Owing to the abundant availability, low processing cost, and efficient application in the food industry, the synthetic color segment held the largest market share in the Japanese food colorants market. Further, synthetic colors are preferred by many food manufacturers due to their texture attributes and feasible consistency. However, the segment is experiencing a downfall, due to the increasing interest of consumers toward natural ingredients, which is estimated to alter the revenue share of the synthetic color segment during the forecast period.

Beverages lead the Japanese food colorants market, as it accounted for the highest consumption rate among other industries. The escalating consumer preference for convenience foods is another factor boosting the market for on-the-go beverages, which is leading to new product launches and developments in the industry. Manufacturers are rolling out innovative products to fill the gaps to serve the needs of the application segment. For instance, in 2019, the Japanese firm, San-Ei-Gen, launched a red-radish-derived food colorant that does not impart off-flavors in applications, including beverages.