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Flavor Industry Growing

Recent market analysis (Frost & Sullivan) attributes the increased consumer demand for natural food products and the associated need for flavoring compounds derived from natural sources for the current growth of essential oils and oleoresins in the marketplace. Adding to this are more venturesome flavor profiles and a sought-after healthy focus. For example, instead of sprinkling salt, consumers are increasingly using spice or spice blends with which to season their food.

The report identifies functional food applications and dietary supplements as the key development areas for essential oils and oleoresins. The report also predicts that the US and European markets with previous year’s sales of $653 million for essential oils and oleoresins to climb to $796 million by 2009. The report suggests that these sectors represent emerging markets and offer manufacturers great potential for future growth, however; this good news comes not without warning. One must proceed cautiously. The adoption of an early ‘positioning’ strategy is critical to bolster performance as is adherence to new legislation regarding regulations for the development of flavors.

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