Industry

Natural Food Colors Market Outlook 2025: By Top Companies, Trends and Future Prospects Details for Business Development

Natural Food Colors Market
Food Colors Market Overview 2019

The Global Natural Food Colors Market size was estimated at USD 1.94 billion in 2018, growing at a CAGR of 6.04% over the forecast period. Food colors are dyes or pigments used to enhance the taste and colors to give a precise appearance. The growing need for convenience foods owing to the increasing consumer knowledge about products with an exotic and traditional taste is anticipated to additional upholds the growth of the market in the next few years. The global food colors market is primarily driven by the increasing demand from the bakery & confectionery and the beverages industry. For example, betanin, a natural food colorant, is used for its antioxidant properties. Similarly, red sandalwood offers wound healing properties and is used in ayurvedic treatment. Natural colors lessen the risk of allergies and intolerance among customers.

Additionally, Governments are also imposing strict rules and regulations pertaining to the usage of the clean label and eco-friendly food and beverage products. Over the past few years, governments of Spain and Germany have launched and effectively implemented several campaigns to promote healthier lifestyles by familiarizing innovative healthy products to reduce obesity, cholesterol, and diabetes. The worldwide demand for natural food colors is rising owing to the increasing consumer preference for organic label products. Further, strict food & beverage norms regarding the use of synthetic food colors are expected to have a positive impact on the worldwide food colors industry.

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Liquid Form segment holds the largest market share of the food colors market in terms of revenue during the forecast period

On the basis form, the natural food colors market is divided into Powder and Liquid form. Liquid form is anticipated to be the largest product segment accounting for over 60% of the total market revenue in 2018. The demand for natural color is increasing significantly due to the growing awareness among consumers regarding health benefits. Natural colors are free of Genetically Modified Organisms (GMO) and allergens. Growing awareness regarding the harmful effects of artificial colors and the chemical utilized in the manufacturing of such colors are substantially raising the demand for natural food colors in numerous end-use industries. The market for powder form is projected to have growth rate of 6.85% over the forecast period on account of growing product use by consumers across the developing economies. Furthermore, the demand for natural colors, like green and blue, is estimated to be driven primarily by their use in the beverage manufacturing industry.

Among applications, the Beverages segment is anticipated to dominate the natural food color market during the forecast period

Based on application, the food color market is bifurcated into Beverages, Processed Food, Dairy Products, Bakery & Confectionery Products, and Others. Beverages application leads to the overall food color market over the forecast period. Increasing customer awareness regarding the harmful effects of artificial additives has resulted in increasing demand for naturally-colored products. Owing to the rising demand for ready-to-drink beverages, increasing disposable income and economic development heightened demand for the product. Additionally, the usage of these products allows vendors to meet strict regulatory standards regarding allowable elements in consumables. As a result, demand in this segment is anticipated to grow significantly over the forecast period.

Europe accounts for the largest market size in the global natural food color market during the forecast period.

Geographically, the food colors market is analyzed across North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Europe is the leading region and is expected to have a market share of 30.33% by 2025. Owing to the increased awareness about safe food color products among consumers, and the health benefits provided by natural food colors. Additionally, stringent rules & regulations regarding the use of artificial food colors are expected to strengthen the natural food colors market in Europe. Asia-Pacific is projected to be the fastest growing region with a CAGR of 6.83% over the forecast period in terms of value of natural food color market due to the high demand from emerging economies like India, China, and South Korea. Moreover, an increase in consumer expenditures for food & beverages is expected to increase the demand for color colors over the forecast period.

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Objective of the Study:

  • To analyze and forecast market size of the Global Natural Food colors market, in terms of value & volume.
  • To examine the careful market segmentation and forecast the market size, in terms value, on the basis of region by segmenting Natural food colors market into five regions, namely, North America, Europe, Asia Pacific, Middle East and their leading countries.
  • To outline, categorized and forecast the global natural food colors market on the basis of form and application.
  • To examine competitive developments like expansions, technological advancement, services, and regulative framework within the global natural food colors market.
  • To highlight the impact analysis of the factors, affecting the market dynamics such as drivers and challenges.
  • To strategically profile the key players and comprehensively analyze their market shares along with detailing the competitive landscape for market leaders.

Global Natural Food Colors Market Competitive Landscape

Companies such as Archer Daniels Midland Company, Kalsec Inc., Chr. Hansen Holding A/S, Sensient Technologies Corporation, Naturex S.A., McCormick & Company, Lycored Ltd, Dupont, Chr. Hansen Holding A/S and Australian Food Ingredient Suppliers (AFIS) are the leading player of natural food color market globally.

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