Natural Food Colors Market Expected to Reach $3.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Natural Food Colors Market," The natural food colors market was valued at $1.2 billion in 2021, and is estimated to reach $3.7 billion by 2031, growing at a CAGR of 11.3% from 2022 to 2031.

Natural ingredients used to impart the desired appearance and color to any food item or beverage are termed as natural food colors. They are added to carbonated drinks, ready-to-eat (RTE) products, frozen food, alcoholic beverages, processed foods, juices, and sauces, and other food products widely in the market. 
The food industry has been evolving in terms of innovations and demand, which in turn supports the expansion of market by effective color extracting processes. Manufacturers are focusing on key innovations that cater to the requirements of the large consumer base throughout the world. Increase in awareness toward health and wellness has been witnessed among people residing in developed as well as the developing countries. This has resulted in increased demand for various types of natural food colors made using sustainable techniques. Thus, natural colors are gaining increased traction among food & beverage manufacturers, which significantly drives the demand during the natural food colors market forecast

Moreover, the health benefits associated with the natural colorants such as antioxidant and antimicrobial activities boost the consumer interest towards naturally processed food products that expands the natural food colors market growth. In addition, advancements in natural color ingredients and easy availability of raw materials from plants and animals supplement the growth of the natural food colors market share. Rise in R&D activities pertaining to new raw material sources offer natural food colors market opportunities to food colorant manufacturers. The awareness of natural food colors is not optimal in undeveloped economies such as Cambodia, Brunei, Laos, and others. Thus, the rise in these industries leads to the growth of the market. With growing health awareness among consumers, China banned the use of 17 artificial food dyes in food products in recent years, which has enforced domestic players to introduce natural-based food colors. Thus, Asia-Pacific is anticipated to propel the market growth in the coming years.
 
The manufacturers are utilizing sources to strengthen their marketing activities to augment their natural food colors market demand. Furthermore, an increase has been witnessed in the number of netizens along with a rise in internet penetration. Considering this, most of the key players in the food color market strategize on promoting their products on various social media platforms. Thus, through social media marketing strategy, the natural food colors market size is expected to gain a critical growth opportunity.

According to the natural food colors market analysis, there has been a significant increase in the adoption of plant-based food products among consumers in recent years. The natural food colors market trends toward plant-based diets has been driven by several factors, including concerns over animal welfare, environmental sustainability, and personal health. Concerns over animal welfare have also played a role in the adoption of plant-based diets. Consumers are increasingly aware of the conditions in which animals are raised and the impact of animal agriculture on animal welfare, and are seeking out plant-based alternatives as a way to reduce their consumption of animal products. 

According to the data published by the U.S. Department of Drug & Administration (USDA) 2022, The global plant-based food market is expected to grow upwards to reach $162 billion by 2030 from $29.4 billion recorded in 2020. The increasing adoption of plant-based food products has led to a surge in demand for natural and plant-based food ingredients, including natural food colors. Many plant-based food manufacturers are using natural food colors to achieve vibrant colors and appealing marketvisual appeal without the use of artificial ingredients. Overall, the trend towards plant-based diets is expected to continue, and the demand for natural food colors is anticipated to grow alongside it as more consumers seek out plant-based alternatives to traditional animal-based products.

The Natural Food Colors Industry is segmented into color type, source, form, solubility, application, and region. On the basis of color type, the market is categorized into caramel, carotenoids, anthocyanins, curcumin, carmine, annatto, and chlorophyll & spirulina. By source, the market is bifurcated into plant and animal. On the basis of form, liquid and solid are covered in the report. Based on solubility, the market is categorized by water and dye. On the basis of application, the market is divided into processed food products and beverages. Region wise, the market is studied across North America which includes the U.S. and Canada, Europe includes Germany, France, the UK, Spain, Italy, Russia, the Netherlands, and Rest of Europe, and ASEAN includes Malaysia, Indonesia, Philippines, Singapore, Vietnam, Thailand, Brunei, Laos, Myanmar, Cambodia, China, and India.

The key players profiled in this report are Koninklijke DSM N.V., Givaudan SA, Nactarome S.p.A., T. Hasegawa Co., Ltd., GNT International B.V., Archer-Daniels-Midland Company, Taiyo Kagaku Co., Ltd., International Flavors & Fragrances Inc., V. MANE Fils SAS, Hawkins Watts Limited, BioconColors, Robertet Group, California Natural Color, Byrnes & Kiefer Company, The Watkin Company, Sensient Technologies Corporation, San-Ei Gen F.F.I., Inc., Gulf Flavours & Fragrances, Orginor Natural SA, Vivify, Kalsec, Inc., Oterra A/S, Kanegrade Limited, and Dohler GmbH.

Key Findings of the Study

• By color type, the carotenoids segment dominated the global market in 2021, and is expected to retain its dominance throughout the forecast period.
• By source, the plant-based natural food colors segment accounted for highest share in the market in 2020, and is projected to grow at a CAGR of 11.5% from 2022 to 2031.
• By form, powder segment led the global market demand in 2021, and is expected to retain its dominance throughout the forecast period.
• By region, Europe accounted for the highest market share in 2021, and is expected to grow at a CAGR of 10.8%.
• Some of the key players operating in the market include Koninklijke DSM N.V., Givaudan SA, Nactarome S.p.A., T. Hasegawa Co., Ltd., GNT International B.V., Archer-Daniels-Midland Company, Taiyo Kagaku Co., Ltd., and others.