Natural Food Color Additive Market

Natural Food Color Additive Market Outlook (2023 to 2033)

The global natural food color additive market is valued at US$ 1.7 billion in 2023 and is projected to expand at a CAGR of 7.2% to reach a size of US$ 3.41 billion by the end of 2033.

Natural food color additives, also known as natural food colorants or natural food dyes, are substances derived from natural sources such as fruits, vegetables, plants, animals, and minerals. They are used in the food industry to add or enhance color in various food products while avoiding the use of synthetic or artificial colorants.

Natural food color additives are preferred by consumers who seek more wholesome and clean-label products, as they are perceived as healthier alternatives to synthetic food dyes. They are commonly used to impart vibrant colors to foods and beverages without the need for artificial chemicals. Some types of natural food color additives are carotenoid, curcumin, anthocyanin, paprika extract, spirulina extract, chlorophyll, and carmine.

Based on Fact.MR's analysis, sales of spirulina extracts are predicted to increase at a high pace during the next 10 years. At present, carotenoids are dominating the sales of natural food colors. However, it is forecasted that spirulina extract sales will eventually surpass carotenoids. This shift is primarily driven by spirulina's growing popularity, attributed to its ability to infuse captivating colors into food products and its rich antioxidant content.

Sales of carmine are projected to decline in the coming decade. Carmine is derived from carminic acid, a natural substance found in insects. While it is still used in various food products in Europe and the United States, it has faced substantial criticism. Firstly, consumers have expressed reservations about consuming an additive sourced from insects. Moreover, carmine has the potential to trigger allergies in individuals who are sensitive to carminic acid.

• In October 2020, Chr. Hansen Natural Colors opened an R&D center in Montpellier, France, to enhance capabilities for green, blue, and brown natural color solutions.
• In January 2023, GNT International B.V.'s EXBERRY brand in Europe launched a new natural color derived from carrots. This solution targets the meat and plant-based alternative markets for adding red color.

Report Attributes	Details
Natural Food Color Additive Market Size (2023E)	US$ 1.7 Billion
Forecasted Market Value (2033F)	US$ 3.41 Billion
Global Market Growth Rate (2023 to 2033)	7.2% CAGR
Fast-growing Regional Market	Asia Pacific
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.FI Inc.; GNT International BV (EXBERRY); Adama Agricultural Solutions Ltd. (LycoRed)

What Role is Consumer Awareness Playing in Natural Food Color Additive Sales?

“Rising Awareness of Health Risks Associated with Synthetic Dyes”

Growing awareness of the harmful effects of synthetic food colors is increasing the demand for natural food color additives. Food manufacturers are responding to consumer concerns by reformulating their products to incorporate natural colors, and many are actively phasing out synthetic dyes.

As a result, the natural food color additive industry is witnessing substantial growth and diversification. Manufacturers in this space are experiencing increasing demand for a wide range of natural color solutions, and there is a greater emphasis on research and development initiatives to improve the stability and versatility of these natural colorants.

• Several studies are suggesting a link between the consumption of synthetic food dyes, particularly in children, and an increase in hyperactivity, attention-deficit/hyperactivity disorder (ADHD), and other behavioral issues.
• In April 2021, a report from the state of California, with contributions from UC Davis and UC Berkeley, substantiated the long-held suspicion that the ingestion of synthetic food colors/dyes can lead to hyperactivity and other neurobehavioral problems in certain children.

Thus, rising awareness of the health risks associated with the consumption of synthetic food dyes is triggering a fundamental shift in consumer preferences, leading to an era where natural food color additives are increasingly sought after.

“Sustainability, Clean Label Snacking, and Eco-consciousness Driving Demand for Plant-based and Organic Color Options”

Surge in the demand for plant-based food color additives and organic options is underscoring a profound shift in consumer preferences. The clean label movement is driving a substantial portion of this shift. Consumers are increasingly scrutinizing food product labels and seeking products with transparent and easily recognizable ingredients. Synthetic dyes, with their complex chemical names, are often viewed as non-transparent and are consequently being replaced by color additives sourced from natural origins.

Preference for plant-based and organic colorants also aligns with the growing eco-consciousness among consumers. These natural colorants are typically derived from fruits, vegetables, and herbs, making them a more sustainable choice.

Color additives derived from herbs and spices, such as turmeric, paprika, and saffron, have also found favor in the market. These plant-based sources not only add color but also infuse unique and exotic flavors into dishes, making them versatile choices for food product developers. Organic colorants are produced using organic farming practices, free from synthetic pesticides and chemicals, making them ideal for consumers seeking certified organic products.

What’s Pushing Up the Cost of Natural Food Colors?

“Production Complexity and Color Consistency Increasing Overall All Natural Food Color Additive Price”

While demand for natural food colors is on the rise, one of the primary challenges faced by both manufacturers and consumers is the high product cost when compared to their synthetic counterparts.

Natural food colors are typically derived from natural sources, such as fruits, vegetables, spices, or other plant materials. The process of sourcing, harvesting, and extracting colorants from these natural materials can be labor-intensive and seasonal, leading to fluctuations in prices. Additionally, the geographic and climatic factors that affect crop yields can further impact the supply chain, contributing to cost variability.

Achieving color consistency with natural food colors can be challenging due to variations in natural ingredients. Natural food color additive manufacturers may need to invest in advanced technologies and quality control measures to ensure that the color produced remains consistent from batch to batch, which adds to production costs.

