The global food colors market size is
expected to reach USD 2.97 billion by 2025, according to a new report by Grand
View Research, Inc. Growing demand for colored food products owing to their
aesthetic appeal and increasing use in end user industries is expected to drive
the demand for food colors over the forecast period.
Growing demand for the product across
various industries such as beverages, bakery & confectionary, and dairy
products is likely to have a positive impact on the utilization of food colors
in the foreseeable future. The demand for food colors for the production of
canned products is also estimated to drive the industry growth.
Growing consumer demand for low-fat food is
another factors which is expected to supplement the market growth in near
future The rising adoption of processed food by consumers across the globe is
estimated to translate into the growth in demand of the product. In addition,
rising demand for alcoholic and non-alcoholic beverages is likely to drive the
market growth over the forecast period.
Rising disposable incomes and changing
lifestyles due to rapid urbanization are likely to have a positive influence on
the market over the forecast period. Ongoing product innovation, consumer
preference for high-quality products, and solidification of government
regulations is likely to propel the growth in the next few years.
The absence of any notable substitute to
the product results in negligible threat of product substitution. However, the
industry is expected to witness internal substitution with natural food colors
being increasing used as a substitute for synthetic food colors. The market is
expected to witness a degree of uncertainty due to high degree of volatility
observed in the prices of raw material.
Further key findings from the report suggest:
- Natural food colors are expected to reach
USD 2.50 billion by 2025, owing to growing awareness among consumers
regarding the health benefits associated with the product.
- CSDs and non-alcoholic beverages is
estimated to be the fastest growing application with a growth rate of 6.4%
over the forecast period, on the account of rising demand for juices, soft
drinks, and carbonated soft drinks in emerging economies.
- The demand for the product in Asia Pacific
is expected to reach a value of USD 868.0 million by 2025 in the wake of
growing food and beverage industry in the region.
- The companies have adopted different
approach to compete with each other. For example, Allied Bioitech
Corporation have adopted a mono-product approach. It is global supplier
for carotenoids and manufactures & distributes only on product.
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Over the past few
years, 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.
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The
market for synthetic food colors is expected to grow on account of growing
product use by consumers across the developing economies. Besides, the demand
for synthetic colors, such as green and blue, is expected to be driven
primarily by their use in the beverage manufacturing industry. However, rising
substitution by natural colors may hamper industry growth.
Grand
View Research is an India & U.S. based market research and consulting
company headquartered in San Francisco, which offers syndicated research
reports, customized research reports, and consulting services. The company’s
rich database includes in-depth analysis across a range of industries including
chemicals, materials, energy, healthcare, and technology, among others.
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