Global Natural Food Colours Market Expected to Reach 1,697.6 million by 2020 by Future Market Insights

Natural Food Colours Market: Global Industry Analysis and Opportunity Assessment 2014 – 2020
The FMI report minutely analyzed all the natural food colour segments in each geography with respect to both suppliers and consumers, The Natural Food colours market is expected to witness significant contribution to the overall food colours market, by registering a robust growth of nearly 7% by 2020.

Future Market Insights (FMI), delivers key insights on the Natural Food Colours market in its recent report titled, “Global Natural Food Colours Market– Market Analysis and Opportunity Assessment, 2014 – 2020”. According to the report, the overall food colours market is anticipated to grow at a healthy single-digit CAGR of 5.1% during the forecast period. 

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Natural Food Colours Market Forecast

The global natural food colour market was estimated to be worth US$ 1,144.0 million in 2014 and expected to reach 1,697.6 million by 2020, reflecting a CAGR of 6.8% during forecast period. The global natural food colour market represented 54.9% of the total food colour market in 2014 and is expected to account for nearly 60% of the overall market by 2020. The natural food colour market will witness a major contribution from colours such as yellow-orange-red and pink from carotenoids and anthocyanin.

Dominant Types of Natural Food Colours

Carotenoids were valued at US$ 363.2 million in 2014 with 31.8% market share. It is expected to lose negligible market share but maintain its dominant position through the forecast period. Anthocyanin is the second largest segment in terms of revenue and will maintain its dominance in the forecast period owing to new product development using anthocyanin for red/purple/pink and few blue shades for various low pH foods/beverages. Purple sweet potato and purple carrot & cabbage would emerge as most preferred raw materials for manufacturing anthocyanin-based colours. Spirulina extract is projected to witness tremendous growth during 2015-2020 with rising y-o-y growth through the forecast period.

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Applications Overview

The key applications of natural food colours are confectionary & bakery, beverages, packaged foods, dairy products and “others.” “Others” category, which represents 316.0 million of total natural colours market, or 27.6% in 2014, was the largest application segment in 2014 and is likely to maintain its dominant position by 2020. It consists of frozen foods, condiments & dressings, functional food and pet food. Beverages is the second largest category occupying 21.5% of total market share or US$ 230.9 million in terms of revenue in 2013.

Regional Overview

Geographically, the market is segmented into seven regions namely APEJ (Asia Pacific excluding Japan), MENA (Middle-East & North Africa), Japan, Latin America, North America, Eastern Europe, and Western Europe. Western Europe, North America and APEJ together constituted more than 76% of the market share in 2014. Currently, Western Europe is the largest market in terms of size and is expected to dominate through the forecast period. However, APEJ would emerge as the most vibrant market in terms of absolute increment just behind North America. In addition, investors prefer APEJ over North America due to ease of doing business, in terms of regulatory framework and labour cost. Manufacturers are targeting emerging economies of APEJ, EE and MENA as these are relatively by MENA. under penetrated market too. In terms of CAGR, EE is the fastest growing market followed

Natural Food Colours Market: Drivers and Trends

Consumer demand for natural products and food processors’ demand for transparent labelling would drive the demand of natural food colour categories. Furthermore, development in micro-encapsulation techniques and packaging innovation would give thrust to carotenoid market. Government regulations are highly supportive towards the use of natural products. Thus, there are numerous supply side and demand side drivers fuelling the expansion of natural food colours market globally.

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Key Players

Some of the market leaders across the globe are Sensient Technologies Corporation and Kalsec Inc., DDW, The Color House, Naturex S.A., ADM (Wild flavors Inc.), Chr. Hansen A/S, ROHA Dyechem Pvt. Ltd., GNT International B.V., DIC Corporation, and LycoRed Ltd. among others.

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