Green colour segment is estimated to have the fastest growth rate in India
The natural food colours market is expected to reach $3.2 billion by 2027, at a CAGR of 8.4 per cent during the forecast period of 2019 to 2027. Growing consumer awareness for organic products, health hazards associated with synthetic colours, leads to the rapid demand of natural food colours over synthetic ones.
Natural food colours are mainly obtained by plants, animals, fruits, insects and minerals which makes them non-toxic and safe to use as a food additive to restore the attractiveness of food and beverages after processing.
The global natural food colours market is primarily sub-divided by type (carmine, anthocyanins, caramel, annatto, carotenoids, chlorophyll, spirulina, turmeric, and beet), source (plant, minerals, microorganism, and animal), form (liquid, powder, gel, and emulsion), solubility (water, dye soluble, and oil-soluble), application (food products and beverages), and geography.
It is further divided into five major regions, namely, North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
The Europe region have the substantial share of the global natural food colours market in 2019 due to the elevated demand for natural and organic food products, increasing R&D investments, presence of a large number of natural colour providers, and rising government support to encourage the food processing sector.
However, the Asia-Pacific region is anticipated to grow at the highest CAGR during the forecast period due to the increasing consumer inclination for natural ingredients, rising consumer awareness regarding the negative effects of synthetic colourants integrated with the growth in the lavishing abilities of the consumers, and strong growth in the F&B industry.
Global natural food colour market-
The supreme market players in the global natural food colour ingredients market essentially are Chr Hansen A/S (Denmark), Archer Daniels Midland Company (US), Sensient Technology Corporation (US), DD Williamson and Co Inc (DDW) (US), Kalsec Inc (US), Doehler Group (Germany), and FMC Corporation (US).
During the COVID-19 crisis, the prices of natural food have risen owing to economic instability which leads to decrease in their demand, but could be there for a short interval of time. The high cost of natural ingredients and stringent regulations on the use of colours for food applications impedes the growth of the natural food colours market.
Several companies such as McCormick & Company, Inc are filing Colour Additive Petition (CAP) for the expanded safe use of natural food colours across several countries. Regulatory bodies such as FDA are consequently amending colour additive regulations.
Scenario of Indian Market –
India’s natural food colour market is projected to have a $74.09 million market size in 2019. It is expected to reach $92.96 million by 2027, growing at a CAGR of 3.90 per cent 2020-2027 across the region.
Colour segmental analysis
Based on colour, Indian natural food colour market is segmented into green, red, orange, blue, yellow, and others. The red colour segment dominates the market during the forecasted period of 2020-2027 due to its use in various recipes compared to other colours.
Fruits, vegetables, and spices have heavy colouring that makes them absolute for homemade food colouring. It is not as concentrated as most colours, so it uses more. It works best for dying icing and frosting. However, the green colour segment is estimated to have the fastest growth rate during the forecasted period by 2027 due to the upsurge demand for green colour appearance drinks and beverages such as Khus Sharbat / Green Spring Mocktail, Mung Bean Cake, etc.
Application segmental analysis
Based on the application, the Indian region is segmented into bakery and confectionary, beverages, dairy, process food and vegetables. The beverages segment is projected to hold the largest share during the forecasted period of 2020-2027 across the country due to the rising demand for juices, soft drinks, and alcoholic drinks, which are estimated to drive the natural food colour market at a reasonable rate.
Region segmental analysis
Based on Geography, the Indian Natural Food Colour Market is segmented into North India, South India, West India, and East India. North India’s natural food colour market is expected to have the fastest growth rate over the forecasted period of 2020-2027 due to the rising food colour usage in processed food, bakery and confectionaries, and beverages industry. Natural food colours are used to improve the colour, taste and quality of processed or cooked food and contains zero toxic-level natural extracts that are environmentally friendly.
Leading Indian companies
Sensient, Venkatesh Food Industries, Sayona Colours, Metrix Pharma Chem and many more are the leading manufacturers of Natural Food Colours in country India.
• Carotenoids will govern the global natural food colour ingredient market and is forecasted to reach $392.5 million at a CAGR of 6.36 per cent by 2022 in terms of value.
• Beverages are anticipated to retain its dominance throughout the forecast period from 2016 to 2022. The segment is projected to reach to $375.16 million with registering a CAGR of 6.75 per cent, during the forecast period.
• Regional and country analysis of natural food colour ingredients market development and demand forecast to 2023 market. As per analysis, the global natural food colour ingredients value market is estimated to reach USD 1.19 billion in 2022, expanding at a CAGR of 6.70 per cent, during the forecast period.
Priyanka Kataria is a freelance writer from New Delhi