Natural Food Colors Market is estimated to be valued at USD 1.56 Bn in 2024 and projected to reach USD 2.75 Bn by 2031, exhibiting a CAGR of 8.4% over the forecast period. Consumers are increasingly looking for food products with simple and recognizable ingredients lists, thus, boosting demand for clean label products. Furthermore, rising health consciousness has propelled the demand for natural food colors as these are considered safer alternatives to artificial food colors.
Global natural food colors market growth is driven by rising consumer preference for clean label products and increasing demand for natural colors from the food and beverage industry. Consumer demand for clean label and organic products has been steadily rising. People are paying closer attention to ingredients lists and avoiding artificial ingredients. This shift towards simple and recognizable ingredients has boosted the demand for natural food colors. Food and beverage industry has also been utilizing natural colors more widely to cater to consumer preference. Beverage manufacturers especially are incorporating natural colors into beverages to differentiate their products and appeal to health-conscious buyers. The growing applications of natural food colors across various industry verticals are likely to support the market growth in the near future.
Rising health awareness among consumers
Consumers are increasingly becoming aware about harmful effects of consuming artificial food colors and preservatives. There is a growing preference for natural and organic products that does not contain any artificial ingredients. This is one of the major factors boosting demand for natural food colors. People want to make healthier choices and read ingredient lists closely to avoid synthetic chemicals in their food. Manufacturers are responding to this demand by removing artificial colors and replacing them with natural alternatives. Moreover, some countries have imposed regulatory restrictions on certain artificial food colors due to safety concerns. This has compelled companies to shift to natural dyes and pigments. The focus on wellness and clean label trends will continue propelling the natural food colors industry in the near future.
Growing demand for clean label and organic products
Consumers nowadays pay close attention to ingredients and want products that are free from artificial preservatives, colors, flavors, and other additives. The clean label movement is prompting major food and beverage makers to overhaul their formulations and switch to natural substitutes. Natural food colors made from plant and mineral sources match the clean label definition. Manufacturers obtain a marketing advantage by putting 'natural', 'organic' labels on products containing natural hues. Rising health-focused Millennial population is another driver behind clean label solution. This consumer behavior creates sustained opportunities for natural food colors complying with clean label standards.
High production costs associated with natural colors
Natural food colorants are generally more expensive to produce as compared to artificial synthetic ones. Their sources are directly obtained from natural plant, mineral or animal matter and require complex extraction processes. This makes their manufacturing a costly affair for industries. Artificial colors can be easily synthesized in laboratories at lower costs. Switching entirelyto natural hues will increase formulation expenses for food producers. Some natural shades also exhibit less color stability and intensity compared to synthetic equivalents. Their inconsistent supply chains due to agricultural dependencies further raises prices. These economic factors pose a challenge for widespread adoption of natural colors.
Stringent regulatory approvals for new natural color sources
Any new natural color sources require rigorous safety testing and approvals from regulatory bodies before commercial use. Their extraction processes must be carefully optimized to prevent toxic impurities. This evaluation and certification process for novel natural pigments is lengthy and involves high research costs. Standardized documentation is needed to prove their color stability and uniformity. Regulatory clearances can take 2-3 years, acting as a restraint for new market entrants. Existing players enjoy a first-mover advantage over innovations in natural dye technologies. The cumbersome regulatory framework surrounding novel natural colors can delay their commercial scale-up for industries.
Expanding organic food market
The global organic food industry has witnessed exponential growth over the past decade, owing to rising health consciousness. More consumers are willing to pay premium prices for organic variants. Their clean production backgrounds appeal greatly to informed buyers. Manufacturers are innovating new product lines fortified with natural colors to target affluent organic consumers. Regulatory harmonization is also creating export opportunities across borders. Novel applications in baby foods, dietary supplements further boost its demand. The prolific organic sector will keep widening opportunities for natural color suppliers.
Growing trend of natural ingredient innovation
With the clean label emphasis, companies are focusing tremendous resources on new plant-based innovations that deliver solutions matching consumer desires. These are experimenting extensively with novel botanical and mineral sources for natural colors. This opens up exciting opportunities for blending colors and health benefits. For example, colors from berries containing antioxidants or turmeric imparting anti-inflammatory properties. There is a strong focus on innovation to find sustainable natural substitutes for synthetic colors currently used in categories like confectionery and bakery. This offers vast prospects for new ingredient developers in the natural colors domain to partner with big brands. Novel applications across industries also augments growth avenues.
*Link: https://www.coherentmarketinsights.com/market-insight/natural-food-colors-market-3800
Key Developments
- In January 2024, Phytolon and Ginkgo Bioworks successfully achieved the first milestone to produce vibrant natural food colors via two producing strains
- In July 2022, Symrise AG, a producer of flavours and fragrances, offered an emollient with antimicrobial properties that protects the skin from scalp to toe. Among other functions, the ingredient supports dandruff control concepts. It also works well in skin care products for acne-prone and oily skin
- In June 2022, Symrise AG, a producer of flavours and fragrances, built a factory in Grasse for Maison Lautier 1795 to reinforce its position in natural raw materials. This will complement its existing factories in Holzminden, Germany, and Madagascar.
- In 2022, Sun Chemical launched SUNFOODS natural colorants for food and beverage
Key Players
Givaudan, BASF SE, NATUREX, Australian Food Ingredient Suppliers, Sensient Technologies Corporation, ADM, Spring TopCo DK ApS (Oterra), Allied Biotech Corporation, ROHA Group, Kalsec Inc., Döhler GmbH, San-Ei Gen F.F.I., Inc., AROMATAGROUP SRL, Ingredion, Vivify, Roquette Frères, INCOLTEC, IFC Solutions, Aarkay foods, Vinayak Ingredients (INDIA) Pvt. Ltd.