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Increasing Awareness for Clean-Label Products Supports the Natural Food Colors Market Growth

   April 16, 2024

Usually, natural food colors are derived from fruits, vegetables, minerals, spices, animals, and microorganisms for coloring food and beverage applications. However, there is no formal definition for “natural colors” from the food authorities, the Food and Drug Administration (FDA) in the U.S., or the European Food Safety Authority (EFSA) in Europe. According to the Natural Food Colours Association (NATCOL), natural food colors originate from a wide range of sources like vegetables, fruits, plants, minerals, and other edible natural sources. They offer a wide spectrum of colors and impart color when added to food or drink. There are different types of colors, like carotenoids, lutein, anthocyanins, chlorophyll, turmeric, carmine, spirulina, and betanin, among others. The demand for natural food colors in the food and beverage industry has been witnessing significant growth in recent years due to the increasing consumer awareness of organic products, the health hazards associated with synthetic colors, and the health benefits of natural food colors.

Rise of Clean-Label Products: Driving Forces Behind the Natural Food Coolers Market Growth

Clean labeling is a consumer-driven initiative primarily shaped by consumer perception of ingredient acceptability. Food products containing natural, familiar, and simple ingredients are clean-label products. Factors such as rising demand for organic, natural, and ‘free from’ artificial ingredients are expected to drive the demand for natural food color across the globe.

Additionally, growing health concerns among the global population, coupled with increasing awareness about the benefits of clean-label ingredients, are the key factors driving the growth of the clean-label ingredients market. Moreover, the global sales of clean-label food ingredients are projected to reach around USD 64.1 billion by 2026 [source: Dairy Farmers of America, Inc. (U.S.)]. The demand for clean-label food and consumer packaged goods is driven by consumers' increasing focus on health and wellness. As a result, food manufacturers are increasingly adopting clean-label ingredients like natural food colors to cater to the changing consumer preferences for healthier and more transparent food options.

Moreover, consumers are becoming more aware of the side effects of consuming artificial food ingredients, such as synthetic food colors, used in the production of several types of food and beverage products. Consumers are increasingly demanding natural and transparent ingredients in their food, including natural food colorants. According to Ingredion’s ATLAS survey conducted in 2023, around 78% of the respondents were ready to pay more for clean-label and natural claim products. Furthermore, according to the survey conducted by the International Food Information Council (IFIC) in June 2021, around 64% of U.S adults favor foods made with clean-label ingredients, and 20% frequently buy food & beverage products made with clean-label ingredients. Thus, growing awareness of clean-label ingredients and demand for clean-label food and beverage products is expected to drive the growth of the natural food colors market across the globe.

Meticulous Research®, in its latest publication on the Natural Food Colors Market, states that the global Natural Food Colors Market is expected to reach $3.74 billion by 2031 at a CAGR of 6.8% during the forecast period of 2024 to 2031. In terms of volume, the global natural food colors market is projected to reach 194,987.6 tons by 2031, at a CAGR of 5.3% during the forecast period of 2024–2031. The growth of the global natural food colors market is primarily driven by the growing demand for organic foods, increasing awareness of clean-label products, the growing need to enhance product appeal, increasing R&D activities in the food industry, and the emergence of microencapsulation technology for food colors. In addition, the increasing interest in new raw material sources, the growing demand for plant-based food, and emerging economies are expected to provide significant opportunities for stakeholders operating in the global natural food colors market.

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