This study intends to unfurl the multiple facets of global liquid smoke market and thereby examine how the short-term growth of the market will unfold during the stipulated time span.
Global Liquid Smoke Market Benefits from Growing Adoption by Processed Food Companies as a Functional Component
Growing consumer knowledge of liquid smoke solutions, which increase the shelf-life of products without grilling or roasting and flavouring them, positively influences the growth of liquid smoke market. Additionally, the growing purchasing power of the working class in developing nations is encouraging customers to spend more money on liquid smoke products, thus driving the liquid smoke market growth over the forecast period. Growing demand for meat products with smokey flavours, and rising protein consumption trends among health-conscious consumers contribute toward the expansion of liquid smoke market. Global production of meat is anticipated to reach 276 million tonnes in 2022. It is anticipated that between 460 million and an astounding 570 million tonnes of meat will be consumed worldwide by 2050. Consumer demand for processed meat products that also have a smoky flavour to enhance the taste has recently increased, and this has caused consumers to pay more attention to smoky food products, further fueling the expansion of the liquid smoke market.
The growth further influences the consumer spending on the inclusion of liquid smoke as a functional component in the formulation of meats, poultry products, seafood, sauces, spices, crackers, and bread by processed food manufacturing firms. The development of new flavours in the food and beverages industry is boosted by growing consumer awareness of liquid smoking products. Additionally, the popularity of barbecue sauces among consumers has increased the use of smoky flavours, and many manufacturers are concentrating on creating new flavours because consumers are drawn to them quickly. For instance, in 2020, the US market for the manufacture of barbecue sauce was estimated to be worth over US$1.8 Bn. In 2021, the liquid smoke market size was close to US$2.1 Bn. This has led to a strong pmpetus to liquid smoke market growth.
Liquid Smoke Market: COVID-19 Impact
The COVID-19 pandemic greatly influenced how quickly the liquid smoke market expanded. Lockdowns were announced during the pandemic, which hurt the manufacturing sectors. Additionally, the eateries could not open their location, which reduced demand and revenue. As a result, production capacity suffered and fell, which had a negative effect on the growth of the liquid smoke market. Because most households did not prioritize it during the abrupt lockdowns, hoarding exercises, and budget cuts, the use of liquid smoke has been badly harmed. The number of closed restaurants that went out of business affected the demand for condensate products.
Unprecedented Developments in Processed Food Industry to Drive Liquid Smoke Market Ahead
The global liquid smoke market is expanding rapidly as people's eating habits change, pushing them to purchase high-quality food goods and packaged foods. The market's expansion can be linked to innovation in packaged goods. Furthermore, developments in retail infrastructure, as well as the availability of various flavours such as smoke flavours in food and free delivery, are some factors that have contributed to the expansion of the worldwide liquid smoke market. As a result, the growing preference for ready-to-eat foods is a major growth accelerating factor for liquid smoke, favorably affecting the market growth. Furthermore, many prominent players in the liquid smoke market are using certain strategies and developments to maintain a competitive advantage. For instance, in July 2019, Nolan Ryan Beef, a food manufacturer in the United States, stated that they had produced uncured beef franks in hot dogs and frank cuisine utilizing liquid smoke. These variables could result in lucrative market prospects for key players in the coming years.
Increasing Consumer Proclivity for Barbeque, and Smoked Food to Drive Sales in Liquid Smoke Market
The popularity of food with a smoky taste and barbecue sauces among consumers is one of the primary factors driving the tremendous expansion of the worldwide liquid smoke market. People increasingly enjoy the flavour of classic grilled smoke in culinary products, propelling the worldwide liquid smoke market. Grilled meats like ham, shrimp, bacon, steaks, and others—some of the more well-known food items—are frequently prepared with smoky tastes. The popularity of smoked food already inspires leading market participants to develop novel customer-attracting techniques. For instance, in December 2019, the Kerry Group, an Irish food firm, stated that they would implement Rapid Thermal Pyrolysis (RTP) technology. Utilizing this technology, liquid smoke is produced from biomass. This acquisition will aid the company's capacity expansion in the liquid smoke sector. It is also anticipated that market expansion will be fueled by these kinds of activities from industry players.
