DUBLIN, April 17, 2023 /PRNewswire/ — The “Food Colors Market Size, Share, Trends, By Solubility, By Form, By Pigments & Chemicals, By Product Type, By Application, and By Region Forecast to 2030” report has been added to  ResearchAndMarkets.com’s offering.
The global market for food colors was valued at USD 4.95 Billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 6.9% during the forecast period.
This growth is being fueled by several factors, including increased awareness among consumers about the potential health benefits of natural food colors, as well as growing demand for visually appealing food products.
Food colors are especially useful in enhancing the appearance of items that are naturally colorless or off-color, such as ice creams and beverages. They also help to protect the natural qualities of food items, such as vitamins and nutrients, that might be affected by exposure to sunlight. Additionally, food colors can add fragrance, making food more appealing.
There is a growing trend toward natural food colors, as consumers increasingly prefer plant-based flavors and fragrances in their food and beverages. People are becoming more concerned about the ingredients they consume, especially in the wake of the COVID-19 pandemic. Governments in various countries are also paying closer attention to the use of food additives, allowing only those that have been deemed safe for consumers.
To drive revenue growth in the food colors market, key companies are engaging in mergers and acquisitions, entering into partnerships, introducing new product lines, and making innovations in existing product lines. For example, ADM recently launched a line of natural white colors that can be used in a variety of foods and beverages. These PearlEdge colors, which are sourced from native corn starch, are bright white, uniform, and stable without the need for any alterations. They can also be used as a clean-label alternative to Titanium Dioxide (TiO2).
Increase in health-conscious population leading to a surge in demand for organic food colorants
As people become more health-conscious, there is a growing preference for organic and natural foods. The sales of synthetic food colorants have slowed down as consumers become more focused on health and wellness. With the impact of COVID-19, the demand for natural, organic, and healthy food has increased. This has led to a significant increase in the consumption of dairy products, packaged meals, and drinks. Consequently, the sales of natural food colors have surged globally. The shift in consumer behavior towards natural food is also influencing food manufacturers to replace synthetic food colors with natural ones.
Research shows that more than 70%-75% of food and beverage items introduced globally in the first three-quarters of 2020 used natural colors rather than synthetic ones. For example, Picta Natural Ingredients is a Turkish company that produces food dyes extracted from black carrot, red beet, chlorophyll, and turmeric. The company uses 20 different colorants in various combinations and has set up an R&D center to meet specific demands of food and nutraceutical firms. Additionally, there is a growing consumer awareness of clean-label products, and health-conscious customers are pushing food manufacturers to use clean-label ingredients.
Moreover, various initiatives taken by key companies are also contributing to the significant revenue growth of the food colors market. For instance, Ingredion developed two functional native rice starches to enhance color and flavor release, which allows natural flavors and colors of applications to stand out, even in white products. The new starches also lessen environmental impact and increase supply chain resilience.
Stringent government regulations, delayed FDA approvals, and a ban on synthetic color use in various regions
There is a growing concern among consumers regarding the potential negative effects of chemical-sounding compounds and unfamiliar ingredients. This has led to an increase in products with few, uncomplicated, and well-known ingredients.
The food and food ingredient markets are strictly regulated by various government agencies. The FDA is the major food regulation agency in the United States, and the FSIS of the USDA is responsible for approving the quality of meat, poultry, and egg products. As a result, it is challenging to find a substitute for a conventional food color or food ingredient and introduce it in the market, and it often takes years to do so.
Synthetic colors have been banned in several regions due to their negative effects, such as the potential destruction of nutrients in food and causing hyperactive behavior in some children. In the U.S., the FDA has banned six colors due to their negative effects. Usage and demand for food colors have been reduced due to strict regulations.
In Europe, some colors are also labeled with a warning that they may have an unfavorable effect on activity and attention in children, which is associated with allergic reactions. While food organizations are approving food colors that are not labeled as dangerous, there is still a risk of rare allergic reactions to one or more food dyes, which is expected to restrain the market revenue growth.
Key Takeaways
The global food colors market has been analyzed based on various factors such as pigments and chemicals, product type, and application. In this analysis, the largest revenue share over the forecast period has been found to come from the anthocyanin segment, followed by the beverages segment.
Pigments and Chemicals:
The pigments and chemicals used in the global food colors market have been divided into different categories, including anthocyanin, chlorophylls, charcoal, saffron, turmeric, and others. Among these, anthocyanins, which are water-soluble phenolic pigments in glycosylated form, account for the largest revenue share. They are found in fruits and vegetables, especially in berries, currants, grapes, and tropical fruits, and are responsible for the colors red, purple, and blue. Anthocyanins have antioxidant properties and are known for their anti-inflammatory and immune-boosting effects. Thus, the increasing use of anthocyanin-rich foods and supplements in herbal medicine is expected to drive segment revenue growth.
Product Type:
The global food colors market has been segmented into natural, synthetic, naturally identical, caramel, and others based on product type. The demand for natural food colors is rising due to their healthy and organic characteristics, as well as increasing consumer awareness of the health benefits associated with natural products. Natural colorings are derived from naturally occurring substances such as vegetables, tubers, and fruits, and have been shown to improve the nutritional content of meals. They also contain antioxidants, anti-inflammatory, and anti-cancer vitamins and minerals, which is expected to drive revenue growth in the natural food colors segment.
Application:
The global food colors market has been segmented based on application into beverages, processed food, confectionery, oil & fats, sweets, dairy products, bakery, meat & poultry, pharmaceuticals, and others. Among these, the beverages segment has the largest revenue share in 2021. Soft drinks are heavily marketed and widely consumed worldwide, resulting in high usage of food colors in these products. Manufacturers aggressively advertise soft drinks in various settings, such as supermarkets, restaurants, petrol stations, museums, and even schools, which is expected to drive segment revenue growth.
Regional Outlook
The global food colors market is analyzed regionally, and North America holds the largest revenue share in 2021. The consumption of various beverages and functional drinks has increased in recent years, and leading corporations in the region are focusing on creating unique and innovative goods using natural components. This is expected to drive market revenue growth. Increasing investments by companies, forming mergers and acquisitions, and partnership agreements are also contributing to revenue growth in this region. For instance, Givaudan plans to strengthen its position in natural colors by acquiring U.S.-based colors company DDW, The Color House.
The European market shows a steady revenue growth rate due to rising authorization of different types of food colors by the European Union. Stringent government regulations on food safety, increasing food approvals, and the presence of key companies who are forming partnership agreements, mergers, and acquisitions, and investments in R&D activities are contributing to revenue growth.
In Asia Pacific, restaurants and food manufacturers are increasingly using food colors to improve their aesthetics, and to meet the demand for food colors, new industries and companies are being introduced in this region.
The presence of key companies along with increased investments in R&D activities, product launches, and innovations is also a major factor driving revenue growth in this region. For instance, CaroNat, a naturally based food ingredient for the dark yellow to orange color of a variety of foods and beverages, including the dairy industry, was introduced by the India-based company Divi’s Nutraceuticals.
Key Topics Covered:
Chapter 1. Market Synopsis
Chapter 2. Executive Summary
Chapter 3. Indicative Metrics
Chapter 4. Food Colors Market Segmentation & Impact Analysis
4.1. Food Colors Market Segmentation Analysis
4.2. Industrial Outlook
4.2.1. Market indicators analysis
4.2.2. Market drivers’ analysis
4.2.2.1. Increasing awareness of customers regarding potential health benefits of natural food colors
4.2.2.2. Incorporation of new technologies in the manufacturing of food colors
4.2.3. Market restraints analysis
4.2.3.1. Stringent government regulations and delayed FDA approvals
4.2.3.2. Ban on synthetic color use in various regions
Chapter 5. Food Colors Market By Solubility Insights & Trends
Chapter 6. Food Colors Market By Form Insights & Trends
Chapter 7. Food Colors Market By Pigments & Chemicals Insights & Trends
Chapter 8. Food Colors Market By Product Type Insights & Trends
Chapter 9. Food Colors Market By Application Insights & Trends
Chapter 10. Food Colors Market Regional Outlook
Chapter 11. Competitive Landscape
Chapter 12. Company Profiles
Companies Mentioned
- ADM
- Naturex
- Sensient Colors LLC
- Ingredion
- FMC Corporation
- Dohler Group
- Kalsec Inc.
- Samsung Medison Co. Ltd.
- Kalsec Inc.
- Symrise.
For more information about this report visit https://www.researchandmarkets.com/r/nkbzyu
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