The Natural Food Colors Market consists of natural food colors derived from both plant and mineral sources. These food colors provides coloration without imparting flavors and are considered safer alternatives to artificial colorants. Natural food colors extracted from sources like vegetables, fruits and minerals are widely used for coloring biscuits, candies, desserts and snacks. The growing demand for ingredients that are recognizable, simple and natural has encouraged manufacturers to switch to natural food colors.
The Global Natural Food Colors Market is estimated to be valued at US$ 2.37 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Natural Food Colors Market are Pfizer Inc., Novartis AG, Ipsen, Boehringer Ingelheim International GmbH and Eli Lilly & Company.
Growing health consciousness among consumers and stringent regulations regarding the usage of artificial colors has fuelled the demand for natural food colors globally. The market has witnessed over 10% annual growth over the past five years.
Leading players in the natural food colors industry have expanded their production capacities and distribution networks across North America, Europe, Asia Pacific and Latin America to tap the opportunities in developing countries.
Market Key Trends
Clean label movement driven by millennials is a major trend influencing Natural Food Colors Market Growth. Consumers today carefully scrutinize product labels and ingredients to avoid artificial colors, preservatives and additives. This has propelled food & beverage manufacturers to emphasize on replacing artificial colors with natural substitutes. The pursuit for clean label products with simple and recognizable ingredients is expected to continue shaping the future market trends.
Porter’s Analysis
Threat of new entrants: High capital and Research and Development investments required for production makes it difficult for new players to enter the market.
Bargaining power of buyers: Large buyers have more bargaining power due to availability of substitutes but small players have less bargaining power over bigger customers.
Bargaining power of suppliers: Due to presence of many local players supply side bargaining power is less for mid-sized players but huge international suppliers have more bargaining power over buyers.
Threat of new substitutes: Threat is moderate as substitutes are available but may not meet regulatory standards and consumer preference for natural colors.
Competitive rivalry: Intense as the market is consolidated with few international players dominating the market share.
Geographical Regions
North America accounts for the largest share in the global Natural Food Colors Market in terms of value due to high demand for clean label, natural products and stringent regulatory measures for synthetic colors approval.
Asia Pacific region is expected to witness the highest growth during the forecast period due to growing health awareness, rising disposable incomes coupled with expansion strategies of key players targeting countries like India and China.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it