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

The Canada Food Colorants Market is expected to grow at a CAGR of 4.3% over the forecast period, 2020 to 2025.

• The Canada Food Colorants market is driven by easily available raw materials which include fruits & vegetables. Growing food safety concerns in the global food markets are pressurizing manufacturing to adopt clean labels.
• The major restraint the industry faces is the growing awareness of the ill effects of synthetic colors. This has triggered the demand for natural colors, which have high costs when compared to synthetic colors. The stringent food standards regulations by the FDA and several regulatory bodies are proving to be a constraint for manufactures, thus forcing them to look at alternatives in the form of innovations in the natural colorants segment.

Key Market Trends

Labeling Regulations Driving Natural Colorants Demand

Stringent regulations laid out by the government has led manufacturers to deploy practices of using less sugar/sweetener and imparting more of natural colors rather than synthetic. For instance, by 2021, brands must call out all sugar-based ingredients in brackets after the listing of ‘sugar’. Additionally, the CFIA is urging manufacturers to be more transparent about colors. The upcoming amendments will also require food companies to list colors by their specific names. Such initiatives have laid out multiple opportunities for natural color extract manufacturers to compete within the industry, and along with seeking different sources as options to ease the imminent demand for natural colors.

Bakery Leads the Application Segment

The Canada natural color market is driven by its application across Bakery followed by Meat poultry & Sea Food products and Beverages. The bakery industry includes products but is not limited to bagels, bread, cakes, croissants, doughnuts, and pastries. On the other hand, Gluten-free is the fastest-growing food intolerance category in Canada, although, Canadians with Celiac disease contribute a small share, but important segment of the market for gluten-free bakery products. The trend of meat and seat food product consumption is on the rise, mostly in the form of processed foods, and this segment is also anticipated to witness a high application rate of natural colors over the coming years.

Competitive Landscape

The Canada food colorants market is moderately fragmented with a large number of both domestic and international players are vying for their market share. On the other hand, Government regulation has made it mandatory to replace synthetic colorants with natural, thereby, increasing the level of research and development along with new product launches that can be incorporated across a variety of applications, among manufacturers.

Major players operating in the industry are Koninklijke DSM N.V, CHR Hansen, Sensient Technologies, The Archer Daniels Midland Company, and others.

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