The global food colors market size was estimated at USD 1.79 billion in 2016, growing at a CAGR of 5.9% over the forecast period. Growth in global population is expected to result in increased demand for food & beverage products, which is further likely to drive the demand for the product over the forecast period.
The burgeoning food & beverage industry in BRICS in light of the increased domestic consumption is anticipated to be a major driving factor for the market over the forecast period. The increasing need for convenience foods due to the growing consumer knowledge about products with an exotic and traditional taste is predicted to further promote the growth of the market in the next few years.
Over the past few years, governments of Spain and Germany have launched and successfully implemented numerous campaigns to promote healthier lifestyles by introducing innovative healthy products to reduce obesity, cholesterol, and diabetes. This trend is expected to play a crucial role in promotion of natural food colors in consumables.
The market is expected to exhibit low threat of new entrants on account of extensive portfolio offered and distribution network operated by existing players, which results in high entry barrier for the new entrants. In addition, the high switching cost for the buyers makes it difficult for new players to gain a significant market share, thereby lowering the threat of new entrants.
Concerns raised by consumers regarding the use of natural carmine extracted from cochineal insects is encouraging the manufacturers to seek other alternatives. With LycoRed producing its Lyc-O-Beta carotene orange color through the fermentation of the Blacksiea trispora fungus, Chr. Hansen is also trying to manufacture carmine through a similar process. Companies are also searching for alternatives owing to the fluctuating prices of carmine.
Natural food color is estimated to be the largest product segment accounting for over 80% of the total market revenue. The demand for this product is increasing substantially worldwide owing to the growing awareness among consumers regarding the health benefits associated with natural food colors.
The market for synthetic food colors is expected to grow on account of growing product use by consumers across the developing economies. In addition, the demand for synthetic colors, such as green and blue, is expected to be driven primarily by their use in beverage manufacturing industry. However, rising substitution by natural colors may hamper the industry growth.
Carbonated soft drinks and non-alcoholic beverages are anticipated to witness largest growth rate of 6.4% over the forecast period on account of rising disposable income and economic development. In addition, rising demand for ready-to-drink beverages is expected to translate into heightened demand for the product, leading to industry growth.
Non-dairy food application accounted for the largest segment owing to the increasing use of product in sauces & salad dressings, chocolates, desserts and bakery products. Burgeoning use of food colors in processed meat industry in order to improve the aesthetics appeal of the product is expected to drive the market growth.
Robust bakery and confectionary industry in Europe coupled with growing consumer demand is expected to have a positive impact on the market growth in the region over the forecast period. In addition, stringent regulations concerning the use of artificial food colors is expected to strengthen the natural food colors market in Europe.
Asia Pacific exhibits high adoption of nature-identical products driven by superior product properties such as uniform color and comparatively lower cost than natural food colors. In addition, high adoption of product in the production of alcoholic and non-alcoholic beverages is also expected to drive the market growth.
The industry players focus on research and development of new products to improve characteristics such as thermal and pH stability. These companies mostly compete on the basis of product quality and price, as pure form of each source is derived from the same source. For example, pure source of natural carmine is cochineal insect.
Rising consumer concerns regarding the use of synthetic colors in the edible products have prompted manufacturers to look for alternatives. For example, Nestle announced rejection of synthetic colors in any of their products. This move by the manufacturers is expected to have a greater impact on the market which is anticipated to reduce the consumption of synthetic food colors.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global food colors market report on the basis of product, application, and region:
Product Outlook (Volume, Tons; Revenue, USD Million; 2014 - 2025)
Red 40/Allura Red
Yellow No. 5
Yellow No. 6
Other Mixed Carotene
Application Outlook (Volume, Tons; Revenue, USD Million; 2014 - 2025)
CSD & Non-alcoholic Beverages
Regional Outlook (Volume, Tons; Revenue, USD Million; 2014 - 2025)
Central & South America
Middle East & Africa
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