by The global Natural Food Colors Market is estimated to be valued at US$ 2.05 Bn or in 2023 and is expected to exhibit a CAGR of 6.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Natural food colors are coloring agents derived from natural sources such as plant, insect or mineral. Some common natural food colors include carotenoids, anthocyanins, chlorophyllin, and carmine. These natural colors offer vibrant hues, excellent color stability and are known to have minimal impact on health. They are extensively used across various food applications including meat products, beverages, baked goods, snacks and confectionery to enhance product appeal and visibility on retail shelves. Growing health consciousness and shift towards clean label products have propelled demand for such natural colorants.
Market key trends:
One of the key trends in the market is the shift away from synthetic colors. Health regulators across regions are imposing restrictions on certain synthetic colors owing to health hazards. This has pushed food producers to focus on natural alternatives. Furthermore, millennial population has higher preference for organic and natural ingredients in their diet. They are willing to pay premium for clean label and sustainable offerings. To capitalize on this, major food companies are replacing synthetic colors with natural variants. Additionally, advancements in extraction technologies have augmented supply of novel natural colors. Suppliers are investing in R&D to develop stable and vibrant shades from new plant and insect sources. This is broadening product portfolio and stimulating demand from food processing industries.
Porter’s Analysis:
Threat of new entrants: The threat of new entrants is low as the natural food colors market is fragmented with established players. Establishing manufacturing facilities requires high initial investments and regulatory approvals which make entry difficult for new players.
Bargaining power of buyers: The bargaining power of buyers is high. Buyers can easily switch between natural food colors suppliers based on quality, availability and price. This forces companies to maintain quality and offer competitive prices.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Suppliers of natural color raw materials such as vegetables, fruits and other plant and mineral sources are consolidated. However, suppliers cannot influence prices much due to availability of substitutes.
Threat of new substitutes: The threat of substitutes is moderate. Synthetic food colors are used as alternatives but demand for natural colors are increasing with growing health and wellness trend. Products promoting natural ingredients as a substitute threat.
Competitive rivalry: The competitive rivalry is high due to presence of numerous global and domestic players. Players compete based on product quality, consistency, pricing and innovation.
Key Takeaways:
The global Natural Food Colors Market Share is expected to witness high growth, exhibiting CAGR of 6.6% over the forecast period, due to increasing health consciousness and ban on artificial ingredients. North America dominates the market attributed to growing demand for natural and clean label foods. Europe is another major natural food colors market driven by strict regulations on synthetic colors usage.
The Natural Food Colors Market in Asia Pacific region is expected to grow at fastest pace during the forecast period. Rise in disposable incomes, growing population and changing lifestyle and food habits in developing countries like India and China is fueling market expansion in the region.
Key players operating in the Natural Food Colors Market are GNT International B.V., Roha Dyechem Pvt. Ltd., D.D. Williamson & Co., Inc., Kalsec Inc., Chr. Hansen A/S, Archer Daniels Midland Company, Adama Agricultural Solutions Ltd. (LycoRed), Naturex S.A., Sensient Technologies Corporation, and Symrise AG. The market is fragmented with these major players competing in terms of quality, products and pricing.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
