Allura Red AC Market To Increase at Steady Growth Rate

Industry Insights

Food colours including synthetic, natural, or nature identical, are used in foods and beverages to enhance the flavour and appearance. Allura Red AC is an azo dye produced from petroleum to create shades of red. It is most commonly used red food dye. It is also known as calcium lake and aluminium lake with FD&C Red. No. 40. Allura Red AC originated in the United States and find potential use as a replacement for amaranth in food colouring. This has resulted in around 90% consumption of allura red AC in food colouring and only 10% in cosmetic and other industries.

The global allura red AC market is driven by increasing demand of food colorants food and beverages industry. Increasing demand for ice-creams, sausage casting, candies, cold drinks, dairy products, sugar confectionary, bakery products flour confectionary, frozen products, and gelatine desserts, etc. is fuelling the growth of global allura red AC market. Moreover, the lower prices of synthetic colours is also driving the growth of global allura red AC market. Furthermore, the ease of availability of raw material is an aid to the overall growth of allura red AC market.

However, the global allura red AC market is witnessing significant growth, there are few restraints to the allura red AC such as natural food colourants adoption for colouring in other North American and European countries. This is supported by stringent food colorants policies in these countries along with consumers inclination towards green and clean-label food and beverage products.

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The global allura red AC market is divided into seven regions, namely North America, Latin America, Asia Pacific excluding Japan (APEJ), Western Europe, Eastern Europe, Japan and Middle East and Africa (MEA). China holds the major share in the global allura red AC Market in terms of production of allura red AC products. The allura red AC market in the APEJ region is expected to grow at a substantial growth rate. Allura Red AC usage is banned in European countries such as Denmark, Belgium, France, and Switzerland. In US allura red AC has been approved by the FDA for use in cosmetics, drugs and food. The global allura red AC food colorants adoption in MEA is relatively lesser than in other regions of the globe due to low availability of raw materials in this region.

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