Global Natural Food Colorants Market Size Grows at a CAGR of 7.8%

Introduction

Straits Research published a report, “Natural Food Colorants Market Size & Outlook, 2025-2034”. According to the study, the global natural food colorants market size is valued at USD 2 billion in 2025 and is projected to expand to USD 4 billion by 2035, registering a compound annual growth rate (CAGR) of 7.8%.

Market Dynamics

The natural food colorants market experiences robust growth fueled by FDA approvals in May 2025 for innovative additives like Galdieria extract blue and butterfly pea flower, expanding formulation options and accelerating the shift from synthetic dyes amid health concerns over Red 40 and Yellow 5. Consumer-driven clean-label demands pressure brands like PepsiCo to reformulate, sustaining demand for plant-derived pigments while antioxidant benefits in carotenoids and phycocyanin position them as functional ingredients in nutraceuticals. Emerging innovations in supercritical CO2 extraction and precision fermentation by firms like DSM enhance stability, addressing key pain points in beverages and confectionery.

Stability challenges and higher production costs remain primary restraints, as natural pigments degrade under heat, light, and pH stress, necessitating costly microencapsulation that strains margins in price-sensitive snacks. Agricultural volatility from seasonal crops like paprika exacerbates supply issues, though biotech fermentation mitigates this with scalable microbial sources. These hurdles limit adoption in high-volume processed foods compared to robust synthetics. Opportunities abound in nutraceuticals and pet food, where bioactive colors like spirulina phycocyanin enable premium pricing in immunity boosters and hypoallergenic kibble amid pet humanization trends.

Market Highlights

• Type Outlook: Carotenoids lead the natural food colorants market by product type, holding a 35.8% revenue share in 2025, derived from colorful fruits, vegetables such as carrots and tomatoes, and algae to provide reliable red, orange, and yellow shades vital for beverages and processed foods.
• Material Outlook: Plant-based materials command the largest share in the natural food colorants market, accounting for 42.3% of revenue in 2025, extracted from sources such as carrots, tomatoes, paprika, and spices to deliver stable carotenoid pigments for red, orange, and yellow tones in beverages, bakery items, and confectionery.
• End Use Outlook: Beverages led the natural food colorants market by end-use, commanding 38.8% revenue share in 2025, propelled by strong demand for eye-catching, clean-label pigments in juices, carbonated soft drinks, functional beverages, and flavored waters to boost visual allure and align with consumer demand for natural ingredients.
• Regional Insights: Europe holds the dominant position in the natural food colorants market with a 43.8% share in 2025, fueled by rigorous EFSA regulations prohibiting or limiting synthetic dyes such as Tartrazine and Sunset Yellow, prompting manufacturers to adopt clean-label options like beetroot red, spirulina, and anthocyanins.

Competitive Players

1. Sensient Technologies Corporation
2. Hansen Holding A/S
3. Givaudan
4. Archer Daniels Midland
5. Dohler Group SE
6. Naturex S.A.
7. McCormick & Company
8. Symrise AG
9. Kalsec Inc.
10. FMC Corporation
11. Novonesis Group
12. GNT International BV
13. AFIS (Australian Food Ingredient Suppliers)
14. San-Ei Gen F.FI Inc.
15. Aakash Chemicals and Dyestuffs

Recent Developments

• April 2025: Sensient Technologies Corporation introduced a spirulina-based blue colorant with improved pH tolerance, targeting confectionery and dairy following FDA approvals for expanded use.This development enables broader adoption of stable natural blue hues in acidic confectionery and dairy products, accelerating the clean-label shift away from synthetic dyes and boosting Sensient's market share in high-demand segments.

Segmentation

1. By Type
   1. Carotenoids
   2. Natural blue colorants
2. By Material
   1. Plant-based materials
   2. Microbial-based colorants
3. By End Use
   1. Beverages
   2. Confectionery