South America Natural Food Colors Market Forecast to 2028 – COVID-19 Impact and Regional Analysis – by Type (Carmine, Anthocyanins, Caramel, Curcumin, Annatto, Carotenoids, Chlorophyll, and Others), Form (Liquid & Gel and Powder), and Application (Bakery

South America Natural Food Colors Market Forecast to 2028 – COVID-19 Impact and Regional Analysis – by Type (Carmine, Anthocyanins, Caramel, Curcumin, Annatto, Carotenoids, Chlorophyll, and Others), Form (Liquid & Gel and Powder), and Application (Bakery and Confectionery, Dairy and Frozen Desserts, Beverages, Sauces; Dressings; and Condiments, RTC and RTE Products, Meat; Poultry and Seafood, and Others)

The natural food colors market in SAM is expected to grow from US$ 108.33 million in 2022 to US$ 132.56 million by 2028. It is estimated to grow at a CAGR of 3.4% from 2022 to 2028.

Increasing Consumer Proclivity Towards Clean Label Products

Many people believe that food and beverage products are healthier only when they have a label with recognizable ingredients. The food and beverage industry has entered a phase of clean label products, which has led manufacturers to adopt natural food colors in order to gain a competitive edge. Clean label products also attract more number of customers, as they are more comfortable in consuming products with known ingredients. Other factors such as increasing health awareness and increasing spending power of consumers have also created a rise in food with natural ingredients and clean label products. According to Clean Label Alliance, a minimum of 75% people are ready to pay high prices for clean label products. This can be attributed to the fact that these products are minimally processed, eco-friendly and organic. The market for natural food colors is expected to grow during the forecast period, as there has been a constantly growing consumer preference for clean label products. Consumers proclivity towards clean labelled products are rising due to the rise in health awareness and food adulteration. This results in consumers looking to the labels before purchasing any products. This factor is expected to be a crucial driver for the demand growth of natural food colors.

Market Overview

According to Natural Food Colors Food Association (NATCOL), the consumer request for natural solutions and products containing natural colorants in SAM was 57 % in 2019-2020. Annatto color is derived from annatto seeds, which are grown extensively in tropical countries such as Brazil, Peru, or Ecuador. Latin America produces 60 % of total world production of annatto seeds. According to Peruvian Embassy to the UK, Peru has a 95 % share of the international carmine production market. In past few decades, SAM has witnessed shift in overall beverage consumption patterns, along with the growth of food processing industry in parallel with the expansion of supermarkets. These factors have provided consumers with variety of choices for dairy beverages and soft drinks. PepsiCo, Inc. expanded its presence in Mexico and constructed a production plant in Guanajuato. This increasing demand of soft drinks, rapid expansion of beverage industry, and rising awareness of health hazards of food additives are anticipated to fuel the natural food colors market in SAM.

SAM Natural Food Colors Market Revenue and Forecast to 2028 (US$ Million)

SAM Natural Food Colors Market Segmentation

The SAM natural food colors market is segmented into type, form, application, and country. Based on type, the market is segmented into carmine, anthocyanins, caramel, curcumin, annatto, carotenoids, chlorophyll, and others. The carotenoids segment registered the largest market share in 2022.

Based on form, the SAM natural food colors market is segmented into liquid & gel and powder. The liquid & gel segment registered a larger market share in 2022.

Based on application, the SAM natural food colors market is segmented into bakery and confectionery, dairy and frozen desserts, beverages, sauces, dressings, and condiments, RTC and RTE products, meat, poultry and seafood, and others. The beverages segment registered the largest market share in 2022.

Based on country, the market is segmented into Brazil, Argentina, and the Rest of SAM. Brazil dominated the market share in 2022.

Archer Daniels Midland Company, BASF SE, Döhler Group, DuPont, Givaudan S.A., Koninklijke DSM N.V., Naturex S.A., Oterra A/S, and Sensient Technologies Corporation are the leading companies operating in the natural food colors market in the region.

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