South America Food Colorants Market - Growth, Trends, and Forecast (2018-2023)
The South America food colorants market is likely to register a CAGR of 3.9%, during the forecast period, 2018-2023. South America is expected to grow at a steady pace in food colorants market owing to its evolving processed food industry.
Growing Demand for Convenience Food
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. Millennial prefers convenient foods along with naturally derived ingredients, which is expected to fuel the expansion of the food colorants market in South America in the years to come. Ease of governmental regulations for food colorants will further fuel the development of the market. The derived benefits from consumption of natural ingredients are likely to drive the growth of the market. Even though synthetic food colorants are still extensively used but with recent health trends it is expected that natural food colorants would likely gain traction during the forecast period.
Growing Application in Bakery Sector
The South America food colorant market is segmented by type and application. Rise in demand of clean label products have led to the rise in the usage of natural colors in food processing industry. The type of colorants considered in this segment, namely natural colors, synthetic colors, and coloring foodstuff. Bakery products are expected to grow at a considerable pace owing to growing usage of food colorants. By application, the market has been segmented into beverages, dairy & frozen products, bakery, meat, products & seafood, confectionery, oils & fats, and others.
Brazil to dominate the market
South America has an emerging market for food colorants due to rise in usage of food colorants from countries, such as Brazil, Chile, and Argentina. An economic environment in countries, such as Brazil and Venezuela has slowed down the demand for natural colors in the market. Rise in purchasing power of consumers is one of the key factors, which is driving the growth of the food colorants market in South America. Rise in food processing sector in Brazil is expected to boost up the food colorants market. Argentinian consumers are increasingly demanding health and wellness packaged food, despite the economic crisis, which, in turn, is expected to benefit natural food colorants market in South America.
The company uses strategies, like forming new agreements and partnerships with local players to increase their foot print in the foreign country and release new products according consumers changing preferences. Certain players have been expanding their geographical presence by acquiring or merging with the manufacturers in the foreign markets.
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