Color image sensors use color filter arrays (CFA) to capture information at each sensor pixel position and require color demosaicing to reconstruct full color images. The quality of the demosaicked image is hindered by the sensor characteristics during the acquisition process. In this work, we propose a bandelet-based demosaicing method for color images. To this end, we have used a spatial multiplexing model of color in order to obtain the luminance and the chrominance components of the acquired image. Then, a luminance filter is used to reconstruct the luminance component. Thereafter, based on the concept of maximal gradient of multivalued images, we propose an extension of the bandelet representation for the case of multivalued images. Finally, demosaicing is performed by merging the luminance and each of the chrominance component in the multivalued bandelet transform domain. The experimental evaluation of the proposed scheme shows beneficial performance over existing demosaicing approaches.