Natural Colors Driving Global Colors Sector

CHICAGOAs consumer demand for wholesome and healthful foods grows, so does the use of natural colors. Global sales of natural colors reached an estimated $600 million in 2011, up by almost 29% from 2007 and demonstrating annual growth in excess of 7%. The share of the total food colors market taken by natural varieties has increased from 34% in 2007 to nearly 39% in 2011, according to a new report from Mintel and Leatherhead Food Research.

In contrast, growth within the artificial/synthetic colors market has been more modest, with value sales increasing by less than 4% between 2007 and 2011. The segment is now worth an estimated $570 million, which is equivalent to 37% of the overall market compared to 40% in 2007.

The results of the Southampton Six study has really accelerated the move toward natural colors in Europe, but other regions are also following suit as the consumer demand for more natural formulations builds and as key producers and retailers look to phase out artificial ingredients," said Chris Brockman, senior global food and drink analyst at Mintel.

According to the Food ColoursInternational-February 2013" report, the food industry alone accounts for a 70% share of the natural food colors market compared to 27% for soft drinks and just 3% for alcoholic beverages. The use of natural colors in new launches of food and drinks outweighs the use of artificial/synthetic colors by 2:1 on a global basis. Europe has moved strongly toward the use of more natural colors, and leads the way globally, overall using them in 85% of new product launches between 2009 and 2011.

Overall, the global market for food colors was worth an estimated $1.55 billion in 2011. This represents growth of 13% from 2007. However, while developing, average annual growth levels currently lie between 2% and 3%, down from the 4-5% experienced throughout most of the previous decade.

Much of this slowdown in growth can be attributed to the global economic recession, and its subsequent effect on consumer expenditure on many sectors of the global food and drinks industry, as well as the continued decline in demand for artificial/synthetic food colorings," Brockman said.

The report predicts the trend toward greater use of natural colors will continue, especially within premium food and drink segments and in products positioned for children.

The drive for natural food formulations will endure in the global food and drink industry as consumers continue to seek simplicity and purity in food and drink ingredients lists. The use of natural colors in new food and drink launches will thus continue to outpace artificial colors globally in the foreseeable future," said Rachel Wilson, principal technical adviser at Leatherhead Food Research.

For more information on about the natural colors sector, download the free Natural Colors digital issue from Food Product Design. The digital-only issue explores the range of natural colors available for use in food and beverage formulations, as well as the regulatory particulars guiding the use of natural colors. Included are food and beverage formulation tips for using caramel color, turmeric, annatto, beta-carotene and more.