Food Colorant Market 2024 Analysis & Forecast by Top Players - BASF, Cargill, FMC Corporation, DowDuPont, DDW The Colour House (D.D. Williamson), GNT Group, Naturex, Lycored, Frutarom, Sethness Products Company, Sethness Products Company
These pigments and substances are mixed into foodstuffs and beverages to change or enhance the color. The product is commercialized in the form of powder, liquid, gels, and paste. Based on application the market is segmented into Food & beverages, pet supplies, carbonates soft drinks, and other alcoholic & non-alcoholic drinks.
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Food & beverages are later sub-segmented into soft drinks, confectionary, meat, oils & fats, fruits & vegetables, and dairy. Global processed food & beverage industry expansion owing to increase in consumer affordability has positively influenced food colorant demand. In 2016, industry witnessed over USD 300 billion spending on processed products increasing at over 20% CAGR. Other potential applications approved by FDA includes cosmetics and pharmaceuticals.
FDA has categorized food colorants market into two groups, certified and exempt from certification. Certified or synthetic colorants dominates the overall market share owing to its low-price trend and uniform results. Tartrazine, amaranth, sunset yellow, quinoline yellow, indigo carmine, allura red, and brilliant blue are some of the majorly consumed colorants.
The latter category additive is derived from natural sources including vegetables and minerals. These additives usually look less vibrant and might give non-uniform results. However, growth in safety concerns policies pertaining to clean labelling has positively influenced natural food colorants demand. Majorly renowned natural colorants are derived from raspberries, beetroots, red cabbages, chlorophylls, tomatoes, carrots and apricots. Currently, high pricing along with non-standardization in color effect while adding to the food are key reasons which has limited the natural colorant demand.
Based on product, dyes have dominated the overall demand in 2016. These are water soluble additives manufactured as granules, powder, and liquid. Beverages, baked goods, dry mixes, dairy products, pudding, jams, yogurt, pie filling, popsicles, and pet supplies are the major end-uses.
Lakes, the other product types which are water-insoluble form. These are comparatively more stable and are ideal for fats and oils based product coloring, or products without sufficient moistness to melt dyes. Chief applications include coated tablets, cheese, cake and donut mixes, margarine, chewing gums, and candy.
North America and Europe are among the major revenue generating regions. Synthetic additives trading restriction along with government initiatives to promote eco-friendly products has intensified natural colorant demand. In non-EU countries, the market is regulated by their national authorities and most countries have their own guidelines and certified products list which can be applied in several applications with limiting the maximum intake. Consumer willingness to purchase natural products even at premium pricing is another lucrative factor to increase manufacturing of natural additives in these regions.
Asia Pacific is set to witness highest gains owing to increasing processed food consumption. Australia, New Zealand, China, and Japan are among the major contributor in the region. Latin America market is mainly driven by rising demand for ready-to-eat meals, baked and confectionary, and packed goods.
Middle East & Africa market is dominated by African countries. Increase in the number of manufacturers in the region including DDW, Lake foods, Aarkay, FMC Corp, and Riken Vitamin resulting in to product availability at lower prices has positively influenced regional market share.
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Global industry share is moderately consolidated in nature. BASF, CHR Hansen, Sensient Technologies, and DSM accounts for more than 50% of the industry share in 2016. Other key industry players based on geographical presence and product portfolio includes Cargill, GNT Group, Naturex, DD Williamson, LycoRed, SAN-EI GEN F.F.I., Wild Flavors, and Sethness Products.
Emergence of naturally sourced products demand owing to increase in consumer awareness has resulted in to further R&D investment and product innovations. Development of more naturally sourced color is expected in the coming years. CHR Hansen, Roha Dye Chem, and Naturex are the key players in the natural product segment. Companies are involved across the value chain in order to attain maximum profitability.
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