What Can New Companies Do to Standout in This Crowded Market?

“Innovations, Niche Marketing, and Collaborations Key Success Pillars for Start-ups”

The natural food color additive market is a dynamic and competitive space, but newcomers can leverage several strategies to establish a strong presence and earn more. New companies can gain a competitive edge by focusing on innovation. Developing unique and proprietary natural color solutions can set them apart from established players. This could involve creating custom colors or introducing innovative delivery systems for natural colorants.

Identifying specific market niches or unmet consumer needs is a strategic approach for newcomers. Specializing in a particular application or type of food product, such as plant-based meat alternatives or organic confectionery, allows for targeted marketing and catering to a niche audience. Collaborating with food manufacturers and other industry players can also help start-ups gain exposure and credibility.

Country-wise Analysis

According to Fact.MR, a market research and competitive intelligence provider, natural food color additive sales are experiencing significant growth in the United States, Germany, and Japan. This growth is driven by a combination of factors such as wellness trends, regulatory factors, clean label preferences, and the diversification of natural color options.

Why is the United States a Key Market for Natural Food Color Additive Producers?

“Strong Health and Wellness Trends”

The growing awareness of health and wellness among consumers is a primary driver boosting the sales of natural food color additives in the United States. Americans are increasingly looking for cleaner and healthier food options. Natural food colors are perceived as safer and healthier alternatives to synthetic dyes, which is boosting their adoption.

“Stringent Regulatory Standards Increasing Use of Natural Food Colors”

The FDA (Food and Drug Administration) enforces strict regulations on food color additives. Several food product producers in the United States are motivated to use natural colors to comply with these regulations and to meet the growing consumer demand for transparency and safety.

What is Increasing the Consumption of Natural Food Color Additives in Germany?

“Germany Popular for Organic and Natural Food Products”

Germany has a robust market for organic and natural foods. The preference for clean labels and organic products is a significant driver of natural food color adoption. German consumers are willing to pay a premium for products with natural and organic ingredients.

Germany is also known for its food exports. To meet international demand for clean labels and natural products, German food manufacturers are increasingly incorporating natural food colors into their products, driving market growth.

Does Japan Have Scope for Innovations in Natural Food Coloring?

“Tradition of Using Natural Food Colorants”

Japanese consumers have a strong preference for clean and healthy food products. Natural food colors are associated with this image and are becoming an integral part of Japanese food culture.

Japan has a rich history of using natural ingredients such as matcha (green tea) and red shiso leaves for coloring foods. This tradition is also contributing to the acceptance and use of innovative natural food colors in contemporary cuisine.

Category-wise Analysis

Use of natural colors in confectionery and bakery products is a prominent trend, primarily driven by consumer preferences, industry regulations, and the desire to create visually appealing and safer products

How are Natural Food Color Additives Boosting Confectionery and Bakery Product Sales?

“Natural Food Colors Elevating Confectionery Excellence”

The confectionery industry is heavily dependent on the usage of food dyes to increase the sales of the confections. The ban on the previously used artificial dyes has led the industry to make alterations in their color usage and manufacturing processes.

Confectionery and bakery products have global appeal. As international trade and export of these products increase, adhering to global food safety and labeling standards becomes vital. Natural colors are well-suited for global markets, as they align with clean labels and health-conscious preferences worldwide.

Demand for artisanal and premium confectionery and bakery products is also increasing. These products often emphasize quality, authenticity, and natural ingredients, making natural colors an ideal choice to maintain the product's integrity.

• For instance, EXBERRY showcased its new product offering, made from natural food color additives, at Natural Products Expo West, 2019. The vibrancy of the colors in the presented confections was notable and may have motivated other companies in the industry to lean into the usage of natural food color additives.

Competitive Landscape

Top natural food color additive manufacturers are employing several organic and inorganic marketing strategies to achieve growth and enhance profitability. Leading companies are focusing on expanding their product portfolio to offer a comprehensive range of natural color solutions.

These companies are heavily investing in R&D activities to innovate and develop new natural color solutions. This move is helping them to increase their market presence on profits.

• January 2021: GNT Group revealed EXBERRY® Shade Pink - OD, a pink coloring agent for use in fat-based products, expanding their EXBERRY® brand's color range. This shade complements their existing yellow, red, blue, orange, and green variants.
• In March 2022, Archer-Daniels-Midland Company unveiled PearlEdge, a new product line of white color shades primarily made from corn starch. This innovation targets the food and beverage sector, broadening their natural food color selection as a titanium dioxide alternative.
• Germany, September 2022: GNT International B.V. showcased its natural colors in non-alcoholic beverages at Drinktec, aiming to broaden its consumer base and expand its business presence.

Key Segments of Natural Food Color Additive Market Research

• By Pigment Type :

  • Carotenoid
    • Beta Carotene
    • Annatto
    • Lutein
    • Lycopene
  • Curcumin
  • Anthocyanin
  • Paprika Extract
  • Spirulina Extract
  • Chlorophyll
  • Carmine
  • Beet Red
  • Annatto
  • Matcha

• By Form :

  • Liquid
  • Powder
  • Gel
  • Emulsion

• By Source :

  • Plants
  • Animals

• By Application :

  • Dairy Food Products
  • Beverages
  • Packaged Food/Frozen Products
  • Confectionery & Bakery Products

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA