The global natural food colours market was valued at US$ 1,219.5 Mn in 2015, and is expected to grow by 6.8% to reach US$ 1,302.4 in 2016. North America and Western Europe are the two largest markets for natural food colours, collectively accounting for a revenue share of 60.1% in 2015. Increasing use of natural food colour by the food processing industry is a key factor driving the growth of the market.

The global natural food colours market is expected to witness an upsurge owing to the introduction of new food products with natural ingredients and colouring pigments. Furthermore, factors such as technological advancements, growing demand for clean label products and stringent regulations on synthetic colouring agents are influencing manufacturers to incorporate more natural colourants in their offerings. Additionally, rising awareness about the potential health impact of artificial colours on human health and increasing consumer health consciousness are likely to foster the demand for natural food colours. Technological advancement to procure sustainable solutions that find proper application in packaged beverage, foods, bakery and other end-use industries is expected to drive growth of the market in 2016 and beyond.

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Natural food colouring manufacturers are scouring for cost-effective sources to offer end-products at competitive prices. Confectionery products is a lucrative segment on the basis of application, and is expected to witness a healthy growth rate in 2016 owing to the arrival of new product formulations that aid in creating cleaner and shelf-stable confectionery products.

On the basis of pigment type, the market is segmented into curcumin, carotenoid, anthocyanin, spirulina extract, paprika extract, carmine, chlorophyll and betalains. Carotenoid is further sub-segmented into annatto, beta carotene, lycopene and lutein. Amongst the mentioned pigment types, spirulina extract is anticipated to witness the highest growth rate in 2016, with overall revenues growing by 11.0 %.

In addition to North America and Western Europe, the natural food colours market in Asia Pacific excluding Japan (APEJ) is expected to witness robust growth in 2016. APEJ natural food colours market revenues are anticipated to increase by 7.7% to reach US$ 321.2 Mn in 2016.

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Key natural food colour companies include Roha Dyechem Pvt. Ltd., Kalsec Inc., Archer Daniels Midland Company, Naturex S.A., Symrise AG, GNT International B.V., D.D. Williamson & Co., Inc., Chr. Hansen A/S, Adama Agricultural Solutions Ltd. and Sensient Technologies Corporation.

Long-term Outlook: The global natural food colours market is expected to increase at a CAGR of 5.4% during the forecast period 2016–2026 and reach US$ 2,212.1 Mn in revenues.