Food colour: Europe emerges as second largest market with £3.5 bn valuation

May 31, 2023

The global food colour market has experienced significant growth in recent years and is projected to reach a value of US $3.5 bn by 2027, with a compound annual growth rate of 12.4% from 2020 to 2027

In 2019, the market was valued at US $2.1 bn. The market has witnessed the emergence of Europe as the second-largest market, following North America, which accounted for nearly 33.98% share of the food colour market in 2018.

The key players in the food colour market have been focusing on product launches and business expansions to expand their market share, increase profitability, and remain competitive.

AromataGroup SRL, Givaudan, Kalsec, Archer Daniels Midland Company, Chr Hansen A/S, DD Williamson & Co, Dohler Group, International Flavors & Fragrances, Koninklijke DSM NV, and Sensient Technologies Corporation are among the prominent players in this market.

Food colours are ingredients used to give a desired appearance to food and beverages. They are added to a wide range of products, including carbonated drinks, ready-to-eat products, frozen food, alcoholic beverages, processed foods, juices, and sauces. These colours can be natural or artificial and are available in various forms such as liquid, liquid gel, gel paste, and powder.

The food colour market has been evolving with innovations and increasing demand. Manufacturers are focusing on innovations that cater to the requirements of a large consumer base. The growing awareness of health and wellness among consumers has led to an increased demand for natural food colours made from organic products. As a result, natural colours are gaining traction among food and beverage manufacturers, driving the growth of the global food colour market.

The rise of the internet and social media has also contributed to the growth of the food colour market. With the increasing number of internet users and higher internet penetration, key players in the market are utilising social media platforms for promoting their products. Social media marketing has become a critical growth opportunity for the food colour market.

Additionally, the market is benefiting from the health benefits offered by natural colorants, such as antioxidant and antimicrobial activities. Advancements in natural colour ingredients and the easy availability of raw materials from plants and animals have further supplemented the market growth. However, the growth of the food colour market is restricted by the ban on the usage of artificial colorants. On the other hand, increased research and development activities focused on new raw material sources present lucrative opportunities for food colorant manufacturers.

North America and Europe have witnessed a higher rate of penetration for food colors. However, certain regions in Asia-Pacific and LAMEA have experienced low availability of these products, primarily due to factors such as low internet penetration and insufficient marketing strategies by manufacturers. This limited penetration of food colors hinders market growth in those regions.

In terms of segmentation, the food colour market is categorised by type, application, and region. The types of food colours include natural and artificial offerings. The applications of food colours encompass meat products, beverages, dairy, bakery and confectionery, processed food and vegetables, oils and fats, and others. Geographically, the market is analysed across regions such as North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa.

Natural colours have witnessed increased preference due to the rising demand for organic-based ingredients among consumers. These enhance product appeal and awareness of their beneficial effects has contributed to their growth.

Among the various applications, the meat products segment dominated the market in 2019, accounting for 20.42% of the share. Consumers prefer the bright cherry-red colour of fresh meat products, which has driven significant traction in the market.

Europe was the prominent market in 2019, garnering the maximum share, primarily driven by the high consumption of bakery and confectionery, dairy, and seafood products in countries such as Germany, France, Italy, and the UK. Consumers in the region are attracted to new colours, textures, and higher nutritional content, which further drives market growth. North America is expected to witness the highest CAGR of 11.70% due to the health benefits offered by natural colorant ingredients in the region, such as anthocyanin, carotenoids, safflower, and carmine.

The food colour market is experiencing robust growth globally, with Europe emerging as the second-largest market. The market is driven by the increasing demand for natural colours, advancements in colour ingredients, and the health benefits they offer. Social media marketing and rising awareness of health and wellness among consumers are additional factors contributing to the growth of this market.

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