Global Natural Food Colorants Market - Growth, Trends, and Forecast (2018 - 2023)
The natural food colorant market is expected to register a CAGR of 6.7% during 2018 – 2023 (the forecast period). The increasing preference for clean label products is expected to drive the market for natural food colors over synthetic food colors. The high production cost is a prominent restraint for the market.
Organic Foods Demand Help Boost the Natural Food Colorants Market
Consumer demand for organic food has been high for more than a decade, according to major retailers all over the globe. According to retailers, like Tesco, organic sales in their stores have risen by 15% in the past year, 2017. Consumers are more aware of the kind of products available in the market, and most consumers, in developed regions, look at the labels before purchasing food products. Food manufacturers are also constantly improving their products to match the changing standards of consumers, by eliminating synthetic colors in their products. This also serves as a strategy to improve their market share globally, and gain competitive advantage. The number of consumers, who are becoming health conscious, has grown exponentially over the years, and has, thus, created huge demand for organic products, including natural food colorants.
Consumers are increasingly concerned about what is in their food, which has led to a growing demand for products made from natural sources and fewer synthetic additives. Thus, the demand for natural colorants in bakery applications is expected to witness substantial growth. Colorant manufacturing companies have noticed this trend, and have specially developed natural colorants to overcome the challenges bakery manufactures face by providing a light stable, vibrant, and bright color profile for the bakery products. The beverage segment accounts for a substantial market share for natural colorants. According to Naturex, of the total drink launches in the United States, 50% drinks used natural sources for coloring.
North America Dominates the Natural Food Colorant Market
The major global manufacturing hubs, North America and Europe, account for the major share in the natural food colorant market. Increasing demand and consumer awareness for natural food in comparison to synthetic options and health-promoting properties of natural colorant food are the prominent factors influencing the growth of natural colorants in these regions. Asia-Pacific is expected to witness a high growth rate during the forecast period, as consumers move toward health conscious lifestyle.
Companies, like CHR Hansen, DDW-Color house, Royal DSM, Sensient technologies, Riken Vitamin, FMC Corp., among others, are few of the top companies in the global natural food colorant market. To gain market share, these companies are adopting numerous market strategies, like innovative product development, partnerships, mergers and acquisitions, and expansion of existing facilities.
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