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Food Colors Market Market Size, Driving Factors, Covid-19 Impact and Top Industry Players

(Food-Beverage-News.Com, September 24, 2021 ) The food colors market is estimated to be 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. Food colors play a significant role in enhancing the visual appeal of off-color or colorless products. They also help to retain the original properties of vitamins, flavors, and nutrients in food products that can get altered due to sunlight. The increase in consumption of processed food products across regions is a major factor that is projected to drive the demand for food colors. The demand for confectionery and dairy products is increasing, particularly in emerging economies, such as India, China, Brazil, Argentina, Japan, and South Africa. This has led to an increase in the consumption of food colors, which is projected to continue over the next five years.

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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.

COVID-19 Impact on the Global 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 food colors market.

Presence of key players and stronly established end-use sectors such as medical, cosmetics and food in the European region, accounts for the high market share of the region.

The development of various food industries, such as bakery & confectionery, meat processing, and functional food products, and the increase in demand for innovative food colors by food manufacturers, is projected to drive the food colors market growth in the European region. The UK, Germany, France, Italy, and Spain have the largest food industries that are estimated to be the leading markets for food colors in Europe.

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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.

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Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the "Growth Engagement Model – GEM". The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write "Attack, avoid and defend" strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.

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