Natural Food Colors And Flavors Market

According to Stratistics MRC, the Global Natural Food Colors & Flavors Market is accounted for $6.19 billion in 2023 and is expected to reach $10.20 billion by 2030 growing at a CAGR of 7.4% during the forecast period. Any substance that adds color to food or beverages is referred to as food coloring. In addition to fruits, vegetables, seeds, algae, insects, and minerals, Natural Food Colors and Flavors also come from a variety of other sources. Moreover, natural, non-toxic, and environmentally friendly extracts make up its composition. Natural food coloring is a substance that gives a variety of foods and beverages color and enhances their appearance. It can be found in gel, powder, liquid, or paste form.

According to the Clean Label Alliance, it is observed that nearly 75% of the consumers are willing to pay high prices for clean-label products. Increasing health awareness among consumers drives the demand for natural and clean-label products, which, in turn, will drive the demand for natural food colors & flavors.



Market Dynamics:

Driver:

Demand from consumers for clean-label products

Natural substitutes are becoming more popular as consumers become more concerned about their health and aware of the potential negative effects of synthetic flavors and additives. A clean-label solution that appeals to health-conscious consumers is provided by natural food colors and flavors made from plant-based sources, such as fruits, vegetables, and botanical extracts. Moreover, natural food colors and flavors are in high demand because they go hand in hand with people's growing preference for organic and non-GMO products, which in turn increases demand for them. Because of this, the market for natural food colors and flavors is expanding as food producers increasingly use natural ingredients to improve the taste and aesthetic appeal of their goods.

Restraint:

Higher costs for production

The global Natural Food Colors & Flavors market expected to hinder growth during the forecast period. The higher cost of obtaining and producing natural ingredients in comparison to their artificial counterparts is one of the main barriers to the market for natural food colors and flavors. However, natural food colors and flavors frequently call for specialized extraction techniques and sourcing from particular botanical or plant-based sources, which can raise production costs. As a result, consumers may pay more for natural products than for those with synthetic additives because of these higher costs.

Opportunity:

Expanding organic and non-GMO product

A promising opportunity for natural food colors and flavors is also presented by the growing market for organic and non-GMO food products. There is a rising demand for natural substitutes as consumers prefer products without synthetic additives and ingredients derived from genetically modified organisms. Moreover, by focusing on this market, food producers can take advantage of a developing market and provide natural food color and flavor options that suit the tastes of consumers who care about their health and the environment.

Threat:

Access to synthetic alternatives

The global Natural Food Colors & Flavors market expected to hamper growth during the forecast period. The availability of synthetic substitutes is one of the main threats to the market for natural food colors and flavors. Synthetic food colors and artificial flavors are still widely used in the food industry, despite the rising demand for natural ingredients. For some food manufacturers, synthetic additives are a practical option because they frequently have lower costs and consistent performance. Additionally, the availability and continued use of synthetic substitutes may therefore present a competitive barrier to the uptake of natural food colors and flavors.

Covid-19 Impact:

The market for natural food colors and flavors was significantly impacted by the COVID-19 pandemic. Supply chains, production, and distribution were disrupted in the food and beverage industry as lockdowns and restrictions were implemented globally to stop the virus's spread. Demand for processed and packaged foods, including goods using natural food colors and flavors, fluctuated as consumers prioritized necessities and health concerns. However, as economies improve and consumer preferences for healthy and clean-label foods continue, the market for natural food colors and flavors is anticipated to rebound, driven by greater awareness of sustainable and natural ingredients.

The Carotenoids segment is expected to be the largest during the forecast period

The Carotenoids segment is expected to be the largest share during the forecast period. Carotenoids are pigments that are naturally present in a variety of fruits and vegetables, including carrots, tomatoes, and sweet potatoes. Carotenoids are highly sought-after natural colorants in the food and beverage industries due to their vivid hues, which include orange, red, and yellow. Their stability, heat resistance, and compatibility with a variety of foods, including drinks, dairy, and snacks, account for their widespread use. Moreover, carotenoids are also acknowledged for their potential health benefits as antioxidants, which increases their appeal to consumers who are concerned about their health.

The Essential Oils segment is expected to have the highest CAGR during the forecast period

During the forecast period, the essential oil segment is anticipated to have the highest CAGR. The potent plant extracts are well-known for their aromatic qualities and potential therapeutic advantages. Essential oils have numerous uses in the cosmetics, aromatherapy, personal care, and food and beverage industries. Their rapid market expansion can be attributed to rising consumer interest in organic and holistic products as well as growing public knowledge of the potential health benefits of essential oils. In the upcoming years, the demand for essential oils is anticipated to remain strong as consumers look for more sustainable and natural alternatives, supporting their continued rapid growth in the natural extracts market.

Region with largest share:

During the forecast period, North America is anticipated to hold the largest market share. Numerous elements contribute to the region's dominance, including the high level of consumer awareness and the demand for natural and clean-label products. The use of natural ingredients is highly valued by North American consumers, who also look for food and beverage products with few artificial additives. As a result, to satisfy consumer preferences, food producers in the area have incorporated more natural food colors and flavors into the formulations of their products. The adoption of natural ingredients in the food industry is also influenced by the strict rules and regulations for food safety and quality in North America.

Region with highest CAGR:

Europe is anticipated to have the highest CAGR during the forecast period, due to the adoption of natural food colors and flavors has been prompted by Europe's strong emphasis on sustainable and clean-label food products as well as rising consumer demand for natural ingredients. Moreover, natural colorants and flavors have been added to food products by food manufacturers in response to European consumers' preference for using natural and organic products. The use of natural ingredients in the food and beverage industry has also been encouraged by the strict regulations and standards for food safety and quality in Europe.



Key players in the market

Some of the key players in Natural Food Colors & Flavors market include ACH Food Companies, Akay Flavous and Aromatics, Amar Bio-Organics India Pvt. Ltd, Archer Daniels Midland, Aromata Group, Besmoke Ltd, Chenguang Biotech Group, Chunfa Bio-Tech, Dharampal Satyapal Group, DSM, DuPont, Everest Spices, Huabao Group, International flavors and fragrances (Iff), Kerry Group, Plc, Synergy Flavors, Synthite, Taiyo International, Takasago and The Foodie Flavors Ltd.

Key Developments:

In March 2020, IFF (Israel) entered into a collaboration with Evolva (Switzerland), a biotech company, to further develop and expand the commercialization of vanillin. Under the terms of this agreement, IFF would be responsible for the commercialization of the vanillin product that Evolva developed. This collaboration would extensively improve the reach of Evolva developed products and provide newly developed products in the product portfolio of IFF.

In Mar 2020, Mane (France) MANE Kancor, a global pioneer in spice extracts, announced an investment of USD 21 million in the next couple of months for the expansion of existing manufacturing facilities in Kerala, Karnataka, and Uttar Pradesh, India.

In Dec 2019, Givaudan (Switzerland) completed the acquisition of Ungerer (US) to strengthen its natural ingredients capabilities and leadership in the fast-growing local and regional customer segments.

Color Types Covered:
• Caramel
• Carotenoids
• Anthocyanin
• Curcumin
• Copper Chlorophyllin
• Annatto
• Capsanthin
• Betanin
• Lutein
• Other Color Types

Flavors Covered:
• Natural Extracts
• Aroma Extracts
• Essential Oils
• Other Flavor Types

Forms Covered:
• Liquid & Gel
• Dry
• Other Forms

Applications Covered:
• Flavor
• Food & Beverage
• Dairy Products
• Confectionary
• Bakery Products
• Meat Products
• Savory & Snacks
• Frozen Products
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

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