Industry: Food and Beverages
Published Date: August-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 285
Report ID: PMRREP27616
The global market for natural food colors value was estimated at US$2.2 Bn in 2024 and is expected to be valued at US$3.9 Bn by 2031. The market for natural food colors is predicted to achieve an expanding, significant CAGR of 8.5% from 2024 to 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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Market Size (2024E) |
US$2.2 Bn |
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Projected Market Value (2031F) |
US$3.9 Bn |
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Global Market Growth Rate (CAGR 2024 to 2031) |
8.5% |
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Historical Market Growth Rate (CAGR 2018 to 2023) |
7.8% |
The natural food colors market refers to the industry that produces and supplies natural colorants used in food and beverage products. These colorants are derived from natural sources such as plants, fruits, vegetables, and microorganisms. The market size of the natural food colors industry has been steadily growing in recent years.
According to market analysis, the market was valued at US$1.5 Bn in 2019 and is projected to reach US$2.2 Bn in 2024. Furthermore, the market is expected to grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031, reaching a value of US$3.9 Bn by 2031.
There is a growing preference among consumers for natural and clean-label products. Visual appeal plays a crucial role in consumer purchasing decisions. This trend is driving the demand for natural food colors as an alternative to synthetic colorants.
The beverage industry is witnessing innovation in terms of product formulations and flavors. Natural food colors are being used to create visually appealing and unique beverages that cater to changing consumer preferences.
As per natural food colors market research report, natural food colors are being used in a wide range of food and beverage applications. The versatility of natural food colors makes them suitable for different formulations and applications.
Further, advancements in extraction and production technologies have improved the quality and stability of natural food colors. These advancements have also made the production process more efficient and cost-effective. All these factors and industry trends play a vital role in natural food colors market growth.
The market report shows significant growth in recent years and is expected to continue its upward trajectory in the coming years. According to the natural food colors industry assessment, the market was valued at US$1.5 Bn in 2019 and is projected to reach US$2.2 Bn in 2024. This represents a growth rate of 7.8% during the period from 2019 to 2023. Furthermore, the market is expected to grow at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2031, reaching a value of US$3.9 Bn by 2031.
It is evident that the natural food colors market shares have been experiencing steady growth and are expected to continue growing in the future. The market is driven by factors such as increasing consumer demand for natural ingredients, the importance of visual appeal in the food industry, and technological advancements in extraction and production.
The projected growth rates indicate a positive outlook for the market, with significant opportunities for market players. However, it is important to note that market dynamics can be influenced by various factors, including changing consumer preferences, regulatory developments, and competitive landscape.
Increasing demand for natural and clean-label products
Consumers are increasingly seeking out food products that are free from synthetic additives and artificial colors. The growing awareness of the potential health risks associated with synthetic colors has led to a shift in consumer preferences toward natural food colors. These changing consumer preferences are shaping the market growth.
Rising instances of chronic diseases
The high demand for natural food ingredients can be attributed to the rising instances of chronic diseases. Consumers are becoming more conscious of their health and are opting for food products that are perceived as healthier and more wholesome. Natural food colors are seen as a safer alternative to synthetic colors, driving their market demand.
Importance of visual appeal in the food industry
Visual appeal plays a crucial role in consumer purchasing decisions. Food colors are used to enhance the appearance of food and beverages, making them more attractive and appealing to consumers. The increasing importance of visual appeal in the food industry is driving the market expansion.
Regulatory restrictions on synthetic colors
Government regulations in several regions, such as Europe and Japan, have banned the trading of synthetic colors. This has resulted in restricted manufacturing of synthetic colors and intensified the demand for natural food colors in various end-use industries. The ban on synthetic colors limits the availability and use of these colors, thereby driving the demand for natural alternatives, thus boosting natural food colors market sales.
Cost, availability, and sustainability challenges
The cost, availability, and sustainability of natural food colors can pose challenges to the growth of natural food colors market revenue. Naturally occurring food colorings that have allergic reactions or toxin contaminations are permanently banned. Additionally, the limited availability of raw materials for natural food colors can lead to increased prices, affecting the affordability and accessibility of these colors.
Expanding applications in non-food industries
While the market primarily caters to the food and beverage industry, there is a growing opportunity to expand into non-food industries. Natural colors can be used in cosmetics, personal care products, pharmaceuticals, and pet food, among others. As consumers increasingly seek natural and clean-label products across various sectors, the demand for natural colors in non-food industries is likely to rise, presenting significant natural food color market opportunities for industry players.
Advanced Food Color Launches
Manufacturers are capitalizing on the market value by introducing advanced food colors that offer innovative and vibrant shades, fortification capabilities, sensory impact, and floral colors. The industry trend of consuming purple foods, which are rich in anthocyanins and antioxidants, presents significant opportunities for launching anthocyanin-based food colors. Furthermore, with the increasing demand for protein intake, there is a scope for launching food colors that enhance the authentic appearance of products containing grains and pulses. The market manufacturers are leveraging these advancements to drive market growth and meet consumer preferences.
