Asia-Pacific to see biggest growth in biotech flavour market
Based on alternative processes of obtaining an organic synthesis of flavours through the biotransformation of a flavour compound, biotech flavours differ from the traditional extraction of flavours using special enzymes and microbes.
According to Persistence Market Research (PMR), the global market will grow by 11% between 2016 and 2024. This will translate to sales of almost US$2.1bn in 2024, compared to this year’s estimated US$906m.
Several countries in Europe and North America have acknowledged flavour compounds as natural after using the bio-tech flavour process. In addition, favourable taxation policies by the government are also expected to influence the popularity of market for the next eight years.
PMR suggests that a buoyant research & development programme to create advanced applications will continue to strengthen the market, as will the functional nature of some biotech flavours for health-conscious consumers, with benefits including boosting antioxidant levels and lowering the risk of metabolic diseases.
However, a comparatively shorter shelf-life than artificial and natural flavours, a major restraining factor for the product’s popularity, will take time to improve on. Another challenge is the restriction of some biotech flavours, including vanilla and vanillin in soda beverages owing to reaction concerns.
By the end of 2016, North America will account for the highest share of the market in terms of value, and will expand at a compound rate, the report predicts for the forecast period.
In Asia-Pacific, demand will have grown by a factor of 2.7 by 2024. In terms of value and volume, the bio-tech market in Apac will witness the fastest growth globally.
Accounting for more than 55% of the market in terms of volume by the end of this year, food will be the dominant segment, and should witness healthy compound growth until at least 2024. This is primarily due to higher consumption of packaged foods and beverages.
