The Food Colors Market 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.
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 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, super critical 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 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 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.
The dyes sub-segment is estimated to observe the fastest market growth in the food colors market during the forecast period.
The growth for dye food colors is driven by the food sector globally as this segment is a strong end use industry. Dye food colors impart strong color and have high stability at different temperatures and PH due to which their production is increasing. Thus these factors are estimated to drive 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 in this 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.