Food Colors Market Outlook, 2028

The worldwide food colors market is being fueled by the sector's high demand for various processed food products and drinks. Because food colors are used in huge quantities in the production of soft drinks, and there is a growing demand for them, the market is likely to increase significantly throughout the forecast period. Furthermore, the market's demand for clean-label components is driving the usage of natural food colors in food items. Consumers are shifting away from chemical additives and towards all-natural, chemical-free products. This shift is certainly attributable to consumer understanding of the numerous health risks posed by chemical compounds versus plant-derived substances. The increase of working professionals and modernization has resulted in the use of processed foods. Furthermore, the increased use of processed food products such as ready-to-eat snacks, soft beverages, convenience food goods, processed dairy products, and others has resulted in an increase in the use of various food colors. To give an appealing appearance, these colors are combined and merged into processed food goods and beverages. The appeal of food goods is as important to the ingredients used in their creation as it is to customer attraction. Furthermore, the industry is being driven by the rapidly increasing demand for novel, ready-to-eat food dishes as well as changing taste and food appeal preferences due to the expansion of social media among the global population. Because of the increased demand for natural food products and functional foods, food manufacturers are increasingly using natural food colours instead of synthetic food colours to enhance the appearance of food and beverage goods after processing.

According to the research report, Global Food Colors Market Outlook, 2028, the market is anticipated to reach USD 6.23 Billion by 2028 with significant CAGR of 6.43% from USD 4.31 Billion in 2022. Consumers are aware of the adverse effects of numerous synthetic substances used in food products, which can lead to a variety of health problems if ingested on a regular basis. Regular consumption of chemical colors results in a variety of allergic reactions. As a result, customers choose to buy items made with plant-based ingredients. The use of natural colors and pigments has come to the fore as consumer knowledge of the numerous health advantages of the same has grown. Natural colors or plant-based colors are becoming increasingly popular due to their health benefits, which will open up new market prospects. It lowers the danger of allergies among customers, providing an opportunity for natural colour manufacturers. Different regions and cultures have distinct preferences for food colors, which are influenced by traditional cuisines and local ingredients. Food manufacturers are adapting their colors offerings to these regional preferences, resulting in a broad range of colors selections in different regions of the world. This trend highlights the necessity of recognising local tastes and adopting culturally appropriate food colors. With a greater understanding of the impact of diet on health, there is a movement towards integrating functional substances into food colors. Consumers are looking for food colors that not only look good but also have health benefits. For instance, the inclusion of natural antioxidants or phytochemicals in food colors that help with general well-being is gaining attention.

Based on the report, the market is segmented into type, natural colors, synthetic/artificial colors, and naturally identical colors. Among them the market is dominated by natural colors in 2022 and is expected to register highest CAGR of the market in the upcoming time frame as well. Natural colors are perceived as a healthier and safer alternative to synthetic or artificial colors. Consumers are becoming more conscious about the ingredients they consume and are actively seeking products with natural and minimally processed components. Natural colors are derived from plant, fruit, or vegetable sources, and they do not contain synthetic additives or chemicals that may raise health concerns. The clean label movement has had a significant impact on the food industry, with consumers demanding transparency and clear labeling of ingredients. Natural colors align with the clean label trend as they are easily recognizable and understood by consumers. By using natural colors, manufacturers can eliminate or minimize the need for complex chemical names or numbers on their product labels, which enhances transparency and builds trust with consumers.

Europe has a substantial market share in the worldwide food colors market. The region benefits from a well-established food and beverage industry, substantial advances in technology and strong consumer demand for high-quality and visually appealing food products. The United Kingdom is the largest contributor to the European food colors market, owing to a large customer base and a growing food production sector. The region's supremacy can be linked to the existence of significant food colors manufacturers, vast distribution networks, and tight food safety regulations. Furthermore, rising consumer awareness of natural and organic food colors is driving market expansion in Europe. The Asia-Pacific area is rapidly expanding and is expected to be the fastest growing market for food colors. The region's growing population, increased disposable income, and shifting consumer preferences are boosting demand for food colors, fueling the need for food colors. Countries such as Japan and China are key contributors to the Asia-Pacific market, owing to their big consumer bases and flourishing food processing industries. Furthermore, rising urbanisation, westernisation of diets, and an expanding middle-class population are driving demand for visually appealing food products in the region. Furthermore, increased health consciousness and a preference for natural and clean label components are pushing natural food colors adoption in the Asia-Pacific region.

