Natural Food Colors Market Size & Forecast
The Natural Food Colors Market is projected to reach $3.74 billion by 2031, at a CAGR of 6.8% during the forecast period of 2024–2031. 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 this market is 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.
However, the high prices of natural colors and stringent regulations on the use of food colors are expected to restrain the growth of the natural food colors market.
Natural Food Colors Market: COmpetitive Analysis
The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the global natural food colors market are Oterra A/S (Denmark), Givaudan SA (Switzerland), Sensient Technologies Corporation (U.S.), Archer-Daniels-Midland Company (U.S.), DSM-Firmenich AG (Switzerland), BASF SE (Germany), Lycored, Ltd (A Part of ADAMA Agricultural Solutions Ltd.) (Israel), Döhler Group (Germany), GNT Group B.V. (Netherlands), San-Ei Gen F.F.I., Inc. (Japan), Kalsec, Inc. (U.S.), Innovation Colour Technology S.L. (Spain), IFC Solutions (U.S.), Mane Kancor Ingredients Private Limited (India), and Kolorjet Chemicals Pvt Ltd. (India).
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Growing Demand for Organic Food Driving the Adoption of Natural Food Colors
Natural food colors or dyes are mainly obtained from plants, animals, fruits, insects, and minerals, which makes them safe to use as a food additive as they are free of harmful side effects. Also, governments of various countries are supporting the use of natural food colors as they are biodegradable and do not cause pollution after disposal. Moreover, several regulations have been passed in many countries regarding the use of natural colors instead of synthetic food colors, which is further driving the demand for natural food colors across the globe.
The demand for natural food colors over synthetic food colors is increasing due to the growing consumer awareness of organic products, the health hazards associated with synthetic colors, and the health benefits of natural food colors. The rapid use of artificial sources such as chemicals and artificial food additives to increase food production has led to various health hazards. Nowadays, the rising health consciousness and consumer shift towards environment-friendly products are driving the demand for naturally grown food products across the globe. Thus, to cater to the growing demand for natural food products, food manufacturers are widely using natural food colors to restore the attractiveness of food and beverage products after processing.
Furthermore, the expansion of the food & beverage industry impacts the global natural food colors market positively, as the consumption of natural food is increasing across the globe. The demand for organic foods is constantly increasing mainly due to their perceived health benefits and safety profile over conventional foods. According to the FiBL, organic food sales reached USD 142.3 billion (EUR 135 billion) in 2022. Organic foods are produced without synthetic fertilizers and pesticides, growth hormones, or antibiotics and are GMO-free. In organic food, natural food colors are highly used to make them more attractive. Therefore, the growing organic food demand and expanding food & beverage industry fuel the demand for natural food colors, thereby increasing awareness about the benefits of natural food colors.
Key Findings in the Natural Food Colors Market Study:
The Carotenoids Segment is Expected to Dominate the Global Natural Food Colors Market in 2024
Based on type, the global natural food colors market is segmented into carotenoids, anthocyanins, caramel, chlorophyll, curcumin, betanin, carmine, phycocyanin, and other natural food colors. In 2024, the carotenoids segment is expected to account for the largest share of the global natural food colors market. The large market share of this segment is attributed to its perceived health benefits and rising demand across various applications, including dairy products, beverages, and confectionery items. Additionally, increasing consumer preferences for natural and clean-label ingredients, along with advancements in extraction and production techniques, are anticipated to drive the demand for carotenoids in the market.
However, the phycocyanin segment is expected to witness the highest CAGR during the forecast period of 2024–2031. This growth can be primarily attributed to the growing health and wellness trends, consumer preference for natural ingredients over synthetic colors, and increasing demand for natural blue hues in beverages and confectionery products. Moreover, food and beverage manufacturers are increasingly turning to spirulina-derived food colors, such as phycocyanin, in response to rising safety concerns associated with synthetic additives. This shift towards natural alternatives is expected to further drive the growth of the phycocyanin segment in the global natural food colors market during the forecast period.
The Plants Segment is Expected to Dominate the Natural Food Colors Market in 2024
Based on source, the global natural food colors market is segmented into plants, minerals, microorganisms, and animals. In 2024, the plants segment is expected to account for the largest share of the global natural food colors market. The large market share of this segment can be attributed to the high demand for plant-based food coloring, which is perceived as a healthier and more natural alternative to synthetic food colors. Also, the growing consumer preference for clean-label products further fuels the demand for plant-based food colors.
However, the microorganisms segment is expected to witness the highest CAGR during the forecast period of 2024–2031. The increasing consumer demand for natural and sustainable food ingredients, driven by health and environmental concerns, plays a significant role in the segment's growth. Microorganisms like algae, fungi, and bacteria offer a wide range of pigments that can be used as natural food colors. Moreover, the potential health benefits associated with these natural pigments, such as antioxidant, anti-inflammatory, and antimicrobial activities, contribute to the demand for natural food colors.
The Liquid Segment is Expected to Dominate the Global Natural Food Colors Market in 2024
Based on form, the global natural food colors market is segmented into liquid, powder, and other forms. In 2024, the liquid segment accounted for the largest share of the global natural food colors market. The large market share of this segment can be attributed to the benefits offered by liquid forms of food coloring. Liquid food coloring enhances viscosity, mouthfeel, product stability, texture, shelf life, taste, and visual appeal of the product, making it a preferred choice for food and beverage manufacturers.
