Food Colorants Market Analysis

Food Colorants Market Analysis

The natural food colorants market size from the carotenoids product segment will record over 5.5% CAGR through 2032. The increasing use of carotenoids as an alternative to synthetic food colorants can be attributed to their wide range of health benefits that include antioxidant, antimicrobial, anticancerous, and anti-diabetic properties. These compounds are increasingly studied for their potential therapeutic properties across cardiovascular diseases, eye conditions, diabetes, and cancer. With the growing burden of chronic diseases and the presence of strict regulations to restrict the use of synthetic additives, natural food colorants such as carotenoids are set to register significant growth.

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In terms of revenue, the synthetic food colorants market share from the powder form segment is estimated to surpass USD 1.5 billion by 2032. Powdered food colors are widely used in large-scale food manufacturing, small-scale food processing, and in-home cooking. They are easy to use and are hence largely available across retail as well as e-commerce platforms. Powdered synthetic food colorants are experiencing rising demand across the sugar confectionery and bakery sectors as they have applications in chocolates, muffins, and cakes, among various other bakery items. In 2022, the U.S. confectionery export value reached USD 707 billion, as per the U.S. Department of Agriculture (USDA). The incessant consumption of confectioneries is set to spur the demand for powdered colors.

Nature-identical food colorants market size from the beverages application segment will expand at 6.9% CAGR during the forecast timeline. Nature-identical food colorants are increasingly utilized by beverage manufacturers as they offer natural sensorial properties, whilst maintaining an optimum nutritional profile. Beta-carotene is one of the common food colorants used in beverages due to its high stability, water-solubility, and favorable emulsion properties, thus enabling the production of orange and citrus-flavored beverages, particularly tropical juices, and flavored sports drinks.  The growing health consciousness and inclination toward energy drinks will foster the industry demand.

The Europe food colorants market size is poised to reach USD 2 billion by 2032, attributed to the increasing consumer awareness and preference for clean-label ingredients. Additionally, the region is experiencing a notable influx of supportive regulatory policies and norms, encouraging the use of natural food colorants, mainly across the EU countries. For instance, in August 2022, the EU catalyzed its efforts to ban harmful synthetic agents such as titanium dioxide, compelling confectionery manufacturers and food innovators to formulate novel alternatives. Similar initiatives underway aimed at driving the production of organic products over the upcoming decade will positively stimulate the industry outlook.