The global food colors market was valued at USD 2.55 billion in 2018 and is projected to reach USD 7.58 billion by 2032, growing at a compound annual growth rate (CAGR) of 8.11% during the forecast period. North America led the market in 2018, holding a 26.19% share. In particular, the U.S. market is set for significant expansion, expected to reach USD 1.54 billion by 2032. This growth is driven by shifting consumer preferences toward visually attractive and naturally colored food products, along with increasing demand in the processed and packaged food sectors.

The widespread use of food colors—especially in soft drinks—and the rising demand for carbonated beverages and processed foods are key contributors to market growth. These factors are expected to propel demand significantly in the coming years.

Information Source: https://www.fortunebusinessinsights.com/food-colors-market-102644 

Key Growth Drivers

The increasing preference for clean-label and naturally sourced ingredients is propelling the demand for natural food colors. Consumers are favoring pigments extracted from fruits, vegetables, and plants over synthetic alternatives. The popularity of packaged and processed foods—such as snacks, confectionery, and beverages—continues to rise, further fueling this demand.

Food producers are also focusing on enhancing product appeal through vibrant coloration, in response to consumer desire for attractive and healthier options. Health-conscious trends are prompting a shift away from artificial additives. Meanwhile, the expanding food and beverage sector, especially in emerging economies, is providing a fertile environment for the growth of food colorants.

Competitive Landscape

Symrise AG, a leading global company in flavors and fragrances, has inaugurated its Asia-Pacific Flavor Innovation and Technology Center. This investment is part of a broader €30 million expansion of the company’s regional operations in Singapore. The facility is aimed at reinforcing Asia’s role in driving innovation in the food and nutrition sector and supporting local manufacturing growth.

Symrise CEO Dr. Heinz-Jürgen Bertram emphasized Asia’s pivotal role in shaping global food trends, noting that hubs like Singapore—combining technology, business, health, and nutrition—are crucial to advancing food innovation. He affirmed that Singapore will remain central to Symrise’s strategy, with the new center promoting enhanced collaboration and innovation across the industry.

Increased consumer demand for visually appealing and natural food products is expected to continue bolstering market expansion worldwide.

Regional Analysis

North America

With revenues of USD 667.77 million in 2018, North America is forecast to experience strong market growth. This trend is supported by consumer migration toward natural food coloring solutions, especially amid regulatory crackdowns on synthetic additives over health and environmental concerns. Market development is further fueled by the commercialization of food production and the growing demand for carbonated drinks, which utilize both synthetic and natural colors.

Asia-Pacific

The Asia-Pacific market is poised for rapid growth due to rising consumption of ready-to-eat and convenience foods. A growing working population and rising disposable incomes across countries such as China and India are creating new opportunities for food colorant manufacturers in the region.

Leading Companies in the Market

• Dohler Group
• Archer-Daniels-Midland Co.
• Symrise AG
• Ingredion, Inc.
• Sensient Technologies
• Kalsec, Inc.
• DDW, Inc.

Tariff Impact Analysis for Food Colors Market: https://www.fortunebusinessinsights.com/enquiry/request-sample-us-tariff/food-colors-market-102644 

Noteworthy Industry Developments

• July 2021: GNT Group launched two new EXBERRY Coloring Foods made from turmeric and spirulina, addressing rising demand for affordable, natural green coloring options that meet clean-label standards.
• June 2021: Chr. Hansen Natural Colors—now operating under the name Oterra—acquired the natural food coloring division of Symrise AG. This acquisition is expected to strengthen Oterra’s leadership in the natural colors segment.