The Annatto Food Colors Market insights cover food and beverage industries utilizing annatto food colorants worldwide. The market is expected to reach a market valuation of nearly USD 208 million by 2023, accelerating with a CAGR of 5.8% between 2023 and 2033.
Sales are likely to account for 11.5% of the global natural food colors market sales, valued at USD 1.6 billion in 2022.
| Attribute | Details |
|---|---|
| Market Size (2023E) | USD 208 million |
| Market Projected Size (2033F) | USD 366.4 million |
| Value CAGR (2023 to 2033) | 5.8% |
| Top Region Market Share - North America | 38.7% |
The unexpected outbreak of the COVID-19 pandemic has had a negative impact on almost all industries, including the market, which influences the Annatto food colors market key trends and opportunities.
The disruptions in the product's supply chains caused by production limitations, increased transport rates, and higher delivery costs have had an impact on the overall market. These aforementioned factors are expected to slow market growth.
The restrictions on the export and import of non-essential products imposed by temporary border closure situations in some countries further limit the market growth and future trends. In response to the pandemic's chaotic situation, food additive manufacturing companies are constantly working to re-establish smooth operations and supply chains. This is anticipated to boost sales of annatto food colors along with rising demand.
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The attractiveness and aesthetic appeal of the food and delicacies are generally judged by the color of the food, which triggers the coloring agent markets like that of the market, which tries to innovate and add various natural coloring agents for the food, cosmetic, and textile industry. One of the most popular spices and natural food colors is annatto extract.
There is an expansion of the demand for annatto food colors in these segments and diversification into segments like meat and poultry food products. Annatto food colors have been used in numerous food sectors like bakery and confectionery, beverages, dairy, and sauces and dressings.
Annatto food colors manufacturers are using several annatto materials for insipid ingredients to produce food colors that are visually appealing as well as spicy.
Meanwhile, with the rising number of consumers shifting to a vegan lifestyle and vegetarian diet, the demand for annatto food colors and sales of annatto food colors has risen in the food processing industry.
The snowballing health consciousness among people during the pandemic has triggered food producers to look for natural colors like annatto color shades in their products.
Yes, the growing demand for annatto food colors from customers ubiquitously is one of the significant reasons for the market growth. Owing to the evolving dietary pattern and focus of consumers on a healthy lifestyle, food manufacturers are coercing to adopt annatto food colors instead of conventional synthetic yellow and orange food colors.
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The crucial factors restraining the market growth are high cost, color degradation due to various external factors like temperature, light, etc., less stability as compared to synthetic agents, and highly concentrated extracts, which affect the taste of the food.
Another major factor affecting the annatto food colors market future trends, along with market key trends and opportunities, is hypersensitivity or allergic nature to the achiote shrub.
All the above factors have a negative impact on consumption and preferences of the annatto food colors, which are used in commercial products by the manufacturers, thus co-relatedly affecting the overall annatto food colors market key trends and opportunities.
Synthetic food colors can be produced on a large scale as there is no need for harvesting and processing, unlike annatto food colors.
Hence, from natural and plant sources, annatto food colors are more expensive and cumbersome than synthetic colors. Moreover, artificial food colors have a longer shelf-life as compared to annatto food colors which impacts the annatto food colors market adoption trends.
The USA is one of the largest markets and influences the annatto food colors market future trends. The increased production of organic food products is fuelling the adoption of annatto food colors.
Also, the vegan trend in the United States is stronger when compared to other regions. As per FMI, the USA market totaled 2084 MT in 2022, which is approximately 30% of the Annatto food colors market.
While the USA market for annatto food colors is anticipated to grow at 5.6%, the North American market trends and forecasts are expected to register a 5.8% CAGR between 2023 and 2033.
In 2022, the North American Annatto food colors market was valued at USD 77 million.
As per FMI, the Australia and New Zealand market region, i.e., the Australia-New Zealand market, totaled revenue of USD 9.6 million in 2022, which is approximately 3% of the global annatto food colors market. The market in the region is expected to exhibit a CAGR of 5.4% during the assessment period.
