The food colors market size was valued at USD 2.1 Billion in 2019 and is estimated to reach USD 3.5 Billion by 2027, registering a CAGR of 12.4% from 2020 to 2027.
The food colors market is expected to be driven by increased consumer awareness of clean-label products and the additional health benefits of certain natural food colors.
Furthermore, food colors market growth is influenced by large quantities of food colors used in the production of soft drinks.
Trends influencing the growth of food colors market
A rising consumer shift towards clean label products and ingredients is expected to create lucrative growth opportunities in the food color market. Consumers are moving away from chemical ingredients and toward all-natural, chemical-free products. This shift is owing to consumer awareness of the various health risks associated with chemical ingredients as opposed to plant-based ingredients. Various food and beverage manufacturers have incorporated the manufacturing of clean label ingredients and the use of clean label ingredients in final food products as a result of this massive consumer shift. This method of food production ensures that the supply chain and production practices are both transparent.
Increased consumption of processed food products and beverages to fuel the demand for the food colors market. The demand for food colors will be fueled by an increase in the consumption of processed foods and beverages. Consumption of processed and packaged foods has increased as a result of the growing number of working professionals and modernization. The increased use of various food colors has resulted from the increased consumption of processed food products such as ready-to-eat snacks, soft drinks, convenience food products, processed dairy products, and others.
