Allura Red AC Market

Allura Red AC Market Outlook (2022 to 2032)

The global Allura red AC market is anticipated to reach a market valuation of USD 140 Million in the year 2022, accelerating with a CAGR of 6.01% between 2022 to 2032.

Attribute	Details
Allura Red AC Market Size (2022E)	USD 140.0 Million
Allura Red AC Market Projected Size (2032F)	USD 245.0 Million
Value CAGR (2022 to 2032)	6.01%
Top Region Market Share (North America)	39.7%

Allura red AC is an azo dye produced from petroleum to invent shades of red. It is most commonly used as red food dye around the world, though it originated in the USA. Allura Red AC goes by other names like FD&C Red 40 and has the E number E129, and it is commonly available as a red sodium salt.

An Allura red AC market study by Future Market Insights indicates that food colours are expected to account for nearly USD 5.3 Billion of sales in the global market in 2032. The food colours market exhibited a sale by volume of about 185,000 metric tons in 2021, which also changed the Allura red AC market trends. Allura Red AC dyes exhibited a sale of about 18,000 metric tons in 2021 accordingly.

The Allura red AC market study suggests that the demand for the Allura red AC colourants sector is expected to be at approximately 34,000 metric tons by 2032. The need for natural food ingredients, as people are becoming more conscious of food ingredients, is propelling the demand for natural food colours over synthetic ones hence restraining the sales of Allura red AC.

The global Allura red AC market is growing because of the rising demand for ice creams, sausages, candies, cold drinks, dairy goods, sugar confectionery, bakery items, flour confectionery, frozen products, and gelatine desserts, among other things. Furthermore, the global Allura red AC market is growing due to decreasing synthetic colour prices. The simplicity with which raw materials may be obtained is a boon to the overall expansion of the Allura red AC industry.

What is the Key Driving Force behind Allura Red AC Sales?

The European Union has approved Allura red AC as a valid food color. It has also been approved by the FDA for use in drugs, cosmetics, and food. AS PER Allura red AC market analysis, it is by far the most popular red dye used worldwide in the food and beverage industry.

Allura Red AC colorants are used in tattoo inks as well. In the food and beverage industry, the sales of Allura Red AC are driven by food products like cotton candy, soft drinks, cherry-flavored products, children's medications, and dairy products. In pharmaceuticals, too, the dye is used to dye medicinal pills. This has had a positive impact on the Allura red AC market outlook.

Previously, numerous European countries allowed azo dyes like Allura red AC to be used only in alcoholic drinks and fisheries, but recently after undertaking many studies and the EU approving of the dye, the sales of Allura red AC have boomed in the region due to its affordability and accessibility.

Allura red AC has completely replaced red-colored dyes like amaranth (Red 2) and erythrosine (Red 3) in most applications due to the proven negative health effects of those two dyes. The adoption of Allura red AC has increased drastically.

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What is a Key Challenge to the Allura Red AC Market?

While the global Allura red AC industry is booming, there are a few roadblocks in the way, such as the adoption of natural food colourants for colouring in other North American and European countries. This is backed up by strict food colouring rules in these nations, as well as a customer preference for green and clean-label foods and beverages.

Stringent regulation and misperceptions about synthetic food colourants among consumers are key restraints to the Allura red AC market. Consumers perceive azo dyes as a chemical causing life-threatening diseases, such as cancer, which is untrue and false. Misperceptions about the health hazards of synthetic colours and consumer hesitations are key factors creating a significant challenge for the food colour Allura red AC market growth.

Country-wise Insights

How is the USA Allura Red AC Market Shaping?

Veganism has witnessed significant growth in the USA over the last couple of years, and as consumer demand has shifted to plant-based ingredients and products, the sales of synthetic food colors have slowed down.

As per FMI, the USA Allura Red AC market totaled USD 40 Million in 2021, which is approximately 26% of the global Allura Red AC market.

The USA is one of the largest markets for all types of food colorants. Key food color manufacturers have substantial production plants and logistics providers, as well as a strong commercial footprint in North America, particularly in the USA. Hence, the demand for red food dyes is expected to grow at a steady pace in the USA The Allura red AC market trends are also anticipated to shift favorably.

In the North American continent, the Allura red AC is most utilized in foods like bakeries, snacks and cereals, beverages and soups, sauces, and dressings. The sales of Allura Red AC in the Mexico market were around USD 11 Million in 2021.

Which Regions Account for a High Market Share for Allura Red AC?

The European Allura red AC market clocked sales of over USD 18 Million in 2021. The expansion of food processing industries in Latin America will continue to create impressive prospects for the growth of food colors in the region. Brazil sold over USD 10 Million of Allura red AC food colorants in 2021.

The development of manufacturing units in Asia-Pacific, particularly China, and the growth of various food industries such as bread & confectionery, meat processing, pet food production, and multifunctional food items are likely to boost the Allura red AC market growth in the region.

Germany, France, the United Kingdom, Italy, and Spain already have the largest food industries that are estimated to be the leading markets for Allura red AC in the European continent, but their inclination is predominantly going to be toward natural food colors.

Category-wise Insights

What is the Leading Application of Allura Red AC?

Among all food coloring applications, beverages, bakery, and confectionery have been and are expected to account for the largest share in the food Allura red AC market. The beverage segment has over 20% of Allura Red AC's market share.

Besides this, the demand for the bakery, snacks, and cereals segment is expected to accelerate with a CAGR of 4.9% through the course of the assessment period. The dairy and meat, poultry, and eggs segment is also one of the leading applications of Allura red AC food colorants.

Competitive Landscape

Allura Red AC corporations have been reshaping the product to attract end-user industries and consumers. Moreover, manufacturers such as Allied Biotech are improvising on the products by launching new ones, investing in research and development, and acquiring innovative regional units. Besides this, they are focusing on better distribution channels like e-commerce to gain a competitive edge in a highly consolidated synthetic color market. The changes in the global market are also driving the Allura red AC market trends.

Scope of the Report

Attribute	Details
Forecast Period	2022 to 2032
Historical Data Available for	2017 to 2021
Market Analysis	USD Million for Value and MT for Volume
Key Regions Covered	Global; North America; Latin America; Europe; Middle East and Africa; and India; Asia Pacific
Key Countries Covered	USA, Canada, Mexico, Brazil, Peru, Argentina, United Kingdom, China, India, Japan, Germany, Italy, France, South Africa, South Korea, Australia, and GCC Countries
Key Segments Covered	Type, Grade, Application, and Region
Key Companies Profiled	Archer Daniels Midland Company; Allied Biotech Corporation; Sensient Colors LLC.; Symrise AG; Chr. Hansen Holding A/S; DIC Corporation (BASF SE); BioconColors; DSM; DDW; Vipul Organics; Naturex S.A.; San-Ei Gen F.F.I., Inc.; Others
Report Coverage	Market Forecast, Drivers, Restraints, Opportunities and Threats Analysis, Company Share Analysis, Competition Intelligence, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing	Available upon Request

Allura Red AC Market by Category

By Type:

• Dyes
• Lakes

By grade:

• Food Grade
• Pharmaceutical Grade
• Feed Grade
• Industrial Grade

By Application:

• Beverage
• Bakery, Snacks, and Cereals
• Candy/ Confectionery
• Dairy
• Fruit Preparations/ Fillings
• Meat, Poultry, Fish, and Eggs
• Potatoes, Pasta, and Rice
• Sauces, Soups, and Dressings
• Seasonings
• Pet Food
• Others

By Region:

• Global
• North America
• Latin America
• Europe, the Middle East and Africa, and India
• Asia Pacific

Frequently Asked Questions

How big is the Allura Red AC Food Colorant Market?

The Allura red AC market was valued at nearly USD 133 million by 2021. The market had a consumption of around 18,500 metric tons in 2021.

How Much Does Pet food Industry Contribute to Allura Red AC Market?

The Pet food market segment accounted for 2% of sales by volume in the Allura red AC food colors market in 2021.

What is the Chinese Allura Red AC Market Outlook?

The Chinese Allura red AC market is expected to register a 6.4% CAGR between the forecasted period of 2022 and 2032, the highest among all regions.

At what rate will the market grow in Japan?

The Japanese Allura red AC market exhibited sales of 1200 metric tons in 2021 and is expected to grow at a 6% CAGR between 2022 and 2032.