Taste Modulators Market Size, Share, Forecast, & Trends Analysis by Type (Sweet, Salt, Fat Modulators), Form (Liquid, Powder), Application (Beverages {Non-Alcoholic, Alcoholic Beverage}, Food {Dairy, Savory, Snacks, Meat Products) - Global Forecast to 2031

The Taste Modulators Market was valued at $1.43 billion in 2023. This market is expected to reach $2.50 billion by 2031 from an estimated $1.53 billion in 2024, at a CAGR of 7.3% during the forecast period from 2024 to 2031.

Taste Modulators Market Size & Forecast

This market's growth is driven by rising health awareness among consumers, the growing demand for low-calorie food products that do not compromise taste, and the benefits of taste modulators. However, stringent regulations and international standards restrain market growth.

Furthermore, the increasing demand for innovative beverages and the expanding functional foods industry are expected to generate growth opportunities for market stakeholders. On the other hand, high R&D costs are a major challenge for the players operating in this market.

The latest trends in the taste modulators market include rising demand for novel beverages and the emergence of clean-label taste modulation solutions.

Taste Modulators Market Growth Drivers

Rising Health Awareness Among Consumers

Well-being is becoming a global movement, with consumers seeking to ensure healthy lives for as long as possible. Over the last decade, industrialization, urbanization, economic development, and globalization have led to rapid changes in diets and lifestyles, significantly impacting health and nutritional status, particularly in developing countries.

The global population is growing rapidly. According to the Population Reference Bureau (PRB), the global human population is expected to grow by 75 million (1.1%) annually. With this rapid increase, the world population is expected to reach 9.9 billion in 2050, increasing 33% from an estimated 7.4 billion in 2017. The growing global population will boost the demand for high-nutrition food products that offer great taste, which in turn will boost the demand for taste modulators.

Consumers are becoming increasingly mindful of their health, recognizing that regular diet and hydration are essential for the human body. The trend toward healthier lives is influencing shopping preferences in a variety of demographics. Consumers are actively seeking items that support their wellness goals, whether it is cutting back on sugar and salt or using natural ingredients. This tendency is especially noticeable among millennials and Generation Z, who value health-conscious consuming habits. As a result, food & beverage manufacturers are under pressure to innovate and reformulate their offerings to cater to these evolving preferences. The incorporation of taste modulators allows them to meet the demand for healthier options while maintaining the sensory appeal that consumers require.

Furthermore, consumers are increasingly turning to functional foods and beverages that offer nutritional benefits. Taste modulators play a crucial role in enhancing the palatability of these products, making them more appealing to health-conscious consumers. Thus, the rising health awareness among consumers is increasing the adoption of taste modulators, driving the growth of this market.

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Growing Demand for Low-calorie Food Products

As health concerns develop, consumers are increasingly focusing on eating healthier. The global demand for low-calorie foods is primarily driven by expanding health awareness, illness prevalence, micronutrient shortages, and rising disposable incomes.

In 2021, the International Diabetes Federation (IDF) reported that approximately 537 million adults aged 20 to 79 had diabetes. This number is projected to rise to 783 million by 2045. The increasing global prevalence of chronic diseases is driving consumers to seek more nutritious foods. According to an NIH-funded study, a healthy diet can enhance overall health and lower the risk of heart disease, stroke, and Type 2 diabetes. Consequently, the trend towards healthier eating is gaining momentum, leading to a rise in the development and production of nutritious, low-calorie foods. Sweetness modulators, which have fewer calories than sugar, are increasingly being used in food products to cater to this growing demand.

Furthermore, the demand for products offering immunity-boosting and specific health benefits has increased notably since the COVID-19 pandemic. For instance, the International Food Information Council’s (IFIC) Food and Health Survey revealed that in 2023, 63% of millennials aged 27 to 42 followed specific diets, a significant rise from 19% in 2021. The primary reasons for adopting these diets were weight loss (43%), improved physical health (39%), prevention of future health issues (37%), and avoidance of weight gain (38%). Low-calorie foods, which contain minimal to no simple sugars, are preferred as they are lower in calories and may help reduce the risk of various diseases associated with high sugar consumption.

Thus, the growing demand for low-calorie food products that do not compromise on taste is boosting the adoption of taste modulators, driving the growth of this market.

Taste Modulators Market Trends

Emergence of Clean-label Taste Modulation Solutions

Clean-label taste modulation solutions are emerging as a prominent trend in the taste modulators market, reflecting consumers' growing demand for transparency and natural ingredients in the food & beverage products they consume. As consumers become more health-conscious and informed, they are increasingly scrutinizing product labels and favoring products containing recognizable natural ingredients over products with artificial additives and preservatives. This shift has led to the emergence of clean-label taste modulators, which utilize natural extracts and compounds to enhance or modify flavors. These solutions cater to the rising preference for products perceived as healthier and more sustainable, enabling manufacturers to meet consumer expectations without compromising on product taste or quality.

The push for clean-label products is also influencing innovation and development strategies in the taste modulators market. Companies are investing in R&D to discover and utilize natural taste-modulating ingredients such as botanical extracts, spices, and fermentation-derived compounds. This focus on clean-label solutions not only aligns with consumer preferences but also addresses regulatory pressures and market demands for cleaner, more transparent product formulations. Therefore, the integration of clean-label taste modulators is becoming a key differentiator for brands, helping them build trust and loyalty among increasingly discerning consumers.

