The synthetic food color market is expected to record a value of USD 678 million in 2024. The industry is forecast to expand at a CAGR of 5.4% in the ten-year time frame. The revenue projection for synthetic food color is going to be USD 1,145 million by 2034. Synthetic food colors, also recognized as artificial food colors, are gaining traction due to surging social media influence.
Social media has already impressed its influence on the food industry. This is reflected in the new ways in which consumers find and purchase the latest food products. Likewise, social media is having a ripple effect in the food color industry.
This is because social media algorithms favor food content that is visually appealing and holds greater audience engagement. Account holders thus enhance their food content with the help of artificial colors to make them come alive.
More consumers are now seeking Instagram-worthy culinary experiences, which is creating demand for experimental and bold colors in foods. Food influencers, bloggers, and online food communities are also giving more attention to food aesthetics. As presentation assumes a similar status as a dish’s taste, demand for certified, artificial food colors continues to surge.
Armed with this knowledge, culinary professionals and food manufacturers are experimenting with unique food coloring options. Food producers are enticing consumers by developing products that feature distinct unique color combinations, vibrant shades, or eye-catching designs. This is not only expected to draw in more customers and revenue but also induce memorable culinary experiences.
Key players are additionally using social media as an indicator for trending colors, to adapt their key offerings. This effect is expected to trickle down to popular bold artificial food colorants and raise product sales.
| Attributes | Key Insights |
|---|---|
| Synthetic Food Color Market Size (2024E) | USD 678 million |
| Industry Valuation (2034F) | USD 1,145 million |
| Value-based CAGR (2024 to 2034) | 5.4% |
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People Eat with the Eyes First. Research Studies Show Higher Consumer Value for Products with Bright Visuals
Food manufacturers are now achieving elevated food appearance by adopting the latest techniques and trends like bright, bold colors, and homogenous color tones. Appearance of foods and drinks is an important marker for purchasing decisions.
Research studies also support this fact, as consumers demonstrate readiness to pay a premium for products that look visually appealing. This trend is more pronounced in developed countries, where people generally have more money to spare.
Artificial Colors Face a Threat as Bright and Better-for-you Color Innovations Gain Wider Adoption
Players in the food color industry are responding to the growing health concerns arising from artificial colors’ use. Studies have proven that certain synthetically produced colorants are toxic and carcinogenic. Health departments in several countries have also been proactive in banning the use of artificial colors.
The use of artificial colors remains a pressing issue. Not only in countries like the United States and the United Kingdom but also in emerging countries like India. This scenario is giving impetus to the growth of startups, who have been developing sustainable solutions.
Sources of these solutions can be tracked down to plants, fruits, and vegetables. Precision fermentation is another step in the direction of sustainability.
Many Food and Beverage Players Still Depend on Traditional Food Colors
Despite innovations in natural food colors, food manufacturers continue to use artificial food colors in their offerings. This is because synthetic food colors possess properties like improved appearance, low cost, color uniformity, and high color intensity. Beverages and confectioneries, in particular, exhibit significant use of synthetic colors.
Global synthetic food color sales increased at a CAGR of 9.5% from 2019 to 2023. After that, the projections for synthetic food colors’ spending are expected to rise at 5.4% CAGR through 2034.
The demand for synthetic food colors used to be significant in the historical period. However, over the years, the demand has diminished due to growing research studies proving the ill effects of artificial colors.
Some of them are harmful even if consumed within permissible limits. Along with this, innovation in natural colors to make them affordable for mass consumption has also been negatively impacting the demand for synthetic food colors.
The sales of artificial colors continue to steadily increase for use in bakeries, beverages, dairy, snacks, cereals, soups, etc. Artificial food colors also have a track record of being efficient in ready-to-eat products.
Thus, expanding its prospects in many food innovations. Providers of artificial food colors are also providing customization options in color, quality, and packaging. This strategy allows players to meet the different needs of their customers.
The growth graph of this industry is expected to rise from USD 431 million in 2019 to USD 1,145 million by 2034. Thus indicating continued reliance on synthetic food colors to achieve cost benefits.
Principal Consultant
The following segment tabulates the growth potential of the top five performers in the synthetic food color market. India and the United Kingdom are projected to observe higher demand than the rest of the studied countries. Price sensitivity and ease of using artificial colors to expedite the food production process are determining factors for sales of these colors.
| Countries | CAGR 2024 to 2034 |
|---|---|
| The United States | 3% |
| China | 4.2% |
| Germany | 4.7% |
| India | 5.9% |
| The United Kingdom | 5.2% |
The United States synthetic food color market is spearheading the growth of North America. Thus contributing to its leading position on the global scale. The United States is predicted to gain a share of 24.9% in 2024. Herein, the demand for synthetic food colors is anticipated to rise at a sluggish 3% through 2034.
Dampened sales of synthetic food colors among the United States inhabitants reflect the losing appeal of food additives. Health departments and recent food inspections shed light on the use of illegal or overdose synthetic food colorants in food products. This is creating a strong negative perception of artificial food colorants among Americans.
Factors backing the sales of synthetic food colors include the easy and wide availability of these colors in the region. Already established solid distribution networks across the country are promoting product penetration. Players continue to innovate and develop varied shades and hues of artificial colors that are in trend and popular among netizens.
Germany is predicted to acquire a prominent share in the Europe artificial food color industry. Globally, Germany’s share is expected to be 12.5% in 2024. The country is set to record an average CAGR of 4.7% over the forecast period.
