The global food
colors market is projected to reach a market valuation of USD 2.6
billion by the year 2022, accelerating with a CAGR of 7.3% by 2022-2032.
FMI analysis displays that food colors will account for
nearly USD 5.3 Bn market value in the global market in 2032. The food colors
market exhibited a consumption by volume of more than 185,000 metric tons in
2021 and is anticipated to have a consumption of about 340,000 metric tons by
2030.
Market research by FMI also suggests that the demand in the
natural food colorants sector is expected to grow at 8.1%, the fastest among
other types during the forecast period. The need for natural food ingredients
along with traceability of their origin and extraction process has become an
important factor due to COVID-19. People are more conscious of food
ingredients, propelling the demand for natural food colors over synthetic ones.
Natural food colors are also being highly used in the augmenting organic foods
market.
The global food colors market is driven by the highly
growing demand for innovative food choices of people, and altering taste and
food appeal preferences due to the rise of social media. An increase in
consumer awareness for clean-label food products and the additional health
benefits that certain natural food colors have is estimated to drive the market
for food colors.
Key Takeaways from the market study
- The
global food colors market showed growth at 6% CAGR during the last five
years.
- Natural
food colors are exorbitant in comparison with their counterparts, this is
evident as it accounts for over 67% of sales by value but only 26% by
volume of the overall food colors market.
- By
application, the beverage segment has over 22% of the food colors market
share. Also, the demand for beverages is expected to accelerate with a
CAGR of 8% through the course of the assessment period.
- Among
beverages, carbonated soft drinks consume the most food colors. This
sub-segment utilized approximately 8000 metric tons of food colors in 2021
worldwide.
- Water-soluble
food colors, e, dyes commanded the bigger share of the global food colors
market over lakes. The water-soluble food colors have always witnessed a
huge demand from the food and beverage industry due to their properties
like excellent quality-price ratio, highly concentrated color, and high
stability in water.
“Increasing demand for Food Colors, especially Natural
Food Colors from various end-use industries, including bakery &
confectionery, dairy products, food & beverages, meat & poultry, and
seafood will continue augmenting growth in the market. Hence, there is a huge
scope for market players to command over the ballooning demand for natural food
colors, especially if they have competitive prices. To gain a competitive edge,
the market players should focus on expanding their production facilities into
emerging economies and strive to make costs as low as possible along with
quality assurance.” Says a Future Market Insights Analyst
Competitive Landscape
Food Colors Market players have been modifying the product
to attract end-user industries and consumers. They have been exploring the
Natural food colors territory along with making technical strides in other food
color palettes.
- Manufacturers
such as Chr. Hansen Holding A/S is improvising on the products by
investing in research and development, launching new ones, and acquiring
regional innovative units. Manufacturers are diversifying towards various
applications in pet foods to expand the food colors consumption. Besides
this, they are focusing on better distribution channels like e-commerce to
gain a competitive edge.
- In
2021, GNT Group launched coloring foods made from turmeric and spirulina
for helping the cost-effective green, clean-label food ingredients sector.
- In
2020, Phytolon, an Israeli start-up firm secured funding of USD 4.2
million for their fermentation-based technology to create natural,
high-quality food colorings.
Read More: https://www.futuremarketinsights.com/reports/food-colors-market