Caramel is a medium to dark-brown confectionery product made by heating a variety of sugars. It can be used as a flavoring in puddings and desserts, as a filling in bonbons, or as a topping for ice cream and custard.

Caramel color or caramel coloring is a water-soluble food coloring. It is made by heat treatment of carbohydrates, in general in the presence of acids, alkalis, or salts, in a process called caramelization. It is more fully oxidized than caramel candy, and has an odor of burnt sugar and a somewhat bitter taste. Its color ranges from pale yellow to amber to dark brown.

Caramelization, the act of breaking up the natural sugar molecules in food to create a different flavor compound, makes everything taste better. Caramelization is one of the most important types of browning processes in foods. It is the interaction between sugar and sugar. Fructose and glucose are reducing sugars so they give their electrons to other molecules developing compounds which give caramel colors and flavors, viz; Diacetyl gives a buttery flavor, Furan gives a nutty flavor, Acetaldehyde gives a rum or cherry components flavor.

Few Indian Major Players are as under:

•       Aarkay Food Products Ltd.

•       Dynemic Products Ltd.

•       International Flavours & Fragrances (India) Ltd.

•       Kancor Ingredients Ltd.

•       Neelikon Food Dyes & Chemicals Ltd.

•       Universal Starch-Chem Allied Ltd.

•       Vidhi Dyestuffs Mfg. Ltd.

Market Outlook

Caramel Color is the world's most widely used food colorant. Technology is commonly found in many food and beverage products and is considered to be safe and harmless according to leading food ingredient author Technologies worldwide. Technology is mainly used in bakery goods, soy sauces, alcoholic beverage, soft drink etc.

The global natural food colors market was valued at USD 1. 3 Billion in 2016, and is expected to register a CAGR of 7.8% over the forecast period i.e. 2016-2023. Further the market is estimated to garner USD 2.1 Billion by 2023 on account of rising demand of natural food color in food industries and rapid expansion of food and beverages sector across the globe.

The food colors market, in terms of value, is projected to reach USD 3.75 Billion by 2022, at a CAGR of 8.40% from 2016.

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