The global food colorants market valued USD YY million in 2019 and is expected to grow at a CAGR of 6.01% to reach a market value of USD YY million by 2027.
Food coloring or color additive is any dye, pigment or substance that imparts color when added to food or drink. Food coloring is used both in commercial food production and in domestic cooking. Consumers typically associate certain colors with specific flavors, and the color of food can influence the perceived flavor in anything from candy to wine. Thus, an increase in the usage of these products by various end-user industries is expected to drive the market in the forecast period.
The growing food & beverage industry is one of the major factors that boost the market growth exponentially.
Besides, increasing consumer demand for processed foods leads to increased consumption of food colorants. For instance, according to American Chemical Society (ACS), about 70% of the average US resident's diet is from processed foods.
However, the FDA's stringent food standards regulations and several regulatory bodies are expected to be a constraint for manufacturers. Also, natural colorants are expensive and not affordable for most users. Thus, these factors are hindering the market growth.
Natural food colorants are expected to hold for highest CAGR of 6.69% during the forecast period. Natural food colorant bases such as saffron, turmeric, paprika, annatto, and beetroot are gaining popularity due to its safe consumption and zero synthetic properties. Furthermore, a growing number of health-conscious consumers would have a positive impact on market demand. Organic product sales, including natural colors, increased by 15% in 2017, according to retail giant Tesco, as consumers evaluate labels and certification before purchasing, fueling product development.
With a revenue share of over 70 percent in 2019, the powder type segment dominated the overall food colorants market demand. The global market is being fueled by factors such as versatility, ease of use, color consistency, and bulky use. Furthermore, as compared to liquid forms, these product forms have a longer shelf life and have more control over decoration application than traditional liquid coloring.
Market Dynamics
Drivers
- Increasing demand for natural food products
- Growth of food and beverage industry coupled with the increase in consumption of alcoholic beverages
Restraints
- Enforcement of laws and regulations
- Increasing demand for natural food products
Natural colorants and flavors are a vital part of any meals industry. Natural colorants and flavors are used to decorate the general look of meals products. The demand for natural elements in food products has multiplied hastily within the latest time.
Several new food products are coming every day with natural food substances. Major food producers and outlets round the arena have made the supply of herbal meals and beverage merchandise smooth.
Consumers are following the "be natural and move green" coverage in meals merchandise. Every software within the meals and beverage industry, from confectionery, bakery products to alcoholic liquids, is trying to symbolize themselves as natural meals software because of the modern-day demand pattern.
A lengthy range of natural colorants and flavor merchandise are to be had in the marketplace. Natural colorants have a wide range of coloration from yellow to blue and pink.
Natural flavors also are coming in a distinct kind of flavors. Because of additional health advantages, the call for natural colorants and flavors have additionally improved in the current scenario and anticipated to grow rapidly in the near future.
The growing demand for herbal food products has led to producers the usage of new natural colorants and flavors of their products. Many food manufacturing businesses are using the best natural components of their new meals merchandise.
Increasing new application inside the food industry is likewise assisting the increase of the worldwide natural colorant and taste marketplace. Food production corporations are encouraging the call for natural colorants and flavors for his or her existing and new product degrees.
Geographical Analysis
South America food colorants market valued USD YY million in 2019 and is estimated to grow at a CAGR of 5.12% over the forecast period to reach a USD YY million by 2027. With 75% of the regional sales revenue, Brazil is the largest food colorants market in South America with revenue recorded at USD YY million in 2019.
Since Brazil is primarily an agricultural and food-based economy, the growing food production and, as a result, the rising food processing sector, is expected to positively impact the food colorants market.
Because of their enormous interest in natural food colors, Brazil is one of the most diverse markets for food colorants. In recent years, a large portion of the Brazilian population, especially children and the elderly, has had adverse reactions to food dyes, such as those contained in flavored yogurts. This, in turn, has prompted the demand for natural food colorants derived from jambu, jabuticaba, jamelão, and other tropical fruits in the country.
Furthermore, a growing number of consumers around the country are going vegan and requesting food free of preservatives, artificial colors, artificial flavors, and other additives. This is partially due to an increase in the number of people who have food allergies.
As a result, a growing number of food and beverage companies are bringing free-from products to market, adding to the demand for natural food colorants in the country.
For example, in 2019, Danone Brazil entered the soft drink industry by launching 4U, a range of premium carbonated juices and flavored teas (preservative-free and free- from artificial colors) to meet the growing demand for healthy beverages.
On the other hand, Argentina contributed 11% market revenue share in the year 2019. Argentina food colorants market is expected to grow with a CAGR of 3.42% during the forecast period.
Rising consumer worries about their health have boosted demand for natural products in their daily diets. As a result, the use of food colorants like Allura red, carmoisine, ponceau 4R, quinoline yellow, and others in the food and beverage industry has increased.
Some of the major players in the Argentina food colorants market are Chr Hansen holdings, D.D. Williamson & Co., Sensient Technologies Corporation, Koninklijke DSM N.V., Red Sun Dye Chem among others.
To gain market share, these companies are adopting numerous market strategies like innovative product development, partnerships, mergers & acquisitions, and expansion of existing facilities.
For instance, in February 2018, GlobeNatural, a leading natural food and ingredient company based in Lima, has announced that Sensient Technologies has reached a definitive agreement to acquire its natural color business.
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