The global natural food colors market size was valued at USD 1.5 billion in 2017 and is anticipated to exhibit a CAGR of 6.7% during the forecast period. Rising preference for natural products over artificial coloring agents is projected to drive the market. Synthetic food colors can lead to health hazards such as tumors, kidney damages, and different types of allergies. Increasing consumer awareness about the benefits of natural ingredients over harmful artificial products is expected to augment product demand in near future.
Natural food colors market revenue, by product, 2014 - 2025 (USD Billion)
Growing demand from application industries, such as beverages, bakery and confectionery, and dairy products is expected to have a positive impact on utilization of carotenoids, curcumin, anthocyanin, and carmine. This factor is expected to drive market growth over the forecast period. Companies are investing in development of advanced ingredients, and modified formulations. They are focused on building new and transitional brand stories to meet changing consumer demand. As synthetic colors fade from view, new trends in brightly colored foods are emerging. Consumers are not only comfortable with vibrant hued consumables, but are also on the lookout for innovative and healthy products. As a result, manufacturers focus on new product development with natural ingredients that do not have adverse health effects.
Segmentation by Product
• Copper Chlorophyllin
Carotenoids and other segments held the largest market share in terms of revenue and together accounted for more than 60.0% in 2017. Carotenoids are organic pigments found in various plants and organisms. These products act as anti-oxidants and coloring agents and protect the body against cellular damage, chronic diseases, and effects of aging. Increasing health concerns and demand for natural ingredients are expected to drive demand for carotenoids over the forecast period. In addition, growing demand from non-alcoholic beverages, frozen products, and bakery is expected to aid natural food colors market growth in the forthcoming years.
Anthocyanin is predicted to be the fastest growing segment recording a CAGR of 7.3% from 2017 to 2025. Anthocyanin is the most preferred product in food and beverage industry mainly because it offers good heat, pH, and light stability. It can withstand Ultra-Heat Treatment (UHT) and pasteurization. It is available in shades of orange, red, pink, purple, and blue. Furthermore, anthocyanin is among few sources of natural blue and purple shades that are stable and water soluble. As a result, demand for this product is expected to grow considerably over the forecast period.
Segmentation by Application
• Bakery & Confectionery
• Dairy & Frozen Products
• Meat Products
• Oil & Fat
• Fruits & Vegetables
Beverages dominated the overall natural food colors market with a value of USD 410.1 million in 2017. High adoption by confectionery product manufacturers is expected to drive demand over the forecast period. It is expected to expand at a CAGR of more than 7.0% over the forecast period.
Increasing consumer awareness regarding harmful effects of artificial additives has resulted in increasing demand for naturally-colored bakery and confectionery products. Natural colors are free of Genetically Modified Organisms (GMO) and allergens. In addition, usage of these products allows vendors to meet strict regulatory standards regarding allowable elements in consumables. As a result, demand in this segment is expected to grow substantially over the forecast period.
Segmentation by Region
• North America
• Asia Pacific
• Middle East & Africa
• Central & South America
Asia Pacific is expected to be the fastest-growing region, exhibiting a CAGR of about 7.5% in the forthcoming years. Central and South America is also expected to witness substantial growth during the study period, mainly on account of increasing consumer disposable income in Brazil, Argentina, and Chile. Rising awareness regarding health hazards associated with synthetic colors may further propel regional demand in near future.
Naturex, Roha Dye Chem Pvt. Ltd., Chr. Hansen, Sensient Technologies Ltd., Doehler, and Diana Naturals SAS are the key players operating in the natural food colors market. These companies have global presence with manufacturing facilities and sales offices spread across all the regions. However, Chr. Hansen and Naturex are the leading and most active manufacturers. Naturex exclusively manufactures natural ingredients, dietary supplements, and natural pigments and flavors derived from natural sources.
Other companies such as Sensient, Doehler, Roha, and Diana are the key market players with a wide range of product portfolio and focus on the research & development and innovation. All the companies focus on developing new products and improving characteristics of existing product in terms of thermal and pH stability. The companies mostly compete on the basis of price and range of products derived from a single source. For example, cochineal insects are a pure source of natural carmine while oranges are a pure source of carotenoids.
Research Support Specialist, USA