Synthetic Food Colorants Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Synthetic Food Colorants Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Synthetic Food Colorants Market size is estimated at USD 1.51 billion in 2024, and is expected to reach USD 1.96 billion by 2029, growing at a CAGR of 5.42% during the forecast period (2024-2029).

The synthetic food colorant market has witnessed notable growth owing to low cost, high color intensity, and more color stability and uniformity. The shift from synthetic colors to natural colors is anticipated to be slow due to the higher cost of natural colorants, thus providing synthetic food colorants an upper edge over natural ones. The increased demand for processed food further enhances the demand for synthetic food colors. With the rise in urbanization, growing middle-class population, increase in the working population, and a rise in disposable income, the developed and developing regions across the globe are witnessing a rising demand for packaged food. Synthetic food colors are extensively used in processed foods to improve visual appeal. Bright and vibrant colors make products more attractive and appealing to consumers. This visual appeal can influence consumer perception of the taste and quality of the food, impacting purchasing decisions. While there are concerns about the safety of synthetic colorants, many of them have undergone rigorous testing and received approval from regulatory bodies like the FDA (Food and Drug Administration) for safe use in food products. This regulatory approval reassures processed food manufacturers and consumers regarding their safety.

Synthetic Food Colorants Market Trends

Synthetic Food Colorants Are Extensively Used in Beverages

Food color plays an essential role in the sensory appeal of carbonated soft drinks, and manufacturers strategically use synthetic colors to evoke specific flavors and distinguish between various product line variants. For instance, a bright red is associated with cherry flavor, while a deep orange signifies orange-flavored soft drinks. Moreover, synthetic food color is a major ingredient in functional beverages such as protein and dairy drinks to provide its authentic color. Owing to the increase in the consumption of dairy drinks worldwide, the synthetic food color market is growing. The synthetic food color market is expected to grow due to the increasing consumption of fruit juice around the globe. According to the British Soft Drinks Association, the total fruit juice consumption in the United Kingdom was valued at 956 million liters in 2021, which increased to 973 million liters in 2022.

North America Dominates the Market

The continued popularity of processed and convenience food items in the United States has led to a consistent demand for synthetic food colors which are used to enhance the visual appeal of a wide range of processed food products. Furthermore, regulatory agencies like the Food and Drug Administration (FDA) have approved using several synthetic food colors in the United States. This regulatory approval assures manufacturers of the safety and suitability of these colors for consumption, driving their use in the market. In Canada, food colors are regulated under Marketing Authorizations issued by the Minister of Health. Health Canada conducts detailed, rigorous, safety-focused pre-market evaluations of food additives before allowing their use in products and setting the maximum allowable levels of use of those colors. For instance, Canada permits a maximum level of 300 parts per million of Allura Red, Amaranth, Erythrosine, Indigotine, Sunset Yellow FCF, or Tartrazin in food products.

Synthetic Food Colorants Industry Overview

The synthetic food colorants market is fragmented, with the presence of a large number of medium and small-sized players. Some leading market players include Neelikon, Roha Group, Sensient Technologies Corporation, Vibfast Pigments Pvt. Ltd, and Red Sun Dye Chem. These players are adopting strategies, such as expansion, partnership, product innovation, and merger and acquisition, to enhance their customer base and geographical presence. For instance, in April 2022, Sensient Technologies Corporation opened its new customer and innovation lab in Somerset, New Jersey. The area was designed to be 21,000-square-foot to promote collaborative R&D and help innovation thrive.

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