The Global Flavored Syrup Market was valued at USD 52.27 Billion in 2022 and is projected to reach USD 69.36 Billion by 2030, registering a CAGR of 3.60% for the forecast period 2023-2030.
Market Definition
To create a concentrate, sugar is combined with natural or artificial flavorings to create flavored syrup. To improve the organoleptic qualities of a range of foods and drinks, including coffee, frozen desserts, pancakes, waffles, and others, flavored syrup is added. The market's expansion can be attributed to the food and beverage industry's growing need for customized flavors. Rising consumer preferences for convenience and ready-to-eat foods are another factor fueling the market's expansion. In 2020, household consumption demand stayed mostly stable as consumers were encouraged by the work-from-home culture to experiment with different meal preparation techniques and purchase new ingredients, like flavored syrup. During the pandemic, this factor propelled the market's expansion. During the forecast period, demand in the sector is expected to rise as lockdowns ease and people return to hotels and restaurants, bringing the global market back to pre-lockdown levels.
Market Size:
- 2022: USD 52.27 Billion
- 2030: USD 69.36 Billion
- CAGR (2023-2030): 3.60%
Flavored Syrup Market Dynamics
Drivers Propelling the Demand for Flavored Syrup include:
The market is expanding due to the growing food service industry:
The market CAGR for Flavored Syrups is driven by the growing demand for home-cooked meals. The level of interest that patrons have shown in cooking has skyrocketed in the last few years. The rise in popularity of cooking-oriented streaming channels on social media and traditional television can be attributed to growing consumer curiosity about creating innovative dishes at home. There is a growing demand for many household items. Usually, hotels, restaurants, and food and beverage companies buy these goods. One such food item that has become more and more popular among those who shop for groceries at home is flavored syrup. Moreover, the ability to tailor homemade cuisines to the requirements of individuals with dietary allergies to particular ingredients or who need a particular nutrient balance is another factor, The continued urbanization of developing nations has resulted in a notable change in the purchasing habits of its citizens. Consequently, the menus of a wide variety of events and weekend gatherings offer dishes from multiple ethnic cuisines. Additionally, this has led to a noticeable expansion of restaurant and hotel chains, which has helped them flourish in the tier-1 and tier-2 cities of developing countries. The entire supply chain has benefited from these advancements and changes. Among the most popular fruit flavors are orange and raspberry, for instance. Additionally, makers of duo-fruit syrups, like Lime-Mint, Raspberry-Mint, and Lime-Ginger, which combine sweet, sour, and bitter flavors, are inspired by consumers' desire to try out novel and unusual fruit flavors. due to this factor fueling the growth of the Flavored Syrup market.
For instance, in March 2022, according to Starbucks, Starbucks today announced an integrated partnership with Grab, Southeast Asia’s leading super app, across six markets, including the Philippines, Thailand, Singapore, Malaysia, Indonesia, and Vietnam. The partnership will provide customers across Southeast Asia with a seamless Starbucks Experience, allowing them to earn Starbucks Rewards benefits on purchases through Grab, have more ways to order and pay in stores, and enjoy their Starbucks orders sooner with last-mile delivery fulfillment through Grab’s delivery network.
Increasing demand from the food and beverage and pharmaceutical sectors for flavored syrup:
The market for flavored syrup is expanding mainly because the food and beverage industry is demanding more and more specialized flavors. Dairy products, baked goods, confections, desserts, and other products also use these syrups to improve or alter the flavor of their products. The powdered syrups are used to prepare ready-to-eat (RTE) food products quickly and flexibly. The beverage industry places a high value on flavored syrup because it can be added to create a variety of unique beverages. Therefore, it is anticipated that demand for flavored syrups will increase as the food and beverage industry grows, Flavored syrups are widely used to boost flavor and improve nutrient content in concentrated fruit juices and purees. Furthermore, these syrups are frequently used in the preparation of beverages, including flavored milk, coffee, tea, iced tea, and other types of beverages. To extend the shelf life of these goods, preservatives are also added to these syrups. The market is growing even more as a result of the increasing acceptance of Western culinary trends, these syrups find application in the pharmaceutical sector in addition to the food and beverage industries. To enhance their taste and strengthen their therapeutic effects, they are added to syrups and medications. These syrups aid in giving pharmaceutical medications flavor and taste so they can be consumed. Flavored syrups, like acacia syrup and cherry syrup, infuse medicinal syrups with pleasant flavors. this factor driving the growth of the Flavored Syrup market.
For instance, in January 2023, according to the Spruce Eats, Syrups can be used as a sweetener for all sorts of beverages. They can be used in anything from coffee and homemade sodas to your favorite cocktails or nonalcoholic mixed drinks. While once relegated to standards like chocolate and caramel for flavored lattes, syrups are now produced in a variety of creative flavors, many of which stretch the imagination and open up a new world of drinks to enjoy.
