Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Food Colors market.
Trusted Business Insights presents an updated and Latest Study on Food Colors Market 2019-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Food Colors market during the forecast period (2019-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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The global food colors market size was USD 2.55 billion in 2018 and is projected to reach USD 4.77 billion by 2026, exhibiting a CAGR of 8.19% during the forecast period.
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The global market is majorly propelled due to the huge demand for various processed food products and carbonated beverages in the market. As large quantities of the food colors are utilized in the production of soft drinks along with the growing demand for the same, the market is expected to grow significantly during the forecast period.
Rising Consumer Shift towards Clean-label Products and Ingredients
The demand for clean-label ingredients are creating a demand for this market. There is a clear consumer shift from chemical ingredients to all-natural and chemical-free products. This shift is clearly due to consumer awareness regarding various health hazards caused by these chemical ingredients as compared to the plant-derived ingredients.
Due to this phenomenal shift from the consumers, various food and beverage manufacturers have incorporated the manufacturing of clean-label ingredients and utilization of clean-label ingredients in the final food products. By this way of food manufacturing, it brings clear transparency to the supply chain and their production practices as well. According to a survey conducted by Kerry Group plc in 2018, 73% of the consumers are willing to pay a higher retail price for the food and beverage products that are made using recognizable ingredients such as natural ingredients, free-from ingredients, etc.
Increased Consumption of Processed Food Products and Beverages to Fuel the Demand for Food Colors Market
The rising number of working professionals and modernization has led to the consumption of processed and packaged food products. Due to the increase in the consumption of processed food products such as ready-to-eat snacks, soft drinks, convenience food products, processed dairy products, and others have led to the increased usage of various food colors. These colors are mixed and amalgamated to the processed food products and beverages to provide an appealing look. The appeal of food products are as important to the ingredients that are utilized in the production of the food products, as it gains attraction from the consumers. Pigments and dyes are the most commonly utilized food colorants in the food products, and in the case of beverages liquid dyes and gels are used. The usage of these colors varies from product-to-product. Most of the soft and carbonated drink utilize more colorants in comparision to food products. The rising consumption of soft drinks in the developing countries will enable speedy, food colors market growth in the forthcoming years.
Consumer Awareness regarding the Natural Food Colorants to Support the Growth
Consumers are aware of the harmful effects of various synthetic ingredients that are utilized in the food products, which when consumed regularly would lead to various health disorders. Consumption of chemical colors on regular basis leads to various allergic problems. This way the consumers prefer buying products that are prepared using plant-based ingredients. The usage of natural colors and pigments came to the spotlight due to the increase in consumer awareness regarding various health benefits of the same. The rising popularity of natural colors or plant-based colors owing to its health benefits will create market opportunities. It helps reduce the risk of allergies among the consumers, which creates an opportunity for the manufacturers of the natural colors market.
Stringent Regulations to Curtail the Growth of the Food Colors Market
Synthetic food colors exhibit carcinogens and other allergies. To overcome this, there are various stringent regulations imposed by the federation of various countries. Artificial colors such as red 40, yellow 6, and yellow 5 are tested to have harmful carcinogens which can lead to cancer when consumed regularly. A study conducted by the U.K. government concluded that consumption of artificial and synthetic colors by 8-9-year-olds results in hyperactivity. Caffeine, a widely used these colors in soft drinks may cause heart problems such as palpitations.
According to FDA (The Food and Drug Administration), lab testing results on animals show that the synthetic colors Red 40, Yellow 6, Yellow 5, Blue 2, Blue 1, and Green 3 express cancer properties on the lab animals.
By Type Analysis
Synthetic Food Colors Hold the Largest Market Share, Owing to its Easy Availability
The global food colors market is expected to exhibit a faster growth owing to the wide acceptance of these colorants by major and the developing economies. By type, synthetic colors are expected to hold the largest market share as it is less expensive and easily available in the market. There are various types of synthetic food colors used in the food and beverages as it helps increase the appeal, appetize and attractive for the consumers. Over the years, these synthetic chemical colors demand is projected to witness slow growth due to various stringent rules and regulations by various federal bodies.
On the other hand, natural colors are expected to grow at the fastest CAGR of 9.67% owing to high consumer preference for natural ingredients. The naturally-identical food colors are made chemically but it has the same molecules that are present in the natural food colors. Due to less consumer awareness of this type of food colorant, it registers a moderate growth CAGR. Caramel is widely used in the preparation of candies for the color and the flavor. Consumer acceptance of these varieties of these colors is a major growth factor in the global market.
