The global food colors market was valued at approximately USD 3.13 billion in 2023, with projections indicating a compound annual growth rate (CAGR) of 6.5% from 2024 to 2030. A significant driver of this market is the growing emphasis on visual appeal within the food industry. Food colors are utilized to enhance the attractiveness of food and beverages, as vibrant and visually appealing products are perceived as having greater value and are more likely to entice consumers to make a purchase.

The market is characterized by a low threat of new entrants, largely due to the extensive portfolios and robust distribution networks established by existing players. This situation creates substantial entry barriers for new competitors. Additionally, the high switching costs for buyers further complicate market entry for newcomers, making it challenging for them to secure a significant share of the market and thus lowering the overall threat of new entrants.

Gather more insights about the market drivers, restrains and growth of the Food Colors Market

Form Segmentation Insights

In 2023, powdered food colors dominated the market, accounting for a revenue share of 51.7%. The powder form is favored for its convenience and ease of use, allowing for straightforward storage, measurement, and incorporation into a variety of food products. This versatility makes powdered food colors a popular choice for both industrial applications and home cooking. Furthermore, powdered forms typically boast a longer shelf life compared to their liquid or gel counterparts, offering better stability and reducing the risk of spoilage.

On the other hand, the liquid food colors segment is projected to grow at a CAGR of 6.8% from 2024 to 2030. Liquid food colors are highly concentrated, enabling the achievement of deep, rich hues with just a few drops. This characteristic is particularly important in the food industry, where appealing visual presentation significantly influences consumer perception and purchasing decisions. Liquid food colors provide precise color control, empowering chefs and food manufacturers to achieve the exact shade desired in their final products. This precision enhances the overall appeal of food items, further driving the growth of the liquid food colors market.

Order a free sample PDF of the Market Intelligence Study, published by Grand View Research.