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Annatto food colors are widely used on an artisanal, small, and large industrial scale as a coloring agent in numerous processed food products, such as cheeses, butter and margarine, dairy spreads, custards, cakes and other baked goods, potatoes, snack foods, sausages, breakfast cereals, smoked fish, and more.
The leading adoption of annatto food colors is the dairy industry. It consumed over 1500 metric tons of color in 2022, valued at over USD 42 million, which is well over 20% of the annual sales of annatto food color.
The cheesemakers introduced colorants to imitate the more intense colors of the finer summer cheese, which usually loses its pigment in the rest of the year.
Initially, these yellow and orange hues came from marigold, saffron, and carrot juice, but later annatto food colors market began being used.
Due to the nature of the foods in which it is frequently used, such as dairy products, solvent extraction & emulsified annatto remain the leading types of annatto food colors.
The market adoption trend of free-form products in the dairy sector and the use of oil-soluble or emulsified pigments are anticipated to be more promising and profitable for manufacturers.
During the forecast period, demand for annatto food colors and aqueous extraction or norbixin pigments is expected to remain stable. This is due to their simple and quick solubility in water at room temperature, which is required for the preparation of sauces, gel caps, and other products.
Another factor contributing to the market’s type segment's growing popularity among end users is its low cost which enhances the annatto food colors market size and annatto food colors market share.
Some of the market players are Chr. Hansen Holding A/S, Kalsec Inc, Fiorio Colori, Sensient Technology Corporation, FMC Corporation, D.D. Williamson & Co. Inc., WILD Flavors, Naturex S.A., and a few other regional players.
The annatto food colors market report presents a comprehensive assessment of the market. It contains thoughtful insights, facts, historical data, and statistically supported and industry-validated market data of these profiled Annatto food colors market players.
Recent Developments
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; and the Middle East & Africa |
| Key Countries Covered | USA, Brazil, Mexico, Germany, United Kingdom, China, India, Japan, Australia, and GCC Countries |
| Key Segments Covered | Product Type, Application, Solubility, Form, and Region |
| Key Companies Profiled | Hansen A/S; Aarkay Food Products; FMC Corporation; Plant Lipids; Amerilure; D. Williamson & Co. Inc.; Kalsec Inc.; BASF SE; Akay Group; Sensient Technology Corporation; WILD Flavors; AVT Natural Products; NATUREX Group; Others |
| Report Coverage | Market Forecast, Market Dynamics and Challenges, Strategic Growth Initiatives, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities, and Threats Analysis |
| Customization & Pricing | Available upon Request |
The projected CAGR of the annatto food colors market by 2033 is 5.8%.
The projected market value for 2033 is USD 366.4 million.
The market is estimated to secure a valuation of USD 208 million in 2023.
North America holds a significant share of the annatto food colors market.
The North American market is growing due to the rising demand for natural food colors.
1. Executive Summary
2. Market Overview
3. Market Background
4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Nature
5.1. Organic
5.2. Conventional
6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
6.1. Bakery & Confectionery Products
6.2. Beverages
6.3. Fruit Preparations/ Fillings
6.4. Dairy Food Products
6.5. Potatoes, Pasta, and Rice
6.6. Soups, Sauces, and Dressings
6.7. Meat, Poultry, Fish, and Eggs
6.8. Seasonings
6.9. Others
7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Form
7.1. Paste
7.2. Powder
8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type
8.1. Oil-soluble
8.2. Water-soluble
8.3. Emulsified and Solvent-extracted
9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
9.1. North America
9.2. Latin America
9.3. Western Europe
9.4. Eastern Europe
9.5. South Asia and Pacific
9.6. East Asia
9.7. Middle East and Africa
10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
12. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
13. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
14. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
15. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
16. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
17. Key Countries Market Analysis
18. Market Structure Analysis
19. Competition Analysis
19.1. Hansen A/S
19.2. Aarkay Food Products
19.3. FMC Corporation
19.4. Plant Lipids
19.5. Amerilure
19.6. D. Williamson & Co. Inc.
19.7. Kalsec Inc.
19.8. BASF SE
19.9. Akay Group
19.10. Sensient Technology Corporation
19.11. WILD Flavors
19.12. AVT Natural Products
20. Assumptions & Acronyms Used
21. Research Methodology
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Annatto Food Colors Market
