Revenue from the sales of natural distillates is expected to be USD 2,767 million in 2024. The natural distillate market is estimated to attain USD 6,207 million by 2034. Throughout this period, the market is anticipated to record a CAGR of 8.4%.
The demand for natural distillates is surging across various end-use sectors. In the food and beverage processing sector, the demand for natural distillates is rising as they extend shelf life, reduce dependence on artificial additives, and act as preservatives. They also help food and beverage manufacturers to develop innovative products using varied flavor profiles.
The application of natural distillates is also rising in seasonal offerings and limited editions as they capture the essence of seasonal herbs and fruits. These distillates also enhance the visual appeal of baked goods by imbuing them with a natural color.
Rising consumer demand for beverages that have less artificial taste profile is fueling demand for natural fruit distillates. Further, the use of these distillates is also rising as it magnifies the sweetness perception, thus allowing for lowered sugar content in beverages without sacrificing taste.
Juices and carbonated drinks developers are exploring exciting flavor fusions by mixing natural distillates from various botanical sources. Additionally, certain natural distillates are fortified with antioxidants or vitamins, to meet the growing demand for functional beverages.
Key Takeaways from the Natural Distillate Market Report
- The natural distillate market went through the historical period expanding at 8.5% CAGR. Over the forecast period, this market is projected to expand at an 8.4% CAGR.
- The peach flavor is estimated to account for 21.4% market share in 2024.
- Food and beverage processing is a top end use segment, which is forecast to register a 34.5% share in 2024.
- In Canada, the natural distillate market is anticipated to accelerate at an 8.6% CAGR through 2034.
- In Italy, the sales of natural distillates are estimated to expand at a 9.9% CAGR over the next ten years.
- India is expected to witness the demand for this product at an 8.8% CAGR over the forecast period.
“Players in the natural distillate industry are focusing on reducing their prices to capture a price-sensitive consumer base. Players are also building strong brand recognition through community engagement and targeted marketing.” says an analyst at Future Market Insights.
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Competitive Landscape
Market players are partnering with food and beverage players as well as flavor houses to ensure consistent distribution channels and supply chains. Further, they are acquiring smaller players with expertise to increase their market reach. Participants are allocating funds for product innovation and enhancement of extraction methods to increase their yield.
Players are introducing beverages containing natural distillates. For instance, Actor Woody Harrelson, along with entrepreneur Amy Holmwood, released their brand Holistic Spirits in September 2023. The product line, consisting of organic vodka and gin, uses all-natural and botanical ingredients. Additionally, organic distillation methods are used to develop these beverages.
Kerry Inc., a leading ingredients manufacturer, recently introduced Botanicals Collection ZERO 2.0, which is a line of botanical extracts for alcoholic beverages. It contains no preservatives or ethanol, helping the producers meet authentic-quality and clean-label requirements in certain drinks. Distillates include floral, fruit, spice, coffee, cocoa, and black pepper.
Get More Valuable Insights
Future Market Insights (FMI), in its new offering, provides a thorough, detailed, and unbiased analysis of the global natural distillate market, presenting historical demand data for the years 2019 to 2023 and forecast statistics for the years 2024 to 2034.
The study provides compelling industry insights based on the flavor (peach, cherry, cocoa, coffee, vanilla, coconut, raspberry, tonka, and plum), end use (food and beverage processing, bakery and confectionery, sauces and gravies, juices and carbonated drinks, frozen desserts and ice-creams, HoReCa, and personal care and cosmetic products), and sales channel {direct and retail sales (hypermarkets/supermarkets, convenience stores, specialty stores, and online retailers)}, across several regions.
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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