27 February 2025, Natural colors expert Oterra has opened a new color blending and application center in Kerala, India, to address the Indian, Asia Pacific, and Middle East markets.
The facility is in Kochi, Ernakulam district, which is based on the premises of Oterra's Akay Natural Ingredients subsidiary. It features color blending and application laboratories to aid customers in the shift towards natural colors in F&B products.
Oterra CEO Martin Sonntag said that India and the broader APAC region are becoming increasingly important for the company. He further stated that India's strategic positioning provides easy access to emerging markets in neighboring regions such as the Middle East.
Earlier, Oterra used to export raw materials to its European factories for processing, and then import the value-added blends for use in India. With the new facility, it is now able to directly supply the most widely observed color shades used in the food and beverage sector, namely yellow, orange, red, and pink derived from raw, plant-based materials like turmeric, paprika, annatto, and red beet.
The site is home to 120 production and laboratory workers, employed by the company. The raw materials undergo a spray drying process, followed by mixing before being used for food and drinks. The innovation and application lab is also available on the site.
Manu Raj V, director and operations head of Akay Natural Ingredients, stated: "We will be in a position to serve most of our customer's requirements from our India lab for items like juices, concentrate, hard-boiled sweets, jelly gums, biscuits, and cakes."
"Having a local facility enables us to optimize the supply chain and provide a more reliable supply of high-quality natural colors. It enables us to react faster to customer requirements, minimize lead times, and enhance our capability to fulfill market needs in India and the surrounding regions."
A new report by the Natural Food Colors Association discovered that although Indian home cooking is renowned for its bright colors and reliance on fresh produce, the packaged foods industry in India employs 'nearly exclusively' artificial colorings. Nevertheless, shifting consumer patterns and increased food and beverage exports to nations where natural colors are more highly valued could lead to the development of natural alternatives.
Moreover, a study conducted by coherent market insights has discovered that Indian customers are increasingly opting for natural ingredient-based products, in accordance with the rising demand for artificial additive-free, preservative-free, and processed ingredient-free food and beverages. The natural food colors business is anticipated to expand at 8.6% CAGR during the forecast period 2025-2032. It was expected to be US$ 1.69 Bn in 2025 and shall be US$ 3.02 Bn by the end of the year 2032.
The natural food colors industry is poised to grow steadily over the assessment period says CMI’s senior research consultant Yash Doshi. Growth is attributed by growing awareness among health conscious consumers. Consumers are now aware about the ingredients of the products they consumed. Consumer want transparency in knowing the origin from which the food is derived.
