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Natural Food Colors Market to Grow to More Than $2.6 Billion by End of 2027, Says Coherent Market Insights

The use of natural food colors in food is on the rise, and the Food and Drug Administration (FDA) has approved a number of ingredients to use in coloring.

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December 23, 2021

SEATTLE — According to Coherent Market Insights, the global natural food colors market is estimated to account for $2.69 billion in terms of value by the end of 2027, witnessing a compound annual growth rate of 6.8%.

The use of natural food colors in food is on the rise, and the Food and Drug Administration (FDA) has approved a number of ingredients to use in coloring. These colorants are non-toxic and are safe for children. They don't stain teeth and disappear once the children brush their teeth. They also don't affect the shelf life of the product, so consumers don't have to worry about making them a problem for the rest of the family. There are several types of natural food colors plant, animal, dye and mineral. These are produced from naturally occurring products such as plants, minerals and microorganisms. These ingredients are safer than synthetic alternatives, and the benefits they offer consumers are well worth the price. Furthermore, they are environmentally friendly, which is another reason why many manufacturers are turning to them.

Market Drivers

1. Increasing demand for natural food ingredients due to rising cases of chronic diseases is expected to drive growth of the global natural good colors market during the forecast period.

Incidence of lifestyle and diet-related chronic diseases such as diabetes, obesity, cardiovascular disease and hypertension has increased in the recent past. According to the World Health Organization (WHO), in 2016, more than 1.9 billion adults aged 18 years and above were overweight, of which around 650 million were obese. According to the WHO, around 17.9 million people die each year from cardiovascular disease worldwide. Such a high incidence of chronic diseases has increased the adoption of natural food ingredients such as fruits, vegetables, fish, eggs, etc. Moreover, the adoption of natural food colors such as saffron, turmeric, matcha, spinach and paprika has witnessed massive traction since they aid in maintaining a healthy weight and a good heart condition.

2. Growing demand for natural and clean label products is expected to propel the global natural food colors market growth over the forecast period.

Clean label products refer to food products with simple and known ingredients that are easy to recognize, pronounce and understand. Clean label products do not contain any additives or preservatives. Moreover, these products include natural flavoring and coloring ingredients such as turmeric, blueberries and paprika for the desired coloring. Consumers have become increasingly conscious of natural and clean label products and tend to spend a significant amount of time on research.

Market Opportunities

1. Increasing demand for beverages and functional drinks can present lucrative growth opportunities in the market.

The consumption of different types of beverages and functional drinks has increased massively in the recent past. With growing sales of beverages, key companies are focused on launching novel products with natural ingredients, in order to expand their product portfolio and gain a competitive edge in the market. For instance, in May 2019, B Natural, a food subsidiary of ITC, launched a new fruit beverage called Himalayan Mixed Fruit, Dakshin Pink Guava and Ratnagiri Alphonso with no added preservatives.

2. Ongoing research and development activities can provide major business opportunities.

Key companies are focused on research and development activities in order to launch new products and enhance their market presence. For instance, in September 2021, Divi's Nutraceuticals launched CaroNat, a naturally-sourced food ingredient intended for the dark yellow color. Moreover, in April 2019, Diana Food launched a new range of organic colors with EU organic certification for food and beverages across Europe.