Recent Developments
In July 2022, Diageo, a global leader in beverage alcohol, and The Vita Coco Company, a leading high-growth platform of non-alcoholic beverage brands, today announced their collaboration to launch a line of premium canned cocktails crafted with a delicious blend of Captain Morgan rum and refreshing-tasting Vita Coco coconut water. With Captain Morgan being the selling spiced rum brand and Vita Coco as the top-selling coconut water, this relationship brings together two category-leading brands.
In June 2023, Torani, a leader in the flavor industry for nearly 100 years, today announced the newest addition to its portfolio of more than 150 syrups and sauces, Torani Pure made Bergamot Syrup.
Restraint
Health risks Impedes Market Growth
Overconsumption of sugar poses serious health risks and is a major contributor to type 2 diabetes and obesity. Customers are looking for products with less sugar as they become more health conscious. Excessive sugar intake has been linked in studies to a higher risk of cardiovascular illnesses, such as heart attacks and strokes. Customers are further dissuaded from selecting goods with a high sugar content by this. Consuming a lot of sugar is also linked to other health issues like fatty liver disease, dental cavities, and some cancers. Customers gravitate toward healthier options as a result of these worries. The use of natural sweeteners like erythritol, stevia, and monk fruit extract is growing among consumers. These substitutes provide sweetness without the negative health effects of sugar, which presents a serious threat to conventional flavored syrups. Consumers are substituting flavored syrups with fresh fruits and natural flavorings like herbs and spices to add sweetness and taste to their food and beverages. This trend reduces the demand for processed flavored syrups, particularly among health-conscious individuals. Governments worldwide are implementing stricter regulations on sugar content and labeling requirements. These regulations can increase costs for manufacturers and make it challenging to market products with high sugar content. High sugar content can lead to a decline in demand for flavored syrups as health-conscious consumers opt for healthier alternatives. The market share of flavored syrups may be restricted to consumers who are less concerned about sugar content or unaware of its health risks., this factor hinders the growth of the Flavored Syrup market.
For instance, in January 2022, the Harward Health Publishing, high amounts of sugar overloaded the liver. "Your liver metabolizes sugar the same way as alcohol, and converts dietary carbohydrates to fat," says Dr. Hu. Over time, this can lead to a greater accumulation of fat, which may turn into fatty liver disease, a contributor to diabetes, which raises your risk for heart disease. Consuming too much-added sugar can raise blood pressure and increase chronic inflammation, both of which are pathological pathways to heart disease.
Challenges
Increasing Government Regulations.
Manufacturers are required to abide by new regulations, which frequently call for product reformulation to eliminate or restrict the use of specific artificial ingredients. This may include higher expenditures for R&D, novel ingredients, and modifications to the production process. Regulatory standards may call for extra testing and certification processes, which would raise the price and lengthen the time it takes for new products to reach the market. Manufacturers may be compelled to remove some flavored syrups from their product lines due to regulatory restrictions on particular ingredients, which could limit the market potential and reduce consumer choice. Certain synthetic components serve as preservatives, prolonging the durability of goods. Their removal may reduce shelf life, resulting in waste and having an effect on distribution and logistics. Laws may change over time, necessitating modifications to the products and procedures of manufacturers. Long-term planning and investment in the flavored syrup market may be hampered by this uncertainty. Complex regulations and changes in ingredient lists can lead to consumer confusion and hesitancy toward flavored syrups, potentially impacting demand. It's possible that regulations won't be applied consistently to all market participants, giving some manufacturers an unfair competitive advantage.
Opportunities
Customers looking for new and interesting flavor experiences may be drawn to this distinctiveness
The potential for exotic flavors to draw in customers and spark interest is great. As customers are enticed to try something new and exciting, this engagement may result in higher brand awareness and loyalty. A wider spectrum of customers, including those with more daring palates, are drawn to products with diverse flavor profiles. Flavored syrup producers can broaden their consumer base beyond conventional products by accommodating diverse palates. Cooks at home and chefs alike frequently look for unusual ingredients to add flavor to their dishes. Syrups with unusual flavors can be used as adaptable components in both home and professional kitchens, encouraging experimentation with recipes and culinary creativity. Exploring international flavors and cuisines is becoming more and more appealing to consumers. Flavored syrup brands can get in line with the latest culinary and cultural trends by combining exotic flavors inspired by various cultures. Exotic flavors are often connected to luxury and superior goods. Brands of flavored syrup can establish themselves in the premium sector of the market thanks to this perceived value, drawing in customers prepared to pay more for distinctive and high-end products. Customers get excited and feel pressed for time when exotic flavors that are limited to a season are introduced. A consumer's expectation of new and evolving offerings can stimulate repeat purchases and boost sales during designated periods, providing distinctive and unusual flavors helps flavored syrup companies stand out from rivals is a significant opportunity for the Flavored Syrup market.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 52.27 Billion |
| Market Forecast in 2030 | USD 69.36 Billion |
| Compound Annual Growth Rate (CAGR) | 3.60 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Type, By Product, By Distribution Channel |
| By Product |
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| By Distribution Channel |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Flavored Syrup Market
The Flavored Syrup Market is segmented by product, distribution channel, and region.
