase of *.* percent. During this period, prices rise steadily until December ****, peaking at ***.*. In the following months, the index continued to rise slightly until it stabilized around ***.*, with minimal changes.
Consumer price index for the whole community of [***] spices and herbs (***) - monthly data Italy, ****-****, index Istat
The consumer price index for spices and herbs in Italy shows a significant increase from **** to ****. Starting from a value of ***.* in ****, the index gradually rises to ***.* in **** and stabilizes at ***.* in ****. In ****, there is a slight decrease to ***.*, followed by a significant increase to ***.* in ****. The sharpest increase occurs in ****, when the index reaches ***.*. Overall, the index increases by **.* percent from **** to ****, with the largest increase concentrated in the last two years. Consumer price index for the whole community of [***] spices and herbs (***) - annual averages Italy, ****-****, index Istat
4.4 New supply trends
The food flavoring market is undergoing rapid evolution, influenced by several emerging trends that respond to changes in consumer preferences and technological innovations. Here are some of the most relevant trends:
Natural Flavors and Clean Label: Consumers are increasingly attentive to natural ingredients and prefer products without chemical additives. Natural flavorings, derived from plants, fruits and spices, are gaining popularity, especially those with "clean" labels that guarantee the absence of artificial ingredients. Organic and Sustainable Flavors: Sustainability is a key factor in the flavorings market. Organic flavorings, obtained from crops that follow sustainable agricultural practices, are in high demand. In addition, there is a growing demand for flavorings from ethical and fair trade supply chains, such as cocoa and coffee. Functional Flavors: Functional flavors, which offer additional benefits beyond taste, are on the rise. These include flavorings fortified with vitamins, minerals, or other nutrients, and those designed to mask the taste of less palatable ingredients in health products, such as plant-based proteins. Custom Flavors: With the advancement of technology, highly customized flavorings can be created to meet specific customer needs. Companies are developing tailored solutions for different markets, such as specific flavorings for beverages, baked goods, dairy products, and savory snacks. Ethnic ...
5 Regulations
5.1 Nationwide regulations
In Italy, legislation controlling natural flavorings descends from Law No. *** of April **, ****. At present, the field of flavorings is only partially harmonized with the provisions of Directive **/***/EEC, which establishes the definition of flavorings, general rules for their use, labeling requirements and maximum contents of substances that present a health hazard(***). In fact, a Community list of flavorings is not yet available and each member state continues to apply its own national provisions, which in Italy are contained in Legislative DecreeNo. *** of January **, ****.
The newRegulation (***) No. ****/**** stipulates that the Community list of flavorings and source materials will include the flavorings substances in the register referred to in Decision ****/***/EC and the flavorings substances not included in the evaluation program referred to in**** RegulationNo. ****.
In order to provide correct information to consumers, the new regulation dictates, among other things, specific provisions for the use of the term "natural flavor." Specifically, if the term natural is used on the label of a food product in the list of ingredients to designate a flavor, the flavor components used must be at least ** percent natural in origin.
In ****, the National Plan ****-**** on the official control of food additives and flavorings, including smoke flavorings, both ...
5.2 European-level regulation
At the European level, there is an agency that is responsible for the surveillance of natural flavorings, among other things. This is the European Food SafetyAgency (***), which periodically adopts opinions on each chemical group, known as flavor group evaluations.
The European Commission maintains a register of flavorings on the EU market, reported by member states, and may remove substances during the course of the evaluation program, especially if EFSA finds safety concerns with them.
Some flavorings evaluated by EFSA have already been reviewed by other risk assessment bodies, such as the Joint FAO/WHO Expert Committee on Food Additives. EFSA always takes into account any available findings on the subject when evaluating flavorings substances.
As required by EU regulations, EFSA has divided all substances currently on the market into chemical groups and is evaluating each group individually, looking at individual compounds in terms of their safety for human health. Based on the work done by EFSA, in October **** the European Commission established a list of flavoring substances that can be used in the EU.
Following feedback received through a public consultation and a workshop held with stakeholders, EFSA drafted guidelines specifying the data that industry is required to submit to enable ...
6 Positioning of players
6.1 Segmentation of Italian companies
- Fratelli Pagani S.p.A.
- AromataGroup
- Novachem Aromatic s.r.l.
- L'Italiana Aromi s.r.l.
- Symrise
- Firmenich
- IFF International Flavours and Fragrances
- Givaudan
- Giotti
- Flavour Art
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