Global Natural Food Colors & Flavors Market size is forecast to reach $7.3 billion by 2027, growing at a CAGR of 5.9% during the forecast period 2022-2027. During the processing of food, a substantial amount of flavor and color is lost. In order to enhance the appeal of a food or beverage, natural colors and flavors are added. Color is among the most important visual characteristic to evaluate the food quality and also sets a benchmark for other sensory experiences such as taste, smell, and texture. Natural extracts generally used as food colors and flavors offer plenty of health-promoting benefits and hence have become a priority while choosing the right food for customers. A variety of food flavors and colors such as carotenoids, curcumin, caramel, antioxidants, and essential oils also enhance the nutritional value of food and beverage. Increasing consciousness of the health advantages of natural colors and color additives is one of the major factors driving the growth of the Global Natural Food Colors & Flavors industry. Increasing usage of Natural Food colors and flavors is increasingly substituting synthetic flavors and colors which is anticipated to further enhance the overall industry of the global natural food colors & flavors market for the period 2022-2027.
Report Coverage
The report: “Global Natural Food Colors & Flavors Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Global Natural Food Colors & Flavors Market:
By Type: Natural extracts, aroma chemicals, essential oils, caramel, carotenoids, anthocyanins, curcumin, and others.
By Distribution Channel: Direct and Indirect.
By Form: Liquid/ gels and Dry.
By Application: Food and Beverages.
By Geography: North America (U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia, and New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America), and Rest of the World (Middle East, and Africa)
Key Takeaways
- North America dominated the global natural food colors & flavors market in 2021 owing to the increase in the number of consumers choosing natural over synthetic food enhancements. The global natural food colors & flavors market scope for different regions will be provided in the final report.
- Increasing awareness of the health benefits of the natural colors and flavors and diversifying the application of flavors and colors in the food and beverage industry is anticipated to aid the market growth of the Global Natural Food Colors & Flavors Market.
- Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be the Global Natural Food Colors & Flavors Market report.
- Inconsistencies in regulations of food flavor and color in different countries are poised to restrain the growth of the Global Natural Food Colors & Flavors Market.
Global Natural Food Colors & Flavors Market Segment Analysis – By Type
The global natural food colors & flavors market based on type can be further segmented into natural extracts, aroma chemicals, essential oils, caramel, carotenoids, anthocyanins, curcumin, and others. Natural extracts are anticipated to account for the largest share in 2021 and is anticipated to grow with a CAGR of 6.2% between 2022 and 2027. Consumers all across the globe depict an inclination towards food which are either organic or has been produced organically. This preference has helped fuel the growth of the natural extracts category since the rising demand for organic food flavors and colors has in turn increased the acceptability of natural extracts.
Global Natural Food Colors & Flavors Market Segment Analysis – By Application
The global natural food colors & flavors market based on the application can be further segmented into food and beverages. Food held the largest share in the Global Natural Food Colors & Flavors Market in 2021 and is estimated to hold the fastest surge, growing at a CAGR of 7.1% during the forecast period 2022-2027. The urban middle-class income in the world is on the rise. With this increase, the standard of living has improved drastically. Pertaining to this, the food industry has experienced a huge upsurge in the demand. Rising demand for packaged food, portion-controlled packaged food, ready to eat food has resulted in the rise in demand for a variety of food colors and flavors in the industry. Also, with the rise in demand for food, there is a rise in concerns such as food preservation, rising demand for healthy foods. Due to such concerns, natural food flavors and colors are consistently overtaking the synthetic flavor and color industry.
Global Natural Food Colors & Flavors Market Segment Analysis – By Geography
The global natural food colors & flavors market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America dominated the Global Natural Food Colors & Flavors Market with a major share of 38% in 2021. This is attributed to the rising demand and consumption of food and beverages with natural flavors and colors and the high disposable income of the consumers in the region. Natural flavors and colors have gained an excellent reputation for being a healthy alternative to synthetic flavors and colors.
However, Asia Pacific is estimated to grow at the highest CAGR during the forecast period 2022-2027 owing to the advancements in technology, increasing expenditure on premium food and beverage categories, and the high production of natural food flavors and colors in these countries which allows for export all around the world.
Global Natural Food Colors & Flavors Market Drivers
Rising Demand for Natural or Organic Flavors and Color is Fueling Market Growth
With a steep rise in cases of food adulteration all across the world, consumers have now become more conscious of their choices being made for a variety of food and beverage categories. Moreover, the consumers in the world are becoming more affluent and with the rise in spending power of consumers, demand for natural/organic food flavors and colors is rising steeply. According to recent data published by Clean Label Alliance, more than 70% of consumers depict willing to pay an extra premium for organically prepared food or beverage items. Thus, increasing the growth of the Global Natural Food Colors & Flavors Market during the forecast period 2022-2027.
Increasing Usage of Natural Food Colors and Flavors in a Variety of Applications Is Boosting Product Demand
Earlier, synthetic flavors and colors were the top choices of food and beverage manufacturers. But with the rise in the trend of clean label products, manufacturers are seen switching to natural food flavors and colors. Flavors and colors have become the backbone of food choices made by consumers. More and more food is being prepared using natural food flavors and colors which has led to increasing acceptability of variety in food and beverages across the globe. Many top players in the natural food flavors and colors market are investing in Natural Food Colors and Flavors due to the popularity of health benefits offered by natural flavors and colors and an increasing number of people opting for packaged food and beverage with a good taste and texture. All these reasons have collectively increased the usage of natural food flavors and colors in the manufacturing of a plethora of food and beverage items. Thus, increasing the growth of the Global Natural Food Colors & Flavors Market during the forecast period 2022-2027.
Global Natural Food Colors & Flavors Market Challenges
Lack of consistency in regulations Is Impeding Market Growth
Regions such as North America and Europe are the most significant markets for natural food flavors and colors. Both these regions have a unique set of rules and regulations around flavors and colors. Significant countries within these regions also have a unique set of approved or barred food flavors and colors. International bodies such as the National Food Safety and Quality Service (SENASA), Argentina; Canadian Food Inspection Agency (CFIA), Canada; Food and Drug Administration (FDA); World Health Organization (WHO); and Committee on the Environment; Public Health and Food Safety (EU) are associated with food safety and quality regulations. Organizations like this enlist their own set of rules and regulations for the usage of flavors and colors within the whole supply chain. This has led to a rise in inconsistency around the food flavors and colors category, thus, hindering the growth of the market during the forecast period 2022-2207.
Global Natural Food Colors & Flavors Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and R&D activities are key strategies adopted by players in the Global Natural Food Colors & Flavors Market. In 2021, the Global Natural Food Colors &Flavors Market share is consolidated by the top ten players present in the market. The Global Natural Food Colors & Flavors Market, top 10 companies include:
- DuPont
- Archer Daniels Midland.
- Givaudan
- Kerry Group, Plc
- International Flavors & Fragrances
- Mane
- Sensient
- Synergy Flavors
- Symrise
Recent Developments:
- In July 2021, Chr. Hansen Natural Colors had announced the completion of its acquisition with Symrise AG's natural food coloring business. This helped Chr. Hansen brand Oterra to strengthen its natural food coloring segment.
- In September 2020, Phytolon, an Israel-based start-up secured a funding of $4.1million approximately in the production of its natural food coloring based on fermentation technology.
- In March 2020, IFF collaborated with Evolva, a biotech company, for the development and expansion of vanillin commercialization. Due to this agreement, IFF would be responsible for the commercialization of the vanillin product that Evolva has developed.
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