Natural Food Coloring Market

Market Overview

According to Reed Intelligence the Global Natural Food Coloring Market Size will approximately grow at a CAGR of 7.74% during the forecast period.

Natural food coloring refers to dyes, pigments, or other substances that are derived from vegetables, animals, or minerals. These substances have the ability to add color to foods or drugs. Colors are derived from a variety of sources, such as seeds, fruits, vegetables, algae, and insects. Grass, beetroot, and turmeric are examples of natural sources that are used to extract colors. Colors can enhance a dish's natural appearance and add decorative elements to other foods. Color compounds are a remarkable class of substances due to their structural diversity and highly intricate chemical and physical properties. The color of food can impact how we perceive its flavor. There are two types of food colorings: artificial and natural. It is not surprising that natural colors are a preferable choice, as they are derived entirely from plants.

Market Dynamics

Market Drivers

• Increasing demand for natural and clean-label products

Clean labeling is a commonly used term in the food industry, among consumers, and among academics. It refers to labels that are more consumer-friendly and indicate trustworthy natural products. Consumers prefer packaging that is easy to comprehend, as well as products that are made without artificial ingredients or ingredients that are difficult to pronounce. One significant trend in the food industry is the increasing consumer preference for healthy, natural, and sustainable foods. The industry has been taking various initiatives to meet these consumer expectations in response to this demand. Clean labeling is a crucial aspect of packaged foods. The clean label trend is being driven by increasing consumer awareness which resulted in increasing growth of the Natural Food Coloring Market share.

• High cost associated with natural colors

Natural colors are significantly less accessible than artificial colors, as they demand substantial time, effort, and materials for production. Natural colors are expensive because the raw materials required to produce them are often scarce and challenging to acquire. After collecting the raw materials, they must undergo processing to transform into color. The process can be complex and time-consuming, requiring specialized knowledge and equipment. The process is more challenging and laborious than the synthetic color process in the factory. Hence, it has a high cost which can hinder the Natural Food Coloring Market growth.

Market Opportunity

• The growing number of end-use applications

The food processing industry commonly utilizes these colors and flavors in products, such as bakery and confectionery items, convenience foods, dairy and frozen desserts, and meat products. Flavors and colors are commonly utilized in bakery and beverage applications. Consumers are moving away from synthetic ingredients and embracing plant-based and natural diets. This shift in consumer preferences contributes to the growth of the natural food flavors and colors ingredients market. Retailers are meeting the increasing consumer demand for clean-label products by providing their private-label brands. The Natural Food Coloring Market is expected to experience growth opportunities due to the increasing number of end-use applications. This can be attributed to the multifunctional attributes of different natural ingredients.

Market Scope

Segmental Analysis

Segmentation By Type

• Caramel Color

Caramel color is a type of food coloring that is soluble in water. Caramelization is a process that involves heating carbohydrates (sugars) in the presence of acids, alkalis, or salts. This heat treatment causes the sugars to undergo a chemical transformation, resulting in the creation of caramel. The substance is highly oxidized compared to caramel candy, resulting in a distinct burnt sugar aroma and a slightly bitter flavor. The color of it can vary from a pale-yellow shade to amber or even a dark brown hue.

• Capsanthin

Capsanthin is a naturally occurring red dye that belongs to the xanthophyll class of carotenoids. It is a food coloring found in various plants of the Capsicum annuum species, such as red bell pepper, New Mexico Chile, and cayenne peppers. It is also a constituent of paprika oleoresin. Capsanthin is also present in certain species of lilies.

• Turmeric

The Case of Organic Curcumin Turmeric has a rich history of being used as a spice and food additive. It is commonly used to enhance food's taste and storage stability by adding its distinctive yellow color, flavor, and antioxidant properties.

• Carotenoids

Carotenoids are organic pigments that can be found in plants, algae, bacteria, and fungi. These pigments are typically yellow, orange, or red in color. Carotenoids are responsible for the distinct color of pumpkins, carrots, parsnips, corn, tomatoes, canaries, flamingos, salmon, lobster, shrimp, and daffodils.

• Annatto

Annatto is a condiment and food coloring with an orange-red hue. It is derived from the seeds of the achiote tree (Bixa Orellana), which is native to tropical regions of the Americas. Turmeric is commonly utilized to add a yellow or orange hue to various food items, although it is also appreciated for its distinctive taste and fragrance. The scent of it is often described as having a slightly peppery aroma with a hint of nutmeg, while the flavor is said to be slightly nutty, sweet, and peppery.

• Carmine

Carmine, or cochineal, is a vibrant red pigment extracted from the cochineal insect. It is also called cochineal extract, crimson lake, or carmine lake. This pigment is derived from the aluminum complex formed from carminic acid.

