ID: MRFR/F-B & N/7340-CR | 112 Pages | Published By Snehal Singh on March 2020
Food Colorants Market size exceeded USD 3.68 billion in 2021 and is estimated to grow at a CAGR of over 7.3% between 2022 and 2030.
2022 - 2030
The food colorants market is projected to register a CAGR of 7.3% from 2022 to 2030. Food coloring agents used globally include natural and synthetic colors. Natural colors' health-promoting properties, combined with the organic properties of natural products, increase demand for natural colors. Food colors are preparations derived from foods and other edible natural source materials through physical and chemical extraction, resulting in the selective extraction of pigments relative to nutritive or aromatic constituents. The food colorants market size is expected to reach approximately USD 3.68 billion by 2030. As per the market forecast, the domestic consumption increases in the beverage and food industry is anticipated to be a major force driving the growth of the market during the forecast period. Recently, the German and Spanish governments have launched and implemented many campaigns promoting innovative health products to reduce diabetes, obesity, and cholesterol and promote a healthier lifestyle. This trend is expected to play a key role in promoting natural food colors in consumables, thus driving the market.
COVID-19 Impact Analysis
The market is expected to be affected by the COVID-19 pandemic, which emphasizes the importance of safe, healthy, nutrient-dense eating. Even though ingredient sales are happening across the globe, major food coloring manufacturers are establishing regional production and R&D, and sales departments are optimizing supply chains to distribute raw materials. In the aftermath of the COVID-19 outbreak, natural food colors & flavor companies encountered significant challenges in meeting the demand for the increased specialty of food products to reflect changing consumer preferences and tastes.
Food Colorants Market Dynamics
Food & beverage products are projected to be in high demand due to an increasing population over the forecast period, further driving the demand for the product. As a result of the increased domestic consumption in BRICS, the burgeoning food & beverage industry is anticipated to be a major driving force for the market growth. Consumers' growing knowledge about exotic and traditional tastes will enhance the demand for convenience foods in the next few years, further propelling the market's growth.
Organic products and the health hazards associated with synthetic colors are increasingly attracting consumers, increasing demand for natural food colors as per the market forecast of the food colorants. The rapid use of artificial production sources has resulted in various health hazards. There is a growing demand for naturally grown food products around the world due to factors such as increasing health awareness and inclination toward environmentally friendly products. Therefore, natural colors are widely used by food manufacturers to restore the attractiveness of food and beverages. As natural food dyes or colors are mainly derived from plants, animals, fruits, insects, and minerals, they are safe for use as food additives since they do not contain harmful side effects. Natural colors are also increasingly used therapeutically due to their non-toxic or less toxic nature and fewer side effects. Thus, all these factors are boosting the market.
Various countries' federations have imposed several stringent regulations to overcome the carcinogenic and other allergies that synthetic food colors can cause. Several artificial colors, including red 40, yellow 6, and yellow 5, have been found to contain carcinogenic substances that can cause cancer when consumed regularly. According to a U.K. government study, kids 8-9 years of age who consume artificial colors are hyperactive
Food manufacturers widely use natural colors to restore the attractiveness of food and beverage products after processing because of the growing demand for natural foods. Because of the growing awareness of health issues among consumers and the awareness of the adverse effects of conventionally grown food, demand for organic foods is constantly increasing. A large number of natural food colors are used in organic food to enhance their appeal to buyers, influencing their purchase decisions.
Food Colorants Market Segmentation
Product Type Insights
The food colorants market segmentation based on product type includes natural and synthetic colors. The food colorants market growth was prominently high under the natural color segment in 2021. As consumers become more aware of their health concerns and the demand for chemical-free foods increases ly, the sale of natural food colors will grow. Additionally, several natural foods offer several advantages over conventional foods. The growing number of government initiatives to establish favorable regulatory structures regarding the use of food colors in various food and beverage industries is driving the demand for the natural food color market.
The food colorants market segmentation on the basis of application includes beverages, dairy & frozen products, bakery, meat, poultry and seafood, confectionery, sauces and condiments, and others. The beverages segment had a prominent share in 2021. As consumer attention shifts to convenience foods and beverages, the beverage industry is experiencing a significant change in innovation to meet newer consumer trends. Consumers are becoming increasingly curious about ingredients and their sourcing, along with the rapid demand for ready-to-drink and on-the-go drinks.
Global Food Colorants Market Share, by Region, 2021 (%)
Food Colorants Market Overview, by Region
As per the market report, the market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. Europe accounted for the most extensive market share. Asia-Pacific is projected to exhibit the highest CAGR during the review period.
The food colorants market in Europe accounted for the most extensive share in 2021. Under a comprehensive set of regulations, food colors are regulated as food additives in the European Union for food improvement agents. Currently, 39 colors are approved for use as color additives in food. Because of the growing demand for clean-label foods and health awareness, the European food colorant market continues to capture the largest market share. With food safety concerns rising in the United Kingdom, natural colors are becoming more popular as manufacturers adopt clean labels.
Asia-Pacific was anticipated to encounter the fastest growth rate in 2021. China continues to dominate the natural food color market as Asia Pacific's major exporter of natural food colors. There has been an increase in the use of natural food colors in developing new products because of persistent food safety scandals. In the coming years, the Asia-Pacific market is expected to contribute significantly to the market for food colorants due to the increased consumption of processed and ready-to-eat foods in India and China.
Food Colorants Market Competitive Landscape
The market competitive landscape includes tier-1, tier-2, and local players. In the market analysis, expansion is the most preferred growth strategy, followed by new product development. They have expanded their geographical presence by acquiring or merging with foreign manufacturers. Chr Hansen is the most active among all; the company's most famous strategy is new product launches. Major players have vast product lines and geographical reach, giving them an edge over their competitors.
Prominent players in the market include Chr Hansen holdings, D.D. Williamson & Co., Koninklijke DSM N.V., Sensient Technologies Corporation, Dohler Group, Naturex SA, Fiorio Colori S.P.A., BASF SE, GNT Group, and Likored, among others.
Scope of the Food Colorants Market Report
Product Type Outlook
Objectives of the Study
The objectives of the study are summarized in 5 stages. They are as mentioned below:
Food Colorants Market Forecast & Size:
To identify and estimate the size of the food colorants market segmented by product type and application by value (in US dollars). Also, to understand the consumption/ demand created by consumers of food colorants between 2022 and 2030 according to the food colorants market forecast.
Market Landscape and Trends:
To identify and infer the drivers, restraints, opportunities, and challenges for the food colorants market growth.
Market Influencing Factors:
To find out the factors which are affecting the sales of food colorants among consumers
Impact of COVID-19:
To identify and understand the various factors involved in the market affected by the pandemic
To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
|Market Size||2030: USD 3.68 billion|
|CAGR||7.3% CAGR (2022-2030)|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product Type and Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and the Rest of the World (RoW)|
|Key Vendors||Chr Hansen holdings, D.D. Williamson & Co., Koninklijke DSM N.V., Sensient Technologies Corporation, Dohler Group, Naturex SA, Fiorio Colori S.P.A., BASF SE, GNT Group, and Likored,|
|Key Market Opportunities||Growing demand for natural food products|
|Key Market Drivers||A growing awareness of clean-label products|
The food colorants market forecast period is 2022 - 2030
The market is growing at a CAGR of 7.3% over the next 10 years, according to the food colorants market research.
Asia-Pacific is expected to register the highest CAGR during 2022 - 2030
Europe held the largest share in 2021
The market size is expected to be USD 3.68 billion by 2030.
Chr Hansen holdings, D.D. Williamson & Co., Koninklijke DSM N.V., Sensient Technologies Corporation, Dohler Group, Naturex SA, Fiorio Colori S.P.A., BASF SE, GNT Group, and Likored are the major companies operating in the market.