Food Colors Market Size, Share & Trends Analysis Report By Type (Natural, Synthetic, Nature-identical, Caramel), By Form (Powder, Liquid, Gel & Paste), By Source (Plant, Animal), By Application, By Region, And Segment Forecasts, 2023 - 2030

Food Colors Market Size, Share & Trends Analysis Report By Type (Natural, Synthetic, Nature-identical, Caramel), By Form (Powder, Liquid, Gel & Paste), By Source (Plant, Animal), By Application, By Region, And Segment Forecasts, 2023 - 2030

Food Colors Market Growth & Trends

The global food colors market size is expected to reach USD 4.83 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 6.3% from 2023 to 2030. The market is primarily driven by several key factors that contribute to its growth and increasing demand. One significant driving force is the rising consumer preference for visually appealing and aesthetically pleasing food products. In today's competitive food industry, the appearance of a product plays a crucial role in attracting consumers and influencing their purchasing decisions. Food colors are extensively used to enhance the visual appeal of various food and beverage items, making them more enticing and appealing to consumers.

Additionally, the growing awareness among consumers regarding the association between food color and product quality has also fueled the demand for food colors. Consumers are increasingly seeking natural and organic food colors derived from plant-based sources, as they perceive them to be healthier and safer alternatives to synthetic colors. This shift towards clean-label and natural ingredients has led to a surge in the demand for natural food colors, as they are perceived to be free from harmful additives and chemicals.

Furthermore, the expanding food and beverage industry worldwide, coupled with the rapid urbanization and changing lifestyles, has positively impacted the food colors market. The increasing demand for processed and packaged food products, ready-to-drink beverages, confectioneries, and bakery items has created a significant market for food colors. Food manufacturers and processors are incorporating vibrant and attractive colors to differentiate their products in the market and meet the evolving consumer preferences.

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.

In June 2020, DIC Lifetec launched a small-volume bottled liquid version of its naturally derived blue food coloring, Linablue LES2. The new product requires only a few drops to achieve a vivid blue. It is made from Spirulina and comes in no-drip bottles with oxygen-barrier properties.

Food Colors Market Report Highlights

• By type, the natural dominated the market in 2022 with a share of more than 39.20% in revenue. The primary driver is the growing consumer preference for natural and clean-label products
• By form, the powder form dominated the food colors market in 2022 with over 51.78% share in revenue. The powder form offers convenience and ease of use. It can be easily stored, measured, and mixed into various food products, making it a versatile choice for both industrial and home cooking applications
• The microbes source is poised to expand at the highest CAGR of 9.16% by revenue from 2023-2030. Microbes offer a wide range of vibrant and diverse color options, enabling manufacturers to create visually appealing food products
• By application, the bakery & confectionery dominated the market in 2022 with 29.66% revenue share of the overall revenue. The bakery and confectionery application is driving the food color market by offering opportunities for creativity, visual appeal, and customization
• Europe dominated the market in 2022 with 32.13% share of the overall revenue along with the CAGR of 5.8%. Robust bakery and confectionary industry in Europe coupled with growing consumer demand is expected to have a positive impact on the market growth in the region over the forecast period

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