Natural Food Color Market

Natural Food Color Market Outlook (2023 to 2033)

The global natural food color market is predicted to evolve rapidly at a CAGR of 7.4% from 2023 to 2033. The market stands at US$ 2 billion in 2023 and is expected to reach US$ 4.1 billion by 2033-end.

Natural food colors are widely available in liquid form, which is simple to spread and suitable for a wide range of formulations. Demand for natural food colors in liquid form is projected to rise faster at a CAGR of 7.9% through 2033.

Fruits and vegetables, as well as naturally generated extracts from them, are used as the raw ingredients for natural food color. Depending on the need for coloring, natural food colors are taken from various natural sources. Carrots, oranges, grapes, spinach, nettles, beets, and turmeric are typical sources of color raw materials.

Because natural food colors are derived from fruits, vegetables, and organic sources, there are very few health risks associated with them. Fruits and vegetables are rich in nutrients that the body needs, and during the extraction process, these nutrients are transmitted together with the color molecules in the solution.

Natural colors are also being used more extensively in therapeutic settings because they are either non-toxic or less toxic and have fewer adverse effects. Furthermore, because natural food colors are biodegradable and do not pollute the environment when disposed of, governments promote their use.

Food coloring has proven to be nothing short of a revolution for the food sector, which is currently being propelled by value-added goods and ethical consumerism. Customers shift their attention away from unhealthy food products and toward ethically sourced ones that have no or little environmental impact. Additionally, this increases the need for natural food coloring and emphasizes R&D initiatives to develop novel technologies to tap into the market's full economic potential.

The food and beverage industry uses natural food colors as additives to improve the color of items that have been cooked or processed. In the production of liquids, gels, gel pastes, and edible powders, they serve as a vital component that is non-toxic and environmentally friendly. They are widely used in residential and commercial cooking and provide food with a decorative appearance while also helping to keep it fresh for a long time.

For the preparation of flavored juices and drinks as well as baked goods and confections, natural food colors are used. The primary reason propelling market expansion at the moment is the escalating demand for natural food colors in the food and beverage sector. As the world's population grows, so does the need for health and wellness foods.

It is also anticipated that rising consumer awareness of the health advantages of natural ingredients would increase demand for natural food colors. The market is expanding as a result of rising consumer awareness of the advantages of using clean-label products, rising demand for product appeal enhancement, rising R&D efforts in the food industry, and rising use of microencapsulation technology.

The main factor driving demand for natural food colorants is the high functionality of superfoods and the favorable view of the term "natural." Food firms are being pushed to choose food coloring over other available alternatives in the market since consumers are very interested in using products with clear and intelligible labels.

Research is being conducted to see whether food colors made from vegetables are effective on packaged goods. The possibility of obtaining food colors from cabbages, particularly in shades of blue, represents a significant development that may have an impact on the worldwide food sector.

Due to the rarity of natural blue pigments, scientists have developed a process to produce blue pigments from cabbage. This hue is a result of the chemical anthocyanin, which also provides foods, plants, and flowers, including raspberries, blueberries, and red cabbage, with hues of red, blue, purple, and black.

Report Attributes	Details
Natural Food Color Market Size (2023)	US$ 2 Billion
Projected Market Value (2033)	US$ 4.1 Billion
Global Market Growth Rate (2023 to 2033)	7.4% CAGR
Market Share of Anthocyanin	60%
Key Companies Profiled	Frutarom; ColorKitchen; Givaudan; Sensient Technologies; Kalsec Inc.; Symrise AG; Naturex; McCormick & Company

Why is Demand for Natural Food Colors So High?

“Growing Public Awareness about Benefits of Natural Food Colors”

As consumers become more aware of the health benefits and immunity attributes of the food they consume, reliance on organic food colors is rising impressively. Numerous regulatory provisions enacted by the FDA on products created by adding additives—some certified, and others exempt from certification—are boding well for enhanced adoption of natural food colors.

Numerous adverse effects of synthetic colors, ranging from severe allergic reactions to debilitating cancers, are prompting a rapid shift towards naturally sourced additives. Severe government limitations on the production and trade of synthetic colors have encouraged food and beverage producers to switch to natural substitutes.

Multiple health risks have resulted from the rapid adoption of artificial production sources to improve food output. Demand for naturally grown food products is currently growing globally due to factors including heightened health awareness and a propensity for eco-friendly products. To restore the appeal of food and beverages after processing, food manufacturers widely use natural food colors.

What Could Possibly Hinder the Sales of Natural Food Colors?

“Fluctuations in Price of Raw Materials”

Market expansion is anticipated to be hampered by the high reliance on raw materials such as fruits, vegetables, and spices, as well as the significant price variations of the aforementioned products.

Food producers, especially those in developing countries, are discouraged from becoming as innovative as large corporations and brands that are continuously pushing for healthier food items by the high cost of extraction and raw ingredients. This aspect is hampering the natural food color market expansion.

What Do Start-ups Need to Watch Out For?

“New Market Entrants Focused on Maintaining Stability and Shelf-life of Natural Colors”

New companies are discovering fresh sources for natural food colors and creating novel approaches to extend the stability and shelf-life of natural colors.

