Delray Beach, FL, Oct. 02, 2024 (GLOBE NEWSWIRE) -- The Food colors market is a rapidly growing segment within the food and beverage industry, driven by the increasing demand for visually appealing and natural products. Food colors are used to enhance the aesthetic appeal of food and beverages, improving consumer experience and marketability.
The expansion of the processed and packaged food and beverage industries is closely tied to the rising demand for food colors. The food colors market size is projected to reach USD 6.0 billion by 2028, growing from USD 4.6 billion by 2023 growing at a CAGR of 5.4% from 2023 to 2028. During food processing, various techniques, both thermal and non-thermal, are employed, which can affect the natural color of food items due to factors like temperature, moisture, and pH levels. As a result, the need for food colors has grown, as they are essential for restoring and enhancing the visual appeal of processed food products.
Innovating with Food Colors: How Manufacturers Enhance Appeal in a Competitive Market
The need to enhance product appeal has become a key factor in the driving the food colors market growth. With the popularity of social media sites like YouTube and Instagram, product differentiation is greatly influenced by aesthetics. Color is a vital tool for manufacturers as visually appealing products attract ever more consumers. Similarly, vibrant and colorful foods also excite children and promote eating. A study conducted by the International Food Information Council (IFIC) found that 64% of consumers give appearance a high priority when making purchases. In order to meet consumer expectations and differentiate themselves in a crowded market, manufacturers are driven to innovate with food colors due to the emphasis placed on visual appeal.
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How is Europe leading the demand for food colors compared to other regions?
Europe leads the global food colors market, driven by its dynamic and diverse food and beverage industry. The region's high demand for food colors can be attributed to the substantial number of food and beverage processing businesses, with Eurostat reporting 291,000 such businesses in the EU in 2020, employing 4.6 million people and contributing USD 258.8 billion to the GDP. In 2021, EU citizens spent an average of USD 4,101.6 on food, beverages, and catering services, highlighting strong consumer demand for processed food and beverages. Additionally, Europe's preference for natural food coloring and its stringent regulations further fuel the European food colors market growth.
Rising Demand for Natural Colors: A Key Trend in the Food Colors Industry
The natural colors segment is expected to become both the largest and fastest-growing segment by 2028. This surge in demand is largely attributed to shifting consumer preferences towards clean, healthy, and eco-friendly food ingredients. Natural food colors, derived from fresh fruits and vegetables, also offer added health benefits. Commonly used natural colors in the food industry include carmine, anthocyanins, caramel, annatto, carotenoids, chlorophyll, and spirulina. In contrast, the use of synthetic colors in food products is restricted and regulated by federal authorities in various countries, further boosting the demand for natural colors.
Industry Leaders: A Look at the Top Food Colors Companies
- ADM (US)
- International Flavors and Fragrances Inc. (US)
- Sensient Technologies Corporation (US)
- DSM (Netherlands)
- Naturex (France)
- DDW (US)
- Dohler Group (Germany)
- Fiorio Colori (Italy)
- LycoRed (Israel)
- Kalsec Inc. (US)
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Leveraging Adjacent Markets
- Food Flavors Market
- Microencapsulation Market
- Natural Food Colors & Flavors Market
- Specialty Food Ingredients Market
- Food & Beverages Industry Outlook
