New York — The Insight Partners latest published research study — Natural Food Colors Market Forecast to 2028: COVID-19 Impact and Global Analysis by Type, Form, Application and Geography — reports that the market is projected to reach $3.17 billion by 2028; growing at a CAGR of 7.1 percent.
According to the report, the natural food colors market is expanding at a steady pace. Growing consciousness about the benefits of natural food colors, increasing awareness for clean label products, a rising need to enhance product appeal and growing R&D activities in the food industry are significantly contributing to the market growth.
In 2021, Europe accounted for the largest share of the global natural food colors market. The market in Asia Pacific is expected to grow at the highest rate during the forecast period with China being one of the world’s leading consumers of natural food colors.
There is increased awareness about the benefits of consuming natural food colors, the main advantage being that it does not contain common allergy-prone ingredients and may even add to food’s nutritional value. Synthetic food colors contain carcinogenic, toxic contaminants that result in increased inflammation and disrupt the functioning of the immune system.
Natural food color manufacturers are constantly innovating to meet endlessly evolving consumer tastes and preferences. They are launching products with enhanced colors and quality to attract many consumers.
Hectic schedules of people and dual working households have directed a shift toward takeaways and dine-outs. As a result, restaurateurs are using natural food colors in order to enhance the look of meat products to attract more diners.
Synthetic food colors are low-cost and have an attractive appearance, but they can also cause hypersensitivity in children. The UK’s Food Standards Agency has imposed a voluntary ban on several of these synthetic food colors.
Furthermore, the FDA has also reported synthetic colors to be showing signs of cancer in young children.
The COVID-19 pandemic affected economies and industries due to lockdowns, travel bans and business shutdowns. The natural food colors industry suffered due to disruptions in supply chains and shutdowns of many food color processing, wholesale and smaller retail businesses.
Due to the spread of the virus, consumers became more health conscious and started choosing natural and organic food products, which spurred the demand for natural food colors. Moreover, during COVID-19 consumers became more aware about the harmful ingredients present in food products, such as synthetic dyes. This factor positively impacted the natural food colors market growth worldwide.