By Source Analysis
Plant and Animal Sourced Food Colors hold the Largest Market Share Due to High Consumer Preference
The increase in consumer awareness of natural colors are expected to create a demand for these plant and animal sources. There are various microorganisms as well which act as a natural food colorant and produce canthaxanthin, astaxanthin, phycocyanin, and others. Natural pigments are used for pharmaceutical purposes as well, as it is safe to consume. The cost of production and the usage of these natural sources colors are on an expensive side, which increases the value of these colorants.
By Application Analysis
The Processed Food Segment holds the Major Share Owing to the Large Consumer Base in the Developed Region
The processed food segments hold the largest market share in the market, due to the large consumption of various ready-to-eat snacks and convenient food products in the developed regions. The beverages segment has a sub-segment of alcoholic and non-alcoholic beverages. Non-alcoholic beverages hold the major share, owing to the consumption of various soft drinks and carbonated beverages.
North America to Exhibit Exponential Growth due to Consumption of various Processed Food Products
The global food colors market is majorly propelled due to the robust consumption of packaged food products in major economies such as North America, Europe, and Asia Pacific. Increasing number of bans on synthetic colors for ecological and toxicological reasons is the key factor driving the demand for natural food colors. Increasing urbanization and westernization has led to the consumption of packaged food products. These food products contain natural, synthetic or artificial food coloring agents according to the requirement. The market for natural and synthetic colors are growing across North America, as the consumers have high purchasing of various carbonated drinks.
The market in the European region is similar to that of North America, however, it has the highest value sales of natural food colors among the others. The high consumer awareness regarding natural ingredients used in food products and beverages. Label-reading, ingredient-knowledge among the consumers in this region helps in the growth of natural food colorants market.
The high population base in the Asia-Pacific region led to the consumption of various ready-to-eat snacks, which creates a demand for these colors. The rise in the working population in the region is also a major driver for the growth of the market in the region
On the other hand, there is a slow growth observed throughout the forecast period in South America which is owing to factors such as legislative challenges, low economic conditions, and consumer health concerns. However, the region is expected to show a high preference for packaged food products.
KEY INDUSTRY PLAYERS
Highly Organized Industry Structure to Define the Food Colors Market Competition
The global food coloring agents market structure is highly organized due to the dominance of various key players in the market for these colors. The manufacturers are working towards developing transparency in the supply chain and the production house. Various key players present in the market are Dohler Group, ADM Company, Ingredion Inc, and Sensient Technologies. These players are expected to hold the major food colors market share.
Symrise AG is one of the leading manufacturers in the flavors and fragrances segment. The companyâ€™s range of food colors are produced in its flavors and nutrition segment. The company serves in various locations over 40 countries in the U.S., Latin America, Asia-Pacific, Middle East & Africa, and the Europe.
LIST OF KEY COMPANIES PROFILED:
- Dohler Group
- Archer-Daniels-Midland Co.
- Symrise AG
- Ingredion, Inc.
- Sensient Technologies
- Kalsec, Inc.
- DDW, Inc.
- Chr. Hansen
- KoninklijkeÂ DSMÂ NV
KEY INDUSTRY DEVELOPMENTS:
In April 2019, Wild Flavors and Specialty Ingredient Business Unit of Archer-Daniels-Midland Co. launched a new range of micronized color powders. These colorants are made using paprika extracts and coloring foodstuff, for exhibiting a vibrant range of orange color.
In July 2019, DDW, Inc. acquired the natural color business from DuPont Nutrition & Biosciences. This acquisition helps expand the companyâ€™s product portfolio in its natural food colors business. This acquisition will also help target various consumers across the developed economy.
The natural food colors segment has witnessed significant growth in the overall food color market globally. The growing world population is stepping towards an increased awareness of varied food colorants and its benefits with high efficacy, which is anticipated to the growth of the global market in the future years.
The food colors market report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of its utility, applications, types of food colors, market size and growth rate for all possible segments in the market.
Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.
Report Scope & Segmentation
- Plants and Animals
- Processed Food Products
- Dairy Products
- Non-dairy Products
- North America (U.S., Canada, and Mexico)
- Europe (U.K., France, Italy, Spain, Germany, Russia, and the Rest of Europe)
- Asia-Pacific (China, India, Japan, Australia, and the Rest of Asia- Pacific)
- South America (Brazil, Argentina, and the Rest of South America)
- Middle East & Africa (South Africa, UAE, and the Rest of the MEA)
Quick Read Table of Contents of this Report @ Food Colors Market Size, Share & Industry Analysis, By Type (Natural, Synthetic, Naturally-identical, Caramel, and Others), By Source (Plant and Animal, Chemicals, and Others), By Application (Processed Foods and Beverages), and Regional Forecast, 2020 -2029-(Includes Business Impact of COVID-19)
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