Carmine Market Size, Share & Trends Analysis Report By Application (Beverages, Bakery & Confectionery, Dairy & Frozen Products, Meat, Oil & Fat), By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global carmine market size was estimated at USD 16.7 million in 2017. It is anticipated to witness a 5.8% CAGR in terms of revenue over the forecast period. Increasing application in food products including meat, beverages, dairy and frozen products, and processed foods is expected to drive growth. In addition, growing penetration in bakery and confectionery applications including cakes, pastries, and candies is expected to drive demand.

Carmine is manufactured using cochineal extracts. Hence, it does not fall under purview of clean label products. As a result, it is witnessing a mixed reaction by consumers. However, unavailability of sustainable alternatives and lesser side effects as compared to synthetic colors are factors driving the demand from various end-use industries.

Cochineal extract used for the production of pure carmine is derived from female cochineal insects found on Coccus cacti. Peru and Canary Islands are the major producers of pure carmine, which is imported by U.S. The demand from U.S. is growing as the pigment imparts a rare magenta-pink-red color to meat products, candies, and ice-creams.

Rising consumer demand for natural food colors to substitute synthetic colorants to reduce their adverse health impacts is expected to complement market growth. Food companies aiming to be a part of the hygienic food future are investing in the introduction of new food products with natural additives and development of improved formulations of carmine food color.

Demand for female cochineal bugs is witnessing a rise as they are the only pure source of carmine. Certain companies are using artificial means to create similar weather conditions, which will aid in breeding of these bugs in other parts of the world. This is expected to lower the overall price of carmine over the forecast period.

High prices of color formulations owing to the laborious manufacturing process as compared to its synthetic substitutes are expected to restrain the growth of the carmine market. However, increasing yield of carminic acid owing to the use of improved extraction and processing processes is expected to further reduce the price in the near future.

Application Insights

Demand from dairy and frozen products is expected to witness growth over the forecast period. This can be attributed to stringent regulatory measures introduced by concerned authorities against the use of synthetic food colors. As a result, the usage of synthetic colors in dairy products such as flavored milk and flavored frozen yogurt has reduced significantly.

Rising demand for the color in processed meats and meat products such as sausages and bacon is expected to drive the market over the forecast period. Increasing use of carmine in forming a film over sausages to improve their aesthetic appeal coupled with increasing demand for meat products in developed economies such as the U.S. and U.K. is likely to propel market growth.

The oil and fat application segment is expected to witness a 4.9% CAGR in terms of revenue over the forecast period. Increasing application in cooking oils, including chili oil and palm oil, coupled with high utilization of colored oils in various types of sauces is expected to drive market growth over the forecast period.

Changing consumer lifestyle coupled with rising awareness regarding health hazards associated with synthetic products has resulted in increased consumption of fruits and vegetables. Furthermore, growing regulatory frameworks pertaining to the use of synthetic colorants in fruits is expected to have a positive impact on demand for carmine.

Regional Insights

The presence of major meat processors, such as Tyson Foods and JBS USA Holdings, Inc., has resulted in high consumption of meat products in the U.S. over the past few years. Demand from the U.S. is likely to be driven by rising substitution of synthetic red colors with carmine in the meat industry on account of growing concerns regarding the adverse effects of the former.

Europe accounted for 36.55% market share in terms of revenue in 2017. The presence of stringent regulations limiting the use of artificial colors in bakery and confectionery, dairy, and beverage products in Europe have triggered the adoption of natural food coloring products such as carmine, carotenoids, curcumin, and anthocyanin among others; driving industry growth.

Asia Pacific is expected to witness a significant CAGR in terms of revenue over the forecast period. Factors such as widening media exposure, consumer outrage over artificial products, improving regulatory framework, and losses in market value and shares have also contributed to rapid adoption of carmine and other natural additives by regional manufacturers.

Central and South America offers significant potential for growth to global food and beverage manufacturers, mainly as North America and Europe are reaching a state of slowdown and maturity. As manufacturers focus on using natural colors to meet the food regulations, the product demand is expected to witness growth.

Carmine Market Share Insights

Consumers are apprehensive about carmine as it is extracted from insects. Hence, manufacturers are facing challenges as a large number of players in application industries are limiting their use to very few foods and beverage products. As a result, the manufacturers are searching for a perfect substitute for cochineal carmine.

Vertically integrated companies, such as Chr. Hansen, use their manufactured carmine color in dairy products as a food additive to enhance the aesthetic appeal of ice creams, yogurt, cheese, and milk alternatives. They also offer their wide product portfolio to other players in the food processing and manufacturing industry.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global carmine market report on the basis of application and region:

• Application Outlook (Volume, Tons; Revenue, USD Thousand, 2014 - 2025)

  • Bakery & Confectionery

  • Beverages

  • Dairy & Frozen Products

  • Meat Products

  • Oil & Fat

  • Fruits & Vegetables

  • Other Food Products

• Regional Outlook (Volume, Tons; Revenue, USD Thousand, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa