Natural Food Colours Market Analysis: How Government Regulations & Consumer Awareness are Driving the Market

Humans have a tendency of judging the quality of food by its colour. The shinier and brighter the food, the better the quality. This perception has been around for ages - the well-off people in the Rome used to add saffron, beet, and even gold to enhance the aesthetics of food.

A Primer on Food Colours

Although the addition of colours enhanced the appearance of food, it also made it difficult for people to distinguish between quality food products and ‘made-up’ food products. Furthermore, research on the use of food colours found that the use of certain food colourants put public health at risk.

One of the earliest regulations on the use of food colours was the passing of Food and Drug Act in 1906. The Act not only banned the addition of certain colours, but also prohibited the use of colourants to make low-quality food products look better. The formation of Food and Drug Administration led to more stringent checks on food colourants, categorising the colours into ‘certified’, and ‘exempt from certification’.

Food Colours are Being Regulated by Authorities

Over the years, regulations on the use of food colours have been overhauled and today, food colours are subject to approvals from regulatory authorities before they are put to use. In the United States of America, colour additives are regulated by the Food and Drug Administration. In Europe, European Food Safety Authority is responsible for assessing the risk regarding food and feed safety. In China, the China Food and Drug Administration (CFDA) regulates the use of food additives, including food colours. The Food Safety and Standards Authority of India (FSSAI) is the regulatory body that monitors food colour use in India.

Although government regulations have, to some extent, helped in ensuring that harmful additives don’t find their way into our food, something more important has happened on the consumer front. Over the years, consumers have taken a liking to food products that have the words, “no artificial flavours or colours” on their packaging. Consumers in developed regions, such as the US and Europe, are increasingly making conscious decisions to avoid food products that contain artificial colours.

While it is true that not all artificial colours are harmful, the negativity surrounding them has meant that demand for natural food colours has grown tremendously in the recent past. And, according to the prevalent market conditions, it seems that the demand will only increase in the future. Our market research on the natural food colours market found that the global natural food colours market, which was worth US$ 1,144 Mn in 2014, would expand at a CAGR of 6.8% to reach a valuation of US$ 1,697 Mn by 2020.

These developments in no way mean that artificial colours have ceased to exist or that they won’t be used in the future. Manufacturers rely heavily on artificial food colours, not only because they are comparatively cheaper, but also because they offer greater stability than natural food colours. Natural food colours’ low resistance to heat and moisture makes artificial colours an appealing option for manufacturers.

The State of the Natural Food Colours Market

The above-mentioned developments are anticipated to augur well for the growth of the natural food colours market. According to our market research, the demand for natural food colours will be robust in Asia Pacific (excluding Japan). Although the level of awareness in APEJ is lower than that in US or Europe, Asia Pacific’s high population, will present lucrative opportunities to the stakeholders in natural food colours market. It is anticipated that the natural food colours market in APEJ will be worth US$ 48 Mn by 2020.

Food products containing natural food colours will also see high demand in the US and Europe. Over the years, advocacy groups and not-for-profit organisations have helped spread awareness about the risk factors associated with artificial food colours in these regions. Unsurprisingly, these two regions had a 50% share (approx.) of the global natural food colours market in 2014. The findings of our market research report indicate that the combined value of natural food colours market in these two regions will be worth US$ 933 Mn by 2020.

Types of Natural Food Colours

Different types of natural food colours are used as additives during food manufacturing. Popular types of natural food colours include, carotenoids, curcumin, anthocyanin, paprika extract, and spirulina. Among these natural food colours types, the demand for carotenoids is the highest, and it is anticipated that it will have a market share of 31.5% by 2020. On the other hand, spirulina will witness the highest CAGR of 12% in the next five years.

The natural food colours market is poised to witness steady growth, and key stakeholders in this market will be looking to consolidate their position through new offerings and informative marketing campaigns. Keeping in mind the fact that consumer demand for clean label products is only going to increase, there is an enormous opportunity for companies to reach new audience.

Browse Full: "Global Natural Food Colours Market Analysis & Opportunity Assessment, 2014 - 2020" Report at http://www.futuremarketinsights.com/reports/details/global-natural-food-colours-market