NATURAL FOOD COLORS MARKET ANALYSIS

Natural Food Colors Market Size and Trends

Global natural food colors market is estimated to be valued at USD 1.56 Bn in 2024 and is expected to reach USD 2.75 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.4% from 2024 to 2031.

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Consumers are increasingly preferring natural food colors due to rising health concerns regarding synthetic colors. Growing demand for clean label and organic products boosts the use of natural food colors across various food and beverage applications. Furthermore, advancements in extraction and processing technologies have improved the stability and color strength of natural food colors, thus, increasing their adoption rates compared to artificial equivalents. The widening range of natural options and development of innovative products with natural hues can drive the growth of natural food colors market in the near future.

Rising Health Consciousness

With growing awareness and focus on health and wellness, consumers are becoming increasingly conscious about the ingredients and components of the products consumed. There is a sense of skepticism about artificial and synthetic ingredients used in foods and beverages, and this boosts demand for natural and organic products that are perceived to be free of unwanted chemicals and additives. Food colorants derived from artificial sources are also facing consumer backlash over the years due to various health and safety concerns. People want transparency in knowing the origin of their food and are wary of colors derived through coal tar based processes which may have potential long term health effects. As a result, consumers are drawn towards natural food colors extracted from natural sources like vegetables and fruits, which are considered safer alternatives. Manufacturers of food and beverages are realigning their strategies and reformulating products with natural colors to align with changing consumer sentiment.

Market Concentration and Competitive Landscape

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The reliance on convenience and processed foods among increasingly time-pressured consumers has been a major factor driving the growth of natural food colors globally. With hectic routines and fast-paced lifestyles becoming the norm rather than exception in modern societies across both developing and developed world, people now have less time than ever to invest in cooking meals from scratch on a daily basis. As such, the demand for prepared, packaged and ready-to-eat convenience products has witnessed a sizable surge over the past few years.  However, health-conscious consumers are now actively seeking out products made using simpler, familiar ingredients over those containing long, chemical-sounding components that are difficult to recognize and pronounce. This rising preference for familiar, easy-to-understand ingredients has pushed major F&B companies to respond by shifting towards using natural colors derived from common sources such as fruits and vegetables instead of synthetic food dyes. For instance, companies are employing colors extracted from beets, carrots and other natural plant pigments to impart vivid hues to snacks, cereals and desserts in order to appeal to increasingly health-focused buyers. The COVID-19 pandemic has further accelerated this shift towards more natural food options, as lockdowns and restrictions made dining out less viable, driving up at-home food preparation. According to the United Nations Food and Agriculture Organization (FAO), global food commodity prices witnessed a significant increase between 2020-2021 as demand for basic staples and ingredients soared worldwide amid supply chain disruptions caused by the health crisis. This inflated the prices of synthetic colors derived from petroleum sources, incentivizing manufacturers to rely more on affordable, natural substitutes. Therefore, the long term impact of changing consumer attitudes aligning with health and sustainability together with economic factors is that natural food colors are expected to increasingly replace artificial dyes across major F&B categories over the coming years.

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Natural food colors are typically more expensive than artificial ones as producing natural colorings require extensive cultivation and processing. For example, it takes around 10,000 pounds of Red Beetroot to produce just 1 pound of natural red food color. This high input material cost gets reflected in the end product price. According to the data from the UN Food and Agriculture Organization, the average production cost of natural food colors is estimated to be 4-5 times higher than similar synthetic colors.  The higher prices make natural colors out of reach for many small to medium food producers. As natural colors add very little nutritional value to the food, using artificial substitutes provides better pricing power and margins for budget-conscious producers. Even big brands hesitate to make a full transition and prefer to use only a certain percentage of natural colors in their products to control costs.

Opportunities: Scope for product innovation using natural colors

Growing health consciousness among consumers leads to increasing demand for clean label and organic products free from artificial ingredients. Natural food colors extracted from natural sources like vegetables, fruits and other plant/animal sources offer a healthy and sustainable alternative to artificial synthetic colors.. For example, colors extracted from purple sweet potato, blueberries, carrots, tomatoes, and others not only provide vibrant hues but also contain antioxidants with added health benefits. Microencapsulation technology enables stable incorporation of delicate natural colors, increasing their utility across product categories

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Carotenoid segment is estimated to contribute the 33.7 % share of the natural food colors market in 2024, owing to their strong perception of providing health benefits. Carotenoids are red, orange and yellow pigments naturally found in plants and fruits such as carrots, papaya and berries. These have been an important coloring agent for centuries but have gained more prominence in recent years due to increasing consumer demand for natural ingredients.  Carotenoids are highly versatile and stable coloring agents that can be used across a wide range of applications. These are frequently added to beverages, yogurts, baked products and snacks to not only enhance color but also purportedly provide antioxidant properties. Beverage companies have prominently featured carotenoid-derived colors in their branding to appeal to health-conscious consumers. Carotenoids are also increasingly utilized in meat and egg yolks to impart a more vibrant color, with poultry and aquaculture being major applications.  The natural hue afforded by carotenoids mimics many popular fruit and vegetable pigments. This allows product developers to create 'clean label' products featuring prominent displays of fruits and vegetables for marketing purposes. Many new plant-based meat and dairy alternatives also rely on carotenoids to achieve similar colors to animal equivalents. The positive image of carotenoids as a naturally occurring nutrient further boosts their clean label credentials.  Research demonstrating various health benefits such as improved vision, cardiovascular support and anticancer properties has cemented carotenoids' reputation.

