As stated in a recently published information by Credence Research, The global natural food colors industry is witnessing growth on the back of rising demand from various end user applications such as confectionery, pet food and processed food among others. High demand for clean label and natural ingredients products are the other factors contributing towards the industry growth. These natural colors are difficult to work with as they are extracted from natural sources and have shorter shelf life.
Besides high cost, natural colors have less stability than there synthetic counterparts. Ban in trading of synthetic colors made products and manufacturing in selected international industrys, encouragement for using natural colors in novel products such as handmade paper, infant toys among others. In addition, development of different techniques and process to develop natural food colors such as fermentation, biotech process among others provide huge industry opportunities.
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By application, food segment accounted for more than 50% share of the pie in 2014 and projected to maintain its dominance over next six years. Pet food segment is projected to witness the fastest growth rate during the forecast period. Natural colors are also extensively used in beverages to enhance the overall appearance of the product and to attract the customers.
In 2014, by type, carotenoids accounted for 32% share of the pie and projected to maintain their dominance over the next six years. Spirulina extract which give blue color to products and chlorophyll which provides green color are projected to be the fastest growing industrys. These colors are widely uses in various end users industries such as ice creams, yogurt, and candies among others. Curcumin and paprika extracts are also projected to witness moderate growth rate.
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Europe and North America together accounted for more than half chunk of the industry pie and projected to maintain their dominance in future. In North America, the U.S. is the largest industry projected to grow at a CAGR of 7.4% from 2015 to 2022. Europe is the industry leader and projected to maintain its dominance over the next six years. Western Europe is the major contributors towards this growth but in future growth is projected to be highest from the Eastern European region. Asia Pacific region is projected to grow at the fastest growth rate over the next six years. While the usage of natural food colors in RoW countries will remain moderate.
Chr. Hansen A/S, Sensient Technologies Corporation, Naturex S.A, Kalsec, and Archer Daniels Midland Co are some of the major players in this industry.
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