Asia-Pacific Food Colorants Market - Growth, Trends, and Forecasts (2020-2025)

The Asia-Pacific food colorant market is projected to witness at a CAGR of 4.8% during the forecast period.

• The demand for natural colors varies across the region, with a higher penetration level in Australia and Japan. At the same time, there is significant potential for conversion from synthetic colors in China and Southeast Asia.
• The driving factor for natural food colorants is the prevalence of food safety scandals and the recycling of waste oil. For instance, animal feed oils were synthetically colored and sold as healthier vegetable oils in Taiwan, toxic toothpaste was produced in China and imported around the world, and high levels of lead were found in packet noodles in India.
• The different regulatory environments in the countries are affecting the food colorants market, due to the rise in food safety issues.

Key Market Trends

Increasing Demand for Clean-label Products

Consumers demand clean labels on products, to know what exactly they consume and at what level. Their interest in identifying the ingredients present in products has triggered the clean label product market. Consumers, in the region, are highly concerned about the long-term effects of synthetic colors on health, and thus, prefer natural colorants in their foods. Asia-Pacific has the fastest growth rate for clean label products. According to the research conducted by the ingredient company, Ingredion, Asia-Pacific registered the most robust demand for clean label products compared to any other region.

Japan is the Largest Food Colorants Market in the Region

After Europe and the United States, Japan has the strictest regulations for the usage of synthetic colorants in food products. It has resulted in a ban on the trading of several products containing artificial colorants and provided an opportunity for manufacturers of natural color. Food colorants have a wider and extensive application in various food segments, such as dairy, confectionery, meat, beverages, and bakery, with moderate usage in the oils and fats categories. The Japanese style of cuisine, which involves the usage of five essential colorants, white, black, red, green, and yellow, in every meal, is an important driving factor for the domestic colorants market. The increasing trend of adopting natural ingredients in food has also boosted the natural colorant market growth.

Competitive Landscape

The Asia-Pacific food colorants market is dominated by Chr Hansen, DD Williamson, DSM, Doehler Group, and Kalsec. The major players are expanding their geographical presence by acquiring or merging with the manufacturers in the foreign market. Expansion is the most preferred growth strategy, followed by new product developments. Additionally, acquisitions and partnerships are the two other strategies, followed by the companies to strengthen their market dominance.

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