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

Australia food colorants market is projected to grow at a CAGR of 3.7% during the forecast period (2020-2025).

• Food colorants constitute an important part of food additives. The key driving factor for food colorants is shifting consumer preference towards colored food products. Moreover, edible color utilization to enhance the visual appeal and texture of the items is a key factor enhancing product penetration.
• The different regulatory environments in the countries are affecting the food colorants market, with the rise in food safety issues. 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.
• However, owing to the increase in consumption of processed and ready to eat foods in Australia is further anticipated to contribute significantly to the global food colorants market.

Key Market Trends

Rising Consumer Inclination towards Natural Food Colorants

Natural food colors originate from a wide range of sources like vegetables, fruits, plants, minerals, and other edible natural sources, rather than being artificially synthesized. In addition to this, a comprehensive growth in the number of government initiatives promoting health and well-being is estimated to bolster the natural food colors market. The growing inclination of consumers towards clean label products is fuelling the demand for natural food ingredients. Pertaining to the large demand of this segment, companies like Chr. Hansen Holding, Koninklijke DSM N.V., Sensient Technologies Corporation offer the vast portfolio of natural food colorants strengthening their consumer base.

Growth of Processed Foods industry is Fueling the demand of Food Colorants Market

Food colors are additives that improve the appearance of both fresh and processed foods. Colorants are significantly used to restore the color of processed food products, as food processing may result in loss of food color. Moreover, offset the color loss of processed foods like candies, snack foods margarine, cheese, etc. due to exposure to light, air, temperature extremes, moisture and storage conditions is further promoting the utility of food colors across the industry. Processed foods such as crisps, sausage rolls, tinned vegetables, savory snacks, and other convenience foods are the major application of food colors. However, the significant growth and demand for processed food are simultaneously driving the demand for the natural colorant industry in the country.

Competitive Landscape

The market holds a significant share of regional as well as leading global players. However, the global players have vast product lines and geographical reach which gives them an upper hand over the regional manufacturers in Australia. The most active companies of the market studied include Chr Hansen, Kalsec Inc., Döhler GmbH and others. These players are actively focussed on new launches, mergers & acquisitions to maintain the strong foothold in the market.

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