Food Colors Market to Partake Significant Development During 2018 to 2023

The report “Food Colors Market by Type (Natural, Synthetic, Nature-Identical), Application (Beverages, Processed Food, Bakery & Confectionery Products, Oils & Fats, Dairy Products, Meat, Poultry, Seafood), Form, Solubility, and Region – Global Forecast to 2023″, The food colors market is estimated to be USD 3.88 billion in 2018 and is projected to reach USD 5.12 billion by 2023, at a CAGR of 5.7% during the forecast period. The demand for natural food colors is increasing significantly across all regions. The various health benefits associated with their consumption are major factors driving their growth. The demand for food with a natural and clean label is increasing across the world, owing to increasing health awareness, increasing spending power of consumers, and increasing instances of food adulteration.

Browse 129 market data Tables and 57 Figures spread through 206 Pages and in-depth TOC on “Food Colors Market – Global Forecast to 2023”.

Market Drivers

Increasing demand for natural colors

The demand for natural food colors over synthetic food colors is increasing due to growing consumer awareness for clean label products, health hazards associated with synthetic colors, and the health benefits achieved by using natural food colors. Synthetic colors can cause allergic disorders among consumers. The use of chemicals with heavy metals such as lead or arsenic to manufacture synthetic food colors can cause life-threatening diseases. Natural food colors are gaining market attention due to their natural origin appealing to consumers who view them as a “safe to use” product. Natural colors reduce the risk of allergies and intolerance among consumers. Such factors are increasing demand for natural colors in food & beverage applications.

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Increasing consumer awareness for clean-label products

The demand for food with a natural and clean label is increasing across the world, owing to increasing health awareness, increasing spending power of consumers, and increasing food adulteration instances. Food safety concerns caused by the chemical contamination of food and ill-effects of synthetic additives have resulted in an increasing number of consumers demanding clean label products. This rising demand has led to the launch of several new products bearing claims such as “natural.” As a result, food manufacturers are investing in clean labels, thereby leading to the introduction of new products or revision of existing product portfolios by incorporating clean label food colors.

Restraints

Health hazards of synthetic colorants

In 2007, a UK government-funded study concluded that the consumption of artificial colors results in hyperactivity in 3-year-old and 8/9-year-old children. The Food and Drug Administration (FDA) found that synthetic colors (Blue 1, Blue 2, Green 3, Red 40, Yellow 5, and Yellow 6) show signs of causing cancer in lab animals. Artificial colors such as yellow 5, yellow 6, and red 40 have been found to contain carcinogens. Caffeine is widely used as a colorant in soft drinks, which may cause heart palpitations and heart defects. Such adverse effects caused by synthetic food colors on the health of consumers are posing as a restraint for the growth of the food colors market.

Stringent regulations pertaining to use of colors in food applications

Stringent regulations imposed by the federal bodies of various countries have restrained the usage of synthetic colorants in food & beverage products. In the US, the FDA is the key regulating body for food additives. It regulates the inclusion of synthetic colors in food & beverages. Such regulations have restricted the use and demand for food colors. For instance, in 2008, a ruling was passed to ban food coloring in the UK. The six colors banned are E110, E104, E122, E129, E103, and E124. This has tremendously affected the consumption of food coloring in the food industry in the UK and its neighboring countries.

Opportunities

Innovative color extractions through new raw material sources

With the growing health consciousness among consumers, the demand for synthetic food coloring is declining. As a result of the adverse effects that these colors cause to human health, food manufacturers are constantly on the lookout for innovative ways to extract colors from alternative natural sources. Untapped raw material sources such as cabbage and algae beta-carotene that are compliant with the regulatory mandates offer opportunities for the growth of the food colors market. Intercropping of existing crops with coloring crops offers high growth opportunities for market by offering new sources of food colors.

Increasing ventures in Asia Pacific and South America

Food color manufacturers have tremendous opportunities for growth in the Asia Pacific and South American regions. Localizing operations can help in reducing costs and improving access to local distribution networks, thereby optimizing profit margins. Resources and labor are readily available at a cheaper rate in these regions. The governments in China and India are providing incentives for multinationals to set up Greenfield ventures. The Indian government has declared major tax breaks to attract multinational investors. China provides special tax incentives over the usual tax holidays to encourage foreign investors.

India, China, and Brazil are focusing more on the biotechnological development and its application in the manufacturing of natural coloring ingredients. Food & beverage manufacturers are witnessing tremendous demand from these countries due to the increased spending power of consumers on healthy food and changed eating habits & preferences. All these factors are offering opportunities for food colors in the emerging economies of Asia Pacific and South America.

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Europe is estimated to dominate the food colors market in 2018.

Europe is estimated to be the largest market for food colors in 2018. This is due to the rising awareness about safe food products among consumers, and stringent food safety regulations in the region. Germany is one of the largest processed food markets with stringent regulations to keep a check on the quality of food products. This leads to the growth of the food colors industry; more the production of food, more colorants will be required.

This report includes a study of marketing and development strategies, along with the product portfolios of the leading companies. It includes profiles of leading companies such as ADM (US), DowDuPont (US), Sensient Technologies (US), Kalsec (US), DDW (US), Chr. Hansen (Denmark), DSM (Netherlands), Naturex (France), Döhler Group (Germany), Fiorio Colori (Italy), LycoRed (Israel), and Frutarom (Israel).

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