The South America food colorants market is projected to grow at a CAGR of 3.9% during the forecast period (2020-2025).

  • South American countries are witnessing growing urbanization and changing lifestyles due to globalization and this in turn is driving the demand for convenience and packaged foods. ?
  • South America provides a greater scope of growth of food colorants due to its highly untapped markets.?
  • Consumer’s preference for natural alternatives, demand for clean label products, and stringent regulations particularly in the relatively developed regions like Brazil and Argentina are acting as growth hurdles for the food colorants market.



Key Market Trends

Increased Demand for Natural Food Colorants

There has been much interest in the development of new natural colorants used in the food industry, which is apparently due to strong consumer demand for more natural products. The health-enhancing properties of natural colors, combined with the organic properties in the natural products, are also increasing the appeal for the same.? Currently, the food industry is producing natural colors at a commercial level. Natural colors that are widely used in the food industry are caramel, carotenoids, anthocyanin, and carmine. Brazil is essentially an agriculture and food-based economy, the increasing food production, and consequently rising food processing sector is expected to drive the food colorants market positively. The environment-friendly feature and health benefits of natural colorants coupled with favorable government regulations is expected to further augment the growth of natural food colorings segment.

Growing Utilization in Beverages

The increasing application of food colors in beverages, such as flavored drinks, nutritional drinks, and soft drinks, is driving the food colorants market.? In CSD (carbonated soft drinks) and non-alcoholic beverages segments bright, vivid, and unusual colors are used to attract the younger generation looking for “extreme” flavor. Strong and unusual colors in alcoholic beverages are appealing to consumers.? There are many new developments in the natural color segment that can be used in beverages. For example, finding a suitable natural replacement for Yellow #6 in beverages was challenging due to flavor off-notes, instability, and simple ingredient label requirements; but now, Sensient Pure-S? Orange is a perfect match for Yellow #6. It provides a deep orange shade in clear beverages, such as sports drinks, juices, water enhancers, and CSDs.

Competitive Landscape

South America’s food colorants market is fragmented and is dominated by players such as Chr Hansen, Sensient Technologies Corporation, BASF SE, Koninklijke DSM N.V., and Givaudan The companies have been 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 in the food colorants market.

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