Taste Modulators Market Opportunities

Increasing Demand for Innovative Beverages

In today's market, consumers are increasingly receptive to exploring new and diverse flavor profiles. Beverage companies are facing significant pressure to deliver distinctive and novel taste experiences. This heightened demand for innovation has led manufacturers to explore the use of taste modulators, which enhance and manipulate flavor sensations within their products. To differentiate themselves and captivate consumer interest, beverage manufacturers are creating exotic flavor combinations, revisiting nostalgic tastes, and experimenting with sensory experiences through the application of taste modulators. Market participants are also concentrating on launching innovative offerings to address the rising demand from food and beverage product manufacturers.

For instance, in December 2023, Döhler GmbH (Germany) launched MultiSense range of flavor modulators designed to address flavor-related challenges in the development of food and beverage products. Moreover, in June 2023, Kerry Group plc (Ireland) launched Tastesense, a taste modulator that enhances salty and savory tastes without adding sodium.

Additionally, the growing emphasis on health & wellness is driving the demand for beverages that are healthier but do not compromise on taste. Taste modulators play a pivotal role in this scenario as they enable the reduction of sugar, salt, and other undesirable ingredients in beverages while maintaining flavor profiles. Taste modulators allow manufacturers to develop innovative formulations that cater to these preferences and capitalize on the health & wellness trend while meeting consumer expectations for great taste.

Moreover, consumer demand for customization and personalization is creating new opportunities for the use of taste modulators in the beverage industry. Consumers are seeking products that cater to their individual preferences and dietary needs, driving the demand for customizable beverage options. Taste modulators provide beverage manufacturers with the flexibility to tailor flavor profiles according to specific consumer tastes. This ability to offer personalized beverage experiences not only enhances consumer satisfaction but also fosters brand loyalty, positioning taste modulators as a key ingredient for success in the competitive beverage market.

Thus, the increasing demand for innovative beverages is expected to generate growth opportunities for market stakeholders.

Key Findings in the Taste Modulators Market

In 2024, the Sweet Modulators Segment to Dominate the Taste modulators Market

Based on type, the taste modulators market is segmented by type into sweet modulators, salt modulators, fat modulators, and other taste modulators. In 2024, the sweet modulators segment is expected to account for the largest share of 47.7% and is expected to register the highest CAGR of 8.0% during the forecast period. The segment’s major share is attributed to the desire for reduced sugar consumption, rising awareness about the adverse effects of excessive sugar consumption, the growing incidence of diabetes and obesity, and the high demand for healthier and low-calorie foods.

In 2024, the Liquid Segment to Dominate the Taste Modulators Market

Based on form, the taste modulators market is segmented into liquid and solid. In 2024, the liquid segment is expected to account for a larger share of 57.5% and is estimated to register the highest CAGR of 7.5% during the forecast period. The segment's large market share is attributed to the rising demand for convenient and ready-to-use liquid taste modulators in various food & beverage applications. Moreover, in product manufacturing, liquid taste modulators help improve product viscosity, mouthfeel, stability, texture, shelf life, taste, and visual aspects.

In 2024, the Beverages Segment to Dominate the Taste Modulators Market

Based on application, the taste modulators market is segmented into beverages, food, and other applications. In 2024, the beverages segment is expected to account for the largest share of 44.3% and is projected to record the highest CAGR of 8.0% during the forecast period. This substantial market share is due to the surge in demand for healthy & functional beverages, high adoption of taste modulators in non-alcoholic beverages, strong growth in the beverage industry, and increased promotional & advertisement strategies regarding clean labels by beverage manufacturers.

Geographical Analysis

Based on geography, the taste modulators market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of 36.7% of the global taste modulators market. This regional market is estimated to be worth USD 559.2 million in 2024. This significant market share is primarily attributed to the increasing consumer preference for healthy food products, high consumption of low-fat and low-calorie foods, growing concerns about health & wellness, rising prevalence of chronic diseases, rising incidence of obesity and diabetes, and a well-established food & beverage industry.

However, Asia-Pacific is estimated to register the highest CAGR of 9.2% during the forecast period. This regional market's growth is driven by the rising number of food & beverage manufacturing companies, rising health awareness among consumers, and rising prevalence of obesity and diabetes, leading to an increase in the adoption of sugar-free products.

Taste Modulators Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the taste modulators market are DSM-Firmenich AG (Switzerland), International Flavors & Fragrances Inc. (U.S.), Archer-Daniels-Midland Company (U.S.), Kerry Group plc (Ireland), Ingredion Incorporated (U.S.), Givaudan SA (Switzerland), Symrise AG (Germany), Sensient Technologies Corporation (U.S.), Tate & Lyle PLC (U.K.), The Flavor Factory, Inc. (U.S.), Carmi Flavor & Fragrance Co., Inc. (U.S.), Corbion N.V. (Netherlands), Flavorchem Corporation (U.S.), Icon Foods (U.S.), and Synergy Flavors, Inc. (U.S.).

Taste Modulators Industry Overview: Latest Developments from Key Industry Players

• In April 2024, International Flavors & Fragrances (IFF) established a new co-creation center in Wageningen, Netherlands, within the 'Food Valley' to improve research, innovation, and customer collaboration. The center, which includes modern lab facilities, a demo kitchen, and innovation spaces, will boost IFF's partnerships with significant clients and Wageningen University.
• In March 2024, DSM-Firmenich established a new pilot plant in Plainsboro, New Jersey. The state-of-the-art facility will help customers to quickly scale up their innovative food & beverages.
• In June 2023, Kerry Group introduced Tastesense Advanced, its next-generation solution tailored for low or zero-sugar products.
• In June 2023, Ingredion launched PureCircle Clean Taste Solution, a zero-calorie sweetening solution designed for specific applications to enhance the overall eating and drinking experience.

Taste Modulators Market Research Summary

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