The Global Liquid Smoke Market Anticipated to Generate a Revenue of $1,14,266.2 Thousand, Growing at a CAGR of 6.7% from 2021 to 2028Download Sample Reports Overview
The global liquid smoke market is estimated to be valued at $1,14,266.2 thousand by 2028, surging from $68,271.4 thousand in 2020, at a noteworthy CAGR of 6.7%.
Impact Analysis of COVID-19 on the Liquid Smoke Market
The global market for liquid smoke is estimated to experience a low growth amid the COVID-19 pandemic. The low growth is the result of decreased manufacturing capacity of liquid smoke. Also, liquid smoke is mostly used in the food industry and due to closing down of restaurants and outlets, the demand for liquid smoke is also consequently projected to decrease. Furthermore, consumers across the globe are focusing on the essential food products and immunity boosters; liquid smoke is not considered as the essential item. All such factors are predicted to negatively impact the global liquid smoke market amid the pandemic.
Global Liquid Smoke Market Analysis
The enormous growth of the global liquid smoke market is mainly attributed to the increasing demand for different types of smoky flavors in cheese such as mozzarella, scarmorze, and provolone. Moreover, companies are focusing on innovative product launch and key strategies to attract the customers. For instance, Norseland, UK based cheese company, in November 2018, announced that they have launched Applewood Vegan smoked cheese, a type of cheese that has smoky flavor of applewood. These types of innovations are creating awareness among people to use such products and thus fueling the market growth.
There are few people across the globe who are allergic to liquid smoke. Additionally, the lack of awareness about the use of liquid smoke are some of the key issues that may create a negative impact on the market during the forecast period.
The increasing adoption of liquid smoke is driven by the popularity of food culture owing to trends of social media and food blogging across the globe. Moreover, improvement in the retail infrastructure of liquid smoke along with availability of packaged goods such as condiments, sauces, and flavorant, is thereby fueling the market growth.
Furthermore, companies involved in the global liquid smoke market are following effective strategies and launch of innovative products to grow in the market. For instance, In February 2021, Azelis, chemical based company, announced that they are going to expand their global footprints in liquid smoke, and they are opening new production facility in Denmark along with using high class technology to manufacture highly concentrated smoke flavors. Such aspects may further lead to lucrative market opportunities for the market in the upcoming years.
Global Liquid Smoke Market, Segmentation
The global liquid smoke market is segmented based on type, application, and region.
The type segment is further classified into hickory, mesquite, applewood, and others. Among these, the hickory type sub-segment is anticipated to have the fastest growth as well as dominant market share and surpass $48,607.1 thousand by 2028, with an increase from $28,226.0 thousand in 2020.
The market growth can be attributed to the popularity of wood that is used mostly to create smoky flavors in barbecue. This type of liquid smoke also has strong flavor and is slightly sweet in taste; These factors may create a positive impact on the segment throughout the forecast period.
The distribution channel segment is further divided into meat, seafood, sauces/marinades, and bakery & confectionery. The meat sub-segment is anticipated to be the dominating as well as the fastest growing sub-segment in the global market and register a revenue of $49,910.1 thousand during the analysis timeframe.
This growth is projected to increase people’s craze towards the processed meat owing to busy lifestyles and trends of ready to eat foods. Moreover, rising number of processed food plants across the globe is one of the aspects that may aid in the generation of a lucrative revenue for the market throughout the forecast period.
The liquid smoke market in the North American region is projected to witness rapid growth. This market generated a revenue of $18,774.6 thousand in 2020 and is further projected to reach up to $32,451.6 thousand by 2028.
The demand for liquid smoke is surging in the North America region specifically because of factors such as increasing prevalence of smoky flavored meat products such as pet food, sauces, and dairy. Moreover, the presence of leading providers in the region such as Red Arrow International LLC and Colgin is one of the factors anticipated to boost the market in the North America region.
Key Players in the Global Liquid Smoke Market
Some of the leading global liquid smoke market players are
- Kerry Group
- Red Arrow International
- MSK Ingredients Ltd.
- Azelis SA.
- Besmoke Ltd.
- Ruitenberg Ingredients
- Baumer Foods
- Redbrook Ingredient Services Ltd.
- B&G Foods.
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Liquid Smoke Market
- Bargaining Power of Suppliers: The suppliers involved in the market are extensive in number and are globalized. So, there is low threat from the suppliers.
Thus, the bargaining power of the suppliers is low.
- Bargaining Power of Buyers: Buyers have high bargaining power, primarily because of the huge number of liquid smokes in different flavors that are offered at low prices. Buyers can hence choose the liquid smoke that best fits their preferences.
Hence, the bargaining power of buyers is high.
- Threat of New Entrants: Startups entering this market are providing innovative liquid smoke to the customers. However, companies that are in the liquid smoke market are much more globalized.
Thus, the threat of the new entrants is moderate.
- Threat of Substitutes: There are few methods available for giving smoky flavor to the food, but they do not offer the convenience as that of liquid smoke.
Therefore, the threat of substitutes is low.
- Competitive Rivalry in the Market: The ventures operating in the global liquid smoke are opting for various businesses deployment strategies to hold their position in the market. Several companies are launching their value-added services in the international market and strengthening the footprint worldwide.
Therefore, competitive rivalry in the market is high.