The Asia Pacific dairy flavor market was valued at US$ 926.4 million in 2018 and is projected to reach US$ 1,500.7 million by 2027; it is expected to grow at a CAGR of 5.5% during the forecast period 2018-2027.
Dairy flavors are processed from different types of dairy products such asmilk, cheese, yogurt, butter, and cream. The organoleptic properties of dairy products, together with the rising awareness among the consumers of being healthy, make these products one of theessential ingredients in the food &beverages industry. The dairy flavors are often combined with many other characterizing flavors and deliver a completely new and unique taste to the final product. The manufacturers focus toward developing new dairy-based flavors owing to the growing demand of consumers to consume organic and natural flavors. The dairy flavors help in cutting costs as they proffer similar taste and aroma as that of the original dairy product despite reducing the usage of the volume of the product. They also provide subtle dairy notes such as moldy, pungent, and astringency by increasing their functionality. On one hand, these dairy flavors appear as a flavor on the ingredient statements, whereas on the other, they may be labeled depending upon the dairy product name from which they are processed.
Based on flavor type, the dairy flavor market is segmented into milk, butter, cheese, cream, yogurt, and others. In 2018, the milk segment dominated the Asia Pacific dairy flavor market; however, the cheese segment is expected to grow at a rapid pace during forecast period. Based onform, the Asia Pacificdairy flavor market is bifurcated into liquid, powder, and paste. Based on application, the dairy flavormarket is segmented into bakery, confectionery, soups and sauces, beverages, dairy products, and others. In 2018, the beverages segment accounted for the largest share in the Asia Pacificdairy flavor market. The subtle taste of dairy flavors helps in enhancing the drink by adding richness and texture.
Geographically, the Asia Pacificdairy flavor market is segmented intothe US, Canada, and Mexico. The US accounted for the largest share ofthe Asia Pacificdairy flavormarket. The US has is one of the largest market in the region where consumers are looking for healthy convenience food products. The production and consumption of dairy flavors is increasing in the US owing to growing demand for healthy food options along with growing focus toward taste and flavor of product among population.
Dairy Chem Inc., The Edlong Corporation, Kerry Group, Ornua Co-operative Limited, and Synergy Flavors are among the major players present in the Asia Pacific Dairy Flavor market.
Overall size of the Asia Pacific dairy flavor market has been derived in accordance to 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 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 dairy flavormarket.
Impact of COVID-19 Pandemic on Dairy Flavor Market
COVID-19 outbreak first began in Wuhan (China) in December 2019, and since then it has spread across the globe at a fast pace. China, Italy, Iran, Spain, the Republic of Korea, France, Germany, and the US are among the worst affected countries in terms of confirmed cases and reported deaths as of March 2020. The COVID-19 outbreak has affected economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. The overall market breakdown due to COVID-19 is also affecting the growth of the dairy flavor market due to shutting down of factories, obstacle in supply chain, and downturn in world economy.