As per the report titled ‘Global Beverage Flavoring Systems Market Size By Ingredient (Flavoring Agents, Carriers, Enhancers), By Type (Natural, Artificial), By Beverage (Non-Alcoholic, Alcoholic), By Form (Liquid, Powder) Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Italy, Spain, Netherlands, Poland, Russia, China, India, Japan, South Korea, Australia, Indonesia, Thailand, Brazil, Argentina, Mexico, Saudi Arabia, UAE, South Africa, Egypt), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2025’, available with Market Study Report, the global beverage flavoring systems market is expected to register a strong CAGR during 2019-2025.
 

The flourishing beverage industry coupled with increasing R&D for new product offerings with improved nutritional value is driving the growth of beverage flavoring systems market. Innovations such as ethnic flavors and use of floral and botanical flavors in various alcoholic and non-alcoholic applications is expanding the business landscape. Changing consumer preference in tandem with growing competitiveness among key market participants will positively impact the market growth in the coming years.
 

Consumer driven initiatives such as ‘clean label’ is encouraging the use of natural substances among manufacturers. This factor coupled with stringent government regulations for consumer safety are positively impacting the market growth.
 

The arrival of encapsulated flavors is further enhancing the market outlook. Encapsulation has various applications such as tea bags, instant drinks, loose tea, and coffee. It offers benefits such as extended shelf life, controlled release, optimal nutrient delivery, and odor masking.
 

Based on the ingredient, carriers segment holds a considerable share of beverage flavoring systems market and is expected to witness a substantial growth in the coming years, owing to its use in diluting flavoring agents as per the desired concentrations. Vegetable glycerin, triacetin, ethyl alcohol, and propylene glycol are some of the most common carriers in the industry.
 

In terms of type, the natural segment is anticipated to grow with a CAGR of 5.5% over the forecast period.  The growth can be attributed to rising health consciousness on account of fitness trends in tandem with favorable labelling norms. Increasing demand for premium products with noticeable health benefits will stimulate the product demand in the coming years.
 

Based on the beverage, non-alcoholic beverages segment is projected to register 71% share of beverage flavoring systems market by 2025. Ready-to-use 3-in-1 green tea, coffee, and plant-based drinks are the major growth drivers of the segment.
 

Speaking of the form, liquid flavor segment is estimated to register over USD 4 billion by 2025. The product offers easy and quick blending along with consistence distribution to maintain high product quality. These benefits coupled with extensive use in beverage applications such as fruit juices, energy drinks, and carbonated drinks is driving the segment growth.
 

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Considering the geographical outlook, Asia Pacific beverage flavoring systems market is projected to account for 35% share by 2025. Countries such as India, China, and Japan alone account for 50% of the regional share. The regional growth can be affixed to increasing consumer expenditure on hot & cold drinks supported by growing industry competitiveness. Rising disposable incomes, rapid urbanization, and expanding retail network are the other key drivers supporting the regional business outlook.
 

Major players of beverage flavoring systems market are Givaudan, International Flavors & Fragrances, Symrise, Firmenich, Sensient Technologies, Mane, Robertet SA, Takasago International Corporation, and Dohler.