Natural Food Color Additives Market

Natural Food Color Additives Market Outlook

The global natural food color additives market is anticipated to grow at a CAGR more than 5% during the forecast period in terms of value.

Rise in demand for natural food products can be primarily attributed to increasing health concerns, benefits of natural or plant-based products and consumer inclination towards natural based ingredients, particularly in the food and beverages sector. The aversion of consumers towards the synthetic and chemical products has been evident in the recent past.

The aversion of consumers will be one of the prominent factors affecting natural food color additives market. The key factors affecting the natural food color additive market are increasing downstream demand and consumer health consciousness. The cost effectiveness and impact of the natural food color additives on the manufacturing process will determine the role of natural food color additives in the forecast period.

The Natural Food Color Additives Market to Gain Traction with Stricter Regulatory Frameworks

The rules and regulations regarding chemical content limits have become stringent and have been heavily imposed by governments. The FDA’s ban on PHOs (Partially Hydrogenated Oils), as the majorly used emulsifiers, has created a need for alternatives. The inclination of end use industries for natural food color additives is due to broad range of colors and color stability.

Major changes have been implemented in the global market with the introduction of ISO 22000. The ISO 22000 family is involved in the application of all related standards regarding food safety and also include application of other standards like ISO 9001:2000. The rules and regulations issued by federal and governmental agencies are aligned with the International Standards. This, in turn, will garner significant demand for eco-friendly and natural food color additives in the forecast period.

The regulations will control the purity and processes involved in synthesizing natural food color additives. Some of the companies in the natural food color additives market have already made their processes compliant with the previously mentioned ISO 9001:2000. Processes for synthesis of natural food color additives in these companies will be faster compared to the industry.

Natural Food Color Additives Market to Gain Significant Impetus Through Products with Enhanced Vibrancy and a Longer Shelf Life

Visual impression of the food products plays a major role in the sale of products. Color helps to communicate freshness and quality of the products. The key issues in natural food color additives are low vibrancy and lingering odor & taste. To combat this, companies are working towards creating odorless food colors with enhanced vibrancy.

ColorKitchen recently launched their natural food dyes as natural food color additives in vibrant colors with a stable shelf life. The product offering for natural food color additives of some companies in the baked goods portfolio is lacking. Companies have been working towards creating alternatives with the usage of natural food color additives in frostings, sprinkles and baking mixes. GNT Group has been researching to increase the heat stability of natural food color additives. Unicorn food trends have been on the rise since 2017.

A recent addition to the unicorn trend was blue colored ramen bowls that used spirulina algae, a natural food color additive. As showcased in the unicorn ramen bowl, the color introduced is vibrant and tempting. The unicorn ramen bowl also helped to show the heat performance of spirulina in food colors.

The main bias towards the vibrancy of natural food color additives stemmed from the European countries, who embraced natural food color additives decades ago. The technological developments taking place have proven to be helpful in creating better vibrancy for natural food color additives in the recent years.

Clean Label Snacking to Create New Reforms in Food and Beverages Industry

Clean label snacking is the latest trend in the food and beverages industry. The snacking industry has been increasingly catering to the consumer orientations like clean label products, vegan proteins and innovative food palette preferences. Taking into account the needed variety in food palettes, manufacturers have embraced the use of exotic food ingredients.

Some companies have opted to use natural food color additives like oleoresins. This has helped to increase the texture quality of the snacks. As noted by many industry players, color of the food product serves as an important characteristic. Natural food color additives have been playing a major contribution as vegan ingredients to the clean label snacking trend.

The natural food color additives usage is shown to have significantly increased the brand preference. Consumers have been voicing their opinions through social media and other avenues to increase the usage of natural food color additives in mass produced food products like snacks, cereals, soups and sauces. The companies that integrate the natural food color additives in their product offering, are going to have better foothold in the food and beverage industry.

Transformation in the Confectionary Industry Due to Natural Food Color Additives

The confectionary industry is heavily dependent on the usage of food dyes to increase the sales of the confections. The ban of the previously used artificial dyes has led the industry to make alterations in their color usage and manufacturing processes.

For instance, EXBERRY showcased their new product offering, made from natural food color additives, in Natural Products Expo West, 2019. The vibrancy of the colors in the presented confections was notable, and can motivate other companies in the industry to lean into the usage of natural food color additive.

The limitations for usage of natural food color additives in the confectionary industry is mainly due to the lack of color stability. Natural food color additives have shown a lighter shade of the presented colors. Companies are working towards better natural food color additives to sustain the quality and shelf life.

Reduction of Price Volatility

The additions of new natural food color additives have created a temporary volatility in the prices of previously used natural color additives like carmine. However, the vertical integration of the supply chain models is expected to increase the efficiency which will further stabilize the prices for natural food color additive.

Currently, cost of some of the special natural food color additives has reduced the cost margins. The mass production of the natural food color additives can affect the stability of the market.