Based on source, the market is bifurcated into plant & animals, minerals and chemicals, and microorganisms. The majority of market is dominated by plant and animals source as they are used widely in food colors. Plant and animal sources of food colors are considered natural and authentic, aligning with consumer preferences for clean and recognizable ingredients. Consumers are increasingly seeking food products that are minimally processed and contain ingredients derived from natural sources. Plant and animal-based colors provide a sense of authenticity and are perceived as a closer connection to nature, which resonates with consumer desires for healthier and more wholesome products. Plant and animal-based colors fit this criterion, as they can be labeled with familiar names such as beet extract or turmeric rather than complex chemical names. This transparency and clarity in labeling contribute to consumer trust and drive the preference for plant and animal-derived food colors. Consumers are increasingly concerned about the environmental impact of their food choices. Plant and animal-based food colors are derived from renewable resources, making them more sustainable compared to synthetic alternatives.

The Application of the market is divided into food processed products, beverages, bakery & confectionery products, meat, poultry and seafood products, oils & fats, dairy products, pet food and others. Among them the food processing products segment is leading the market with significant market share. Food colors play a crucial role in the visual appeal of processed food products. Vibrant and attractive colors are essential for capturing consumers' attention and creating a positive sensory experience. Brightly colored snacks, colorful beverages, and visually appealing desserts are more likely to be chosen by consumers, leading to a higher demand for food colors in processed products. Food colors are often used to distinguish and differentiate processed food products in a competitive market. Unique and appealing color combinations can help establish a recognizable brand identity and make products stand out on store shelves. Food manufacturers leverage the use of food colors to create visually distinct and memorable products that consumers can easily identify and associate with their brands. Food colors used in processed products are often selected based on their compatibility with the processing techniques and conditions employed in the manufacturing process. This includes considerations such as heat stability, pH sensitivity, and resistance to processing variables like freezing, baking, or extrusion. The availability of food colors that can withstand various processing parameters makes them a preferred choice for food manufacturers. Furthermore during the forecast period, beverages application is expected to register highest CAGR of the market globally.

According to the report, market is segmented into liquid, powder and gel. Liquid form is widely used in food colors and is dominating the market as well. Liquid food colors are highly versatile and easy to incorporate into various food and beverage applications. Their liquid form allows for effortless mixing and dispersion, making it convenient for manufacturers to achieve the desired color intensity and uniformity in their products. Liquid colors can be easily added during different stages of the manufacturing process, ensuring seamless integration into the final product. Furthermore, liquid food colors offer consistent color results from batch to batch. Their liquid form allows for precise measurement and control during formulation, resulting in accurate color reproduction. This consistency is crucial for maintaining product quality and meeting consumer expectations for visually appealing food and beverage products. During the anticipated time frame powder form is expected grow with highest CAGR of the market. The solubility of the market includes dyes and lakes. Dyes solubility is significantly dominating the market with highest market share globally. Dyes with high solubility are versatile and can be used in a wide range of food and beverage applications. They can dissolve easily in water-based systems, making them suitable for liquid products such as beverages, syrups, and sauces. Dyes solubility allows for even color distribution throughout the product, ensuring consistent and visually appealing results. Dyes often provide more vibrant and intense colors compared to other types of food colors. Their solubility allows for better dispersion in the food matrix, resulting in brighter hues that catch the consumer's attention. Dyes are known for their ability to produce vivid colors, making them highly desirable in the food industry where visual appeal plays a crucial role in consumer perception.

Companies mentioned in the report:

The Archer-Daniels-Midland Company, Dohler Group SE, Royal DSM N.V., BASF SE, Sensient Technologies Corporation, Givaudan, Sun Chemical, International Flavors & Fragrances (IFF), Kalsec Inc, LycoRed Ltd., McCormick & Company, Inc., Nigay SAS, Sunrise Greenfood, Aromatagroup Srl, Chr. Hansen A/S, Chromatech Inc, Vidhi Specialty Food Ingredients Limited, Allied Biotech Corporation, San-Ei Gen F.F.I., Inc., Horizon Specialities Ltd.

Considered in this report:

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:

• Global Food Colors market with its value and forecast along with its segments
• Region-wise Food Colors market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report:

• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle East & Africa (UAE, Saudi Arabia, South Africa)

By Type:

• Natural Colors
• Synthetic/ Artificial Colors
• Naturally Identical Colors

By Source:

• Plants & Animals
• Minerals & Chemicals
• Microorganisms

By Application:

• Processed Food Products
• Beverages
• Bakery & Confectionery Products
• Meat, Poultry, and Seafood Products
• Oils & Fats
• Dairy Products
• Pet Food
• Others

By Form:

• Liquid
• Powder
• Gel

By Solubility:

• Dyes
• Lakes

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Food Colors industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.