Caramel Colour Market

Global Caramel Colour Market Size (2024 to 2029)

Global Caramel Colour Market is expected to be at USD 0.53 billion in 2024 and is anticipated to reach over USD 0.57 billion in 2029 with a CAGR of 1.68%.

Caramel is a pastry product obtained by heating sugar. It has a medium to dark orange colour and is used as a flavouring, topping, colouring, garnishing and icing agent in various food and beverage applications such as bakery and confectionery, beverage, snack, product dairy and frozen desserts and pet food. It is a natural product that is used primarily as an ingredient in various food and beverage products. Market growth is driven by the growth of the application industries. Also, the functional diversity of caramel is also driving market growth. However, the growing awareness of the harmful effects of excessive consumption of caramel is hampering the growth of the market. Caramel colour is the most widely used food colour and it is used in many foods and beverages, syrups like brown bread, beer, batters, cookies, cough drops, buns, chocolates, spirits, rum, whisky and brandy. It is also used in chocolate-flavoured confectionery and coatings like potato chips, dessert mixes, doughnuts, custards, fruit preserves, glucose tablets, ice cream, pickles, sauces and dressings. Globally it is more used in soft drinks especially colas, vinegar and sweets. It is approved in food globally but regulations vary by country.

People preference towards appearance and colour above all other factors, increasing demand from food and beverage industries, improved the appeal of hundreds of different foods, including baked goods, soft drinks, and even alcoholic beverages, increase in disposable income and technological advancements are driving the global caramel colour market. However, increased cost of caramel and it acts as an allergic agent which may hamper the growth of the market.

MARKET DRIVERS AND RESTRAINTS

The global Caramel Colour Market is primarily driven by the growing demand for bakery and beverage products due to changing consumer preferences for food and lifestyle, which is expected to increase the demand for the products worldwide. Rising per capita income and the growing adoption of the urban lifestyle are factors that are driving the food and beverage industry globally. This is due to the inclination of customers' eating habits towards frozen and ready-to-eat bakery products rather than traditional slow cooker products. This trend in the food and beverage industry is likely to drive the size of the caramel colour market during the forecast period. There is also significant growth in the beverage industry, which includes both alcoholic and non-alcoholic products. Product types such as caramelized sugar syrups and powdered and liquid caramel dyes are used in the production of alcoholic and non-alcoholic beverages such as lemonade, tea, fruit drinks, beer, powdered drink mixes, etc. The main obstacle to the size of the global caramel colour market is the constant increase in the prices of raw materials, which subsequently translates into higher prices for the product. Furthermore, shifting consumers' eating habits towards healthier products, minimizing the use of confectionery products in their daily routine, is a potential threat to the demand for products in the future.

REPORT COVERAGE: 

SEGMENTAL ANALYSIS

Global Caramel Colour Market Analysis By Product Form

Among all, liquid caramel dominated the overall market share of caramel colour due to its heavy use in the beverage industry. The powders/granules segment is expected to see significant gains over the forecast period as caramel powder has a better shelf life and is widely used in bakery products and packaged foods.

Global Caramel Colour Market Analysis By Product

Depending on the product, the market for caramel colour is segmented into colours, toppings, aromas, and others. Of these, the colours segment had a significant share of the caramel colour market, followed by the flavour segment. Caramel-coloured ingredients are mainly consumed in food colouring and are mainly needed in the food and beverage industry. The toppings segment is expected to be the fastest growing market for caramel colour. This can be attributed to the growing consumer preference for restaurant meals, which in turn stimulates the need for food decoration (intended to make it more attractive) and ultimately increases the demand for the products.

Global Caramel Colour Market Analysis By Application

The leading industries in which the product has vital applications are beverages (alcoholic and non-alcoholic), confectionery, bakery, and ice cream and desserts. Other applications of the caramel colour include sauces, malted foods, breakfast cereals, and more with new flavors fuelled by changes in consumer food preferences.

REGIONAL ANALYSIS

Asia-Pacific accounted for the lion’s share of about 34.07% in this market in 2017, and it is foreseen to record a substantial CAGR of about 6% during the conjecture period. China is one of the main markets in the region and represents the largest share of revenue during the review period. However, the Indian candy market is expected to show the highest growth rate during the outlook period from 2020 to 2025. North America is also expected to generate a significant share of Caramel Colour Market revenue. The growing demand for natural ingredients over synthetic ingredients in various food and beverage products is driving the growth of the regional market.

KEY PLAYERS IN GLOBAL CARAMEL COLOUR MARKET 

Key Players in Global Caramel Colour Market are Nigay, Metarom, Cargill Inc, Mars Inc,Nestle, Puratos Group, Göteborgsfood Budapest Limited, Sethness Caramel Color, Sensient Technologies Corporation, DDW The Color House, Ferrero, Kerry Group PLC.

 RECENT HAPPENINGS IN THE MARKET

• In September 2011, the Kerry Group (Ireland) acquired SuCrest GmbH (Germany), which is a leading supplier of sweet ingredients to the bakery, ice cream, confectionery, cereals and snacks industries in the European market. This strategy is helping to develop its ingredients and flavours business in the EMEA region.
• Roquette, a supplier of plant-based ingredients, completed the purchase of Sethness Products, a company that offers caramel colours for food and beverages. In July, Roquette signed the agreement to acquire 100% of Sethness, for an undisclosed price.
• D.D. Williamson, the world leader in caramel colour, has acquired Cargill's Cerestar caramel plant in Manchester, England. The deal with Europe's largest glucose manufacturer strengthens D.D.'s global sourcing operations. Williamson and expands its product line, promoting an existing supplier partnership between Cargill and D.D. Williamson.

DETAILED SEGMENTATION OF GLOBAL CARAMEL COLOUR MARKET INCLUDED IN THIS REPORT    

This research report on the Global Caramel Colour Market has been segmented and sub-segmented based on product, product Form, application & region.  

By Product Form

• Solids
• Powders
• Granules
• Liquids

By Product

• Colours
• Toppings
• Aromas
• Others

By Application

• Bakery Goods
• Soy Sauces
• Seasoning
• Alcoholic Beverages
• Soft Drinks

By Region

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa