Natural Food Colors and Flavors Market Analysis | 2024-2032

“The Natural Food Colors and Flavors Market size was US$ 6.1 billion in 2023 and is likely to grow at a significant CAGR of 4.90%, in the long run, to reach US$ 9.4 billion in 2032”.

Market Dynamics

Introduction

Natural food colors have been derived from a variety of sources, including vegetables, fruits, spices, algae, and other edible natural materials. They give a wide range of hues and impart coloration to foods and beverages when added. 

The Natural Food Colors and Flavors Market focuses on producing plant-based coloring and flavoring agents used by food and beverage manufacturers to enhance appearance, taste, and aroma while meeting demand for clean labels and sustainability.

Market Drivers

Rising consumer preference for clean label products is driving the market; with Europe predicted to lead, having a large population that demands foods made from natural ingredients, South America is projected to be the fastest-growing segment, driven by the high demand for clean label and plant-based foods of its millennial population.

Recent Market JVs and Acquisitions

A huge number of strategic alliances including M&As, JVs, etc. have been performed over the past few years:

• In March 2019, Archer Daniels Midland (ADM) unveiled its agreement to acquire the Ziegler Group, a prominent European supplier of natural citrus ingredients. Ziegler specializes in offering citrus flavors, along with the production of citrus oils, extracts, and concentrates. This strategic acquisition aimed to bolster ADM's presence in the citrus flavoring market, providing the company with a solid foothold in this segment.
• In December 2019, Givaudan finalized the acquisition of Ungerer to bolster its expertise in natural ingredients and solidify its position as a leader in the rapidly expanding local and regional customer segments.

Recent Product Development

• In June 2019, Kerry Group, based in Ireland, inaugurated its production facility in India as part of its investment in expanding taste and nutrition profiles.
• In March 2020, IFF embarked on a collaboration with Evolva, a biotech company, aimed at advancing the development and commercialization of vanillin. Under the agreement, IFF assumed responsibility for commercializing the vanillin product developed by Evolva. This collaboration aimed to significantly extend the market reach of Evolva's products while integrating newly developed offerings into IFF's product portfolio.

Segments Analysis

By Type

“The carotenoids are expected to hold the largest market share for Natural Food Colors & Flavors during the forecast period”.

The market is segmented into caramel, carotenoids, anthocyanins, curcumin, annatto, and copper, chlorophyllin. The Carotenoids segment is projected to dominate the industry for the forecasted period. Carotenoids are naturally occurring pigments found in various fruits and vegetables, such as carrots, tomatoes, and sweet potatoes, and are excellent natural colorants popular in the food and beverage industries.

Famous for their bright color range of orange, red, and yellow, carotenoids are popular in food coloring because they are stable, heat-resistant, and blend well with various food items, such as beverages, dairy products, and snack foods. Their known antioxidant properties increase their acceptance among health-conscious consumers.

By Flavor Type

“Essential oils are expected to be the fastest-growing market during the forecast period”.

The market is segmented into natural extracts, aroma chemicals, & essential oils. The segment of essential oil is expected to experience the highest growth rate in the market during the forecasted period. They are highly used in cosmetic, aromatherapy, and personal care industries, along with other uses in food and beverages, for their aromatic properties and potential therapeutic benefits.

The rapid growth of this segment is mainly driven by increasing consumer preference for organic and holistic products and growing awareness of the health benefits associated with essential oils. Over the next few years, demand is expected to be high, with consumers looking for more sustainable and natural options, leading to the rapid growth of essential oils in the natural extracts market.

By Application Type

“Bakery and Confectionery are expected to remain the dominant and fastest-growing market during the forecast period”.

The market is segmented into food & beverage, dairy products, confectionery, bakery products, meat products, frozen products, and other applications. Bakery and Confectionery applications accounted for the highest share of food applications in the market.

This increase in the overall demand for bakery and confectionery products propels the food colors market. Many such items, like cakes, pastries, cookies, candies, and chocolates, enjoy an important place in the diet and indulgence of customers. Their attractiveness often depends on bright and attractive colors, which are very important to improve their visual appeal and make them look inviting.

Regional Analysis

“Europe is expected to be the fastest growing market during the forecast period”.

The market is broken down geographically into areas, namely North America, Europe, Asia-Pacific, and the Rest of the World (RoW). Europe will emerge as the fastest-growing country in the forecast period, driven by huge adoption in the region of natural food colors and flavors. This trend is hiked through rising consumer demand for natural ingredients and a strong sustainable and clean-label food product focus in Europe.

In line with this, manufacturers in Europe are adding natural colorants and flavors with a focus on preferences among consumers for natural and organic products. Strict laws and regulations concerning food safety and quality further enhance the use of natural ingredients in the food and beverage industry of Europe.

Key Players

The market is highly fragmented with the presence of over 500 players across the region. Most of the major players compete in some of the governing factors including price, service offerings, regional presence, etc. The following are the key players in the Natural Food Colors and Flavors Market.

Here is the list of the Top Players (Based on Dominance)

• Du Pont
• Archer Daniels Midland
• Givaudan
• Kerry Group
• Plc
• International Flavors & Fragrances
• Mane
• Sensient
• T. Hasegawa
• Firmenich
• Robertet

Note: The above list does not necessarily include all the top players in the market.

Are you the leading player in this market? We would love to include your name. Write to us at sales@stratviewresearch.com

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

What Deliverables Will You Get in this Report?

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

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Company Profiling

• Detailed profiling of additional market players (up to three players)
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Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

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