Natural Food Color Market Size, Share and Trends 2024 to 2034

Natural Food Color Market Size and Forecast 2024 to 2034

The global natural food color market size is worth around USD 1.57 billion in 2024 and is anticipated to reach around USD 3.49 billion by 2034, growing at a notable CAGR of 8.31% from 2024 to 2034. Increasing regulations for the manufacturing of food products is contributing to market growth.

Natural Food Color Market Key Takeaways

• Europe dominated the generated the major market share of 34% in 2023.
• Asia Pacific is anticipated to grow at a solid CAGR of 9.53% during the forecast period.
• By ingredient, the beta-carotene segment contributed more than 23% in 2023. 
• By ingredient, the blue spirulina segment is expected to grow at a significant CAGR in the market during the forecast period. 
• By application, the beverages segment recorded the biggest market share of 25% in 2023. 
• By application, the dairy & frozen products segment is expected to grow at the fastest rate in the market during the forecast period 2024 to 2033.

Europe Natural Food Color Market Size and Growth 2024 to 2034

The Europe natural food color market size reached USD 1.09 billion in 2023 and is predicted to surpass around USD 2.63 billion by 2034, at a CAGR of 8.33% from 2024 to 2034.

Europe dominated the global natural food color market in 2023. The dominance is attributed to the well-established food and beverage industry in European regions like the UK, France, and Germany. The European population prefers natural food colors due to the increasing health awareness that they provide multiple nutritional benefits. Governments in this region also have a regulatory environment that focuses on sustainable production. This opens multiple opportunities for new market players to contribute towards the growth of the natural food color market.

Asia Pacific is anticipated to grow at the fastest rate in the market during the forecast period. Rapid urbanization in countries like China and India is changing lifestyles, which is increasing the need for packed foods and beverages. People prefer foods containing natural colors that are environmentally friendly and provide nutritional benefits. Countries like Japan are constantly focusing on sustainable production, which gives multiple opportunities for new emerging players to contribute to the growth of the natural food coloring market.

Market Overview

Natural food colors refer to a pigment, dye, or any substance obtained from natural sources like animals, vegetables, or minerals to add color to any food or beverage. Some of the natural colors can naturally be obtained from some insects or algae. These colors are considered a better option than synthetic food colors as they are produced by using chemicals that can cause harm to the body and are also non-biodegradable in the environment. Colors like red, violet, and blue are derived from anthocyanins, which are water-soluble pigments found in raspberries, red cabbages, and beetroots. One of the mineral-based sources is calcium carbonate, which creates white coloring in food products.

The global natural food color market is growing significantly due to several health benefits provided by natural colors, and consumers are also turning towards these products. There are many beverages that are being made with natural colors, gaining significant importance and contributing to market growth. There are multiple food options available that contain natural food colors; some of the foods are chocolate gems by Unreal, Magic Spoon Grain Free Fruity Cereal, Tillamook Cheddar Cheese, and many more.

What is the Role of AI in Food Industry?

The emergence of artificial intelligence (AI) is helping many industries in multiple ways to increase their sales and mark significant growth. AI has the capability to analyze huge amounts of data related to natural food colors and help in studying consumer patterns. This can help monitor the quality of the product during production and enhance it according to consumer preferences. The capability to monitor various changes in consumer patterns will potentially help contribute to the growth of the natural food color market in the upcoming years.

• In July 2024, Kalamazoo Company partnered with Thimus, which will use AI to analyze people’s reactions to flavors and to improve natural food ingredients.

Natural Food Color Market Growth Factors

• The increasing awareness of the benefits of natural food colors stands out as a potential growth factor for the market.
• Rising health consciousness among individuals increases the demand for natural food colors over chemical-based colors, fueling the market growth.
• The ongoing environmental campaigns by governments and organizations boost the demand for sustainable products, including natural food colors, which is fueling the growth of the natural food color market.
• Regulations towards banning synthetic colors encourage the promotion and use of natural food colors which also is a potential growth factor for the natural food color market.

Market Scope

Market Dynamics

Drivers

Increasing health consciousness

The increasing health consciousness due to the use of synthetic chemical-based food colors is increasing the health risks, which can lead to allergies, acidity, and many other risks. This brings an opportunity for natural food colors that are extracted from plants and fruits and minimize the health risks. Additionally, the rising disposable incomes in urban cities increase the affordability and preference towards these products, which are gaining significant popularity. Many kinds of research also revealed that the natural ingredients present in food colors contain several health benefits due to the antioxidants present in the natural food colors.

• An article by the Center for Science for the Public Interest shows that synthetic food dyes are found in over 36,000 American food products, which pose potential health risks.

Rising environmental concerns

The increasing global trend is leading towards the adoption of sustainable practices, which is leading to increasing demand for natural food colors. The process of extracting natural colors is sustainable as they are taken from biodegradable sources which are environmentally friendly. This factor plays an important role in attracting multiple investments and support from government bodies and organizations. On the other hand, synthetic chemical-based products are considered harmful to the environment, which increases chemical pollution. Therefore, consumers also prefer natural food colors, which have less impact on the environment and provide additional benefits to the consumers.

• A study by the University of Bath states that synthetic dyes in wastewater have health and global ecological risks.

Restraint

Higher costs

The natural food color market has been gaining significant popularity from the past year but there are still concerns that could hamper the market growth. The less availability of natural food color materials increases the overall costs and makes it expensive. This also makes the traditional food colors cheaper, which are being used widely due to less disposable incomes, especially in underdeveloped regions. Many companies should try to invest in production and R&D to make advancements in developing natural food colors.

