According to the new market research report “Food Colors Market by Type (Natural, synthetic, nature-identical), Application (Food products, and beverages), Form (Liquid, powder and gel), Solubility (Dyes and lakes) & Region – Global Forecast to 2026″, published by MarketsandMarkets™, the market for food colors is estimated at USD 4.3 billion in 2021; it is projected to grow at a CAGR of 4.7% to reach USD 5.4 billion by 2026.
COVID-19 Impact on the Global Food Colors Market
The need for natural ingredients with traceability of their origin and extraction has become an important factor due to COVID-19. Veganism has witnessed significant growth over the last couple of years. It is further projected to increase, and consumer demand is projected to shift to plant-based ingredients and products. The outbreak of COVID-19 and negative associations with animal-based foods is further projected to encourage consumers to opt for plant-based ingredients and thus drive thre deamnds for natural food colurs in the market.
Download PDF Brochure:
https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=36725323
The production of food colors is continuously increasing, and companies are investing increasingly in research & development activities of natural and synthetic colors to enhance their existing product portfolio across various regions. The demand for food & beverage products processed with the inclusions of food colors is comparatively higher. The lucrative opportunities are available in the emerging regions due to the growing economy and technological advancement. The market in China is projected to grow at a higher pace due to an increase in industrial activities.
The natural colors sub-segment is estimated to account for the largest market share in the by type segment for the Food Colors Market.
Natural pigments are being increasingly emphasized upon as they have achieved commercial significance, and consumers have perceived them as safe additives. Besides aesthetics, natural pigments have potential physiological effects due to their potent antioxidative properties. Advancements in technological innovations, such as nano-encapsulation, supercritical carbon dioxide, supercritical fluid, gas-based extraction, and spinning cone column, to increase the efficiency of extraction have also been encouraging the growth of the food color industry.
By application, the food sub-segment is estimated to account for the fastest growth in the Food Colors Market.
The growth in the processed and packaged food markets directly impacts the growth of the Food Colors Market. Due to the growth in the processed food & beverage market, the demand for food colors is also projected to grow at a rapid pace. The processing of food products involves various practices, including thermal and non-thermal processes. These processes alter the characteristics of the original color of food products due to various process parameters, such as temperature, moisture, and PH. Due to these factors, the demand for food colors in processed food products is increasing to impart natural aesthetics to the products.
The liquid sub-segment by form is estimated to account for the largest market share of the Food Colors Market over the forecast period.
Natural food colors are highly in demand in the global markets, these colors are extracted from natural resources such as turmeric, saffron and carrots. These are extracted in liquid form and thus they are estimated to drive the global market for liquid food colors.
Request for Customization:
https://www.marketsandmarkets.com/requestCustomizationNew.asp?id=36725323
Driver: Increase in demand for natural colors
The demand for natural food colors as compared to synthetic food colors is increasing due to the growing consumer awareness for clean label products, health hazards associated with synthetic colors, and the health benefits achieved by using natural food colors. Synthetic colors can cause allergic disorders among consumers. The use of chemicals with heavy metals, such as lead or arsenic, to manufacture synthetic food colors can cause life-threatening diseases. Natural food colors are gaining market attention due to their natural origin, appealing to consumers who view them as a “safe to use” product. Natural colors reduce the risk of allergies and intolerance among consumers. These factors are witnessing an increase in demand for natural colors in food & beverage applications.
Restraint: Stringent regulations pertaining to the use of colors in food applications
Stringent regulations imposed by the federal bodies of various countries have restrained the usage of synthetic colorants in food & beverage products. In the US, the FDA is a key regulating body for food additives. It regulates the inclusion of synthetic colors in food & beverages. These regulations have restricted the use and demand for food colors. For instance, in 2008, a ruling was passed to ban food coloring in the UK. The six colors banned are E110, E104, E122, E129, E103, and E124. This has significantly impacted the consumption of food coloring in the food industry in the UK and its neighboring countries. Moreover, the lack of harmony in the regulatory norms and labeling guidelines for the use of organic and natural colors in different countries is also restraining the market growth. For instance, Blue #1, i.e., Brilliant Blue, which is banned in France, is widely used in other European countries.
Opportunity: Increase in ventures undertaken by manufacturers in Asia Pacific and South America
Food color manufacturers have significant opportunities for growth in the Asia Pacific and South American regions. Localizing operations could help in reducing costs and improving access to local distribution networks, thereby optimizing profit margins. Resources and labor are readily available at a cheaper rate in these regions. The governments in China and India are providing incentives for multinationals to set up Greenfield ventures. The Indian government has declared major tax breaks to attract multinational investors. China provides special tax incentives over the usual tax holidays to encourage foreign investors.
India, China, and Brazil are focusing more on investing in biotechnological development and its application in the production of natural coloring ingredients. Food & beverage manufacturers are witnessing significant demand from these countries due to the increased spending power of consumers on healthy food and changed eating habits & preferences. These factors are offering growth opportunities for food colors in the emerging economies of Asia Pacific and South America.
Challenge: Misperception pertaining to titanium dioxide among consumers
The FDA has categorized titanium dioxide as a safe to use colorant for food applications. Food-grade titanium dioxide used within maximum permissible limits is safe, and no health risks have been observed pertaining to it. Consumers perceive titanium dioxide as a chemical, which can cause life-threatening diseases, such as cancer. However, there are no adequately evident studies available to prove this. Further, misperceptions about the health hazards of titanium dioxide are a key factor creating a significant challenge for the market growth.
Europe is estimated to be the largest market.
There are key players in the European markets that supply high-quality food products in the European markets, such as DSM (Netherlands), Naturex (France), and Campbell Foods Belgium NV (Belgium) and they are significantly encouraging the trends of developing new products in the region. The high demand for packaged food and the growing bakery and confectionery and dairy & frozen products market in Germany. Furthermore, investments in new technological developments are projected to encourage the formulation of innovative natural or nature-identical colors for applications, such as pharmaceuticals and processed food.
Key players:
Key players in Food Colors Market include ADM (US), International Flavors & Fragrances Inc. (US), Sensient Technologies Corporation (US), DSM (Netherlands Naturex (France), DDW (US), Döhler Group (Germany), Florio Colori (Italy), Lycored (Israel) and Kalsec Inc. (US). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