Solid growth of the food processing industries is inducing consistent synthetic colors sales. Constant advancements in several food industries like meat processing, pet food industry, bakery and confectionery, and functional food products are creating business prospects for artificial food color manufacturers.
Expanding the portfolio of exotic and innovative food colors by food manufacturers is another key factor that is spurring advancement in the industry. The industry is, however, negatively influenced by the surging awareness and responsiveness among consumers about the increasing adulteration and illegal use of colorants. This rises the adoption of natural colorants.
Out of all the studied markets, India’s growth is compounding at a slightly higher 5.9% CAGR through 2034. The industry is projected to acquire a share of 9% in 2024.
Due to higher prospects in India, manufacturers are entering the country for continued growth. Lucrative opportunities in the Indian food industry, springing from the continued expansion of the HoReCa sector, are attracting investors to this market.
Demand for certified, artificial, cost-effective food colors is soaring in India due to prevalent price-sensitive consumers. These colors impart uniform and intense color to the food items.
Thus, increasing the appeal of food items. An increasing count of companies in India are manufacturing and distributing artificial food colors. Market participants, due to the scale of economies in India, further offer artificial colors at cheaper price points.
Two top categories examined include beverages and red color. Beverages in the application segment are predicted to hold 25% in 2024, whereas red color is expected to acquire 26% in the same year.
| Leading Application Segment | Beverage |
|---|---|
| Value Share (2024) | 25% |
The beverage sector is predicted to be a leading user of artificial food colors. It is reported to gain a 25% share in the global industry by 2024. Widespread use of artificial food colors in popular drinks, as well as rising consumer spending on beverages, are fueling the growth of this segment.
Red food color is widely used in food items. It is expected to acquire a share of 26% in 2024. Red dye is often associated with certain fruits and flavors like cherries, strawberries, and raspberries. Its use is thus increasing in certain drinks to impart the richness of fruits.
| Leading Color | Red |
|---|---|
| Value Share (2024) | 26% |
Another factor that is fueling the use of red color in foods and drinks includes its vibrancy and appeal, which makes it appealing to consumers. This is valuable in processed foods, in which some of the natural color is lost during processing.
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Leading manufacturers of artificial food colors are facing strong competition from natural food color manufacturers. The latter is seeing an almost similar growth trajectory due to more innovations. Thus, causing consumers to gradually reduce dependence on artificial food colors for their food coloring needs.
The artificial food color industry continues to be driven by product innovation. Players are thus developing new and exciting color options that are not easy to achieve via natural ingredients. These color shades include vibrant greens, blues, or a certain color blend for distinct visual appeal.
Key players are crafting product portfolios formulated to meet stringent regulatory and safety standards. This is expected to reinforce the trust in synthetic food colors. Players are also ensuring their food colors are on-trend and in line with shifting consumer preferences.
Some players are developing artificial colors with added minerals, vitamins, or antioxidants. This is expected to position them as a healthier substitute for traditional synthetic colors while still retaining the vibrancy and stability of artificial colors.
Industry contenders are further focusing on developing sustainable production methods to reduce their environmental impact. Thus, attracting an eco-conscious consumer base.
Developments Impacting Growth of Synthetic Food Color Market
Based on form, the industry is divided into liquid, powder, and gel.
Different types of synthetic food colors are pigment and dyes.
Various colors in which synthetic food colors are available include yellow, blue, red, green, and others.
Varied applications of synthetic food colors are beverages; bakery, snacks, and cereals; candy/ confectionery; dairy; fruit preparations/ fillings; meat, poultry, fish, and eggs; potatoes, pasta, and rice; sauces, soups, and dressings; seasonings; and pet food.
Industry growth is examined in key countries of North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
The industry is going to be worth USD 678 million in 2024.
The current forecast projects a CAGR of 5.4% for the industry.
The industry to expected to reach USD 1,145 million by 2034.
Beverage is a prominent application vertical in the industry.
India is predicted to offer opportunities for investors.
Archer Daniels Midland Company and DSM are influential industry players.
1. Executive Summary
2. Industry Introduction, including Taxonomy and Market Definition
3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments
4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections
5. Pricing Analysis
6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
6.1. Form
6.2. Type
6.3. Colors
6.4. Application
7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Form
7.1. Liquid
7.2. Powder
7.3. Gel
8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type
8.1. Pigment
8.2. Dyes
9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Colors
9.1. Yellow
9.2. Blue
9.3. Red
9.4. Green
9.5. Others
10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application
10.1. Food & Beverages
10.2. Bakery, Snacks, and Cereals
10.3. Candy/ Confectionery
10.4. Dairy
10.5. Fruit Preparations/ Fillings
10.6. Meat, Poultry, Fish, and Eggs
10.7. Potatoes, Pasta, and Rice
10.8. Sauces, Soups, and Dressings
10.9. Seasonings
10.10. Pet Food
11. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
11.1. North America
11.2. Latin America
11.3. Western Europe
11.4. South Asia
11.5. East Asia
11.6. Eastern Europe
11.7. Middle East & Africa
12. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
13. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
14. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
15. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
16. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
17. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
18. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries
19. Sales Forecast 2024 to 2034 by Form, Type, Colors, and Application for 30 Countries
20. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard
21. Company Profile
21.1. Archer Daniels Midland Company
21.2. Sensient Colors LLC.
21.3. Symrise AG
21.4. Allied Biotech Corporation
21.5. DIC Corporation
21.6. BioconColors
21.7. Dohler Group
21.8. Kalsec Inc.
21.9. Nature S.A.
21.10. Vinayak Ingredients India Pvt Ltd.
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Synthetic Food Color Market
