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Food Colors Market is Expected to Grow at a CAGR of 12.4% during 2020-2027 - Allied Market Research


Report Code : A03192

quote Food colors have witnessed higher rate of penetration in North America and Europe. However, low availability has been observed for this product in some major parts of Asia-Pacific and LAMEA, which is attributable to low performing macro-economic factors such as low internet penetration and insufficient marketing strategies by manufacturers. Thus, lower penetration of such products limits the growth of the market quote

Shankar Bhandalkar Team Lead
Food and Beverages at Allied Market Research

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According to a new report published by Allied Market Research titled, “ Food Colors Market by Type, and Application: Opportunities and Forecasts, 2020-2027,” The food colors market size was valued at $2.1 billion in 2019, and is estimated to reach $3.5 billion by 2027, registering a CAGR of 12.4% from 2020 to 2027.  In 2018, North America accounted for nearly 33.98% share of the food colors market.  

Ingredients used to impart the desired appearance to any food item or beverage are termed as food colors. They are added to carbonated drinks, ready-to-eat (RTE) products, frozen food, alcoholic beverages, processed foods, juices, and sauces. Food colors are used in commercial food items and domestic cooking, and are available in various forms such as liquid, liquid gel, gel paste, and powder. The market for food colors comprises natural and artificial colors. The food colors industry has been evolving in terms of innovations and demand. Manufacturers are focusing on key innovations that cater to the requirements of the large consumer base. Increase in awareness toward health and wellness has been witnessed among people residing in developed as well as the developing countries. This has resulted in increased demand for various types of food colors made using organic products. Thus, natural colors are gaining increased traction among food & beverage manufacturers, which significantly drives the global food colors market growth.

Furthermore, increase has been witnessed in the number of netizens along with rise in internet penetration. Taking this into consideration, most of the key players in the market strategize on promoting their products on various social media platforms. Thus, through social media marketing strategy, the food colors market sights critical growth opportunity.

Moreover, the food colors market trends are health benefits offered by few natural colorants such as antioxidant and antimicrobial activities boost the market growth. In addition, advancements in natural color ingredients and easy availability of raw materials from plants and animals supplement the growth of the market. However, the market growth for food color is restricted by the ban on the usage of artificial colorants. Conversely, rise in R&D activities pertaining to new raw material sources offer food colorant manufacturers remunerative opportunity. 

Food colors have witnessed higher rate of penetration in North America and Europe. However, low availability has been observed for this product in some major parts of Asia-Pacific and LAMEA, which is attributable to low performing macro-economic factors such as low internet penetration and insufficient marketing strategies by manufacturers. Thus, lower penetration of such products limits the growth of the market.

According to the food colors market analysis, the market is segmented into type, application, and region. By type, the market is bifurcated into natural color and artificial color. Depending on application, it is segregated into meat products, beverages, dairy, bakery & confectionery, processed food & vegetables, oils & fats, others. Region wise, it is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, and rest of Europe), Asia-Pacific (China, Japan, Australia, India, South Korea, and rest of Asia-Pacific), Latin America (Brazil, Argentina, Colombia, Rest of Latin America), Middle East (Saudi Arabia, Egypt, Nigeria, and Rest of Middle East), Africa (South Africa, Nigeria, and Rest of Africa).

On the basis of type, natural colors have been witnessing increased preference, due to rise in demand for organic-based ingredients among consumers. The growth of the food colors market is further driven by the ability of food colors to enhance product appeal and rise in awareness about the beneficial effects of natural colors. For instance, betanin, a natural food colorant, is used for its antioxidant properties. 

As per application, the meat products segment dominated the market in 2019, accounting for 20.42% of the share, and is expected to retain its dominance throughout the food colors market forecast period. This is attributed to the fact that consumers are preferring bright cherry-red color of fresh meat products while purchasing, which has created major traction in the market.

Region wise, Europe was the prominent market in 2019, garnering maximum share, owing to high consumption of bakery & confectionery, dairy, seafood, products in majority of the European countries, including Germany, France, Italy, and the UK. Furthermore, consumers in the region are attracted by new colors, texture, and higher nutrition content, which drives the market growth. Furthermore, North America is expected to witness highest CAGR of 11.70%, owing to health benefits offered by few natural colorants ingredients such as anthocyanins, carotenoids, safflower, and carmine in the region.  

Key Findings Of The Study

  • Quantitative analysis of the current market trends, estimations, and dynamics of the global market for the period of 2020 to 2027 to identify the prevailing food colors market opportunity.

  • Western Europe has emerged to be the second largest market with Germany and U.K. accounting for the prominent food colors market share by value.

  • The beverage segment accounted was valued at $349.12 million, and is projected to reach $578.05 million by 2027, registering a CAGR of 13.10%.

  • The Asia-Pacific region would witness the fastest growth during 2019-2027, owing to increase in adoption of high-end Food Colors in developing economies such as China and India

The players in the food colors market have adopted product launch and business expansion as their key developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report include AromataGroup SRL (Fiorio Colori SPA), Givaudan (Naturex S.A.), Kalsec, Inc., Archer Daniels Midland Company, Chr. Hansen A/S, D.D. Williamson & Co. Inc. (DDW), Dohler Group, International Flavors & Fragrances, Koninklijke DSM N.V., and Sensient Technologies Corporation.

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quote Food Colors Market by Type (Natural Colors and Artificial Colors), by Applications (Meat Products, Beverages, Dairy, Bakery & Confectionary, Processed Food & Vegetables, Oils & Fats, and Others): Global Opportunity Analysis and Industry Forecast, 2020–2027 quote

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