Market Overview
The global natural food colorants market size was valued at USD 1.64 billion in 2021. It is expected to reach USD 3.66 billion by 2030, growing at a CAGR of 9.31% during the forecast period (2022–2030).
Food coloring, otherwise color additives, is any dye, pigment, or substance which gives color to food or drinks when the coloring is added. They are available in various forms, including liquid, powders, pastes, and gels. Both commercial and home cooking use food coloring. Food coloring is also used in several non-food products, such as cosmetics, household crafts, medications, and medical equipment. Natural food colors are preparations made from foods and other edible materials. These preparations are acquired from physical or chemical extraction, which results in the pigments being extracted selectively from the nutritional or aromatic ingredients.
The main factor fueling the growing demand for natural food colorants in the market is the high functionality of superfoods and the favorable view of the word "natural." Food producers are being pushed to choose coloring meals over other alternatives since consumers are interested in using items with clear and intelligible labeling.
Market Dynamics
Global Natural Food Colorants Market Drivers
Extensive Promotion
Numerous associations from all around the world actively promote the market. These organizations have made it their mission to increase the use of natural food coloring in all sectors of industry, which will help the market under investigation. The Natural Food Colors Association is one of the most well-known groups promoting the industry. Having its roots in Europe, the group actively promotes natural colorants. The association runs numerous working groups investigating the potential of different natural color sources to boost industry productivity.
Growing Consumer Awareness Regarding Product Differentiation
Consumers, especially in industrialized nations, have improved their ability to determine how a product is made and the caliber of the utilized ingredients. Customers form an opinion of the products they wish to see on the shelf as they learn about their food and the substances used in processing. This increased consumer demand for goods made with just natural materials and additives, opening up numerous opportunities for natural food coloring in the food processing sector. Furthermore, demand for natural food colorants and coloring is anticipated to increase during the projected period due to the surge in consumer desire to limit the excessive use of artificial colorants in food products.
Global Natural Food Colorants Market Restraint
Expensive Processing
Each ingredient in a food product must come from a natural source for it to be marketed as clean-label. However, the situation is different for natural colorants because the addition does not meet FDA standards for being referred to as "natural.". Therefore, the high cost of natural food colorants traps small food manufacturers and drives up the cost of the finished product's production.
Regional Analysis
North America Reigns Supreme Over Others
Region-wise, the global natural food colorant market is analyzed across North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
North America commands the leading market position and is expected to grow at a CAGR of 9.41% during the forecast period. The US is the major contributor to the region, followed by Canada and Mexico. The modification to color labeling that must be followed nationwide by 2021 is expected to increase the demand for natural colorants in Canada. Food producers are now required to include food colors by their unique common names in the list of ingredients for prepackaged goods as per a directive from the Canadian Food Inspection Agency to be more honest about colors. One of the region's growing marketing trends is the substitution of artificial food colorants with natural ones, which leaves plenty of potentials for researchers to find other natural sources.
Europe occupies a significant share after North America. It is expected to account for USD 1,013 million by 2030, growing at a CAGR of 8.37% during the forecast period. Demand for synthetic colors in the area outsold that for natural colors, but the market for natural colorants is expanding noticeably, mainly due to consumer preferences. Consumer awareness of "natural terms" is growing, and functional foods and beverages—especially those with natural or organic colorants—are being consumed more frequently, fueling the market's growth. On the other hand, solid and vibrant hues are gaining popularity in easily accessible categories.
In the Asia-Pacific region, China holds the majority of the market share. Due to the advanced use of naturally derived food colorants that make the meal appear appetizing, China has a large market for food colorants. A few common natural food colorings used in Chinese cuisines are Carmine, bixin and norbixin, carotenoids, curcumin, anthocyanin, betanin, and phycobilin. Ingredient businesses all across the region are experimenting with producing natural food colorants that are devoid of toxic preservatives and offer natural essence to food producers.
Segmental Analysis
The global natural food colorant market is segmented by type, application, and region.
