The report “Food Colors Market by Type (Natural, Synthetic, Nature-Identical), Application (Beverages, Processed Food, Bakery & Confectionery Products, Oils & Fats, Dairy Products, Meat, Poultry, Seafood), Form, Solubility, and Region – Global Forecast to 2023″, The food colors market is estimated to be USD 3.88 billion in 2018 and is projected to reach USD 5.12 billion by 2023, at a CAGR of 5.7% during the forecast period.
The demand for natural food colors is increasing significantly across all regions. The various health benefits associated with their consumption are major factors driving their growth. The demand for food with a natural and clean label is increasing across the world, owing to increasing health awareness, increasing spending power of consumers, and increasing instances of food adulteration.
Market Drivers
Increasing demand for natural colors
The demand for natural food colors over synthetic food colors is increasing due to growing consumer awareness for clean label products, health hazards associated with synthetic colors, and the health benefits achieved by using natural food colors. Synthetic colors can cause allergic disorders among consumers. The use of chemicals with heavy metals such as lead or arsenic to manufacture synthetic food colors can cause life-threatening diseases. Natural food colors are gaining market attention due to their natural origin appealing to consumers who view them as a “safe to use” product. Natural colors reduce the risk of allergies and intolerance among consumers. Such factors are increasing demand for natural colors in food & beverage applications.
Increasing consumer awareness for clean-label products
The demand for food with a natural and clean label is increasing across the world, owing to increasing health awareness, increasing spending power of consumers, and increasing food adulteration instances. Food safety concerns caused by the chemical contamination of food and ill-effects of synthetic additives have resulted in an increasing number of consumers demanding clean label products. This rising demand has led to the launch of several new products bearing claims such as “natural.” As a result, food manufacturers are investing in clean labels, thereby leading to the introduction of new products or revision of existing product portfolios by incorporating clean label food colors.
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Restraints
Health hazards of synthetic colorants
In 2007, a UK government-funded study concluded that the consumption of artificial colors results in hyperactivity in 3-year-old and 8/9-year-old children. The Food and Drug Administration (FDA) found that synthetic colors (Blue 1, Blue 2, Green 3, Red 40, Yellow 5, and Yellow 6) show signs of causing cancer in lab animals. Artificial colors such as yellow 5, yellow 6, and red 40 have been found to contain carcinogens. Caffeine is widely used as a colorant in soft drinks, which may cause heart palpitations and heart defects. Such adverse effects caused by synthetic food colors on the health of consumers are posing as a restraint for the growth of the food colors market.
Stringent regulations pertaining to use of colors in food applications
Stringent regulations imposed by the federal bodies of various countries have restrained the usage of synthetic colorants in food & beverage products. In the US, the FDA is the key regulating body for food additives. It regulates the inclusion of synthetic colors in food & beverages. Such regulations have restricted the use and demand for food colors. For instance, in 2008, a ruling was passed to ban food coloring in the UK. The six colors banned are E110, E104, E122, E129, E103, and E124. This has tremendously affected the consumption of food coloring in the food industry in the UK and its neighboring countries.
Challenges
Consumer preference for coloring foods in place of natural colors due to labeling mandates for E numbers
Coloring foods are products such as fruits and vegetables that are used instead of food colors in food & beverage processing to impart color to the final product. The demand for coloring food such as tomato, beetroot, and carrot is rising as an alternative to other natural colors. Some regulatory bodies including EU legislation mandate the labeling of E number for natural colors. Consumers associate E numbers with additives in food. Due to this, the manufacturers and consumers are opting for coloring food to substitute natural colorants to avoid the need for labeling mandates. This creates a challenge for the growth of the natural food colors market.
Europe accounted for the largest share of the food colors market in 2018. This market is driven by increased awareness about safe food color products among consumers, and inclination toward the health benefits provided by natural food colors. Asia Pacific is projected to be the fastest-growing market between 2018 and 2023. Emerging economies such as China and India play an important role in supplying food colors, either as raw materials or in processed forms, to the European market.The major restraining factor for the food colors market is the health problem caused by consuming some synthetic colors. Another factor could be the stability of natural colors, which changes with changes in atmospheric or processing conditions such as pH, temperature, and light. Some natural colors start decolorizing after some time of processing. Some natural colors can impart off-tones to the final product during processing.
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Companies such as ADM (US), Sensient Technologies (US), Chr. Hansen (Denmark), DowDuPont (US), and DSM (Netherlands) have acquired leading market positions through their broad product portfolio, along with a focus on diverse end-user segments. They are also focused on innovations and are geographically diversified.