Beta-carotene is Set to Become a Popular Natural Food Colorant and Antioxidant.
As per the PMR's natural food colors market research report, the beta-carotene segment dominates with a 20.21% revenue share. Its natural derivation makes it a safer alternative to synthetic colors. As a natural pigment and antioxidant, beta-carotene is found in various fruits, vegetables, algae, and yeast. It belongs to the carotenoid family, alongside lycopene and lutein. Beta-carotene's vibrant color and additive properties have made it popular in the food industry, used to enhance the visual appeal of dairy products, margarine, salad dressings, cheese, soft drinks, and energy drinks. Its natural occurrence in fruits and vegetables gives them their distinct yellow or orange hue.
Growing Demand for Natural Food Colors in Beverages Spurs Industry Innovations
The market overview shows that the beverages segment dominated with a 24.01% revenue share as consumers increasingly prioritize healthier and natural products in 2022. With rising awareness of the potential health risks associated with artificial food colors, there's a growing demand for beverages featuring natural and safe food colors. The natural food color market players are responding by launching innovative products. For example, Sun Chemical introduced SUNFOODS Natural Colorants, derived from vegetables, algae, and fruits, during the Supply Side West event. These colorants cater to bakery, dairy, pet food, and confectionery applications, aligning with consumers' preferences for natural and clean-label options.
Carotenoids Leads with Versatile Natural Colors and Health Benefits
The PMR market update highlights that with a significant market share of 31.3% in 2022, carotenoids led the market. Carotenoids offer a wide range of hues, including yellow, orange, and red, making them ideal for various applications in food, beverages, supplements, and cosmetics. Commonly used carotenoids like beta-carotene, lycopene, and lutein are known for their antioxidant properties and health benefits. These natural colors are associated with immune system enhancement, protection against chronic diseases, and improved eye health. Carotenoids enable producers to create visually appealing products that offer practical advantages, meeting consumers' demands for both aesthetics and well-being.
Europe's Natural Food Colors Market Driven by Consumer Demand for Healthier Ingredients
Europe leads with a dominant revenue share of 32.7% in 2022, fueled by shifting consumer preferences towards natural and recognizable ingredients. As Europeans prioritize healthier snacking options with all-natural ingredients, the demand for products labeled "no additives or preservatives," "GMO-free," "whole grain," or "all-natural" is on the rise. Food manufacturers are meeting this demand by introducing natural food colors sourced from fruits, vegetables, and plant extracts, resulting in significant market growth. Strategic initiatives like Givaudan's acquisition of DDW, The Color House, further drive innovation in Europe for natural food colors market share expansion.
Asia Pacific Natural Food Colors Market Set to Grow at a Rapid Pace
The Asia Pacific market for natural food colors is projected to achieve a remarkable 9.5% CAGR from 2023 to 2030. In this region, the food and beverage industry is actively embracing innovation as companies strive to stand out in the competitive market. Natural food colors have emerged as a valuable tool for manufacturers in their pursuit of differentiation and have already gained significant traction in the food and beverage sector.
October 2022
IFF (International Flavors & Fragrances) made a significant investment of USD 30 million to open a new innovation center in Singapore. This center integrates the technologies, capabilities, and expertise of all four business divisions: Nourish, Health & Biosciences, Scent, and Pharma Solutions. The purpose of this investment is to strengthen IFF's business and enhance accessibility to customers in the greater Asia region.
May 2023
GNT, a leading supplier of EXBERRY Coloring Foods, launched Exberry Compound Red. This innovative plant-based natural food concentrate is specifically designed to give red meat alternatives a brownish appearance when grilled or fried. Made from carrots and vegetable oil, Exberry Compound Red is a clean-label ingredient that offers manufacturers the ability to create a variety of browned meat colors. The range includes two shades, Autumn Red and Fall Forest Red, which can be easily incorporated into meat analogs to transform their color when heated. This launch addresses the industry trend of consuming purple foods, as it provides a natural and visually appealing solution for meat substitutes.
Natural food colors market companies are actively driving growth through acquisitions and innovation, while the competitive landscape benefits from the emergence of startups offering innovative solutions. To maintain their competitiveness, companies in the market are making substantial investments to expand production capabilities and enhance technological features. Their aim is to develop new functionalities and seamlessly integrate technologies into this rapidly evolving sector. This strategic approach enables successful consolidation, entry, and widespread adoption within the industry.
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2018 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Country Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
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The market for blister packaging is anticipated to grow from US$2.2 Bn in 2024 to US$3.9 Bn by 2031.
The rising customer demand for natural ingredients, invention in product formulations, and advancements in extraction and production are augmenting market growth.
NATUREX, Givaudan, BASF SE, Sensient Technologies Corporation, and ADM are some key industry players.
Challenges like the strict government regulations on synthetic colors, limited availability & sustainability, and the high cost of natural colors are restraining industry expansion.
The growing use in several industries and the development of innovative and vibrant color shades are the key opportunities in the market.