Insights, By Application: Beverages segment dominate due to clean label demand

By application, beverages segment is estimated to account for the 35.4% market share in 2024, due to sustained consumer demand for clean labels. The beverage industry has undergone immense transformation, embracing natural ingredients as major selling points. Consumers today closely scrutinize labels and perceive synthetic colors and other artificial ingredients negatively. Water, juice, tea, coffee, sports and energy drinks widely utilize natural fruit and vegetable colors. Colorings extracted from sources like blueberries, cherries, cranberries and tree bark are commonly employed. Besides imparting color, many of these pigments are marketed due to their purported antioxidant properties. Plant-based milk alternatives also depend on natural colors to mimic the shades of dairy milk. Even in alcoholic beverages like beer and cider, customers increasingly prefer natural colorings over artificial ones due to a health-focused mindset. Regulatory support for natural ingredients further strengthened clean labeling in the beverage sector. The highly competitive beverage industry constantly rolls out new product varieties targeting specific consumer segments

Regional Insights

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The North American region currently dominates the global natural food colors market with estimated 34.6% share in 2024. The large size of the food and beverage industry in countries such as the U.S. and Canada is a key factor contributing to North America's strong position in this market. Stringent government regulations regarding the use of artificial food colors and growing health-consciousness among consumers has boosted demand for natural food colors. Many top food brands in North America are actively promoting clean-label products made using natural ingredients in response to consumer preference. This has further cemented North America's leadership in the natural food colors market.

The Asia Pacific region is poised to be the fastest growing market for natural food colors in the near future. Nations like India and China account for the largest production and consumption of food products globally. As the middle-class population expands rapidly in Asia, their spends on premium and branded food items is rising substantially. Local food manufacturers are keen to respond to this opportunity by developing new product lines featuring natural food colors. The large agriculture-oriented economies in Asia offer a strategic advantage to produce key natural colorants like carotenoids and anthocyanins at competitive prices. This factor, combined with low labor costs, enables Asia Pacific players to attract volume orders from multinational food companies and gain foothold overseas as well. While Asia lags North America currently in terms of market size, it is well on its way to emerge as the dominant force in the future natural food colors landscape.

Market Report Scope

Natural Food Colors Industry News

• In January 2024, Phytolon and Ginkgo Bioworks successfully achieved the first milestone to produce vibrant natural food colors via two producing strains.
• In July 2022, Symrise AG, a producer of flavours and fragrances, offered an emollient with antimicrobial properties that protects the skin from scalp to toe. Among other functions, the ingredient supports dandruff control concepts. It also works well in skin care products for acne-prone and oily skin.
• In June 2022, Symrise AG, a producer of flavours and fragrances, built a factory.
• In 2022, Sun Chemical launched SUNFOODS natural colorants for food and beverage.

*Definition: The natural food colors market consists of various natural pigments, dyes, coloring compounds or other substances that are used to provide color to food products without the use of artificial or synthetic colors. Some key natural food colors include anthocyanins, betalains, carotenoids and chlorophyll which are used to color foods like desserts, beverages, dairy products and more. As consumers increasingly demand natural and organic products with recognizable ingredients, the demand for natural food colors is growing significantly.

Market Segmentation

•  Ingredient Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Carotenoid
    • Beta-carotene
    • Annatto
    • Lutein
    • Lycopene
  • Curcumin
  • Anthocyanin
  • Paprika
  • Spirulina
  • Chlorophyll
  • Others
•  Application Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • Bakery & Confectionery
  • Beverages
  • Dairy & Frozen Products
  • Meat Products
  • Oils & Fats
  • Fruits & Vegetables
  • Meat Alternatives/ Plant-based Meat
  • Pet Food
  • Others
• Regional Insights (Revenue, USD Bn & KT, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Givaudan
  • BASF SE
  • NATUREX
  • Australian Food Ingredient Suppliers
  • Sensient Technologies Corporation
  • ADM
  • Spring TopCo DK ApS (Oterra)
  • Allied Biotech Corporation
  • ROHA Group
  • Kalsec Inc.
  • Döhler GmbH
  • San-Ei Gen F.F.I., Inc.
  • AROMATAGROUP SRL
  • Ingredion