Health-conscious consumers have consistently eschewed artificial/synthetic food colors, insisting on buying food products with natural food colors. The movement towards natural food ingredients pushed the natural food colors market to surpass US$ 7.5 billion in 2018, according to a Fact.MR study. The study predicts that the natural food colors market will continue to witness robust growth with a mounting number of consumers as well as industry players replacing artificial dyes with their natural counterparts.
Notable Developments in the Natural Food Colors Market:
In October 2018, the Archer Daniels Midland Company (ADM) – an American food processing and commodities trading corporation in the natural food colors market – announced that it has adopted strategies to ensure improve customer relationships by investing in next generation technologies and interdisciplinary, modern organizational units. The company announced that it has increased the production capacity for natural food colors and coloring foodstuff for Wild Flavors and Specialty Ingredients – ADM’s business unit – in Berlin, Germany, to capitalize on surging consumption of foods and beverages with natural ingredients and natural food colors.
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In September 2018, Naturex S.A. – a French supplier of natural ingredients and solutions and a leading player in the natural food colors market – was acquired by Givaudan – a Swiss manufacturer of fragrances, flavors, and active cosmetic ingredients. To be in line with its strategy to establish its "clear market leadership"position in the market, Givaudan acquired the company and delisted its shares from the Euronext Paris stock exchange. Givaudan aims to leverage Naturex’s strong portfolio of natural ingredients and plant extracts across the nutrition and food & beverage sectors and bolster internal innovation in coming years.
In November 2018, Symrise AG – a German producer of flavors and fragrances in the natural food colors market – announced that the company has invested Euro 50 million in its new production facility of natural food ingredients near Atlanta in the U.S. The company has adopted strategies to develop its backwards integration by increasing the production of agriculturally produced raw materials. The company is aiming to expand its footprints in the American food markets to gain a competitive edge in the U.S. markets for food ingredients and natural food colors, in the upcoming years.
In April 2018, Chr. Hansen Holding A/S – a leading bioscience company in the natural food colors market – announced the company has acquired the Banker Wire manufacturing facility in Mukwonago, Wisconsin, which the company plans to make the new headquarters for its natural food color business in North America. Chr. Hansen’s new natural food color production facility will house application and quality assurance labs, research and development facilities, a pilot plant, production, a dedicated warehouse, as well as sales and marketing and other business support functions.
Other key players in the natural food colors market include Kalsec Inc., McCormick & Company, ROHA Dyechem Pvt. Ltd., San-Ei Gen F.F.I Inc., GNT International B.V, and LycoRed.
Consumers are becoming extremely conscious about their dietary habits to maintain a healthy lifestyle and combat the increasing prevalence of lifestyle diseases, such as obesity and cardiovascular diseases. This is leading to enhance their focus on food ingredients while purchasing packaged food products. In addition, growing awareness about the negative health impacts of synthetic food colors is driving consumers to purchase food products with natural food colors. Moreover, increasing number of consumers discovering that they are allergic to synthetic food colors is expected to provide an impetus to growth of the natural food colors market in the upcoming years.
Leading Manufacturers Work Towards Improve Shelf Life of Natural Food Colors
The natural food colors market is gaining momentum with increasing demand and consumption across the global food & beverage industry. However, improving the shelf stability of natural food colors, especially their liquid counterparts, is one of the biggest problematic areas for manufacturers in the natural food colors market. Leading stakeholders in the natural food colors market are shifting their focus on research & development to discover advanced procedures to improve shelf life of odorless and flavorless natural food colors to scale higher on the competitive landscape of the market.
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