• Red Beet

The distinctive color of red beet is attributed to the presence of betalains, nitrogen-containing water-soluble pigments. E-162 is a commonly used natural food colorant.

• Spirulina

Spirulina, a type of blue-green algae, has been used as a food coloring agent for years. Known for its vibrant blue color, it is frequently used to enhance various food products' natural hues. Food manufacturers often choose it because of its natural origin and the health benefits it offers.

• Chlorophyll

Chlorophyll is a naturally occurring green pigment found in the chloroplasts of green plants. Its natural abundance makes it an ideal choice for a natural food color. The green pigment is found in all leaves and stems.

Segmentation By Application

• Soy Sauces

Soy sauces often use natural food colors for coloring purposes. Carotenes are commonly used as coloring agents in light soy sauces, whereas anthocyanins are frequently used to color dark soy sauces.

• Foods

Natural food colors are commonly utilized to add color to a wide range of food items, such as cheeses, desserts, and snacks. For instance, betanin is commonly used as a cheddar cheese coloring agent, whereas anthocyanins are frequently used to color yogurt.

• Soft Drink

Soft drinks often incorporate natural food colors for coloring, where chlorophyll is occasionally utilized as a coloring agent in green tea-flavored soft drinks.

• Alcoholic Beverage

Natural food colors occasionally add color to alcoholic beverages. Anthocyanins are occasionally utilized as a coloring agent for red wines.

Regional Analysis

North America (USA and Canada)

North America has various big food companies. It has strong consumption of packaged food products. The demand for the natural food coloring market in this region is driven by an increasing number of bans on synthetic colors due to ecological and toxicological concerns. The increasing urbanization and Western culture in North America lead to vast fast food consumption. The busy lifestyles of people have led them to consume more packed food, which is driving the packed food market. These food products may contain natural, synthetic, or artificial food coloring agents as needed. The Natural Food Coloring Market is experiencing significant growth in North America due to high consumer demand for various carbonated beverages.

Europe (Germany, the U.K., France, Russia, Italy, and the Rest of Europe)

According to a psychological consumer study, food coloring is crucial in influencing the liking and acceptability of various food and beverage products. Color is widely considered to be the most significant sensory cue that influences customers' expectations of the taste and flavor of food and drink. Numerous laboratory studies have shown that altering the color of various food and beverage items by changing the hue or intensity/saturation can significantly influence consumers' or participants' expectations and subsequent experiences. Hence, many manufacturers are demanding good quality natural food colors for food and beverage production, propelling the growth of the market share of the natural food coloring market.

Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)

In the Asia-Pacific region, people are worried about artificial colors due to the inclusion of harmful chemicals. The increasing awareness among people about natural food colors helps them make decisions to choose natural rather than artificial colors. This has led to more attention to natural colors. Certified synthetic colors are also popular because of their low cost and their feature of working well to give a strong, even color. But they are also dangerous to use in food, so people use them less and less. More people are switching to natural colors, as their consumption is not harmed. These factors are driving the demand for natural food colors in this region.

South America (Mexico, Brazil, and the Rest of South America)

The region's increasing population has resulted in a significant consumption of ready-to-eat snacks, creating a demand for various colors in these snacks. The increase in the working population in the region is a significant factor contributing to the Natural Food Coloring Market growth in the area.

Middle East and Africa

There is significant consumer awareness regarding using natural ingredients in food products and beverages. The growth of the natural food colorants market is supported by consumers in this region who are knowledgeable about label-reading and ingredients. With the increasing level of literacy and consumer rights, more people are aware of the products they purchase, leading them to choose natural ingredients, driving the Natural Food Coloring Market.

Key Players

1. Archer Daniels Midland
2. Givaudan
3. Kerry Group, Plc
4. International Flavors & Fragrances
5. Mane
6. Sensient
7. Hasegawa
8. Firmenich
9. Robertet
10. Symrise
11. Synergy Flavors
12. Amar Bio-Organics India Pvt. Ltd.
13. Taiyo International
14. The Foodie Flavors Ltd
15. Besmoke Ltd
16. Aromata Group
17. Gulf Flavors and Food Ingredients FZCO
18. Seluz Fragrances & Flavors Company
19. Takasago
20. Hansen Holding A/S
21. Givaudan (Naturex)
22. Koninklijke DSM NV
23. Sensient Technologies
24. Symrise AG

Recent Developments

3 May 2023: In 2022, Sensient Technologies acquired Endemix, a vertically integrated Turkish natural color and extracts company. The acquisition of Endemix allows Sensient further to expand its vertical integration for key natural colors and add extraction and refining capacity, further strengthening the company's position as a prominent natural color solutions provider.