SIC 2087 Flavoring Extracts and Flavoring Syrups, Not Elsewhere Classified

Contenidos

• NAICS CODE(S).
• INDUSTRY SNAPSHOT.
• ORGANIZATION AND STRUCTURE.
• BACKGROUND AND DEVELOPMENT.
• CURRENT CONDITIONS.
• INDUSTRY LEADERS.
• AMERICA AND THE WORLD.
• RESEARCH AND TECHNOLOGY.
• FURTHER READING.

SIC 2087

This category includes establishments primarily engaged in manufacturing flavoring extracts, syrups, powders, and related products, not elsewhere classified. The products are generally used at soda fountains or during the manufacture of soft drinks, as well as for adding color to baked products and confectioneries. Establishments primarily engaged in manufacturing chocolate syrup are classified in SIC 2066: Chocolate and Cocoa Products.

NAICS CODE(S)

311930

Flavoring Syrup and Concentrate Manufacturing

311942

Spice and Extract Manufacturing

311999

All Other Miscellaneous Food Manufacturing

INDUSTRY SNAPSHOT

While most foods have some flavor, certain agents can enhance the taste of these foods. These products encompass a wide range of materials that can be used alone or mixed into a blend. Flavorings and syrups saw steady growth throughout the late 1990s and early 2000s. U.S. shipments of flavorings syrups and concentrate products were valued at $8.1 billion in 2001, compared to $6.64 billion in 1997.

In the late 1990s and early 2000s consumer trends continued to focus on natural ingredients and products that were perceived as "healthy." Medicinal ingredients such as ginseng and garlic became more commonplace. Tropical and exotic flavors also regained popularity and were often paired with more established fruit flavors. The results were such flavors as kiwi-strawberry and cranberry-mango.

Approximately 175 U.S. companies were involved in the production of flavoring extracts and syrups under the flavoring syrup and concentrate manufacturing umbrella, according to the figures published in 1997 by the U.S. Census Bureau. More than 6,000 workers were employed in the flavoring extracts and syrups industry, and roughly 10 companies accounted for almost two-thirds of the flavor industry's sales to beverage and food processors.

Colorants continue to be one of the smallest segments of the food additives industry. The natural colorants (mainly caramel color used in cola drinks) dominate the industry. Synthetic colorants also are used largely by the beverage industry, followed by use in pet food, confections and gums, and dry mixes. However, consumer concerns over the safety of colorants in food products led many firms in the late 1990s and early 2000s to pursue natural colorant options. Reflecting the strength of this industry segment, between 1997 and 2000 industry leader Universal Foods, later renamed Sensient Technologies Corp., acquired nine colorants businesses.

ORGANIZATION AND STRUCTURE

Flavoring manufacturers, sometimes called "flavor houses," create extracts, syrups, powders, and other forms of flavoring materials. These manufacturers work with natural base ingredients purchased from suppliers throughout the world. The manufacturers' dependence on natural sources leaves the flavor chemicals open to price fluctuation due to the availability and cost of the raw materials. Once processed, flavoring ingredients are sold to soft drink companies and other makers of processed foods.

Flavor manufacturers and...