Asia Pacific will lead market growth for biotech flavors

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In Asia Pacific, the global market for flavors produced via biotechnology is expected to nearly triple by 2024, due to a promising pipeline of products and strong demand for packaged foods.

According to the study by Persistence Market Research Group, consumption of flavors produced using enzymes and microbes in Asia Pacific will increase by a factor of 2.7 over the next 8 years.

PMRG also forecasts the global market to grow 11% between 2016-2024, to reach $2.1 billion. Demand in 2016 is expected to be valued at $906 million.

Growth in Europe and North America will be buoyed by recent rulings that flavor compounds produced via biotechnology can be considered natural, as well as favorable tax policies. Demand from health-conscious consumers will also boost volume growth, although shelf-life issues will curtail use in certain applications.

PMRG says food will account for 55% of biotechnology-based flavors in 2016, and will continue to be a major market for the segment with growing consumption of packaged food and beverages.