The report “Food Colors Market by Type (Natural, synthetic, nature-identical), Application (Food products, and beverages), Form (Liquid, powder and gel), Solubility (Dyes and lakes) & Region – Global Forecast to 2026” The market for food colors is estimated at USD 4.3 billion in 2021; it is projected to grow at a CAGR of 4.7% to reach USD 5.4 billion by 2026.
By application, the processed food products sub-segment is projected to be the fastest growing market.
Processed food products, such as crisps, sausage rolls, tinned vegetables, savory snacks, and other convenience foods, is projected to grow at the highest CAGR in the food colors industry. The processed food products industry is gradually growing as a result of the high demand for convenience foods with improved lifestyles. IRI data analyzed by The Good Food Institute witnessed a larger increase, with plant-based meat sales, which is 454% higher than the previous year in the week of March 21. This growth in the processed food industry has led to an increase in demand for food colors as an additive in these products.
The liquid segment, by form, dominated the market in 2020.
Narural food colors are higly in demand in the global markets, these colors are extracted from natural resources suh as turmeric, saffron and carrots. These are extracted in liquid form and thus they are estimated to drive the global market for liquid food colors.
Europe is estimated to be the largest market.
There are key players in the European markets that supply high-quality food products in the European markets, such as DSM (Netherlands), Naturex (France), and Campbell Foods Belgium NV( Belgium) and they are significantly encouraging the trends of developing new products in the region. The high demand for packaged food and the growing bakery and confectionery and dairy & frozen products market in Germany. Furthermore, investments in new technological developments are projected to encourage the formulation of innovative natural or nature-identical colors for applications, such as pharmaceuticals and processed food.
Key players in this market include ADM (US), International Flavors & Fragrances Inc. (US), Sensient Technologies Corporation (US), DSM (Netherlands), Naturex (France), DDW (US), Döhler Group (Germany), Florio Colori (Italy), Lycored (Israel) and Kalsec Inc. (US). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.