Approximately 38% of Flavored Syrup Revenue Generated through Fruit Flavor, Evaluates Fact.MR
Published : 05 Jul 2021 Industry: Food & Beverage
As per a new report published by Fact.MR - a market research and competitive intelligence provider, the global flavored syrup market is anticipated to exceed a valuation of around US$ 5 Bn by 2021, and is expected to expand at an impressive CAGR of around 5% over the forecast period of 2021 to 2031. North America dominates the consumption of flavored syrup owing to its huge urban population.
Overall demand for flavored syrup has witnessed significant growth in the past few years due to growing demand for customized flavors in food & beverages. While household demand for flavoured syrup is being triggered by growing consumption of soda, cocktails, and bakery products, its demand in food processing is being driven by expanding specialty bakery and confectionery products demand.
Constant surge in urbanization has prompted customers to try food ingredients at home. On the other hand, expansion of the food services sector and rising culture of having breakfast outside the house have elevated demand for ingredients such as flavored syrup.
To put it in simple terms, consumer trends worldwide suggest that consumers now tend to take their regular meals outside of home due to their hectic schedules, whereas, out of passion for cooking, they are preparing innovative cuisines at home. Transformation in consumer habits in both scenarios are proving beneficial for flavoured syrup manufacturers.
Key Takeaways from Market Study
- South Asia is estimated to witness major growth over the forecast period, accounting for over 9% CAGR.
- In 2020, North America held the highest market share of around 34%, followed by Europe.
- In 2020, North America and Europe together accounted for over 60% of global demand for flavored syrup. The European market is expected to offer over US$ 3.9 Bn absolute dollar opportunity over the next ten years.
- Fruit flavoured syrup commanded highest revenue share of 38% in 2020, while the market for vanilla flavoured syrup is estimated to witness the fastest growth.
- In terms of end use, revenue through dairy product manufacturers is expected to grow by 60 BPS.
“New flavors and 'natural' positioning of products are key for the success of flavored syrup manufacturers, says a Fact.MR analyst.
Consumers are constantly drifting towards sugar-free products, which indicates ingredients labelled sugar-free are likely to gain string foothold at the cost of high-sugar ingredients. Some manufacturers of flavored syrup have already started to populate their portfolio with sugar-free variants, and it is highly likely that over the coming years, around one-third of demand will come from the sugar-free category.
More Valuable Insights
Fact.MR, in its new offering, presents an unbiased analysis of the global flavored syrup market, presenting historical demand data (2016-2020) and forecast statistics for the period of 2021-2031.
The study reveals essential insights on the basis of flavor (fruit flavored syrup, chocolate flavored syrup, vanilla flavored syrup, and other flavor syrups), end use (household consumption, bakery and confectionery, HoReCa, dairy product manufacturers, and other applications), and sales channel (direct sales, modern trade, convenience stores, specialty food stores, and other sales channels), across seven regions of the world (North America, Latin America, Europe, South Asia, East Asia, Oceania, and MEA).
Fact.MR’s Domain Knowledge in Food & Beverages
Our food and beverages consulting team guides organizations at each step of their business strategy by helping you understand how the latest influencers account for operational and strategic transformation in the food and beverages sector. Our expertise in recognizing the challenges and trends impacting the global food and beverages industry provides indispensable insights and support – encasing a strategic perspective that helps you identify critical issues and devise appropriate solutions.
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Sr. Consultant – Food and Beverages