Food Color Market | Global Industry Challenges, Key Vendors, Drivers and Trends by Forecast to 2022

“\”Food Color Market\””
Food Color Market – by product type (Natural, Synthetic), application (beverages, bakery & confectionary), Form (liquid, gel, powder, paste), by Solubility (dyes, lakes) and Region Food Color Forecast to 2022

Market Overview:

Food colors are considered as food additives or ingredients which are used commercially in food and drinks which makes make the product more attractive, appetizing, appealing, and informative allowing consumers to identify products on sight. The association of colors with different flavors determines the consumer perception of flavor from colors will mark the growth of this market. According to FDA, color additive is any dye, pigment or substance which added or applied to a food, drug or cosmetic, or to the human body, is capable (alone or through reactions with other substances) of imparting color.

Owing to growing consumer awareness on food colors in the recent years has surged the industrial demand of food colors. The growth has been driven by the increased acceptance of natural food Colors amongst the consumers. Market Research Future, a firm which specializes in market reports related to the Foods, Beverages & Nutrition sector among others, recently forecasted in its report “Global Food Colors Market Research Report- Forecast to 2022” that the market will demonstrate an exceptional CAGR % while achieving million-dollar growth readily in the forecast period.

The increasing consumer awareness on health and wellness and their growing interest to adopt natural colors instead of synthetic colors is fueling the demand of natural food colors. This is attributed to increasing incidence of diseases and rising health concern of consumers both in developed and developing economies over the past few years. Consumers seek alternatives to synthetic colors and their increasing inclination towards natural flavors such as soy sauce, lemon, tomato, and other natural ingredients will drive the demand of natural food colors over synthetic food colors. The “new healthy” concept is a consumer journey which involves “strategic choices” consumers make while consuming food and beverages. The consumers evaluate the nutritional profile of the products through labels and ingredients of the product before making buying decision. Food colors also determine the marketing strategies of manufacturers as consumers are sensitive to certain food colors which defines their food choices. So, color is used as a vital ingredient by the food manufacturers to decorate and design the products properly according to the consumer demand.

The changing lifestyle and evolving dietary pattern is anticipated to enforce the food manufacturers to use natural colors instead of synthetic food colors soon. The key manufacturers look forward to getting the new pigment solution to differentiate their products from their competitors. The manufacturers are strategizing on penetrating the untapped pigments as a raw material for the natural colors. Due to the government rules and regulation, manufacturers are emphasizing to the natural pigments to develop new natural color solution. Red cabbage and algae beta carotene are the recent pigments in the food color market. Food Colors demand will grow at a progressive rate in the developing nations as the emerging economies such as India, China and Brazil have lot of room for growth. There has been less of structural rigidities and high rates of economic and demographic growth which has indirectly contributed to the growth of Food Colors market.

Clean Label and organic are the major trends in the industry and industrial players are keen to leverage on these recent trends.  Industrial players seek to diversify their product portfolio and launch new products in the natural colors segment and continue to strategize to keep the consumers interested. However, adverse effect of artificial food colors, high cost of natural food colors, and stringent government rules and regulation regarding synthetic food color restricts the market growth.

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Latest Industry Updates:

May 2016, Archer Daniels Midland Company introduced natural carmine alternatives for meat products, meat analogues and ready meals application. The colorings are available in various shades to suit the specific requirement of the customer

May- 2016, Sensient Technology Corporation launched some innovative food color solutions for the bakery products. The name of the color solution is red velvet.

January- 2016, Kalsec Inc. has made a collaboration with the Shahmeer International to expand their business in the Middle East region. Shahmeer International is working as a distributor of various products of Kalsec Inc.

October-2015, Chr. Hansen A/S launched CapColors Orange 057 WSS colorant which offers an affordable and high performing encapsulated betacarotene product for beverage manufacturers looking to overcome these barriers

July- 2015, Archer Daniels Midland Company introduced Truedark cocoa powder under the brand name of deZaan. The non-alkalized cocoa powder enhances the color and flavor intensities of alkalized cocoa powders

Competitive Analysis:

Food Colors market offers huge growth opportunities for the industrial players. The market is fragmented and marked by the presence of several large and small-scale vendors. Market players are pouring in million dollars for product innovation.  Innovative premium products and launch of organic/natural colors remain the central focus of the companies.  Most of the industrial players are diversifying and augmenting their capacities based on strategic product positioning and target audience.

Industry players in the Food Colors segment are aware of the consumer product preferences and have been responding to it through various dimensions. The companies are taking initiatives to enhance & strengthen their brand name of the company by participating various trade shows and demonstrating their new product offerings to create an awareness among the consumers.

With manufacturers aiming to capture a considerable share of the market segment as early as possible, they are competing and experimenting with various advantage points from both supply and demand side. Industrial players are relying on strategic new product launch and acquisition to capture the growth opportunity. The key market players profiled in Food Colors are Chr. Hansen S/A (Denmark), Archer Daniels Midland Company (U.S.), Sensient Technologies (U.S.), D.D. Williamson & Co. Inc. (DDW) (U.S.), Kalsec Inc. (U.S.), Doehler Group (Germany), and FMC Corporation (U.S.) among many others.

Market Segments:

The Global Food Color Market has been divided into ingredient, type, form, application, and region.

On The Basis Of Ingredient: Natural (Carotenoids, Anthocyanin, Paprika Extract, Curcumin, Chlorophyll, Spirulina and Others) and synthetic (Red, Green, Yellow & Orange, Blue, and Others)

On The Basis Of Type: Natural and Synthetic

On The Basis Of Form: Liquid, Gel, Powder, and Paste

On The Basis of Application: Beverages, Bakery & Confectionary, Dairy Products, Meat Products, Savory & Snacks, and Others (condiments, dressings, frozen products)

On The Basis Of Region: North America, Europe, Asia Pacific and ROW.

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Regional Analysis:

The Global Food Color Market is segmented into North America, Europe, APAC, and Rest of the World (RoW). Global Food Colors market is highly dominated by Europe followed by North America. North America is one of the attractive region among the food color manufacturers over the past few years. The consumption of food color is high in the US. US consumers are inclined to adopt natural food color for its various properties. US is the major country in North America for the massive consumption of food color. Asia Pacific will be fastest growing market during the review period.

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