Natural Food Colours Market

Natural Food Colours Market: Significant Demand for Clean Label and Naturally Sourced Ingredients in Food Products Spurring Revenue Growth: Global Industry Analysis (2013 - 2017) & Opportunity Assessment (2018 - 2028)

Natural Food Colours Market Outlook

The natural food colours market is anticipated to grow at an impressive CAGR during the forecast period. A significant rise in demand for natural food colours has been coming from industries to enhance the appeal of products. Consumers’ proclivity towards clean-label products has been increasing, owing to the rise in health awareness and food adulteration. As a result, consumers wish to look at the label before purchasing any product, which is a crucial driver for the increasing sales of natural food colours.

In addition, several studies have found out the ill effects of food colours has been inspiring numerous government authorities to introduce legislation for the best interest of consumers’ health. As a result, the market for synthetic food colours is likely to be eventually captured by natural food colours. Numerous food products such as meat and savoury lose their appeal when cooked or grilled. As a result, the restaurant and food hubs use natural food colours in large quantities.

Hectic schedules and dual working households have directed a shift towards takeaways and dine-outs. As a result, restaurateurs are striving to enhance the look of meat products to attract more diners. On the flip side, numerous roadblocks lay for the growth of the natural food colours market. Consumers face numerous challenges regarding the expensiveness of natural food colours, owing to the complex process of extraction. In some processes, it is difficult to yield high-quality natural food colours, while in some cases, some natural ingredients exhaust.

During the COVID-19 crisis, the prices of natural food prices are likely to rise, owing to economic instability. However, this rise in the price is likely to be there for the short term. During this period, the demand for natural food products is expected to decrease.

Beverages Mainstay for Natural Food Colours, while Packaged Food Closes in

The global food industry is becoming more consumer-centric and changing rapidly. As consumer needs and eating habits are increasingly evolving, food manufacturers are hard pressed to make decisions about which segments of consumers to serve and which new trends to prioritize. This is according to Future Market Insights’ Natural Food Colours Market Report that explores a distinct move towards natural ingredients, especially within food colours.

The natural food colours market is estimated to be valued at US$ 7.7 Bn in 2019, and grow at relatively high pace as compared to synthetic colours market. In recent past, aversion of consumers towards synthetic and chemical-based products has been evident, and with it the demand for natural food colours is moving on an upward swing. This growth is attractive for market players primarily focused on natural sources of colours, while synthetic colour manufacturers are struggling to switch and fulfil the newer demands.

Several companies such as McCormick & Company, Inc. are filing colour additive petition (CAP) for the expanded safe use of natural food colours across various countries. Regulatory bodies such as FDA are therefore amending colour additive regulations. Subsequently, faster approval of natural food colours is expected to decelerate sales of artificial food colours.

Demand Bolstered by Notable Changes in Beverages Industry

In 2018, natural food colours of around US$ 2.3 billion were sold for application in beverages. Today, as focus shifts towards convenience food and beverages, a step change in innovation is noticeable in the beverage industry to tap into newer consumer trends. In addition to rapid increase in demand for ready-to-drink and on-the-go drinks, consumers’ inquisitiveness about ingredients and their sourcing is increasing. Expected to account for one third share by 2029, recent changes in the beverage industry will continue to influence the growth of natural food colours market.

In the processed food sector, colour is one of the important aspects, and goes a significant way towards determining the success or failure of new product launches. Key players in the natural food colours market are therefore focusing on capitalizing on rapidly growing demand for packaged food and frozen products. Further, flavour innovations are trending in the dairy industry which is expected to weigh on same scale as growing demand for natural food colours.

Asia Pacific Promises Lucrative Growth Opportunities

Growth prospects of the natural food colours market continue to remain high in Asia Pacific, with China emerging as the largest exporter. Rapid uptake of natural food colours in new product development can be attributed to pervasiveness of food safety scandals in the region. In North America, natural food colours appeared on the scene, with implementation of strict rules to prohibit the use of harmful synthetic colours containing lead, arsenic, and mercury. Continuous efforts of confectionery brands in North America to phase out all artificial colours from their product portfolio will continue to work to the advantage of market players.

