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Brazilian Flavor Suppliers Hard Pressed to Maintain Product Quality While Lowering Prices

Posted on: Thursday, 17 January 2008, 09:00 CST

The Brazilian flavors markets, influenced by several strong forces, is working on developing new products to appease a demanding customer base. The market is currently focusing on developing flavors of higher quality, more nutritional, with better taste, and with lower costs.

New analysis from Frost & Sullivan (http://www.foodandbeverage.frost.com), Brazilian Flavors Markets, finds that the market earned revenues of $197.5 million in 2006 and estimates this to reach $283.7 million in 2013.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Brazilian Flavors Markets, then send an e-mail to José María Jantus, Corporate Communications, at jose.jantus@frost.com, with your full name, company name, title, telephone number, fax number, e-mail and address. Upon receipt of the above information, an overview will be sent to you by e-mail.

Several competitive factors are influencing the flavors market at present: the main one determining success is the increasing pressure on prices witnessed by flavor suppliers due to the increased consolidation within the market and the relatively low market growth.

Since flavor consumption can also increase as manufacturers provide clients with custom-made products, flavor producers are gradually improving the capability and flexibility to manufacture flavors with specific qualities and in particular quantities. This will also help them cater to various customer groups and wider geographic regions.

"The main challenge faced by manufacturers is the exact imitation of natural flavors and expansion of its application across a spectrum of product categories," reveals Taly Nahmias, Research Analyst for the Food & Beverage Ingredients group at Frost & Sullivan. "Flavor companies have presented constant technological developments to identify the main volatile components emitted by products found in nature, allowing them to reproduce similar flavorings in a laboratory."

Product developments do not simply stop with these efforts. Manufacturers' diversification into the ice cream industry and increased production of flavored water and functional yogurts are likely to hold the market in good stead.

The established credibility of the beverage industry is another shot in the arm for the flavor market. As customers are increasingly consuming natural juices, flavors with health benefits are witnessing simultaneous growth. Flavors' ability to mask the taste of sweeteners (used mostly in diet and light products) has also helped boost market growth.

Consumers are looking for products differentiated in textures and health benefits. Companies are launching inventive products in sectors such as milk drinks with fruits, milk shakes with yogurts, juices, cereals, diet and light options, desserts, and petit-suisse cheeses.

"End users are increasingly demanding ready-to-eat food that are tasty, nutritious, and have easy-to-cook options in order to accomplish their daily diet and be more productive," notes the analyst. "Flavors are one of the main additives that impart taste and hence, are essential to a food product's success."

Brazilian Flavors Markets is part of the Food & Beverage Ingredients Growth Partnership Service program, which also includes research in the following markets: Brazilian and Mexican paints and coatings. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan's Growth Partnerships, visit http://www.frost.com.

Brazilian Flavors Markets

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Source: Business Wire

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