Natural Food Colors Market to Reach USD 3.02 Billion by 2032 - Coherent Market Insights

The global natural food colors market, which is expected to be valued at USD 1.69 billion in 2025, is on a trajectory of rapid expansion. Projections indicate a USD 3.02 billion valuation by 2032, exhibiting a CAGR of 8.6% during the forecast period. The natural food colors market share is mainly bolstered due to increasing consumer preference for clean-label, plant-based, and health-conscious food products. Moreover, rising regulatory restrictions on synthetic dyes and the growing demand for organic, minimally processed foods are further propelling market expansion.

Key Market Insights

The increasing adoption of natural pigments in various eatable items, such as beverages, confectionery, and dairy products, coupled with advancements in extraction technology, is fueling market growth.

• By ingredient, the carotenoid segment is expected to lead the natural food colors market, with a share of around 34.2% by 2025. Rising demand for natural antioxidants and vibrant hues in food and beverages, along with the increasing adoption of plant-based sources such as carrots and paprika, is driving this segment’s growth.
• In terms of application, the beverages segment is anticipated to hold approximately 34.2% of the market share in 2025. Sustained consumer demand for clean-label and health-oriented drinks, including fruit-based beverages, sports drinks, and plant-based milk alternatives, is augmenting this segment's expansion.
• In terms of region, the North America region is estimated to lead the market, accounting for 35.1% of the total market share in 2025. This dominance is mainly attributed to rising consumer awareness about natural ingredients. Additionally, stringent regulations on synthetic colors, and increasing investments by food manufacturers in plant-derived colorants are also boosting market growth.

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Natural Food Colors Market Report Coverage

Market Dynamics

Consumers are increasingly opting for clean-label food products containing natural ingredients, boosting the demand for plant-based colorants from sources like turmeric, spirulina, beetroot, and paprika. Increased health concerns over the use of synthetic dyes, as well as more stringent regulations on artificial additives, are fueling this market’s expansion. 

For instance, in January 2025, the U.S. Food and Drug Administration (FDA) revoked the color additive listing for Red Dye No. 3 in food and ingested drugs due to its association with cancer in laboratory animals. Manufacturers are required to remove this dye from food products by January 2027.

Additionally, increasing awareness about the potential adverse effects of synthetic food dyes, such as hyperactivity in children and allergic reactions, is further driving demand for natural alternatives. Consumers are actively seeking clean-label products with safe, recognizable ingredients, pushing manufacturers to reformulate their offerings with plant-based colorants.

Market Trends

• Regulatory Push for Safer Food Ingredients

Global food safety authorities, including U.S. Food and Drug Administration (FDA), the European Food Safety Authority (EFSA), and the Food Safety and Standards Authority of India (FSSAI), are tightening regulations on artificial colorants due to their potential health risks. Recent bans and restrictions on synthetic dyes are prompting food manufacturers to reformulate products using natural alternatives, further fueling market growth.  West Virginia enacted a ban on synthetic food dyes and preservatives. Food dyes such as Red Dye No. 40, Yellow Dye No. 5, No. 6, Blue Dye No. 1, No. 2, Green Dye No. 3, butylated hydroxyanisole, and propylparaben. The ban will commence with school nutrition programs in August 2025 and extend statewide by January 2028.

• Collaboration and Partnerships between Food Manufacturers and Natural Color Suppliers

Increasing collaborations between food manufacturers and natural color suppliers is driving innovation, improving supply chain efficiency, and ensuring regulatory compliance. As the demand for clean-label, plant-based colors grows, companies are co-developing high-performance pigments with enhanced stability, solubility, and shelf life.

Additionally, food manufacturers are working with suppliers to create customized, heat- and pH-stable natural colors for bakery, dairy, beverages, and confectionery. These partnerships enable vibrant, durable formulations that withstand modern food processing demands.

Market Opportunities

• Technological Advancements in Natural Pigments

Innovations in extraction, formulation, and stabilization technologies have improved the performance of natural food colors, enhancing their heat stability, solubility, and shelf life. Microencapsulation techniques, for instance, have helped preserve the vibrancy of plant-based pigments, making them viable for commercial food processing applications.

For instance, according to South African Journal of Chemical Engineering published in January 2025, researchers have increasingly adopted green extraction methods such as Microwave-Assisted Extraction (MAE), Ultrasound-Assisted Extraction (UAE), and Supercritical Fluid Extraction (SFE). These techniques have proven effective in reducing extraction time and solvent usage while improving the yield and purity of natural pigments like anthocyanins and chlorophyll.

Moreover, the global shift toward plant-based and vegan diets presents a significant market opportunity for natural food color manufacturers. As consumers increasingly seek healthier, cleaner, and ethically-sourced food options, the demand for plant-derived natural colors is surging. Food and beverage companies are responding by reformulating their products with vegan-friendly, sustainable color solutions, creating new growth avenues for natural pigment suppliers.

Analyst’s View

“The natural food colors market is experiencing strong growth, driven by rising consumer demand for clean-label, plant-based products,” said Kalpesh Gharte, an analyst. “Regulatory bans on synthetic dyes, such as the U.S. Food and Drug Administration’srestriction on Red Dye No. 3, are accelerating the shift to natural alternatives. Innovations in green extraction technologies, like MAE and SFE, are enhancing pigment stability and efficiency for large-scale use. Additionally, collaborations between food manufacturers and color suppliers are improving product performance across key applications. With regulatory backing and technological advancements, the market is set for sustained expansion.”

Recent Developments

In November 2024, Phytolon, an Israeli biotech / food tech startup that produces natural food colors using precision fermentation, secured an investment from Rich Products Ventures (RPV), the corporate venture capital fund of global, family-owned food company Rich Products (Rich's), to help drive commercialization of its innovative, sustainable and clean-label solution for natural food colorings. As part of the investment, Rich's will explore Phytolon's proprietary color offerings in several of its products, in a mutually non-exclusive manner.

Competitor 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

Market Segmentation

• Ingredient Insights
  • Carotenoid
    • Beta-carotene
    • Annatto
    • Lutein
    • Lycopene
  • Curcumin
  • Anthocyanin
  • Paprika
  • Spirulina
  • Chlorophyll
  • Others
• Application Insights
  • Bakery & Confectionery
  • Beverages
  • Dairy & Frozen Products
  • Meat Products
  • Oils & Fats
  • Fruits & Vegetables
  • Meat Alternatives/Plant-based Meat
  • Pet Food
  • Others

Regional Insights

• 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