Market Trends of India Food Flavor and Enhancer Industry
Increased Production of Processed Foods Using Indian Flavors
Indian food has a huge application of herbs and spices, like chilies, asafoetida, and cinnamon, which are used as food flavors and enhancers. Recently, food flavors like coriander, ginger, and garlic powder had a huge demand in the Indian kitchen. With the increase in the working population, the need for processed and ready-made food products associated with interesting flavors and enhanced taste is on the rise. Companies producing snack food items, like chips, instant noodles, biscuits, and others, demand food flavors and enhancers to differentiate their product from the competitors. Chocolate is also being used as a flavor in various products, like ice creams, cakes, and Indian sweets, by sweet and snack shops, confectionaries, and restaurants. At the same time, some synthetic flavor enhancers include tartaric acid, monosodium glutamate (MSG), and potassium chloride. According to research articles in the Encyclopedia of Food Chemistry, bananas and grapes contain tartaric acid, which has been shown to improve the flavor of beverages with grape flavors. For instance, in April 2022, the world's largest manufacturer of naturally brewed soy sauce, Kikkoman Corporation, announced the debut of its new 100% vegetarian Kikkoman Oyster Flavoured Sauce in India. This sauce is suited for both vegetarians and non-vegetarians.
India is one of the major exporters and consumers of spices globally, with a market share of 46% by the Spice Board of India, thereby commanding a dominating position in the world spice trade. This country produces about 75 of the 109 varieties listed by the International Organization for Standardization (ISO).
The market for clean-label ingredients has grown as consumers' preferences for novel flavors, convenience, and natural elements have increased. The necessity for integrating natural tastes into various applications has increased due to rising consumer demand for processed food and expectations for safer and healthier components. The manufacturers are also adding new natural tastes that can enhance the product's nutritional and sensory profile. Natural products are becoming more popular due to their organic qualities and health-improving qualities of natural flavors.
For instance, in May 2022, with a cutting-edge R&D facility and a production line with a 150 MT monthly capacity that is outfitted with the most modern equipment designed for making plant-based products, Symega is well-positioned to meet the expanding demand for plant-based foods in both India and beyond. A major producer of seasonings, culinary products, flavors, and natural colors, Symega Food Ingredients announced the opening of a factory in Kochi with a focus on producing plant-based proteins as well.
Increased Consumers Willingness to Experiment with New Flavors
This trend has led to increased sales where the consumers have higher disposable incomes and are willing to spend on non-essential sophisticated products across food categories. For instance, unusual flavor combinations, such as chili chocolate, are increasingly being used in chocolates and dark chocolate. With increased regulations on organic and herbal food flavors and enhancers, companies are shifting toward producing natural food flavors and enhancers, which has led to an increase in the revenues of Indian companies engaged in food flavors and enhancers.
The consumption of noodles and RTE instant noodles is increasing rapidly in India due to the busy lifestyles and growing need for convenience food. A combination of glutamates and nucleotides improves the noodles' flavor. For instance, DSM (Koninklijke DSM NV) operates in India and provides a range of food enhancers under its brand Multirome for its application in noodles. In India, the growing trend of Asian cuisine, especially Chinese cuisine, which provides umami flavor through monosodium glutamate in noodles, is expected to boost the market during the forecast period. Therefore, such factors act as major drivers for the food flavor and enhancer market in India.
