The flavored syrup market in Asia Pacific was valued at US$ 8,046.6 million in 2018 and is projected to reach US$ 12,472.5 million by 2027; it is expected to grow at a CAGR of 5.0% from 2019 to 2027. China is one of the largest consumers of flavored syrup in this region, followed by India and Australia. Efficient food manufacturing sector and flexible trade policies are the major factors fueling the market growth in countries in this region. A constant demand from retailers, along with an efficient supply chain, supports the steady growth of flavored syrup production in the region. Moreover, growing consumer preference for flavored food and beverages has also been contributing to the demand for flavored syrup in Asia Pacific. Factors such as rapid urbanization, high purchasing power, and growing women workforce in economy also raise the demand for convenience and easy to prepare food products, which provides growth impetus to the flavored syrup market players in this region. As a result, they are continuously enhancing the overall business processes and product portfolio to meet the changing demand from the producers of beverages, dairy and frozen desserts, confectioneries, and bakery products.
The flavor syrup market by flavor is segmented into fruit, chocolate, vanilla, herbs and seasonings, and others. The fruit flavored syrups dominated the overall flavored syrup market in Asia Pacific in 2018; this is ascribed to the widespread use of these syrups in beverages such as cocktails, soda-based drinks, and cold drinks. Growing consumer preference for syrups with high fruit content has been a major factor driving the manufacturers to introduce wide varieties of syrups infused with natural ingredients.
Based on application, the flavored syrup market in Asia Pacific is segmented into beverages, dairy & frozen desserts, confectionery, bakery, and others. The strong performance of the retail sector and increased efforts in product promotions have been playing a vital role in increasing the sales of flavored syrup via supermarkets and hypermarkets, and convenience stores. Manufacturers are looking forward to improve the reach of these products through their expansion in untapped markets and the launch of better products. The advancements in the e-commerce industry are further expected to complement the growth of the market.
The beverages segment accounted for the largest share of the flavored syrup market in Asia Pacific in 2018. The growth of the market for this segment is mainly attributed to the growing demand for flavored beverages such as packed fruit juices, concentrates, fruit purees, milkshakes, flavored milk, cocktails, soda and cold drinks, and hot beverages such as tea and coffee. Further, the shift in consumption patterns along with rise in disposable income is further propelling the growth of the market for the abovementioned applications.
The flavored syrup market in Asia Pacific is sub-segmented into Australia, China, India, Japan, South Korea, and Rest of Asia Pacific. China accounted for the largest share of the market in 2018. Further, India is expected to report the fastest CAGR in the market during the forecast period. The demand for convenience foods, coupled with the increase consumer preference for ready-to-eat food and beverage products, is anticipated to boost the growth of the flavored syrup market in Asia Pacific during the forecast period.
Sensient Technologies Corporation, Kraft Heinz Company, Archer Daniels Midland Company, Kerry Group, Monin, Inc., Sunny Sky Products, LLC., and The Hershey Company are among the players operating in the flavored syrup market in Asia Pacific.
The overall flavored syrup market size in Asia Pacific has been derived in accordance to both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the flavored syrup market.