The global food colors market is expected to hit $3.75 billion in 2022, according to a new report by India-based market research firm Markets and Markets.

In “Food Colors by Market Type, Application, Form and Solubility,” Markets and Markets reports the overall food color market will see a compound annual growth rate (CAGR) of 8.4 percent from 2016 to 2022. The projected growth is based, in part, on greater demand for dyes and natural colors.

The report discusses color use in confectionery, bakery, beverage, dairy, meat and other products. It also breaks down color use by type -- natural, synthetic and nature-identical -- and by formulation -- liquid, liquid gel, gel paste and powder.

Markets and Markets reported the natural color segment occupied the largest slice of the market in 2015, thanks to greater demand for products made with natural colors and flavorings. However, the dye segment is projected to be the largest and fastest-growing segment during the forecast period because of its stability and versatility.

Furthermore, the beverage segment is projected to be the fastest-growing user of colors and dyes. Flavored drinks, nutritional drinks and soft drinks like fruit juices are nectars among the applications that call for added colors.

Regionally, the Asia-Pacific food color market is projected to have the highest CAGR. Markets and Markets says the growth can be attributed to the higher level of production in the countries such as Australia and New Zealand, greater demand for natural products and increased consumer expenditures on food and beverages.