Smoke ingredients are available in three forms namely oil, powder and aqueous. Liquid smoke refers to artificial smoke ingredient, which is used across several cuisines to impart the smoky flavor and fragrance to the food. It is generally available in yellow and red color. It is widely utilized to enhance shelf life of food products without roasting or grilling the food. Liquid smokes are majorly produced by the method of pyrolysis. Wood smoke is condensed by igniting the wood chips under limited oxygen content, which is further purified and subsequently fractionated to form oil and dry powder. The refining involved in liquid smoke eliminates the formation of unwanted polycyclic aromatic hydrocarbons (PAH) which might act as a barrier in imparting the flavor and color of liquid smoke. Refined liquid smokes offer multiple advantages over wood smoke, such as inhibition of PAH emissions, superior product homogeneity, ease to store and minimum environmental pollution. The commercial production of liquid smoke is also beneficial for controlling the growth of pathogenic microorganisms.

The market is witnessing significant growth owing to rising consumer preference for smoked food products such as salmons and smoked sausages. Rising preference for liquid smoke as browning agents, color preservatives, as well as antimicrobial additives is a key trend adopted by manufacturers for product differentiation. Liquid smokes with higher composition of carbonyl-containing compounds are witnessing rapid adoption among food industries as browning agent. However, refined liquid smokes with reduced levels of flavor and color are applied as preservatives in raw tuna and salmon. The acidic and phenolic content of liquid smoke imparts flavor, color, microbial stability and texture to food which is exhibited as a major factor for its increasing market prominence. Rise in pet ownership and processed food plants are some other factors boosting the market growth. Growing applications of liquid smoke to impart flavors to hard-boiled candy is a recent trend posing lucrative opportunities for market growth.

In 2020, North America dominated the market due to massive adoption of liquid smoke among seafood and processed meat applications in this region. Growing consumer preference for barbeque flavors and sauces is also driving the market of pet food and treats, which in turn is expected to augment the market. In addition to it, multinational North American companies are keen on strengthening partnerships with food manufacturers and distributors across the globe, thus acting as one of the prime factors for market growth. Apart from this, growing consumption of dairy products in Asian countries such as India is also escalating the market demand.

Some of the key players profiled in the market include Red Arrow International LLC, Besmoke Ltd., Redbrook Ingredient Services Ltd., MSK Ingredients Ltd., Kerry Group Plc, Ruitenberg Ingredients BV, B&G Foods Inc., Baumer Food Inc., Frutarom Savory Solutions Gmbh, Colgin and Azelis SA. 

In 2016, hickory flavored liquid smoke dominated the market and is projected to remain dominant throughout the forecast period of 2017 to 2025. Chips and sawdust of hardwoods such as hickory and mesquite are obtained as waste products in the furniture industry. These hardwoods aforementioned are ignited at high temperatures to produce smoke which is further condensed to liquid form. Such liquid smoke is free of additives, salt and carcinogenic compounds with presence of strong flavor. Increasing use of hickory flavored liquid smoke to impart texture, flavor and color in processed food industry is expected to be a major driving factor for market growth. In addition to it, hickory liquid smoke owing to its zero carcinogenic property is increasingly used to enhance the shelf life of the food product as well as prohibiting spoilage. Furthermore, easy burning of hickory wood along with significant amount of smoke obtained from it results in higher yield of liquid smoke, and is projected to drive the use of hickory product, which in turn surges the market growth.

In 2020, seafood and meat segment dominated the market and projected to maintain its dominance during the forecast period of 2021 to 2029. Rise in demand of liquid smoke in seafood and meat industry to deliver flavor and color through various methods is catapulting the market growth. In countries such as U.S.A where processed and cured meat products such as hot dogs, pastrami, hams and hot dogs are highly consumed, liquid smoke is used to add flavor, as well as enhance the shelf life of product. Moreover, liquid smoke’s antimicrobial effectiveness, antioxidant capabilities, and quality enhancing properties are bound to surge the market growth. Liquid smoke is also widely utilized in barbeque-flavored products such as bacon, marinades, cheeses, and sausages to add smoky flavor to it. Growth of pet ownership and rising consumer preference for liquid smoke sauces to deliver barbeque flavor especially in North America and Western Europe region, is expected to drive growth of pet food & treats and sauces segments, in the coming years. Others segment poses major potential for market growth during the forecasted years. This is due to widespread adoption of liquid smoke in bakery and confectionery products such as hard-boiled candy to impart unique aroma to final product.

In 2020, North America held the maximum value share of the global liquid smoke market and expected to maintain its dominance during the forecast period from 2021 to 2029. The presence of maximum number of processed food plants is mainly attributing to regional market growth, where liquid smoke aid in improving smoky characteristics of products and avoiding batch-to-batch variation of foods. Apart from this, Asia-Pacific is projected to witness highest growth over the forecast period owing to rapid technological advancements in food processing industries along with increasing consumption of smoke flavored food products in this region. Moreover, developing nations across Asia-Pacific who are increasingly reliant upon agriculture sector as their main occupation, are further witnessing demand for liquid smoke. This demand is majorly due to anti-bactericidal effect of liquid smoke as an additive to animal feedstock along with fertilizers and pesticides. Moreover, growing trend of organic farming has further created added demand for liquid smoke ingredients since it is being increasing utilized in production of organic aquaculture products. Currently, the market is witnessing average growth in Latin American and Middle Eastern region; however, these regions are projected to grow significantly in coming years. Increasing consumption as well as export of seafood especially from West Africa to UK along with the major presence of fish eating population in African nations are some factors supplementing the market growth in this region.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Liquid Smoke market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Liquid Smoke market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Liquid Smoke market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Liquid Smoke market?
• Which is the largest regional market for Liquid Smoke market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Liquid Smoke market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Liquid Smoke market worldwide?