Flavored Syrups Market Analysis Report By Type, By Application, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global flavored syrups market size was valued at USD 46.79 billion, in 2018 and is anticipated to grow at 5.1% CAGR over the forecasted period, from 2019 to 2025. The market growth is majorly driven owing to the growing demand for flavored syrup in the food and beverage industry. Flavored syrups act as a sweetener and taste enhancer, which is influencing manufacturers to introduce new flavors in syrups. The beverage segment has contributed to maximum demand due to increasing applications in various food products.

Fruit-flavored syrups dominated the global market owing to the increasing application in beverage products such as cold drinks, soft drinks, soda, and cocktails. There are two common fruit flavors such as orange and raspberry. Moreover, consumers' willingness to consume different flavors encourages the market players to introduce dual fruit flavor syrups like Lime-Mint, Raspberry-Mint, and lime ginger which gives a sweet, sour, and bitter taste.

The market players are continuously striving to develop innovative flavors in syrups in order to fulfill the rapidly changing consumer taste preferences, thereby, expected to spur the flavored syrups demand. For example, The Agi fruit syrups launched honey-based products along with unique flavors such as raspberry-lemon balm with honey, and elder-lime with honey, and baked apples with honey.

Flavored syrups are gaining popularity in western countries including U.K., U.S., Canada, France, and Germany. High consumption of flavored syrups in these countries is projected to contribute to the growth of this market over the forecast year. Furthermore, rising demand for chocolate flavor syrup in the hot and cold beverages for confectionary and bakery products is projected to fuel the market growth over the forecast period. 

Application Insights

By application, the flavored syrup market is fragmented into bakery & confectionery, beverages, dairy & frozen desserts, and others. Among applications, the beverage category held the largest market share of around 35.0%, in 2018. Beverages such as hot and cold drinks, cocktails, soft drinks are some common products that contain flavored syrup to enhance the taste. For instance, Starbucks uses a wide range of naturally flavored syrups such as caramel, hazelnut, and vanilla in their coffee.

The confectionery and bakery segment is projected to grow at the fastest CAGR of more than 5.0% from 2019 to 2025. Increasing consumption of flavored syrup in products such as cakes, cookies, pretzels, and crackers is anticipated to fuel the growth of this market. Moreover, consumers' willingness to consume the unique flavored syrups, especially in developing countries is projected to drive the market growth over the forecast period.

Type Insights

By type, the market is fragmented into fruit, vanilla, chocolate, and others. The fruit segment accounted for the largest market share of more than 35.0%, in 2018. This growth is attributed to increasing demand for fruit-based flavored syrup along with a high preference for unique flavored taste. Most of the major players are concentrating on developing combined fruit-flavored syrups to sustain themselves in the competitive market.

Moreover, It has been seen that there is a growing trend of consumers test shifting towards flavored syrups that are made of natural and organic ingredients. Consumers are refraining from syrups that have artificial flavors. This has led to the development of flavored syrup made of natural ingredients by the manufactures. It blends basic fruit flavors in the syrup and developed unique flavored syrup such as blueberry-raspberry and acerola-raspberry.

The chocolate segment is expected to grow with the highest CAGR of more than 5.5% from 2019 to 2025 due to the increasing usage of chocolate-flavored syrup in the food and beverage industry. In addition, chocolate syrup is used in many products such as cold and hot beverages including smoothies, cold and hot coffee. It also helps to enhance the flavor of confectionery and bakery products like pancakes, waffles, cakes, and pastries. In India, consumers highly prefer chocolate-based syrups which are expected to fuel the growth of this segment in the next six years.

Regional Insights

North America held the largest market share of more than 33.0%, in 2018 owing to increasing preference for flavored syrups in snacks, cereal, beverages, and desserts. Furthermore, in this region, the bakery industry is projected to witness considerable growth due to the availability of ingredients like filling, topping, and flavors. These factors are expected to fuel the growth of flavored syrups in the food and beverage industry.

Asia Pacific is projected to grow with the fastest CAGR of more than 5.0% over the forecast period. Owing to increasing consumer preferences to consume sweet food, manufacturers are striving to come up with flavored syrups. Hence, many companies entered in Asia Pacific market to fulfill customer demands.

Impact of COVID-19

The outbreak of COVID-19 has impacted the food and beverage industry worldwide. Governments across the globe have shut down restaurants, bakeries, and cafes, which has decreased the demand for flavored syrups. In addition, there have been supply chain disruptions during the lockdown. This has also hampered market growth.

On the other hand, due to movement restrictions by the government, people had tried several dessert and beverages recipes at home which has augmented the demand for flavored syrups. Moreover, post lockdown, governments across the countries have been permitted to reopen cafes and restaurants, thereby surging the market growth during this pandemic situation.

Flavored Syrups Market Share Insights

The major players in this market are Kerry Group, Archer Daniels Midland Company Starbucks Coffee Company, Monin Inc., Fox Syrups Walden Farms (Panos Brands), Tate & Lyle Torani, and Fuerst Day Lawson. The global market is highly competitive owing to the presence of a large number of market players. The key strategies implemented by major market players are product development and innovation in order to expand their product line.

For example, Starbuck includes a wide range of flavored syrups like peppermint mocha, peach, cinnamon dolce, and, toffee nut. Companies are concentrating on sugar-free syrups for health-conscious people. In this regard, Monin introduced sugar-free syrups in various fruit flavors such as pomegranate, raspberry, almond, hazelnut, Irish cream, and other sugar-free flavored syrups. This is expected to further provide traction to the market growth. 

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global flavored syrups market report based on type, application, and region:

• Type Outlook (Revenue, USD Million, 2015 - 2025)
    • Fruit
    • Chocolate
    • Vanilla
    • Others

• Application Outlook (Revenue, USD Million, 2015 - 2025)
    • Bakery & Confectionery
    • Beverages
    • Dairy & Frozen Desserts
    • Others

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • China
        • India
    • Central & South America
        • Brazil
    • Middle East & Africa