Natural Food Colors Market Size Worth US$ 3.17 Billion by 2028 at 7.1% CAGR with Global Analysis of 18+ Countries across 5 Key Regions, 50+ Companies Scrutinized by The Insight Partners

NEW YORK, Aug. 24, 2022 /PRNewswire/ -- The Insight Partners published latest research study on Natural Food Colors Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type (Carmine, Anthocyanins, Caramel, Curcumin, Annatto, Carotenoids, Chlorophyll, and Others), by Form (Liquid & Gel and Powder), by Application (Bakery and Confectionery, Dairy and Frozen Desserts, Beverages, Sauces; Dressings; and Condiments, RTC and RTE Products, Meat; Poultry; and Seafood, and Others), and Geography," the market is projected to reach US$ 3.17 billion by 2028 from US$ 2.10 billion in 2022; it is expected to grow at a CAGR of 7.1% during 2022–2028. The natural food colors market is expanding at a steady pace. Growing consciousness about the benefits of natural food colors, increasing awareness for clean-label products, rising need to enhance product appeal, and growing R&D activities in the food industry are significantly contributing to the market growth.

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Natural Food Colors Market: Competitive Landscape and Key Developments

Koninklijke DSM N.V., Sensient Technologies, Archer Daniels Midland Company, Döhler Group, BASF SE, Naturex S.A, Aromata Group, Givaudan, Dupont, Oterra A/S, and Mane KANCOR are the prominent players operating in the global natural food colors market.

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The growing use of microencapsulation technology further contributes to the natural food colors market growth. Microencapsulation is a technology that is used for the protection, stabilization, and the slow release of core materials. It is useful for flavor and odor masking of ingredients for foods and supplements, this factor is providing opportunities to the manufacturers of the natural food colors.

In 2021, Europe accounted for the largest share of the global natural food colors market. The market in Asia Pacific is expected to grow at the highest rate during the forecast period. China is one of the world's leading consumers of natural food colors. In China, increasing disposable incomes of the burgeoning middle-class population and growing urbanization, along with increasing health awareness among consumers, are driving the demand for natural food colors. Moreover, the rising number of supermarkets and hypermarkets provides consumers with easy accessibility and availability of various natural food colors products, which is further boosting the natural food colors market growth.

There is increased awareness about the benefits of consuming natural food colors, the main advantage of natural food coloring is that it doesn't contain common allergy-prone ingredients and may even add to food's nutritional value. Therefore, consumers are increasingly preferring natural food colors to synthetic colors. Synthetic food colors contain carcinogenic, toxic contaminants that result in increased inflammation and disrupt the functioning of the immune system, whereas natural food colors are safe to consume. Moreover, natural food colors do not contain common allergy-prone ingredients and may add to food's nutritional value. Thus, the factors mentioned above are driving the natural food colors market. Furthermore, a large variety of natural food colors are available in the market, which is attracting consumers.

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Based on type, the global natural food colors market is segmented into carmine, anthocyanins, caramel, curcumin, annatto, carotenoids, chlorophyll, and others. In 2021, the carotenoids segment accounted for the largest revenue share, and the anthocyanins segment is expected to account for the highest growth rate over the forecast period. In terms of form, the global natural food colors market is segmented into liquid & gel and powder. In 2021, the liquid & gel segment accounted for the largest revenue share. Based on application, the global natural food colors market is segmented into bakery and confectionery, dairy and frozen desserts, beverages, sauces; dressings; and condiments, RTC and RTE products, meat; poultry; and seafood, and others. In 2021, the beverages segment accounted for the largest revenue share.

The market is witnessing high demand due to increasing consumer awareness about the harmful side effects of synthetic food colors. As people have started adopting healthy eating habits, the demand for natural food colors is surging. Natural food colors are healthy and safe to consume, and they contain antioxidants that are highly beneficial for the human body; these factors are boosting the market growth. 

Natural food color manufacturers are constantly innovating to meet endlessly evolving consumer tastes and preferences. They are launching products with enhanced colors and quality to attract many consumers. For instance, in September 2020, Chr. Hansen launched two new natural food colorings—a turmeric-based yellow and spirulina-based blue. Such products are gaining immense popularity among consumers.

Hectic schedules of people and dual working households have directed a shift toward takeaways and dine-outs. As a result, restaurateurs are striving to enhance the look of meat products to attract more diners, and for this, they use natural food colors. The busy lifestyle of people has also surged the consumption of RTE and RTC products, which is positively affecting the natural food colors market.

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The global food & beverages industry has witnessed significant growth for natural food color, owing to the rising concerns pertaining to the use of synthetic food colors. Food colors are used in both commercial food production and domestic cooking. They are also used in a variety of pharmaceutical applications and cosmetics. Synthetic food colors contain cancer causing, toxic contaminants that result in increased inflammation and disrupts the functioning of the immune system. Several studies suggest that it may also lead to cancerous tumor.

Synthetic food colors are of low cost and have an improved and attractive appearance, but they also cause hypersensitivity in children. The UK's Food Standard's Agency has imposed a voluntary ban on several of these synthetic food colors because of the harm that they cause.

Furthermore, FDA has also reported synthetic colors to be showing signs of cancer in young children. For instance, in soft drinks, the caffeine is used as a color and it may cause heart problems. Thus, the rising consumer concerns about synthetic ingredients are estimated to drive the market growth of natural food colors.

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Impact of COVID-19 Pandemic on Natural Food Colors Market

The COVID-19 pandemic affected economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. The natural food colors industry suffered due to serious disruptions in supply chains and shutdowns of many food color processing, wholesale, and smaller retail businesses in the initial phases of the COVID-19 pandemic. The COVID-19 pandemic hindered the supply chains, manufacturing, delivery schedules, and goods sales. But, after some relaxation during the lockdown, the natural food colors product sales surged.

Due to the severe spread of the virus, consumers became more health conscious and started choosing natural and organic food products. This factor spurred the demand for natural food colors. Moreover, during COVID-19 consumers became more aware about the harmful ingredients present in food products, such as synthetic dyes, and opted out such products.  This factor positively impacted the natural food colors market growth worldwide.

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