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“The Natural Food Colors Market’s growth can be attributed to the burgeoning consumer awareness for clean label products, health hazards in contrary to that of synthetic food colors, and the health benefits achieved by using natural food colors”

Natural Food Colors Market Overview
Natural Food Colors Market size is valued at $ 1.7Bn by 2019 and is estimated to grow at a CAGR of 6.8% during the forecast period 2020-2025. The Natural Food Colors Market’s growth can be attributed to the burgeoning consumer awareness for clean label products, health hazards in contrary to that of synthetic food colors, and the health benefits achieved by using natural food colors. From companies investing in development of advanced ingredients, and modified formulations for application in beverages, bakery and confectionery, and dairy products is anticipated to have a positive impact on utilization of carotenoids, curcumin, anthocyanin, and carmine.
In addition, initiatives taken by the regulatory bodies such as FDA for amendments of color additive regulations and several multinational companies taking up regulations like filing Color Additive Petition (CAP) for the safe use of natural food colors is anticipated to take the growth rate to a much higher level in the forecast period 2020-2025.

Color Type- Segment Analysis
The Carotenoids segment dominated the natural food colors market in 2019. The growth in this segment can be attributed to the factor that these products act as anti-oxidants and coloring agents and protect the body against cellular damage, chronic diseases, and effects of aging. Growing demand from non-alcoholic beverages, frozen products, and bakery in combination with increasing health concerns and demand for natural ingredients are the key factors to be considered for the growth in the segment of this market in the forecast period 2020-2025.

Application Type- Segment Analysis
Based on application type, beverages segment dominated the market and is poised to grow at a CAGR of 5.1% during the forecast period, the segment is also anticipated to maintain its dominance in the forecast period 2020-2025. Also, with the high adoption rate of beverage products and with increase in consumer based awareness regarding the harmful effects of synthetic additives there has been an inclination toward natural food colors. The reason behind the dominance of beverages segment can be attributed to the growing application of food colorings which affects the texture and taste of the product.

By Geography – Segment Analysis
In 2019, North America dominated the Natural Food Colors Market with a regional share of 37.4%. The sector for Natural Food Colors has shown a good growth pace which might be attributed to the facts of strong and growing consumer knowledge of various natural food colors, which has led to the change in preference of consumer base; who are very much aware of their dietary habits to lead a healthy lifestyle and fight against the various negative effects on the health owing to the consumption of synthetic foods. In addition, rising demand for natural coloring agents are projected to give strong growth potential for the market development in this region during the forecast period 2020-2025.

Drivers – Natural Food Colors Market

Escalate in the demand of natural food color over synthetic ones
There has been an escalation in the demand for natural food colors over synthetic food colors specially in food & beverages industry due their origin being original thereby, appealing to consumers as a safe to use product reducing the cause of life-threatening diseases by the use of synthetic food color chemicals.

Continuous Innovation and Technological advancements are to boost the Market
Technological advancements like reducing the instability of the color and innovation like improving the life of the food colors used to prevent fading during processing are to being taken care of. Ongoing researches are focusing on finding new sources of natural food color with a developed and improved shelf-life and reduced instability of the colors. The developments made to achieve the desired properties are estimated to augment the growth of natural food color market in the forecast period 2020-2025.

Challenges – Natural Food Colors Market

Inconsistency in compliance of Natural Food Colors due to High Price
The major challenge for the market is that there is an escalation in the demand of natural food colorants in the Middle East Regions; the market is estimated to see high pricing of the natural food colors which is to impact the restrict the expansion of Natural Food Color Market in these regions in the forecast period 2020-2025. The key reason being the unsatisfactory climatic conditions in these regions for the import of the commodities to guide the manufacturing process further.

Natural Food Colors Industry Outlook
Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Natural Food Colors Market. In 2019, Natural Food Colors Market share is fragmented by Sensient Technologies, Chr. Hansen, Döhler Group, Kalsec, ADM, DSM, Naturex, DowDuPont, DDW, Fiorio.

Acquisitions/Product Launches
In April 2018, Chr. Hansen decided for a tie-up with a manufacturing facility, Banker Wire; which has extended its manufacturing of natural food colors in the North American region.
In May 2018, Sensient technologies launched new organic food colors like black carrot, organic annatto, organic beet; thereby extending its organic food color market worldwide.

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