Natural food colors are used to enhance the aesthetic value of foods. The global natural food colors market is growing with a CAGR of 6.04% over the forecast period primarily driven by the increasing demand from the bakery & confectionery and the beverages industry. Consumers are highly skeptical about artificial flavors. As consumers become increasingly aware of the side effects of consuming synthetic raw materials, food and beverage makers are concentrating on producing food and beverages with a clean label to maintain the growing demand of consumers.

Natural Food Colors are extracted from natural sources like vegetables, plants, and insects and also offers bioactive properties and thereby used therapeutic agents. The sale of natural food colors have observed a sheer proliferation with the rising consumer preference for natural ingredient-based food products over artificial variants. The paradigm shift from synthetic to clean label and natural food ingredients are giving global natural food color makers opportunities to grow.

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Companies such as Archer Daniels Midland Company, Kalsec Inc., Chr. Hansen Holding A/S, Sensient Technologies Corporation, Naturex S.A., McCormick & Company, Lycored Ltd, Dupont, Chr. Hansen Holding A/S and Australian Food Ingredient Suppliers (AFIS) are the leading player of natural food color market globally.

Based on application, the food color market is bifurcated into Beverages, Processed Food, Dairy Products, Bakery & Confectionery Products, and Others. Beverages application leads to the overall food color market over the forecast period. Increasing customer awareness regarding the harmful effects of artificial additives has resulted in increasing demand for naturally-colored products. Owing to the rising demand for ready-to-drink beverages, increasing disposable income and economic development heightened demand for the product. Additionally, the usage of these products allows vendors to meet strict regulatory standards regarding allowable elements in consumables. As a result, demand in this segment is anticipated to grow significantly over the forecast period.

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Europe dominates the overall food colors market followed by North America during the forecast period. Europe accounts for the leading region with 31.06 % market share in 2018 and projected to reach USD 882.90 Million by 2025, owing to owing to increase consumer preference towards functional foods and beverages coupled with rising consumer awareness. Robust economic growth, increasing urbanization, explosion of the middle class population is the noteworthy factors for the evolution of natural food color ingredients in Europe region. Moreover, the growth is contributed by the increasing per capita disposable income and developing awareness of natural food colors among the consumer.

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