Global Synthetic Food Colors Category - Procurement Market Intelligence Report

Key Features of Report

Supply Market Insights	Procurement Best Practices
Cost Saving Opportunities	Pricing Models
Negotiation Strategies	Category Risk Analysis
Key Supplier Analysis	Supplier Capability Matrix

Synthetic Food Colors - Category Spend Analysis

According to procurement analysts at SpendEdge, there is a steady growth in the processed food industry. Synthetic food colors are extensively used in processed foods such as confectionaries, sausages, soft drinks, baked goods, cereals, and snacks. The global processed food and beverage market is expected to reach over US$6 trillion by 2021. Therefore, the demand for synthetic food colors in the processed food industry is expected to drive the global synthetic food colors market in the coming years.

One of the emerging market trends is the demand for synthetic food colors from the growing dairy industry. The global market for dairy products is expected to grow due to the rising awareness about the importance of milk products in aiding a balanced and nutrient-rich diet, especially in developing economies. Also, innovations in texture and flavoring of dairy products such as yogurt and cheese are expected to lead to the growth of the dairy industry. Moreover, dairy products are increasingly being preferred as they are a convenient and cheap source of protein. Furthermore, trends such as healthy snacking and increasing consumption of food prepared outside the home are expected to favor the growth of the dairy industry, in turn, driving the demand for synthetic food colors.

Synthetic Food Colors - Procurement Best Practices

One of the procurement best practices for buyers is to engage with suppliers that provide traceability in the supply chain. Suppliers must facilitate buyers with the ability to track any food products (inclusive of synthetic food colors) that are to be used for consumption through several stages of production, including processing, testing, and distribution. This aspect is essential due to the increasing global trading of food and adoption of various mandatory regulations on traceability by various regions as the primary objective is to prevent plant diseases and foodborne illnesses.

Synthetic Food Colors - Procurement Challenges

According to this procurement research, one of the key procurement challenges faced by buyers is the difficulty in assessing supplier's adherence to regulatory norms and compliance requirements. Production of synthetic food colors involves the use of chemicals that may not be permitted in end-user applications such as food and beverage. In addition, regulations vary across different regions. Buyers, therefore, find it difficult to evaluate the adherence of suppliers to varying regulations and non-compliance may result in hefty penalties and fines.

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Food colors refer to dyes/pigments that imparts colour when added to food products. Food colors can be in powder, liquid, gel, or paste forms. Food colors are added to enhance visual appeal of food products and for protection of minerals and vitamins during exposure to sunlight. Synthetic or artificial colors are manufactured using chemical processes and are most commonly used in the food and pharmaceutical industries. Most commonly used synthetic food colors include Sunset yellow, Tartrazine, Carmoisine, Erythrosine, Ponceau 4R, and Brilliant blue FCF. This upcoming procurement research report, which is part of SpendEdge’s chemicals category, would provide actionable insights on the pricing trends, growth drivers, procurement challenges and best practices, and the supply landscape in the global synthetic food colors market.

Category overview of the global synthetic food colors market

Analysts at SpendEdge consider the various segments within the market. Based on the key market segments, the market can be categorized into:

• Food and beverage
• Pharmaceutical
• Personal care
• Industrial applications

This upcoming procurement research report on the global synthetic food colors market would provide detailed insights into the continuously evolving supplier landscape to help improve source-to-contract cycle performance. Additionally, it helps sourcing professionals develop enhanced category strategies, understand supplier and market challenges, boost savings, and implement sourcing best practices.