The use of natural food colors offers several advantages over synthetic or artificial dyes in food products. Natural food colors provide vivid colors similar to artificial colors and make food aesthetically appealing. They are derived from natural sources like fruits and vegetables and do not contain artificial preservatives or chemicals. Natural food colors cater to the rising demand for clean label and organic products among health-conscious consumers. Consumers prefer buying products containing natural ingredients owing to perceived health benefits. The growing vegan and vegetarian population also influences the demand for plant-based natural food colors. The natural food colors are approved by regulatory bodies and do not pose risks to human health.
The Global Natural Food Colors Market is estimated to be valued at US$4.52 billion in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024-2030.
Key Takeaways
Key players operating in the Natural Food Colors are Chr. Hansen Holding A/S, Archer Daniels Midland Company, DDW The Color House Corporation, Döhler Group, Kalsec Inc., McCormick & Company, Inc., GNT Group, Naturex S.A., Sensient Technologies Corporation, Symrise AG.
The demand for Natural Food Colors Market Demand for clean label and organic food products free from artificial ingredients is a major driver is growing due to the shift in consumer preferences towards clean label ingredients and rising health-consciousness. Consumers are willing to pay premium prices for products containing natural ingredients and avoiding artificial colors. The clean label trend is compelling food & beverage manufacturers to adopt natural food colors.
The global natural food colors market is expanding significantly with the growing international trade of food products. Leading players are strengthening their distribution channels across geographies to tap the market potential. The adoption of natural food colors is increasing in developing countries with their rising disposable incomes and exposure to global food trends on social media.
Market key trends
The natural food colors market is shifting towards more plant-based and vegan dye alternatives as consumer demand for sustainable and environment-friendly products increases. Sources such as fruit and vegetable juices, spirulina, and pomegranate extracts are gaining popularity among manufacturers. Natural dye extraction using sustainable methods and technologies is an emerging trend. For example, many producers are using technology such as flash drying techniques to obtain high-quality powder extracts while preserving maximum nutrition. Natural food colors meeting clean label standards and certified organic claims witness increased preference.
Porter’s Analysis
Threat of new entrants: Low barriers to entry due to the availability of raw materials but established brands dominate the market.
Bargaining power of buyers: Large retailers can negotiate lower prices but demand for natural colors is increasing.
Bargaining power of suppliers: Major suppliers have significant influence over prices due to specialized production processes and facilities.
Threat of new substitutes: Synthetic substitutes still dominate but natural food colors are gaining popularity due to clean label trends.
Competitive rivalry: Intense competition among leading companies to cater to demand in developed regions through new product launches.
Geographical Regions
North America accounts for over 40% share in the natural food colors market due to rising health concerns. Changing lifestyles and growing demand for natural ingredients in food and beverages from U.S. and Canada drive high consumption.
The Asia Pacific region is forecasted to be the fastest growing market during the forecast period. Increasing disposable income, growing food processing industry and changing preferences toward clean label products support the market expansion in developing countries like India and China.
*Note:
1. Source: Coherent Market Insights, Public Source, Desk Research
2. We have leveraged AI tools to mine information and compile it.
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.