Natural food colors are organic plant and mineral pigments used to impart color to food products without using artificial dyes or synthetic pigments. Natural food colors such as carotenoids, anthocyanins, and chlorophyll are increasingly being used in a wide range of food products including snack foods, beverages, bakery products and confectioneries. The use of natural food colors are gaining popularity as they are perceived as healthier and cleaner label substitutes to artificial food colors and also provide colors identical to artificial colors.

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 12.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

One of the major drivers supporting the growth of natural Global natural food colors market size is the rising demand for cleaner label and natural ingredients among health-conscious consumers. Consumers are increasingly focusing on ingredient lists and avoiding food products with artificial additives and ingredients. This is prompting food manufactures to switch to natural alternatives to cater to evolving consumer preference. Moreover, natural food colors are becoming mainstream as studies have linked artificial colors to behavioral issues in children. The shift toward natural colors is expected to continue supporting the demand for natural food colors over the forecast period.

SWOT Analysis

Strength: Natural Food Colors are gaining popularity among consumers as they do not pose health risks and are readily obtained from natural sources such as vegetables, fruits, and other plant and animal sources. They offer three or more coloring agents as compared to artificial colors. Natural Food Colors manufacturers are also offering customized product offerings to meet specific demands of customers.

Weakness: Raw material price volatility poses significant challenges for Natural Food Colors manufacturers as the costs often fluctuate. Further, the color stability of Natural Food Colors is poor as compared to their artificial counterparts. Extraction and purification processes of natural pigments are complex and expensive.

Opportunity: Growing health conscious consumer base globally is shifting preference towards clean label and organic products. Stringent regulations regarding the use of artificial colors in food products present an opportunity for natural variants to capture higher market share. Modern lifestyles are propelling the demand for convenient packaged and ready-to-eat food items where Natural Food Colors find extensive application.

Threats: Emergence of COVID-19 pandemic has disrupted global supply chains and logistics networks posing operational challenges. Stringent import and export restrictions imposed by various countries impact the availability of raw materials for Natural Food Colors. Further, high research and development costs associated with product innovation limit entry of small players.

Key Takeaways

The global Natural Food Colors market is expected to witness high growth over the forecast period of 2023 to 2030. The market size is anticipated to reach US$ 2.05 Billion by 2024.

Regional analysis: North America region currently dominates the market owing to rising health consciousness and stringent regulations regarding the use of artificial colors. Europe follows North America in terms of market share and is expected to grow at a steady pace during the forecast period. Asia Pacific region shows fastest growth prospects attributed to changing consumption patterns and expanding ready-to-eat food industry in countries like India and China.

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. These companies focus on expanding product portfolios through inorganic growth strategies such as acquisitions and collaborations. For instance, in 2023, Novartis AG acquired CellforCure to strengthen its position in the global market.

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