Natural Food Colors Market Outlook: Increasing substitution of synthetic and natural identical food colors by natural colors is expected to drive the demand

Posted On Jan, 05, 2017

The demand for natural food colors is expected to witness substantial growth over the forecast period as natural food colors are replacing synthetic food colors owing to the growing pressure from consumers. Synthetic food colors have several health hazards related to it including tumors, kidney damages, and different types of allergies.

Growing concerns towards the effects of synthetic colors coupled with the rising awareness towards the health benefits associated with natural foods colors are expected to drive the market over the next nine years. The market witnesses increased efforts towards new product development in a bid to develop advanced products with superior stability.

The growing demand in application industries, such as beverages, bakery & confectionery, and dairy products, are expected to have a positive impact on the utilization of carotenoids, curcumin, anthocyanins, and carmine food colors over the forecast period, which is expected to drive the market growth. Natural food colors are used as raw materials to fulfill the coloring as well as nutritional needs to some extent on account of which the demand for the product is growing in confectionery, dairy, and bakery products.

Chr. Hansen, the leading manufacturer of Carmine from cochineal insect, are trying to obtain carmine through the fermentation process. As LycoRed produces its Lyc-O-Beta carotene orange color from the fermentation of the Blacksiea trispora fungus, the company is trying to manufacture carmine through such fermentation process. However, the company has restricted itself from revealing the source through which Carmine will be produced and has confirmed that the innovation process may take around three or more years.

The industry witnesses multiple regulations pertaining to the classification of colors as natural due to stringent norms imposed by the governing agencies. The U.S. Food & Drug Administration, European Commission, European Food Safety Authority, Department for Environment Food & Rural Affairs, and World Health Organization are among the few associations that have approved the use of natural colors in food & beverage applications.

The penetration of natural food colors is witnessing a continuous increase primarily in North America, Europe, and Asia Pacific on account of growing concerns raised by consumers regarding the use of synthetic food colors. In addition, it has been estimated that around 50% of the new drinks launched in North America, 69% in Asia, and 89% in Europe use natural colors in beverages, leading to an increase in the penetration of natural food colors in the aforementioned regions.

The prices of natural food colors are higher as compared to the synthetic colors on account of high raw material production cost, extraction cost. and the cost incurred during purification, and concentration processes. In addition, the price is increased by the high raw material procurement cost due to the localization of raw material production, thereby restraining the market growth.

  In-depth report on global natural food colors market by Grand View Research:

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