By Product
The Fruits segment held the largest market share in 2022:
The product is sub-segmented into fruits, chocolates, vanilla, coffee, and others. The fruits segment accounted for the highest market share 37.60% in the global Flavored Syrup market for 2022. One of the main factors driving the market's growth is the rising demand for flavored syrups with fruit infusions and distinctive tastes. To maintain their position in the global market, producers have also been concentrating on creating blended fruit syrups and introducing cutting-edge flavors. In response to consumer preferences for natural, organic, and pure products, businesses are also launching fruit-infused syrups. Examples of distinct flavors combined with high-fruit ingredients are beetroot juice, apple, sea buckthorn, and 100% natural sour cherry.
On the other hand, the chocolate segment has a significant market share over the forecast period, due to Market expansion being driven by the growing demand for chocolate syrup in the food and beverage sector. The substantial application in hot and cold beverages, including coffee, milkshakes, smoothies, and baked goods like cakes, pastries, waffles, and pancakes, propels the market. Manufacturers of chocolate syrup are anticipated to find that developing economies such as China and India have a strong inclination towards products that contain chocolate.
By Distribution Channel
The B2B segment was the leading segment in 2022:
By distribution channel, which is divided into B2B, online. the B2B segment accounted for the largest share 83% in the global Flavored Syrup market in 2022. The market is anticipated to grow more quickly in this segment, which includes a variety of industries like dairy, frozen desserts, beverages, and bakery & confectionery. Flavored syrups are a common ingredient used in beverages, especially cocktails, hot and cold beverages, and soft drinks, to enhance their taste and sweetness. For example, Starbucks uses a variety of naturally flavored syrups in their coffee, including vanilla, hazelnut, and caramel.
The B2C segment is anticipated to register rapid growth in the forecast period, this is explained by the growing demand and appeal for flavored syrups around the world. Throughout the forecast period, this segment's growth is also anticipated to be accelerated by the rise in sales of flavored syrups, which are primarily made through company-owned websites and other e-commerce platforms. The demand for the global market is anticipated to increase over the next few years due to the introduction of new flavors and rising indulgence factors among consumers in the APAC region.
Regional Analysis
North America occupied the largest market share in 2022
North America has the largest revenue market share 31% in 2022, due to the growing consumer preference for flavored syrups in everyday meals like snacks, cereals, drinks, and desserts, as well as the high acceptance of fruit-containing syrups in the United States and Canada. Because there are so many premium ingredients in this area, including flavors, fillings, toppings, and chocolates, the bakery sector is predicted to grow significantly. As a result, the food and beverage industry is using flavored syrups more frequently. because fruit syrups are widely used in the US and Canada and because there is a growing market for flavored syrups in everyday products like cereal, snacks, drinks, and desserts.
On the other hand, Asia Pacific accounted for a significant share over the forecast period, The population of the Asia-Pacific area is substantial and expanding quickly. In nations like China and India, urbanization and shifting lifestyles have raised the demand for convenience foods and drinks, including flavored syrups. In many Asia-Pacific nations, rising levels of disposable income have led to the growth of the middle class with increasing purchasing power. This has led to a rise in the price of upscale and decadent goods, such as flavored syrups. The Asia-Pacific area has a diverse range of tastes and a diverse cultural background. The demand for flavored syrups that satisfy regional and local palates has grown, propelling the market's expansion overall. The area has become more urbanized, which has increased exposure to Western food and lifestyle trends.
List of the prominent players in the Flavored Syrup Market:
- The Hershey Company
- The Kraft Heinz Company
- Kerry Group
- Tate & Lyle
- Toschi Vignola s.r.l.
- Monin Inc.
- Fuerst Day Lawson
- Torani
- The J.M. Smucker Company
- Panos Brands
- Amoretti
- Skinny Mixes
- Nature's Flavors Inc.
- Sonoma Syrup Co
Segmentation Analysis of the Flavored Syrup Market
By Product
- Fruits
- Chocolates
- Vanilla
- Coffee
- Others
- B2B
- B2Cs
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Flavored Syrup Market:
The worldwide economy and a number of industries, including the flavored syrup sector, have been significantly impacted by the COVID-19 pandemic. A wide range of products, such as drinks, desserts, and baked goods, use flavoring syrups. These are some of the ways that the flavored syrup industry has been impacted by the pandemic. Global supply chains have been thrown off balance by the pandemic, which makes it challenging for producers of flavored syrup to find ingredients and raw materials. The industry's profitability has been impacted by shortages and price increases as a result of this. Due to the pandemic, many people are cooking more at home and staying at home longer. Flavored syrups for use in homemade drinks and desserts are in higher demand as a result of this. Flavored syrups for use in homemade drinks and desserts are in higher demand as a result of this. The market for flavored syrups for use in commercial settings has, however, declined as a result of eateries and cafes closing. International trade has been restricted by numerous nations to stop the virus's spread. This has decreased demand worldwide and made it more difficult for producers of flavored syrup to export their goods. Production has also been impacted by the pandemic; numerous factories have temporarily closed as a result of safety concerns. Flavored syrup availability has been impacted, and production capacity has decreased as a result.
