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Putri Aprilisa 240210100081 Summary

Squeeze on demand forecast for flavors market

Competition among flavor houses is likely to step slower rate of growth in demand for food flavors is expected across the US market. The need to innovate could become more acute as advances are reined in by downward pricing pressure, but gains are still to be made with the biggest prize for lower sodium food and all natural product. Freedonia predicts that demand for flavors between 2009 and 2014 will grow 2,7 percent per year. This compared to 2004-2009 when the annual growth was 3,9 percent. Bridget McMutrie, Freedonia industry analyst said, Intense Competiton will limit overall pricing gains. However this trend will be offset by the ongoing consumer as natural flavors are higher-value materials then their synthetic counterparts. It is expected that flavors companies will continue to development of product which can to reduce sodium levels without sacrificing taste. And she expected the flavor industry to continue driven by innovation and commercialization of new flavors in particular as trend toward healthier eating and more nutritious ones. And flavors companies will likely invest in developing flavor product that meet growing consumer demand for more complex, exotic, and authentic flavors.