The natural food colors market is evaluated at US$1.925 billion for the year 2020, growing at a CAGR of 6.88% reaching a market size of US$3.067 billion by the year 2027. 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 makes them suitable for a wide variety of food products, especially baby foods.
The market for natural food colors is projected to show impressive growth during the next five years. That growth 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 are also amplifying the demand for naturally colored food in many parts of the world. This, in turn, is further increasing the use 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 the natural food colors market growth until the end of the forecast period. The growing demand for convenience food products due to the changing lifestyles of people coupled with the increasing purchasing power of 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 the temporary closure of restaurants, bakeries, and others, which further inhibited the demand.
The natural food colors market has been segmented based on type, source, and geography. By type, the classification of the market has been done into anthocyanin, carmine, curcumin, carotenoid, and others. Based on the source, the market has been segmented based on plants, animals, and minerals. By application, the market has been divided into dairy, bakery and confectionery, and others. Geographically, the natural food colors market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.
Key Developments in the Market:
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:
Beverages account for a significant share of 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, 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 because there are stringent regulations across many countries in 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 the natural food colors market growth in the APAC region during the coming five years.
Competitive Insights
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 their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies. 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.
Covid-19 Impact
Covid-19 Had a significant impact on the natural food color market. With the emergence of the pandemic, many grew more health and hygiene conscious and transitioned toward a healthy diet devoid of artificial color, preservatives, and other ingredients. Thus, the demand for natural colorants grew rapidly. However, the high number of infected cases, lockdown, and social distancing measures affected the staffing and productivity levels of many organizations. The border restrictions by several countries further disrupted the demand and supply chain, slowing down the market.
Report Metric | Details |
Market size value in 2020 | US$1.925 billion |
Market size value in 2027 | US$3.067 billion |
Growth Rate | CAGR of 6.88% from 2020 to 2027 |
Base year | 2020 |
Forecast period | 2022–2027 |
Forecast Unit (Value) | USD Billion |
Segments covered | Type, Source, Application, And Geography |
Regions covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
Companies covered | ADM, NATUREX, Hansen A/S, Döhler GmbH, McCormick & Company, Inc., Kalsec Inc., ROHA Dyechem Pvt. Ltd., San-Ei GEN FFI Inc., DDW The Color House, Diana Food S.A.S., GNT Group B.V., Synthite Industries Ltd. |
Customization scope | Free report customization with purchase |
Market Segmentation
Frequently Asked Questions (FAQs)
Q1. What will be the natural food colors market size by 2027?
A1. The natural food colors market is projected to reach a total market size of US$3.067 billion by 2027.
Q2. What is the size of the global natural food colors market?
A2. Natural Food Colors Market is evaluated at US$1.925 billion for the year 2020.
Q3. What are the growth prospects for the natural food colors market?
A3. The global natural food colors market is projected to grow at a CAGR of 6.88% during the forecast period.
Q4. What factors are anticipated to drive the natural food colors market growth?
A4. The natural food colors market is projected to show impressive growth which is primarily attributed to the fact that there has been a constantly growing consumer preference for the consumption of clean-labeled products.
Q5. Which region holds the largest market share in the natural food colors market?
A5. Geographically, the North American and European regions are projected to hold major shares in the global natural food colors market due to the fact that there are stringent regulations across many countries of the regions regarding the usage of artificial colors.
Sensient Technologies Corporation
ADM
McCormick & Company, Inc.
Kalsec Inc.
ROHA Dyechem Pvt. Ltd.
San-Ei GEN FFI Inc.
DDW The Color House
GNT Group B.V.
Synthite Industries Ltd.
BioconColors
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