Food colorants are added to foods and drinks to improve their color and taste. They are used in the forms of paste, gels, and powders. Their common applications include foods, carbonated soft drinks, and alcoholic & non-alcoholic beverages. The food colorants market is projected to attain revenues worth about USD 2.6 billion by 2020.
Food colorants also face augmented demand from the sectors of confectionery and bakery, medicines, drugs, meat, sea food, toiletries, and cosmetics. Their demand was around 51, 510 tons in 2013. It expects to reach 67, 724 tons by 2020. Demand for food colorants will witness about 4% CAGR from 2014 to 2020 (forecast period).
Stringent food regulations are a constant market deterrent. The food colorants market is categorized according to products, applications, and regions. Natural, synthetic, caramel, and nature identical are the products. Colorants derived from vegetables and spices are known as natural. Synthetic colorants are created using various chemicals.
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Caramel food colorants are produced by heating sucrose, fructose, glucose, and some other carbohydrates. Nature identical colorants use carotenoids to imitate colors. Synthetic was the largest product in 2013, with demand estimated at 17, 907.7 tons. Applications of the food colorants market comprise alcoholic & non-alcoholic beverages, foods, medical instruments, pharmaceuticals, and home craft projects.
Demand also arises from healthcare and pet food applications. In terms of geographies, North America will experience moderate growth due to health claims, food labeling, and product registrations in the region. Demand for ready-to-eat foods in India and China would steer Asian Pacific demand. Europe was the largest market, generating incomes exceeding USD 590 million in 2013.
Preference for functional foods with natural or organic colors will drive the region. The European food colorants market is also anticipated to be propelled by client awareness regarding natural products. Key companies in the global market are BASF, Danisco, Sensient Technologies Corporation, CHR Hansen, and DSM. They jointly accounted for more than 60% share.
The market is moderately concentrated and has many more players. Demand for organic and food preservatives will steer investments in research and developments in the six years ahead. The food colorants market, however, could also face hindrances from the side-effects of synthetic colorants and rising preference for natural constituents to enhance overall health.
Information Source: Grand View Research