The vagaries of public taste are bringing a seismic shift in the food & beverages (F&B) industry and companies are striving to reinvent their product offerings in order to stay with the tides of the times and capitalize on the changing and trending consumer preferences. While these trends may seem mere fads, the impact of these changing preferences of consumers can be discerned in the flavored syrups industry wherein the players are expanding across geographies and garnering greater flavored syrups market share by providing a diverse range of product offerings such as coffee syrup and chocolate syrup. For instance, in April 2019, Torani Syrups introduced a new product line called Puremade Syrups and Sauces.
While the diversification is playing a major role in expanding the customer base for companies, the rise in disposable income of working population is propelling the beverage, dairy, and bakery segments of the F&B industry which, in turn, is increasing the flavored syrups market size which was evaluated at $48.46 billion as of 2018.
With the growing scope in the market, companies are also discovering lucrative territories in order to increase their flavored syrups market share. For instance, in April 2018, Monin Inc. announced that the company will be opening a new facility for Monin syrups in the Spanish Springs area of Washoe County. This expansion is executed to capitalize on the flavored syrups market demand influx generated in the region.
Owing to the growing demand and expansion by the players, the flavored syrups market size is projected to increase at a CAGR of 4.66% during the forecast period 2019-2025.
This report provides detailed information about the flavored syrups market size by type and applications along with the detailed profiling of the flavored syrups market share by top 5 companies and startups that are striving to rise ahead of the curve in this niche market.
North America Dominating the Global Industry With 35% Flavored Syrup Market Share:
The growth prospects in the North America flavored syrups market is attributable to a gamut of factors such as rising demands from the dairy and bakery industries coupled with the sustainable marketplace in the beverages segment of the F&B industry. The scope for the sales of flavored syrups in North American countries can be further gauged by the growing import in the parent industries that include food preparations such as syrups and sauces.
The Exuded Beverage Consumption in the US Raising the Flavored Syrups Market Demand –
Soft-drinks, juice and other beverages were accountable for 19.9%, 7.3%, and 7.6% of the total beverage consumption between 2013 and 2016.
The current regime of the beverages industry is experiencing a favorable pricing environment, but at the same time, the market is dynamic as there is a shift in the consumption pattern. Consumers are showing a palpable preference for beverages with diverse flavors to satiate their taste buds. This is creating major revenue avenues for the flavored syrups market players operating in the region.
The US Dairy Industry: A Profitable Flavored Syrups Marketplace –
In the US, the FY 2018 witnessed the production of 217,715 million lbs of milk.
This milk is used for the consumption of various beverages that include coffee, tea, and others that contain flavors. This humongous milk production make up for a lucrative dairy industry which is a sustainable flavored syrups marketplace
The US Bakery Industry Propelling the Flavored Syrups Market Growth
The recent economic study by the American Bakers Association states that the output of the bakery industry valued at $310.971 billion in 2018.
This booming bakery industry is evidence of the soaring sales of cakes and other bakery products that are often flavored with syrups. The populace of North American countries such as Mexico and the US largely depends on the bakery industry, which creates a lucrative flavored syrups marketplace.
Global Flavored Syrups Market Key Applications – Beverages to Grow at A CAGR of 4.2% through to 2025:
The forecast period is poised to witness an increasing usage of flavored syrups in the beverages application segment. This is attributable to the growing consumption of beverages across the globe which is evident with the increasing trade value that was evaluated at $ 21.28 billion in 2018. Furthermore, the trade of beverages had experienced a year on year growth of 9%. The rise in disposable income is creating a boom in the beverages industry and the products with new flavors are gaining more traction in the market. This has been becoming a boon to the flavored syrups market which will witness further growth in the beverages industry during the forecast period.
Flavored Syrups Market – Global Scenario & Growth Driver:
Globally, the parent industry of the flavored syrups market witnessed a year on year growth of 18% in 2018 with a productivity of $45.68 billion.
While this evinces the flavored syrups market growth across the world, here are the forces that acted upon the same –
The Increasing Sales of Frozen Desserts Augmenting the Flavored Syrups Market Size
In 2018, the frozen desserts market was evaluated at $32 billion to $34 billion as of 2018, and it is projected to rise at a healthy CAGR of 6-7.5% during the forecast period 2019-2025.
Now, this considerable growth of the frozen desserts market is going to be a flourishing factor for the flavored syrups market. This is because frozen desserts come in different flavors which lead to a consistent need for these syrups. Recently, there has been a trend of natural flavors in the ice-cream, which is increasing the scope of flavored syrups that comprise of natural ingredients.
The trade of ice-cream had witnessed year on year growth of 16% in 2018, and the upcoming years are poised to observe a steady growth of the trade, which will make a perceptible positive impact on the flavored syrups market.
The Flavored Syrups Market Size Augmented by the Growth of the Confectionery Industry –
The growth of the confectionery industry can be further fathomed by the rise of the chocolate confectionery market which was evaluated at $ 129.93 billion as of 2018, and it is projected to grow at a CAGR of 2.49% through to 2025. This growth of the chocolate confectionery market will create a definite demand influx in the chocolate flavored syrups market. Similarly, the other confectionery items that contain fruit flavors are also witnessing a rise in sales. The growing demand for confectionery eatables is driving the flavored syrups market growth.
The Flavored Syrups Market Disrupted by the Contemporary Consumer Choices
The health and wellness trend has made a seemingly permanent penetration into the F&B industry wherein it is becoming a significant factor in driving consumers’ preferences even in the niche markets like that of flavored syrups. Fresh, clean, and sugar-free flavored syrups are picking pace in the flavored syrups marketplace and more players like Torani Inc. will be witnessed offering such syrups. Trending flavors in the flavored syrups market are pomegranate, blueberry, and grapefruit.
Additionally, offering unique and seasonal flavors for occasions will be one of the strategies for the flavored syrups market players. These may include flavors such as pineapple, coconut, and guava along with some good-old ones in caramel apple butter, toasted marshmallow, toffee nuts, and vanilla syrups.
Top 10 Flavored Syrups Market Companies:
The companies with the greater flavored syrups market share that are striving to capitalize on the current consumer choices by diversifying their product portfolio are Monin Inc., Kerry Group plc, The Hershey Company, Tate & Lyle Sugars, Fuerst Day Lawson Limited, SensoryEffects, Concord Foods, LLC, Mitr Phol Group, Toschi Vignola Srl, and The J. M. Smucker Company.
About IndustryARC: IndustryARC is a Research and Consulting Firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare
Mr. Venkat Reddy
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