June 19, 2024
Natural Food Colors Market

Global Natural Food Colors Market Is Driven By Increasing Awareness About Ingredient Labelling

Natural food colors are plant or mineral derived color additives used to impart color to products like food, pharmaceuticals and cosmetics. They are sourced from natural sources such as vegetables, fruits and other plant or mineral sources. Natural food colors are considered safer and healthier alternatives to artificial food colors as they have no synthetic preservatives or artificial flavoring which makes them suitable for usage in products marketed as natural, organic or clean label. The demand for natural ingredients is on the rise as consumers are increasingly becoming aware about understanding ingredient labels and recognizing artificial ingredients in their food products. Natural food colors provide vibrant color shades that resemble the natural colors found in fruits and vegetables which helps manufacturers enhance the appeal and eye-catching packaging of food products. They can be easily customized according to specific color and shade requirements. The global Natural Food Colors Market is estimated to be valued at US$ 2.05 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends observed in the Global natural food colors market size is the development of natural element nanoemulsion technology that helps in enhancing color stability, hue and tinctorial strength of natural food colors. Nanoemulsions help in protecting light sensitive natural pigments from degradation through encapsulation. They increase pigment concentration and optimize dispersion which results in superior coloring properties. Manufacturers are investing in R&D to develop natural element nanoemulsion technology as a strategy to overcome instability issues related to natural colors and expand applications in beverage, dairy and confectionary sectors. Another trend is the growing popularity of certified and sustainable sourced natural food colors. Consumer demand for transparency has ledbrands and manufacturers to opt fornatural colors that areorganic,non-GMO and sustainably farmed certified.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the natural food colors market is moderate as large investments are required for R&D, compliance with quality and manufacturing standards.
Bargaining power of buyers: The bargaining power of buyers is high as natural food colors are available from multiple suppliers and buyers can negotiate for better prices.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to the presence of a large number of suppliers in the market.
Threat of new substitutes: The threat of new substitutes is low as natural food colors do not have viable substitutes. Synthetic colors pose a health risk.
Competitive rivalry: The competitive rivalry is intense as key players compete on the basis of product quality, innovation, and pricing.

Key Takeaways

The global natural food colors market is expected to witness high growth during the forecast period.

Regional analysis: North America dominated the global natural food colors market in 2020 due to rising health consciousness among consumers and stringent regulations on synthetic colors. Asia Pacific is expected to be the fastest growing market owing to increasing demand from food & beverage and pharmaceutical industries in China and India.

Key players: Key players operating in the natural food colors market are Pfizer Inc., Novartis AG, Ipsen, Boehringer Ingelheim International GmbH and Eli Lilly & Company. Pfizer Inc. offers natural food colors through its subsidiary, Wild Flavors. It is one of the largest player focusing on innovation and new product development.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it