Field Notes, powered by KPMG, is a weekly news update on news nationally and globally from the agri-food sector.
Market data from Foodtrending has revealed that, demand for natural flavours and flavouring material has increased by 7.5 percent year on year and is now nearly worth €5 billion (approx. NZD$9 billion). Jamie Rice, Director of Food Trends and Insight states that the figure covers up the fragmentation occurring in the sector. Customer demand for natural flavours has meant that big flavour companies are increasingly acquiring a range of companies that produce the stock that they are after. This means that a range of companies is supplying the volumes of flavour required rather than a couple. Customers are also after a range of price points which poses a challenge to flavour companies. The ultimate challenge expected for companies is being able to cope with lots of small growth areas, rather than just one large one.
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