Natural food colors are plant-based, mineral-based, or animal-based products used to enhance the visual appeal of food products without using artificial colors. Natural food colors are extracted from natural sources such as fruits and vegetables, minerals, and other natural substances. They are becoming increasingly popular as consumers demand for clean label products free from artificial ingredients. Natural food colors provide different shades and hues to various foods and beverages and are used in applications such as meat products, beverages, bakery and confectionery products, and desserts. With increasing awareness regarding the ill effects of artificial colors, more food manufacturers are using natural food colors in their products to cater to growing consumer demand for cleaner ingredients.

The global Natural Food Colors Market is estimated to be valued at Us$ 2.05 Bn in 2023 and is expected to exhibit a CAGR Of 14.% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Growing demand for clean label products: Consumers are increasingly demanding transparent and understandable labels on food products. They want to know about the ingredients used in manufacturing foods. This has been a major driver for natural food colors as they are naturally sourced and free from artificial colors. With growing health and wellness trend, demand for natural food colors has increased significantly.

Increased awareness about ill effects of artificial colors: Research has shown that some artificial colors could impact children’s behavior and health. This has increased awareness among consumers about potentially harmful effects of artificial colors. To cater to this aware consumer base, food manufacturers are replacing artificial colors with natural alternatives in their products.

Segment Analysis

The global natural food colors market is dominated by the beverage segment which holds around 35% share of the overall market. The increasing demand for naturally derived colors from the beverage industry is a major factor driving the segment’s growth. Beverage manufacturers are opting for natural colors over artificial colors to attract health conscious consumers. The dairy and confectionary segment is the second largest and growing segment in the market. About 25% of natural food colors are used in dairy and confectionary products globally. The increasing demand for all-natural and clean label products from these industries is supporting the growth of this segment.

PEST Analysis

Political: Food security and safety related regulations in major markets like Europe and North America are supporting the adoption of natural ingredients in food products. Many countries have restrictions or complete bans on certain artificial colors.

Economic: Rising disposable incomes and changing consumer preferences towards healthy products is driving the sales of premium priced natural food colors globally. The market is expected to generate new opportunities for manufacturers with the growing food and beverage industry.

Social: Consumers are more aware about ingredients and want food products with natural, simple and recognizable contents. This is increasing the demand for clean label and naturally sourced food colors.

Technological: Manufacturers are investing in R&D to develop new extraction and formulation techniques to manufacture natural colors from alternative natural sources with consistent shades and better stability. New processes help reduce production costs.

Key Takeaways

The Global Natural Food Colors Market Demand is expected to witness high growth over the forecast period. Regionally, North America dominates currently with over 30% market share due to stringent regulations regarding food safety and labeling. Asia Pacific is projected to be the fastest growing region during the forecast period growing at a CAGR of over 16% due increasing health consciousness.
Key players operating in the natural food colors market are Pfizer Inc., Novartis AG, AstraZeneca PLC, Gilead Sciences Inc., Amgen Inc., Sanofi AG, Hoffmann-La Roche AG, Merck & Co., Bristol-Myers Squibb Company, and Regeneron Pharmaceuticals Inc. Key players are focusing on new product launches with various natural sources to strengthen their market position.

The demand for natural colors is increasing from major end use industries like beverages, confectionary and dairy products. Changing regulations and clean label trend are driving major food companies to opt for natural colors. With governments supporting natural ingredients through policies, the natural food colors market is expected to grow significantly.

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