By Type Analysis
Type-wise, the global natural food colorant market is bifurcated into Anthocyanin, Carotenoid, Caramel, Betalain, Curcumin, Carmine, Paprika, Lycopene, Spirulina, and Others.
The Carmine segment holds the highest market share and is expected to grow at a CAGR of 10.37% during the forecast period. Carmine's market expansion is anticipated to be complemented by rising consumer demand for natural food colors to replace synthetic colorants and mitigate their detrimental health effects. Food firms investing in introducing new food products with natural ingredients and creating enhanced carmine food color formulations are working toward a future where food is more hygienic. Carmine also has a striking scarlet tint and is used in various foods, including desserts, ice cream, beverages, meat, fruit-based yogurt, and other dairy products.
Natural food colorants called Anthocyanins give fruits and vegetables their vibrant hues, including red, purple, and blue. Anthocyanin content is high in berries, currants, grapes, and some tropical fruits. As an alternative natural red colorant for making hard candy and sweet jelly, the anthocyanin pigment derived from purple carrots is being used more and more. We anticipate that these expanded anthocyanin application areas will drive the segment. The extracted anthocyanin pigment from purple carrots is increasingly used as an alternative natural red colorant for preparing hard candy and sweet jelly.
Colors from light yellow to amber dark brown are available from Caramel extracts. Depending on how they are made, there are four primary forms of caramel. These include class I plain caramel, sulfite caramel, ammonia caramel, and sulfite ammonia caramel. Furthermore, batters, brown bread, buns, chocolate, and potato chips are only a few commercially made foods that contain the color caramel. For high alcohol, plain caramel and sulfite caramel are used.
Plants, algae, and photosynthetic bacteria all contain pigments called Carotenoids. Bright yellow, red, and orange hues are produced by these pigments in plants, vegetables, and fruits. Carotenoids come in more than 600 different varieties. Winter squash and carrots have beta-carotene, tomatoes, and watermelon, including lycopene, and corn and leafy greens contain xanthophylls.
By Application Analysis
Application-wise, the global natural food colorant market is bifurcated into Bakery, Dairy-based Products, Beverages, Candy, Nutraceuticals, Snacks & Cereals, and Others.
The Beverage segment holds the highest market share and is expected to rise at a CAGR of 9.68% during the forecast period. Beverage includes both non-alcoholic and alcoholic products. In alcoholic beverages, one of the key characteristics that consumers notice is the color of the wine. The color of the wine might influence the acceptance of the product. Additionally, a wine's color can tell you a lot about its age, quality, level of preservation, and other factors. Anthocyanins are the primary substances that give the wine its color. They are taken out of the grape skins. Adult consumers, who seek an alternate alcoholic beverage outside the conventional sweet and fizzy variety, have an exceptionally high liking for novel soft drink flavor creations.
Dairy-based Products can be classified into ice-creams, flavored milk, smoothies, and more. Ice creams use color to attract the consumer's interest. The flavor determines the color choice: red for strawberry, light green for mint, and purple for grape. Most ice creams have colors that indicate the flavors. To make ice creams resemble the hue of the natural product, almost all of them are gently dyed. The demand for natural food colors is rising among dairy producers due to the rising popularity of dairy products produced naturally.
Consumer demand for goods with more natural ingredients and fewer additives is increasing due to increased consumer worries about the components used in food products. For the Bakery business to improve its market position, the major companies in the market are concentrating on fresh and inventive natural colors. To fulfill the rising demand for naturally occurring blue and green colors in confectionary and beverages, Naturex, for instance, has created an extraction line for spirulina-based food coloring.
A distinctive and expanding market for natural color applications is Confectionery items. Sugar and gum confectionery items meet the crucial consumer criterion of pleasure and enjoyment, especially for kids, despite being often not regarded as nutritious. Creativity is key to flavor innovation in confectionery items, but new flavor combinations must taste and combine perfectly with the confection.
Top Key Players
Chr. Hansen Holdings A/s
Symrise AG
FMC Corporation
DDW, The Color House
Sensient Colors LLC
Others
