Food Colors Market Forecast: Opportunities Driven by Health Trends and Clean Labelling

Food Colors Industry Overview

The global food colors market size was valued at USD 3.13 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2030. One of the key drivers is the increasing importance of visual appeal in the food industry. Food colors are used to make food and beverages more attractive to consumers. The vibrant and visually appealing food products tend to have a higher perceived value and are more likely to be purchased.

Gather more insights about the market drivers, restrains and growth of the Food Colors Market

Over the past few years, the governments of Spain and Germany have launched and successfully implemented numerous campaigns to promote healthier lifestyles by introducing innovative health products to reduce obesity, cholesterol, and diabetes. This trend is expected to play a crucial role in the promotion of natural food colors in consumables.

The market is expected to exhibit a low threat of new entrants on account of extensive portfolio offered and distribution network operated by existing players, which results in a high entry barrier for the new entrants. Besides, the high switching cost for the buyers makes it difficult for new players to gain a significant market share, thereby lowering the threat of new entrants.

Concerns raised by consumers regarding the use of natural carmine extracted from cochineal insects are encouraging the manufacturers to seek other alternatives. With LycoRed producing its Lyc-O-Beta carotene orange color through the fermentation of the Blacksiea trispora fungus, Chr. Hansen is also trying to manufacture carmine through a similar process. Companies are also searching for alternatives owing to the fluctuating prices of carmine.

The growth of the natural food colors market is primarily attributed to the growing preference among consumers for natural ingredients, particularly those derived from plant-based sources. Additionally, labels such as ‘no artificial colors/flavors’ strongly influence consumer purchase decisions, further driving the natural food colors market.

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• The global lactose-free butter market size was estimated at USD 311.5 million in 2023 and is projected to grow at a CAGR of 5.7% from 2024 to 2030. The demand and consumption of lactose-free butter are on the rise, driven by a growing awareness of lactose intolerance.

• The global taurine supplements market size was estimated at USD 371.7 million in 2023 and is expected to grow at a CAGR of 5.8% from 2024 to 2030. The increasing demand for taurine supplements among consumers can be attributed to a variety of factors and emerging trends.

Food Colors Market Segmentation

Grand View Research has segmented the global food colors market based on type, form, source, application, and region:

Food Colors Type Outlook (Revenue: USD Million; Volume: Metric Tons; 2018 - 2030)

• Naturalo Carmine

o Anthocyanins

o Caramelo Annatto

o Carotenoids

o Chlorophyll

o Spirulina

o Others

• Synthetic

o Blueo Red

o Yellowo Green

o Amaranth

o Carmoisine

o Others

• Nature-identical

Food Colors Form Outlook (Revenue: USD Million; Volume: Metric Tons; 2018 - 2030)

• Powder

• Liquid

• Gel & Paste

Food Colors Source Outlook (Revenue: USD Million; Volume: Metric Tons; 2018 - 2030)

• Plants, animals, & insects

• Microorganisms

• Petroleum, other minerals & chemicals

Food Colors Application Outlook (Revenue: USD Million; Volume: Metric Tons; 2018 - 2030)

• Food

o Processed food

o Bakery & confectionery

o Meat, poultry, and seafood

o Oils & fats

o Dairy products

o Others

• Beverages

o Juices

o Functional drinks

o Carbonated soft drinks

o Alcoholic beverages

Food Colors Regional Outlook (Revenue: USD Million; Volume: Metric Tons; 2018 - 2030)

• North America

o U.S.

o Canadao Mexico

• Europe

o Germany

o UK

o France

o Italy

o Spain

• Asia Pacific

o China

o India

o Japan

o Australia & New Zealand

o South Korea

• Central & South America

o Brazil

o Argentina

• Middle East & Africa

o South Africa

o UAE

Order a free sample PDF of the Food Colors Market Intelligence Study, published by Grand View Research.

Key Companies profiled:

• BASF

• Cargill

• CHR Hansen

• Danisco

• DD Williamson

• DSM

• GNT Group

• Lycored Ltd.

• Naturex

• SAN-EI GEN F.F.I. INC

Recent Developments

• In April 2023, Sensient Colors, a division of Sensient Technologies, developed a new natural green color for pet foods. Vertafine, developed by Sensient Colors, is a new natural green color option for pet foods that enables pet food manufacturers to meet the increasing consumer demand for natural colors. This solution offers bright green shades and is cost-effective, making it suitable for high-heat pet food applications.

• In December 2022, Givaudan acquired DDW, a natural color company based in the U.S. Through the acquisition, Givaudan aims to provide customers with an attractive offering and engage in collaborative efforts to develop captivating and multi-sensory food experiences.