Potential Side Effects Continue to Restrict Liquid Smoke Market Expansion
Liquid smoke allergies are common around the world. During the forecast period, this aspect is anticipated to impede the global market's expansion. Additionally, one factor that could have a detrimental effect on the expansion of liquid smoke market throughout the projected period is the lack of awareness regarding the usage of liquid smoke in food, particularly in developing nations. On the other hand, the presence of alternatives and the rise in worries about health risks associated with eating smoked food is likely to restrain the expansion of the liquid smoke industry. The market for liquid smoke is expected to face challenges due to consumer preference for the conventional way of smoking meat products.
With Rapid Expansion of Fast Food Chains, Meat and Seafood to Dominate Liquid Smoke Market
Based on application, the liquid smoke market is segmented into meat and seafood, sauces, pet food and treats, dairy, and others (snacks, bakery & confectionary). The meat and seafood category dominated the liquid smoke market over the forecast period. This category expansion can be ascribed to the increasing number of people who choose meat and seafood in their daily diet. The rapid expansion of fast food chains such as Subway, Mcdonald's, Taco Bell, Burger King, and KFC has motivated people to purchase economical meal packages, which is expected to be one of the factors influencing customers to purchase smoky meat products. All of these factors may enhance demand for meat and seafood, thus accelerating the expansion of liquid smoke market.
Hypermarket/Supermarket Remains a Dominant Category in Liquid Smoke Market
Based on sales channels, the liquid smoke market is segmented into hypermarkets/supermarkets, convenience stores, discount stores, and food and drink specialty stores. The hypermarket/supermarket category held the largest revenue share in liquid smoke market in 2021 and the trend will continue throughout the period of projection. A hypermarket is what we refer to as a combination of a grocery supermarket, and a department shop. The expansion is attributable to mounting consunmer preference for supermarkets and hypermarkets as shopping hubs in both developed and developing economies. However, the e-commerce segment is anticipated to expand during the projected period. Convenience and the ability to select and contrast products from many brands are credited with this.
Europe Spearheads Liquid Smoke Market due to Increased Investments by Manufacturers
Over the forecast period, it is anticipated that Europe’s liquid smoke market will account for the largest revenue share. Germany, France, Spain, Denmark and the United Kingdom are major markets in this sector. This sector's rising income motivates manufacturers to invest in the R&D industry of this market, propelling the liquid smoke market forward. This market is also propelled by relatively strong investment power. In the coming years, user preference will shift toward these products because they are an exact duplicate of the smoky flavour obtained by smoking actual wood and can be useful in various culinary items. Furthermore, vendors in the liquid smoke market focus on several business development methods, such as innovation, partnerships, cooperation, mergers & acquisitions, and expansion. These methods will assist the players in strengthening their position in the European liquid smoke market. For instance, in February 2021, Azelis broadened its geographic reach by establishing a second smoke production facility in Denmark. The plant's architecture is based on Azelis' unique technology, and the main distillation and extraction procedures are completely automated. Furthermore, the Azelis smoke facility is one of the few in the world that produces highly concentrated smoke flavours.
The North American liquid smoke market is anticipated to experience stable revenue growth throughout the forecast period. The market here has advanced due to the large increase in demand for meat products, sauces, dairy products, and pet food items with smokey flavours. Some of the region's top manufacturers of liquid smoke include Red Arrow International LLC, and Colgin. Furthermore, North America is the world's greatest producer and consumer of liquid smoke owing to its more than 35 processing plants for meat, which use it extensively. One of the world's biggest marketplaces for food is the US. The direct smoking of food is being replaced by indirect smoking by a sizable portion of US customers. In place of physical smoking, liquid smoke is a suitable option. Due to the US's extensive culinary history with barbecue, many liquid smoke firms are aggressively pushing their products.
Global Liquid Smoke Market: Competitive Landscape
In May 2021, Ps expanded its gourmet grilling sauces and marinades collection with new BBQ sauces. The flavours of these sauces are influenced by regional and trending flavours such as tangy Memphis, Door County Cherry, and Peach Whiskey. These new taste profiles have been created to complement the current collection of BBQ rubs, seasonings, and sauces. Similarly, in December 2019, Ensyn Technologies acquired the Rapid Thermal Pyrolysis (RTP) facility in Renfrew from Kerry Group. The RTP technique would be applied at this facility to transform biomass into liquid smoke. Additionally, this acquisition would help the business meet capacity needs and pursue its smoke and taste market expansion strategy.
A few of the liquid smoke market players include IFF, Frutarom, Baumer Foods Inc., Ruteinberg Ingredients BV, MSK Ingredients, Colgin, Kerry Groupe PLC, and Besmoke Ltd.
Regional Classification of the Global Liquid Smoke Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Liquid Smoke Market
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