Natural Food Colors Market to Reach Valuation of USD 2,729.1 Million by 2028 - Consumers' Increasing Demand for Clean Label Products is Projected to Drive the Market

From the period 2022 to 2028, the Global Natural Food Colors Market is expected to reach USD 2,729.1 Million in terms of revenue, growing at a Compound Annual Growth Rate (CAGR) of 7.60%.

The Global Natural Food Colors Market is expected to expand rapidly over the projected period due to increasing demand for confectionery and bakery goods. Additionally, rigorous laws governing the use of synthetic and similar colors are expected to emerge as a major driver of business growth. The business is predicted to increase significantly because of the rising demand for products from the alcoholic and non-alcoholic beverage production industries. Moreover, rising consumer awareness in the Asia Pacific and North America is likely to drive demand for food colors derived from non-synthetic sources over the forecast period.

Due to rising consumer health concerns, the market for dairy and frozen products is expanding rapidly in the United States. Furthermore, mounting worries about the health risks provided by the economy's use of synthetic colors are projected to boost market expansion. The product's demand in the bakery application is predicted to expand significantly due to the rising demand for non-synthetic alternatives in the creation of pastries, muffins, and cupcakes. Further, the use of natural colors in icing and frosting is predicted to boost economic growth. Furthermore, the rising demand for non-synthetic alternatives in bakery and confectionery applications, together with leading manufacturers' adoption of natural colors, is likely to boost the growth of the Natural Food Colors Market.

Key Highlights from the Report

• On the basis of Type, the market is segmented into Carmine, Anthocyanins, Caramel, Annatto, Carotenoids, Chlorophyll, Spirulina, Turmeric, Beet, and Others. Carotenoids accounted for a major share of market revenue because of superior use features such as anti-oxidation, protection against chronic diseases, and cellular damage. Additionally, rising demand for carotenoids in non-alcoholic drinks, frozen foods, and bakery items is likely to drive market expansion globally. Curcumin demand is predicted to grow at a rapid pace during the forecast period, owing to its application in food items, confectionery, bakery, drinks, and dairy & frozen products. Moreover, the rising demand for curcumin due to its medical and health benefits is likely to boost business growth throughout the forecast period.

• On the basis of Application, the market is segmented into Processed food products and Beverages. The beverages sector is expected to increase at a rapid pace during the forecast period, owing primarily to the rising demand for juices, soft drinks, and alcoholic beverages. The beverage industry's expansion is being driven by consumer economic progress, particularly in the Asia Pacific, as well as an increased preference for flavored beverages. Moreover, increased consumer knowledge about the detrimental consequences of artificial additives is driving up demand for natural colorants in beverages.

• Asia Pacific is the fastest regional segment in terms of growth. The Asia Pacific industry is predicted to grow at the fastest rate pace during the forecast period, owing to increased consumer knowledge about the detrimental effects of synthetic colorants, as well as an increase in the region's consumers' spending power. Over the last few years, China has been the world's largest consumer market for food and beverages, making this industry very appealing to foreign brands and players in the food and beverage industry. Furthermore, increased government limitations on the use of synthetic colors are projected to have a significant impact on the adoption of such alternatives by Chinese food and beverage businesses.

Some of the key players in the Global Natural Food Colors Market include CHR Hansen Holding A/S (Denmark), Koninklijke DSM N.V. (Netherlands), Sensient Technologies Corporation (U.S.), Archer Daniels Midland Company (U.S.), Döhler Group (Germany), D.D. Williamson & Co. Inc. (U.S.), Naturex S.A. (France), Aromata Group S. R. L (Italy), Kalsec Inc. (U.S.), FMC Corporation (U.S.), BASF SE (Germany) (Israel), Lycored Ltd. (Israel), GNT Group B. V. (Netherlands), San-Ei Gen F.F.I. Inc. (Japan), Phinix International (India), Kolorjet Chemicals Pvt. Ltd. (India), Vinayak Ingredients India Pvt. Ltd. (India), IFC Solutions. (U.S.), INCOLTEC (Spain) and others.

Market Dynamics:

Demand for natural and clean label products is increasing.

The demand for food with natural components and clean labeling is increasing in practically all regions, owing to rising health consciousness, increased consumer spending power, and an increase in food adulteration incidents. As a result, manufacturers are concentrating on extending their natural food and beverage portfolio. Clean-label items are those that are organic, natural, non-GMO, and minimally processed. Increasing consumer health consciousness increases demand for natural and clean-label products, which in turn drives demand for Natural Food Colors and flavors. Consumers are gravitating toward clean-label products as they become more aware of the detrimental impacts of non-synthetic components. This will encourage people to use clean-label items and diets.

High prices and a scarcity of basic materials

Crops provide several natural food and flavoring components. The scarcity of such raw materials is a major factor driving up the prices of ingredients derived from them. Farmers are implementing innovative practices, such as precision farming, to enhance crop productivity and source components. The availability of raw materials for natural food ingredients varies seasonally. Due to the high heat, agricultural productivity in eastern Australia and the Midwest of the United States has decreased significantly. Thus, low raw material availability is expected to be one of the primary reasons driving up ingredient prices, limiting the market growth.

Over the projection period, North America is expected to have tremendous growth. Due to the region's high population and purchasing power, people are looking for a variety of comfort and functional foods. The shift in population consumption habits as a result of increased awareness about healthy food and beverages is also raising demand for Natural Food Colors and tastes ingredients. This has resulted in an increase in the desire for natural foods, natural colors, and natural flavors. The millennial generation is rising demand for clean label food and beverages, which is boosting the Natural Food Colors and tastes industry.