• Aromacolors, a start-up based in Poland, offers a wide variety of food colors using both natural and artificial substances. The company's colorants enhance the appearance of raw materials and restore the food's natural colors. Aromacolors provide colorants in liquid and powder form. The business offers food manufacturers synthetic raw materials, color blends, and flavoring agents.

Which Region Holds a Dominating Position in This Industry?

“Huge Demand for Ethnic Cuisine Driving Market Value in North America”

North America holds 40% share of the global market due to rising consumer awareness about diseases linked to synthetic colors, as well as the introduction of regulations and laws restricting the use of synthetic dyes.

The market is anticipated to rise throughout the projected period due to the huge demand for ethnic cuisine being supported by a high tourist volume, a growing tourist demographic, and an increase in sporting activities.

Country-wise Insights

Why is Germany Seeing High Natural Food Color Consumption?

“Rapid Expansion of Beverage Industry in Germany”

The rapid expansion of the beverage sector, the presence of natural food color manufacturers, increased demand for natural coloring agents, and growing awareness of dietary habits to live a healthy lifestyle among consumers are driving the natural food color market growth in Germany.

Top producers of natural food colorants have access to several technologies that they may use to assess how well colors operate in a variety of food and beverage applications.

What are the Opportunities for Natural Food Color Suppliers in Japan?

“Wide Availability of Herbs and Spices across Japan”

The market is expanding primarily as a result of high consumer demand for natural food color additives, increased consumer purchasing power, and robust growth in the food and beverage sector.

Due to the extensive herb and spice cultivation in the country, ingredient firms began creating food coloring additives from different spices. These colorants are widely used in beverages and sweets.

Why is the U.S. a Leading Market for Natural Food Colors?

“Growing Usage of Natural Food Colors in Confectionery Products”

Sales of natural food colors in the U.S. are expected to rise at a CAGR of 5% over the forecast period. Demand for natural food colors is growing due to increasing incidences of diseases associated with synthetic food colors, such as cancer, cardiovascular, and dermatological diseases.

The market for natural food colors in North America continues to have strong growth possibilities, with the United States emerging as the top exporter. The prevalence of food safety controversies in the country can be traced to the quick uptake of natural food coloring in new product development. Market players will continue to benefit from ongoing efforts by confectionery companies in the U.S. to eliminate all artificial colors from their product lineup.

Category-wise Insights

Which Product is Expected to Gain Immense Popularity?

“Anthocyanin is More Preferred Owing to its Immunity-boosting Properties”

Based on product, the market is classified into carotenoid, curcumin, anthocyanin, chlorophyll, carmine, and others. Anthocyanin holds around 60% of the global market.

Anthocyanin is a natural color pigment found in many fruits and vegetables, ranging from bright red to deep blue. Natural food colorants derived from anthocyanin plant pigments possess outstanding immunity-boosting properties. Using anthocyanin, natural colorants are protected against harsh environmental elements, and encapsulation extends the shelf life of products. Anthocyanin reduces the risk of certain types of cancer, fights against aging, and helps to prevent heart attacks.

Anthocyanin is becoming more popular in the food and beverage sector due to its beneficial effects on allergies, diabetes, microbes, inflammation, and the body's immune system. Anthocyanin is being used by food and beverage producers to improve the flavor and color of their products to satisfy the demands of health-conscious consumers, which is anticipated to accelerate the expansion of the market for natural food colors.

Which Application Generates Most Revenue in this Market?

“Natural Food Colors Widely Used in Beverages to Enhance Energy-nutrient Ratio”

Based on application, the market is divided into dairy food products, beverages, confectionery and bakery products, and others.

Currently, beverages account for 40% share of the global market. This is primarily attributable to the rising demand for natural food colors to enhance the beverage's energy-nutrient ratio. Rising consumer awareness of the negative consequences of artificial chemicals driving the demand for natural food colors in beverages.

The beverage business has seen a transformation in innovation as the focus is to keep up with the latest customer trends. The demand for ready-to-drink beverages and drinks for consumption on the go is rapidly rising, and customers' interest in the components and the country of origin of those products is rising as well. Consumers choose products more often based on appearance than flavor.

Competitive Landscape

The top natural food color producers are making significant R&D investments while expanding their distribution channels. Market expansion is anticipated to be boosted by ongoing innovation and technological advancements in the food processing ingredient sector.

Key natural food color providers are working to manufacture cutting-edge products with high reliability to boost market share and profits. The majority of major businesses are integrated along the whole value chain, from raw material production to the distribution of the finished product.

For instance:

• In Montpellier, France, Chr. Hansen Natural Colors founded an R&D facility to expand the capabilities of pigment, formulation, and application with the goal of introducing new natural color solutions, notably for green, blue, and brown hues.

Key Segments of Natural Food Color Industry Research

• By Product :

  • Carotenoid
  • Curcumin
  • Anthocyanin
  • Chlorophyll
  • Carmine
  • Others

• By Form :

  • Liquid
  • Powder
  • Gel
  • Emulsion

• By Application :

  • Dairy Food Products
  • Beverages
  • Confectionary and Bakery Products
  • Others

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa