When priority is placed on a small file size, the number N of kinds foreground identifiers used for identifying color information of respective pixels of a foreground of a color image is reduced to M, which is smaller than N. For this purpose, a foreground identifier corresponding to pixels in number not more than a prescribed number K of pixels is replaced with a background identifier. When M is not more than a prescribed number P, M binary images respectively corresponding to the M kinds of identifiers are generated on the basis of a foreground layer including the M kinds of foreground identifiers, the respective binary images are subjected to lossless compression, and a background layer generated on the basis of the foreground layer is subjected to lossy compression.