The natural food colors market is evaluated at US$1.875 billion for the year 2019 growing at a CAGR of 6.53% reaching the market size of US$2.741 billion by the year 2025.
Natural food colors are those types of food colorings that are derived from natural sources such as plants, animals, and others. These colorings are widely used across the food and beverage industry for imparting colors when added to food products. These are obtained from edible naturally sourced materials which further make them suitable for a wide variety of food products and especially for baby foods. The market for natural food colors is projected to show impressive growth during the course of the next five years that is primarily attributed to the fact that there has been a constantly growing consumer preference regarding the consumption of clean-labeled products. Moreover, rising concerns over health hazards associated with the intake of synthetic food colors is also amplifying the demand for naturally colored food in many parts of the world. This, in turn, is further increasing the usage of natural colors by food manufacturing companies to meet the growing consumer demand. The demand for natural food coloring is also being positively impacted on account of the presence of stringent regulations regarding the use of artificial colorings, thus, also playing a significant role in shaping up the natural food colors market growth until the end of the forecast period. The growing demand for convenience food products due to the changing lifestyle of the people coupled with the increasing purchasing power of the people particularly in the developing economies are some of the additional factors supplementing the market growth over the forecast period.
The outbreak of the novel coronavirus disease is projected to hamper the market growth moderately to some extent particularly during the short period of six to eight months. The government restrictions further led to a temporary closure of restaurants, bakeries, and others, which further inhibited the demand.
The natural food colors market has been segmented on the basis of type, source, and geography. By type, the classification of the market has been done into anthocyanin, carmine, curcumin, carotenoid, others. On the basis of source, the market has been segmented on the basis of plants, animals, and minerals. By application, the market has been distributed as dairy, bakery and confectionery, and others. Geographically, the natural food colors market is segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
There is a high volume of companies working in the natural food colors market, however, some have solidified their position as the leading providers in this industry. These players are involved in a plethora of investments, product launches, and R&D as a part of their growth strategies to further strengthen their position and provide better products and services to their customers worldwide, which is further expected to propel the growth of the market in the coming years. Some of these are:
May 2020, GNT Foods, one of the leading manufacturers of cutting edge food ingredients based out of the United States of America, announced the launch of its two new EXBERRY food colorings which will deliver bright shades of orange in shades in powder and oil-dispersible formats. These colorings will be made from carrots and paprika.
September 2019, Diana Foods, one of the leaders in natural and clean label ingredients manufacturing for the food and beverages industry announced the launch of a new range of organic food colors for the food and beverages sector of the European region which will be fully in compliance with the E.U. Organic Certification.
June 2017, Medclear Healthcare Pvt Ltd., one of the world-renowned companies offering quality ingredients for dietary supplementation, nutritional fortification, functional foods, functional beverages, coloring, and personal care applications announced the launch of Curcutint, a water-soluble natural colorant that gives different yellow hues.
Beverages to account for a significant share in the market
By application, the beverages segment is anticipated to hold a significant share in the market throughout the forecast period. The primary factors supporting the share of this segment include the wide applications of natural colorings in beverages for the enhancement of the energy-nutrient ratio. The growth of this segment is attributed to the growing consumption of ready-to-drink beverages in many parts of the world and especially in the developing economies of the globe. The dairy segment is projected to show promising growth during the forecast period which is primarily attributed to the increased usage of natural food colors in dairy products for flavor enhancements.
The Asia Pacific region is projected to show promising growth
Geographically, the North American and European regions are projected to hold major shares in the global market which is due to the fact that there are stringent regulations across many countries of the regions regarding the usage of artificial colors. However, on the other hand, the Asia Pacific region is projected to show lucrative growth opportunities for the market players. The increasing purchasing power coupled with the growing consumer preferences towards natural ingredients is further bolstering the demand for natural food colors across the region, thus playing a significant role in shaping up the natural food colors market growth in the APAC region during the coming five years.
Prominent/major key market players in the natural food colors market include Sensient Technologies, ADM, and Hansens A/S among others. The players in the natural food colors market are implementing various growth strategies to gain a competitive advantage over its competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the natural food colors market.