The global flavored syrups market size is expected to grow from USD 42.69 billion in 2021 to USD 64.71 billion by 2027 at a CAGR of 7.4%.
The COVID-19 outbreak affected the food and beverage industry temporarily during the first quarter of the pandemic, due to production halt and strict government restrictions. But due to the rise in consumption of homemade food, the demand for flavored toppings like syrups increased in the market. Many companies came up with new product innovations to recover the lost sales during the pandemic. For instance, in 2020, Monin launched three new syrups in flavors such as dragonfruit, pineberry, and orange spritz. These syrups had no artificial additives and were clean-label products.
The global flavored syrups market is witnessing an upsurge in demand because of the wide use of syrups in different food items. The market is largely driven by the increasing demand for syrups to be consumed with food products, especially convenience and ready-to-eat food. The flexibility in syrup formulation is an important factor that helps in boosting the use of the product as a taste enhancer, and also as a sweetener. Apart from sweet flavored syrups, savory flavored syrups are also available, catering to the changing preferences of the consumers.
Flavored syrups can be used with both food and beverage items, extending its scope further in the market. It can be used in diluted form in different beverages like mocktails, cocktails, yogurts, and many others. Among all the syrups, fruit syrup accounts for the largest share owing to its wide usage in beverages. The market is therefore driven by the demand for new flavors in beverages. However, one of the major challenges is the entry of competitors such as spreads that are restraining the market.
The use of flavored syrups in breakfast foods, especially toppings is seeing an upsurge in the market. Due to the rapidly growing consumer demand for sweeteners to add to breakfast foods, the demand for different flavored syrups is increasing. Along with adding syrups to breakfast items like waffles, pancakes, and others, consumers also prefer adding a few kinds of syrups to their beverages like coffee, and milk. Also, because of the wide range of flavored syrup, its demand has been increasing among consumers. Additionally, few companies have been launching the concept of organic flavored syrups as organic foods have been on a rising trend, which is attracting health-conscious consumers. Companies are focused on creating new products, combining the concept and taste of different breakfast foods, to attract more customers. For instance, in 2021, Mrs. Butterworth, a company that prepares pancake syrups, collaborated with Post, a food manufacturer and distributor, and launched cereal-flavored pancake syrup. This Fruity Pebbles Flavored Pancake Syrup has the taste of Fruity Pebbles cereal, specially formulated to be consumed with waffles, porridge, and pancakes, among others.
Based on type, the global market is segmented into fruits, chocolate, vanilla, coffee, herbs & seasonings, and others (nuts, floral, and confectionery). Fruit flavored syrups accounted for the largest market share in 2021 followed by chocolate flavored syrups which are projected to grow at the highest CAGR during the forecast period due to their industrial application in bakery products, production of chocolate-flavored dairy drinks, frozen desserts, ice creams, chocolate confectionery, and chocolate-flavored beverages. Furthermore, the growing level of consumer demand for chocolate has boosted the consumption of chocolate flavors and their usage in a diverse range of food products as chocolate syrups are widely preferred by the final consumers in milkshakes, cold beverages, hot beverages such as tea and coffee, and as a topping on ice creams, pancakes, waffles, and cakes.
Based on application, the global market is divided into beverages, dairy & frozen desserts, confectionery, and bakery. In 2021, Beverages had the largest market share. The use of beverages in the flavored syrups market is increasing as it is mostly used in the manufacture of soft drinks like iced tea, flavored soda, and mocha and in making customized cocktails and mocktails in meals. Service outlets. In addition, the trend of using flavored syrups in hot drinks like tea and coffee (lettuce) is increasing to provide consumers with a variety of flavors to suit their tastes and preferences.
North America dominates the market for all types of syrups, with the US and Canada having the largest market share in the region. This is due to the high rate of production, the consumption in the region, and the export of syrup all over the world. The region's population is focused on a variety of breakfast options, meeting the growing demand for flavored syrups. Consumers prefer syrup not only with snacks but also with hot and cold drinks. In addition, the growing trend of using syrup as a topping in readily available snack items has increased the demand for syrup in the region. In addition, the expansion of leading companies in the region, often associated with product launches, has further boosted market sales. Companies focus on creating new products with natural ingredients that cater to the growing health consciousness of individuals. For example, in 2021, Nickel Dime Cocktail Syrups launched four new flavors of syrup in the US market. The syrup is made from natural ingredients and is alcohol and gluten-free.
The leading players operating in the global flavored syrups market are The Hershey Company (US), Sensient Technologies Corporation (US), Kerry Group plc (Ireland), Monin Inc. (France), Tate & Lyle (UK), R. Torre & Company (US), Fuerst Day Lawson (UK), Sensory Effects (US), NutriFood (US), Mitr Phol Group (Thailand), Concord Foods (US), and Toschi Vignola (Italy).