Market Size and Overview:

In 2023, the Global Powdered Food Color Additives Market was valued at $0.99 billion, and is projected to reach a market size of $2 billion by 2030. Over the forecast period of 2024-2030, market is projected to grow at a CAGR of 10.54%.

Food additives encompass a spectrum of dyes, pigments, or substances that impart coloration to foods and beverages. These additives manifest in various forms such as liquids, powders, gels, and pastes, finding application across diverse sectors including meat products, beverages, dairy, bakery & confectionery, processed foods & vegetables, and oils & fats. Notably, the presence of food coloring does not invariably denote organic ingredients; rather, it may indicate a lower quantity of additives utilized. The fewer the additives, the closer the food product aligns with natural standards. The market for food coloring comprises both natural and artificial variants.

Derived from an extensive array of vegetables, fruits, plants, minerals, and other edible natural sources, natural food colorings are procured through physical and/or chemical processes, selectively extracting pigments while preserving nutritive or aromatic constituents. In contrast, artificial colors are chemical compounds employed to enhance the appearance and flavoring attributes of foods.

The global food colors market is experiencing growth propelled by heightened demand for natural colors across various sectors including foods & beverages, bakery & confectionery, dairy products, meat & poultry, and seafood. This surge is anticipated to positively impact the utilization of natural sources such as carotenoids, curcumin, anthocyanin, and carmine. Natural additives, devoid of genetically modified organisms (GMO) and allergens, act as antioxidants and coloring agents, offering protective benefits against cellular damage, chronic diseases, and aging effects.

Impact of COVID-19 on the Powdered Food Color Additives Market

The onset of the COVID-19 pandemic is expected to drive market growth during the forecast period owing to the essential nature of food consumption worldwide. The pandemic has spurred several market changes necessitating adaptations to foster growth.

The COVID-19 outbreak is poised to significantly affect the food colors market, underscoring the importance of safe, healthy, and nutritious diets. Amidst ingredient sales fluctuations globally, key players in the food colors market are ramping up regional production while optimizing supply chains for raw material distribution through focused R&D and sales efforts. Natural food color and flavor companies faced notable challenges during the pandemic, striving to meet the demand for specialized food products tailored to evolving consumer preferences.

Market Drivers:

 The burgeoning demand for Alpha-Amylase in the food processing industry propels market expansion.

The Anthocyanins food colorants market is forecasted to reach a valuation of approximately USD 550 million by 2030, exhibiting a CAGR of 7% between 2024 and 2030. Anthocyanins, belonging to the flavonoid family, are natural pigments soluble in water and prevalent in vascular plants. Extracted from a plant-based diet, these compounds are rich in trace elements found abundantly in various fruits and vegetables such as apples, grapes, cherries, red onions, pomegranates, red berries, and red cabbage. Additionally, they serve as flavor enhancers for dairy products including fruit fillings, dry mixes, soft drinks, snack bars, and yogurt. The increasing recognition of anthocyanins' health benefits has significantly bolstered the demand for natural anthocyanin-based food colorants, driven by their anti-allergic, antibacterial, antioxidant, and anti-inflammatory properties.

Market Restraints:

Rigorous regulations governing the use of food colors hinder market growth.

Stringent regulations imposed by federal bodies across multiple nations restrict the usage of synthetic colorants in food and beverage products. Notably, the FDA in the United States regulates the inclusion of artificial colors in these products, thereby limiting their demand and utilization. Furthermore, discrepancies in regulatory norms and labeling guidelines pertaining to natural and artificial colors across different countries impede market expansion. For instance, Brilliant Blue (Blue #1), banned in France, sees widespread use in various European countries, indicative of the lack of uniformity in regulatory frameworks.

Powdered Food Color Additives Market - By Type:

• Cochineal Extract
• Anthocyanins
• Caramel Color
• Turmeric Extract
• Annatto Extract
• Carotenoids
• Chlorophyll
• and others.

Categorically, the global market for natural food colorings is divided into cochineal extract, anthocyanins, caramel color, turmeric extract, annatto extract, carotenoids, chlorophyll, and other variants. In the year 2021, carotenoids accounted for the largest revenue share, while it is projected that anthocyanins will exhibit the highest growth rate during the forecast period. The market segmentation by form includes liquid & gel, and powder, with other segments also expected to grow, albeit at a slower pace due to various factors.

Powdered Food Color Additives Market - By Application:

• Bakery
• Animal Feed
• Biofuels
• Sugar Products
• Detergents
• others

Application-wise, food colorings find extensive usage across a spectrum of products, enhancing their visual appeal. The selection of color is influenced by factors such as stability, packaging, and the inherent characteristics of the food item's constituents.

Recent trends in the food industry indicate a shift towards natural colors owing to their associated health benefits. As per the "Food Trends Report" 2020 by Sensient Technologies Corporation (US), there is a notable surge in demand for plant-based meat accompanied by product innovations. In this context, there is a heightened demand for vibrant red colors, sourced from both heat-stable and natural extracts, especially for meat analogs. Both academic and market research indicates a consumer preference for vivid colors, perceived to enhance taste and flavor, particularly amidst the COVID-19 pandemic, which has spurred an increase in online purchases of processed foods.

Powdered Food Color Additives Market - By Region:

• North America
• Europe
• Asia-Pacific
• South America
• The Middle East and Africa

Geographically, the Asia-Pacific region has emerged as the fastest-growing market globally, with a market value exceeding USD 870 million in 2023, and is anticipated to grow at a CAGR of 7.7% during the assessment period. This growth is primarily driven by increased consumption of ready-to-drink (RTD) beverages like protein shakes, mocktails, and sports drinks, as well as dairy & frozen desserts, reflecting shifting dietary habits and preferences towards convenient sources meeting daily nutritional needs.

Europe led the global natural food colors market in 2023. In China, rising disposable incomes among the expanding middle-class demographic, coupled with urbanization and heightened health awareness among consumers, are propelling demand for natural food colors. Additionally, the proliferation of supermarkets and hypermarkets is facilitating convenient accessibility and availability of a variety of natural food coloring products, further boosting market growth.

Powdered Food Color Additives Market Share by Company:

• BASF SE
• Cargill Incorporated
• Koninklijke DSM N.V.
• ADM
• FMC Corporation
• DowDuPont
• DDW The Colour House
• Chr. Hansen Holding A/S
• Sensient Colors LLC.

Noteworthy Developments in the Global Powder Food Color Additives Market in Recent Times: Agreement - In June 2021, International Flavors & Fragrances Inc. (US) entered into an agreement with Frutarom (Israel) aimed at enhancing IFF's capabilities in taste, scent, and nutritional aspects of its products.