Opportunities

Increasing focus on R&D

The natural food color market has been gaining significant importance due to the increasing health risks and environmental concerns. This makes it a sensitive topic in the interest of the public as it has the potential risks of affecting their health. As a reason, many organizations are investing heavily in coming up with alternatives for synthetic chemical-based food colors. These investments may benefit the company as it could register significant growth by standing out differently from its competitors. Technological advancements also play a vital role in these researches as they help in improving the overall procedure. The increasing investments are projected to play a vital role in the development of the natural food color market.

Increasing partnerships and collaborations

The increasing collaborations and partnerships tend to offer multiple opportunities in the natural food color market as they help in producing multiple alternatives to synthetic dyes. This is also beneficial for both companies as they can improve their brand value through PR campaigns while promoting these sustainable alternatives in the market. These multiple benefits play a vital role in attracting multiple companies to partner to find solutions in the food industry.

• In January 2024, Ginkgo Bioworks and Phytolon’s partnership achieved a milestone that enabled the production of vibrant, natural food colors with the use of two producing strains. This effective partnership offers a sustainable alternative to synthetic dyes.

Ingredient Insights

The beta-carotene segment held the largest share of the natural food color market in 2023. It is a carotenoid, which is a pigment that gives veggies and fruits their yellow, orange, and red colors. The body converts this beta-carotene into vitamin A, which is essential for the body. Vitamin A helps improve the immune system, maintain healthy vision, and keep the skin healthy. These benefits stand out as a potential factor in promoting the use of natural colors. Beta-carotene is widely used in multiple food products, such as dairy products and baked goods, and is gaining popularity in various dietary supplements. The use of beta-carotene in various food products plays a vital role in the overall growth of the natural food color market.

• In April 2024, Japanese scientists developed transgenic eggplants that contain five times more beta-carotene under lighting. This enhances the nutritional value of the product.

The blue spirulina segment is expected to grow at a significant CAGR in the natural food color market during the forecast period. Blue spirulina, also known as phycocyanin, is a pigment that is derived from algae containing various nutrients and antioxidants. It is also rich in protein, which is a good addition to foods and supplements. The blue color also makes a unique and rare appeal in the food product, which makes it different from other foods. The increasing consumer preferences towards blue spirulina. It was frequently used by NASA scientists who were on space missions. It is a sustainable option to add to food products as the process of its cultivation is eco-friendly compared to chemical-based food colors.

• In a recent study by Italian researchers, spirulina showed potential in managing the risk related to heart diseases and diabetes. It contains antioxidant and hypolipidemic properties, which help minimize the risk.

Application Insights

The beverages segment dominated the natural food color market in 2023. The growth of this segment is attributed to the rising health awareness among consumers. Individuals prefer natural food colors over synthetic chemical-based colors as they pose a potential health risk. The consumption rate of beverages is increasing day by day for multiple reasons, such as the influence of a busy work schedule. The changing lifestyle plays a key role in changing consumer preferences and adopting these sustainable options. Natural colors also provide unique colors, which is one of the important factors in attracting consumers. Many companies are using natural colors, which will help enhance the overall visual appeal of the beverages and contribute towards the growth of the natural food color market.

The dairy & frozen products segment is expected to grow at the fastest rate in the natural food color market during the forecast period 2024 to 2034. Urbanization and a busy lifestyle are key factors behind the significant increase in the production of dairy and frozen products. People prefer products with additional nutritional benefits that would complete their minimum requirement. Many companies are also coming up with new ideas, like flavored yogurt and ice creams, which contain healthy colors. The increasing demand for these products is leading to the global expansion of the natural colors market. This is also increasing the overall demand for these products, which also helps reduce the overall costs and make them affordable for people, especially in developing regions.

Natural Food Color Market Companies

• NATUREX
• Phytolon
• Givaudan
• BASF SE
• Sensient Technologies Corporation
• ADM
• Spring TopCo DK ApS (Oterra)
• Allied Biotech Corporation
• ROHA Group
• Kalsec Inc.
• Döhler GmbH
• San-Ei Gen F.F.I., Inc.
• AROMATAGROUP SRL
• Ingredion
• Vivify
• Roquette Frères
• INCOLTEC
• IFC Solutions
• Australian Food Ingredient Suppliers

Recent Developments

• In January 2024, Ginkgo Bioworks and Phytolon achieved a major milestone by unlocking a full yellow-to-purple color spectrum for Phytolon’s natural food colors through fermentation.
• In February 2024, Willow Biosciences secured a strategic $100,000 investment from Kalsec to advance the development and commercialization of innovative natural food ingredients.
• In July 2024, Sensient Colors Canada announced an investment of $500,000 in its Kingston facility to boost production capacity by 25% and enhance automation for natural food color products.
• In October 2023, Phytolon secured funding to launch its innovative natural food colors made through fermentation, with support from investors like Nextgen Nutrition Investment Partners, EIT Food, and Chairman Steve Dubin.

Segments Covered in the Report

By Ingredient

• Beta-carotene
• Lycopene
• Curcumin
• Anthocyanin
• Carmine
• Copper Chlorophyllin
• Paprika
• Betanin
• Riboflavin
• Blue Spirulina
• Caramel
• Annatto
• Others

By Application

• Bakery & Confectionery
• Beverages
• Dairy & Frozen Products
• Meat Products
• Oils & Fats
• Fruits & Vegetables
• Meat Alternatives/Plant-based Meat
• Pet Food

By Geography

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa