Globally the market grew by 6.8% to reach US$1.3bn. However, with North America and Western Europe—the two biggest markets for natural food colours—collectively accounting for 60.1% of global share, analysts say there are still significant growth opportunities to be had in Asia as consumers increasingly demand natural and clean-label products.
“The natural food colours market is expected to witness an upsurge owing to the introduction of new food products with natural ingredients and colouring pigments. Furthermore, factors such as technological advancements, growing demand for clean-label products and stringent regulations on synthetic colouring agents are influencing manufacturers to incorporate more natural colourants in their offerings,” say experts at Future Market insights.
“Additionally, rising awareness about the potential health impact of artificial colours on human health and increasing consumer health consciousness are likely to foster the demand for natural food colours. Technological advancement to procure sustainable solutions that find proper application in packaged beverage, foods, bakery and other end-use industries is expected to drive growth of the market.”
Confectionery products are said to be form particularly lucrative segment, owing to the arrival of new product formulations that help create cleaner and shelf-stable products.
On the basis of pigment type, spirulina witnessed the highest growth rate in 2016, with overall revenues growing by 11%.
Looking ahead, the global natural food colours market is expected to increase at an annual rate of 5.4% during from 2016–26, and reach US$ 1.2bn in revenues.