The global flavored syrup market is estimated to reach at a high CAGR of 4.3% during the forecast period 2022 -2029.
Flavored syrup is a syrup made from mixture of equal parts of sugar/sugar alternatives and water as a base, followed by the addition of natural or artificial flavorings to create different flavors of syrups. Concentrate is a substance or liquid that has been made stronger by extracting most of the water from it. Flavored syrups come in all types of varieties including natural, organic, sugar free, gluten-free, concentrated, and sweetener syrups. They are used for multiple purposes such as in beverages, dairy and frozen desserts, bakery and confectionery items. Some of the flavoring syrups and concentrate include Hershey`s strawberry flavored syrup, Amoretti premium syrups, Monin Chipotle pineapple cocktail syrup, and Jordan`s skinny syrups.
Source: DataM Intelligence Analysis (2021)
Increasing demand for ready-to-drink beverages
Increasing demand for ready-to-drink (RTD) beverages is expected to drive the flavored syrup market in the forecast period. RTD’s are single-use packaged beverages that are ready for immediate consumption at the time of purchase. Some of the popular ready to drink beverage types include cocktails, alcoholic drinks, tea, coffee. Introduction of new flavors, ease of carrying, and convenience are expected to lead to increased consumption thereby driving the demand for flavored syrup used for manufacturing them. The use of flavored syrups in breakfast foods, especially as toppings is increasing due to the rapidly growing consumer demand. These syrups are majorly consumed as a topping ingredient in pancakes, desserts, waffles, various breakfast foods, ice cream, and other ready to eat products. Moreover, growing demand for chocolate-flavored syrups for cold beverages and various bakery and confectionery products is expected to drive the market in the next few years.
Additionally, few of the companies such as Canadian Organic Maple Co. Ltd, Hoover's Maple Syrup and Hamel Maple Syrup have been launching the concept of organic syrups as organic foods have been on a rising trend, that is also attracting the health-conscious consumers. For instance, in February 2021, Monin Inc. introduced strawberry rose flavoured syrup. Strawberry rose flavour adds a scarlet hue while it carries notes of candied strawberry and soft rose in sip and bites of the products in which it is used. It is ideal for recipes including lattes, teas, cocktails, lemonades, sparkling waters, dressings, desserts, among others.
However, the high amount of sugar level in flavored syrup is expected to restrain the market growth. The flavored syrup is made up of water, sugar and concentrated on fruits, vegetables and others. Flavored syrup has high calories and sugar content, which is harmful to health. The nutritional value of flavored syrup is almost zero, which makes it not beneficial for health. Due to sugar ingredients, it increases sugar levels, which is terrible for diabetic patients and chronically high insulin levels cause muscle cells around each blood vessel in your arteries to grow faster than usual, leading to high blood pressure that restrains its market.
Owing to their extensive use in alcoholic products, fruit flavored syrups have dominated the global market
Fruit flavored syrup held market revenue share of YY% in the year 2020. Consumers demand for fruit infused flavored syrups, coupled with high preference for unique tastes, is a major factor driving the market. Manufacturers have been focusing on developing combined fruit syrups and introducing innovative flavors to retain their position in the global industry. Based on the consumer inclinations towards pure, natural, and organic products, companies are also introducing syrups infused with the fruit content. For instance, 100% natural sour cherry, apple and common sea-buckthorn, and apple and beetroot juice are some of the unique flavors blended with high fruit ingredients. Similarly, Pölöskei Drink Kft is a company that offers combined fruit flavored syrup. It blends basic flavors in its fruit syrups and also develops unique varieties such as acerola-raspberry and blueberry-raspberry syrups.
The chocolate category is expected to register the fastest CAGR of XX% over the forecast period. It is gaining an increasing traction in the food and beverage industry. The segment is driven by the significant application in cold and hot beverages such as milkshakes, hot and cold coffee, smoothies, and baking and confectionery products such as cakes, pastries, pancakes, and waffles. India, having a high preference for chocolate-based products, is expected to be one of the target markets for chocolate syrup manufacturers, The Hershey Company in particular.
North America dominated the global flavored syrup market
North America accounted for the largest share of 34% in 2018. The flavored syrups market growth is majorly attributed to consumers’ preference for flavored syrups in daily meals such as cereals, snacks, desserts, and beverages. The bakery industry is expected to witness significant growth in this region due to ample availability of high-quality ingredients such as chocolates, toppings, fillings, and flavors. This, in turn, is encouraging the use of flavored syrups across the food and beverage industry.
Asia Pacific is expected to expand at the highest CAGR of YY% during the forecast period. Bakery products are considered to be a product of mass consumption due to their low prices. Moreover, consumers’ willingness to consume sweet foods has led the manufacturers to introduce innovative products infused with flavored syrups. Many foreign companies have penetrated in the Asian market and were successful to make quick inroads in this industry. For instance, in 2017, Hershey accounted for about 94% in India in the chocolate syrups category.
Source: DataM Intelligence Analysis (2021)
The global market is highly competitive in nature owing to presence of a large number of players. Some of the key players operating in the global market are The Hershey Company; Kerry Group; Tate & Lyle; Monin Inc.; Fuerst Day Lawson; Torani; Archer Daniels Midland Company; Starbucks Coffee Company; Smucker’s; Walden Farms (Panos Brands); Fox Syrups. Product development is a key initiative adopted by most of the players with an aim to expand their offerings. For instance, in June 2021, Torani announced the launch of flavour lineup including Puremade Chocolate Hazelnut Sauce, Puremade Mangonada Syrup, and Puremade Black Sugar Syrup. Puremade Chocolate Hazelnut Sauce is the nut allergen-free sauce Inspired by the classic flavor combination commonly found in Italy. Puremade Mangonada Syrup is a mix of sweet, sour, salty, and spicy characteristics. Companies are also focusing on offering sugar free syrups to cater to the health-conscious segment. For instance, Monin offers sugar free syrups in various fruit flavors such as raspberry, pomegranate, and peach. Irish cream, almond, and hazelnut are some of the other sugar free syrups offered by this company.
COVID-19 Impact: Pandemic had a negative impact on the global flavored syrup market
The outbreak of COVID-19 has acted as a massive restraint on the flavored syrup market as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. Food and beverage manufacturers depend on supply of raw materials from domestic and international suppliers. As many governments restricted the movement of goods across countries and locally, manufacturers had to halt production due to lack of raw materials. Also, restrictions on trade of non-essential goods and fear of contamination through manufacturing facilities contributed to the decline.
The global flavored syrup market report would provide an access to approximately 45 market data tables, 40 figures and 180 pages
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