Moreover, this segment is projected to register the highest CAGR during the forecast period of 2024–2031. This growth can be attributed to the increasing adoption of liquid forms of natural food colors due to their high microbial stability properties, convenience in application, and affordability.
The Water-soluble Segment is Expected to Dominate the Global Natural Food Colors Market in 2024
Based on solubility, the global natural food colors market is segmented into water-soluble and oil-soluble. In 2024, the water-soluble segment is expected to account for the larger share of the global natural food colors market. The growth of this segment can be attributed to the rising demand for water-soluble food coloring in food and beverage products, driven by its advantages, such as high color concentration and stability when dissolved in water.
Moreover, this segment is projected to register a higher CAGR during the forecast period of 2024–2031 due to the growing demand for plant-based food and beverage products and innovation in natural colorant technology.
The Processed Food Products Segment is Expected to Dominate the Global Natural Food Colors Market in 2024
Based on application, the global natural food colors market is segmented into processed food products and beverages. In 2024, the processed food products segment is expected to account for the larger share of the global natural food colors market. The growth of this segment can be attributed to the growing processed food industry, increasing consumer preference towards natural food colors due to health risks associated with synthetic food colors, and product innovations. Also, the rising clean-label food trend, growing demand for organic and natural food products, and increasing health-conscious consumers are expected to support the growth of this market. Furthermore, the processed food products segment is categorized into bakery & confectionery, dairy, snacks and cereals, meat, poultry, and seafood, oils and fats, and other processed food products. In 2024, the bakery & confectionery segment is expected to account for the largest share of the global natural food colors market for processed food products. The segment’s large share is attributed to the changes in the consumers’ eating habits, population growth, growing demand for convenience foods, increasing demand for healthy food products, and rising demand for premium confectionery.
However, the beverages segment is expected to register the higher CAGR during the forecast period of 2024–2031. This high growth can be attributed to the increasing popularity of clean-label ingredients within the functional and wellness beverages market, which drives the demand for natural food colors among beverage manufacturers.
Europe Expected to Dominate the Global Natural Food Colors Market in 2024
Based on geography, the global natural food colors market is divided into five major regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Europe is expected to account for the largest share of the global natural food colors market. Europe’s significant market share can be attributed to the increasing demand for clean-label and organic products as well as stringent regulations on synthetic food colors. Additionally, the presence of key market players and growing investments in research and development activities contribute to the growth of the natural food colors market in Europe. Moreover, a strong emphasis on sustainability and health-conscious food preferences and the trend toward plant-based and vegan diets are expected to create opportunities for players operating in this market during the forecast period of 2024–2031.
However, the market in Asia-Pacific is projected to register the highest CAGR during the forecast period of 2024–2031. The growth of this regional market can be attributed to the increasing consumer preference for natural ingredients, rising health concerns regarding the side effects of synthetic food colors, and strong growth in the food & beverage industry. Moreover, the increasing demand for clean-label products and the growing demand for minimally processed and healthier food & beverage options are further expected to support the growth of the natural food colors market in the region.
Natural Food Colors Market Report Summary:
Particulars
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Details
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Number of Pages
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362
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Format
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PDF
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Forecast Period
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2024–2031
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Base Year
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2023
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CAGR (Value)
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6.8%
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Estimated Market Size (Value)
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$3.74 Billion by 2031
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CAGR (Volume)
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5.3%
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Estimated Market Size (Volume)
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194,987.6 Tons by 2031
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Segments Covered
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By Type
- Carotenoids
- Beta Carotene
- Annatto
- Lutein
- Lycopene
- Canthaxanthin
- Astaxanthin
- Other Carotenoids
- Anthocyanins
- Caramel
- Chlorophyll
- Curcumin
- Betanin
- Carmine
- Phycocyanin
- Other Natural Food Colors
By Source
- Plants
- Minerals
- Microorganisms
- Animals
By Form
- Liquid
- Powder
- Other Forms
By Solubility
- Water-soluble
- Oil-soluble
By Application
- Processed Food Products
- Bakery and Confectionery
- Meat, Poultry, and Seafood
- Dairy
- Snacks and Cereals
- Oils and Fats
- Other Processed Food Products
- Beverages
- Non-alcoholic Beverages
- Carbonated Soft Drinks
- Juice & Juice Concentrates
- Dairy & Dairy Alternative Beverages
- Other Non-alcoholic Beverages
- Alcoholic Beverages
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Countries Covered
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North America (U.S., Canada), Europe (Germany, France, U.K., Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of Asia-Pacific), Latin America (Brazil, Mexico, Argentina, and Rest of Latin America), and the Middle East & Africa
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Key Companies
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Oterra A/S (Denmark), Givaudan SA (Switzerland), Sensient Technologies Corporation (U.S.), Archer-Daniels-Midland Company (U.S.), DSM-Firmenich AG (Switzerland), BASF SE (Germany), Lycored, Ltd (A Part of ADAMA Agricultural Solutions Ltd.) (Israel), Döhler Group (Germany), GNT Group B.V. (Netherlands), San-Ei Gen F.F.I., Inc. (Japan), Kalsec, Inc. (U.S.), Innovation Colour Technology S.L. (Spain), IFC Solutions (U.S.), Mane Kancor Ingredients Private Limited (India), and Kolorjet Chemicals Pvt Ltd. (India).
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Key questions answered in the Report: