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Food Colors Market Growth Opportunities and Recent Developments

(Food-Beverage-News.Com, December 07, 2021 ) The market for food colors 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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The carmine sub-segment, by natural colors type segment, accounted for the largest share in 2020.

Carmine is a bright red pigment obtained from the primary extract of cochineal and is used as a deep red color. Red is a commonly used food coloring in various applications, such as ice creams, candies, beverages, and dairy products. It can also be used for the preparation of many other color blends, such as brown and purple. Further, the visible impression of food products is highly influenced by using red color, and thus, carmine is estimated to witness substantial growth in the food markets.

By application, the processed food products sub-segment is projected to be the fastest growing market.

Processed food products, such as crisps, sausage rolls, tinned vegetables, savory snacks, and other convenience foods, is projected to grow at the highest CAGR in the food colors industry. The processed food products industry is gradually growing as a result of the high demand for convenience foods with improved lifestyles. IRI data analyzed by The Good Food Institute witnessed a larger increase, with plant-based meat sales, which is 454% higher than the previous year in the week of March 21. This growth in the processed food industry has led to an increase in demand for food colors as an additive in these products.

The liquid segment, by form, dominated the market in 2020.

Narural food colors are higly in demand in the global markets, these colors are extracted from natural resources suh 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.

By solubility, the dye segment is projected to be the fastest growing market.

High growth of the beverages market globally to drive the demand for dyes. They are manufactured in various forms, such as powders, granules, liquids, or other special-purpose forms. Dyes find applications in various beverages, dry mixes, baked goods, confectioneries, dairy products, pet foods, and a variety of other products. Water-soluble dyes are generally available in three different forms, namely, free-flowing powder, granular, and liquid. Some examples of natural dyes that are used as food colors are carotenoids, chlorophyll, anthocyanin, and turmeric.

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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.

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