Carotenoid Takes Centre Stage with 95% Revenue Share

Ease-of-use, superior stability, enhanced appearance and greater consumer appeal have resulted in carotenoid accounting for major share of manufacturers’ bottom lines. As natural food colours worth US$ 7.3 Bn sold in 2018 were based on carotenoid, manufacturers are specifically focused on this category. However, with growing demand for natural blues and green shades in beverages and confectionery, sales of spirulina extracts are expected to grow at a higher rate than carotenoid in the future.

A number of key market players are further tapping superfood spirulina for its antioxidant properties, high nutrient content, and vibrant colour to deliver 100% natural and clean label food colours. As the next big wave of innovation in the natural food colours market is set to focus on providing consumers with health and functional benefits, volume sales of carmine are expected to witness its lowest during the period 2019-2029. Apart from effects of carmine to consumers with bug allergies, the rise of vegan culture is projected to represent a potential challenge to the sales of carmine, despite its ‘natural’ status.

Demand in MEA Ascending Despite High Price Point

High pricing of natural food colours in countries of Middle East & Africa has restricted the market expansion in the region. Significant dependency on imports in Middle East and unfavourable climatic conditions in sub-Saharan Africa to establish manufacturing facilities have resulted in relative high price of natural food colours as compared to other regions. Despite the high price, the ban on quinoline yellow and tartrazine in most drinks and products in the UAE are projected to push transition to natural food colours, and subsequently fuel market growth.

Lower average price in North America can be attributed to increasing focus on identification of new botanical sources to improve shade range and final cost. In addition, greater adoption of new technologies in extraction, processing, and stability enhancement has played an essential role in overcoming cost-in-use challenges, thereby improving the final pricing.

Natural Food Colours Market Report Scope

Attribute

Details

Forecast Period

2013-2017

Historical Data Available for

2018-2028

Market Analysis

US$ Mn for Value

Key Regions Covered

North America, Latin America, Eastern Europe, Western Europe, APEJ, Japan, and Middle East & Africa (MEA)

Key Countries Covered

U.S, Canada, Mexico, Brazil, Rest of Latin America, Germany, United Kingdom, France, Italy, Spain, Benelux, Nordic Region, Rest of Western Europe, China, India, Australia, Japan, ASEAN, Rest of APAC, New Zealand, GCC, South Africa, and Rest of MEA

Key Segments Covered

Product, Channel, Region

Key Companies Profiled

  • Sensient Technologies Corporation
  • Archer Daniels Midland
  • Naturex S.A.
  • Döhler GmbH
  • Symrise AG
  • Chr. Hansen Holding A/S
  • McCormick & Company
  • Kalsec Inc.
  • DDW The Color House Corporation
  • ROHA Dyechem Pvt. Ltd. (JJT Group)
  • Aakash Chemicals and Dyestuffs
  • AFIS (Australian Food Ingredient Suppliers)
  • San-Ei Gen F.F.I Inc.
  • GNT International B.V (EXBERRY)
  • Adama Agricultural Solutions Ltd. (LycoRed)

Report Coverage

Market Overview, Key Market Trends, Key Success Factors, Demand Analysis, Market Background, COVID-19 Analysis, Segmental Analysis, Regional Profiling, Market Structure & Competition Analysis

Customization & Pricing

Available Upon Request

Key Segments Covered

Analysis by Pigment Type

  • Carotenoid
    • Beta carotene
    • Annatto
    • Lutein
    • Lycopene
  • Curcumin
  • Anthocyanin
  • Paprika extract
  • Spirulina extract
  • Chlorophyll
  • Carmine

Analysis by Application

  • Dairy Food Products
  • Beverages
  • Packaged Food/Frozen Products
  • Confectionery and Bakery Products
  • Others

Key Regions/Countries Covered

  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Western Europe
    • Germany
    • France
    • U.K.
    • Spain
    • Italy
    • Benelux
    • Nordic
    • Rest of Western Europe
  • Eastern Europe
    • Russia
    • Poland
    • Rest of Eastern Europe
  • APEJ
    • China
    • India
    • Australia & New Zealand
    • ASEAN
    • Rest of APAC
  • Japan
  • MEA
    • GCC Countries
    • Turkey
    • South Africa
    • North Africa
    • Rest of MEA

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Natural Food Colours Market