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Natural Food Colours Market Anticipated to be worth US$ 1,697.6 Mn by 2020, According to Future Market Insights

Future Market Insights announces the addition of "Natural Food Colours Market: Global Industry Analysis and Opportunity Assessment 2014 - 2020" research report.

VALLEY COTTAGE, NEW YORK, UNITED STATES, June 24, 2015 / -- Preference towards natural, organic, and clean label products has provided an impetus to the natural food colours market. According to Future Market Insights’ research report, “Natural Food Colours Market: Global Industry Analysis and Opportunity Assessment 2014 – 2020,” the natural food colours market will expand at a compound annual growth rate of 6.8% through 2020 and reach a valuation of US$ 1,697.6 Mn.

Increasing focus on health and well-being has pushed the demand for food products that use natural ingredients as raw materials. This has prompted manufacturers to use natural ingredients, and subsequently, the natural food colours market has received a tremendous boost. According to Future Market Insights, natural food colours revenue surpassed that of synthetic food colours for the first time in 2011.

Innovation in food processing technology has also augured well for the natural food colours market. Microencapsulation and advanced natural colour stabilisation techniques have enabled manufacturers to cater to the surging demand for products containing natural food colours.

Browse Full: "Global Natural Food Colours Market Analysis & Opportunity Assessment, 2014 - 2020" Report at

High price remains a key challenge for the widespread adoption of natural food colours. The raw materials used for extracting natural food colours are characterised by high price volatility and uneven availability. FMI estimates this to inhibit the growth of natural food colours market during the forecast period.

The natural food colours market is segmented on the basis of colours they impart to various food and beverages. Carotenoids are the most widely used pigment, accounting for nearly one-third of the market share in 2014. FMI estimates carotenoids segment to expand at a CAGR of 6.6% through 2020.

Spirulina is the fastest growing pigment and FMI estimates it to expand at a 12% CAGR during the forecast period 2014-2020. On the other hand, paprika is projected to lose market share, owing to its poor resistance to light.

The end-use application segments of natural food colours are beverages, packaged food, confectionary and bakery items, dairy products, and others (pet food, condiments, functional food, etc.) The others segment accounted for the bulk of the demand for natural food colours in 2014 and FMI estimates it to expand at a CAGR of 6.9% through 2020.

Demand for natural food colours is robust from the beverages industry, especially in the ready-to-drink fruit juices. The natural food colours in beverages segment was worth US$ 246.9 Mn in 2014, and FMI estimates it to expand at a CAGR of over 7% through 2020.

Confectionary and bakery items accounted for US$ 203.9 Mn in 2014, and FMI anticipates that this segment will expand at the highest CAGR through 2020. The key drivers for the anticipated growth include new formulation of blue and green colour for application in the confectionary sector.

Demand for natural food colours is robust in Western Europe. Demand for fine powdered colours is gaining momentum in Western Europe and this is expected to provide an impetus to the natural food colours market in the region. FMI estimates the Western Europe natural food colours market to expand at a CAGR of 6.5% through 2020 to reach a valuation of US$ 445.7 Mn.

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Natural food colours are replacing artificial colours in North America, and the market there is anticipated to expand at a CAGR of 7.1% during the forecast period 2014-2020. Consumer preference towards healthy food products is prompting retailers to phase out artificial colour-based food products. FMI estimates the North America natural food colours market to be worth US$ 441.4 Mn by 2020.

Key companies profiled in the report include Sensient Technologies Corporation, Naturex S.A., Kalsec Inc., DDW, ADM (Wild flavors Inc.), Chr. Hansen A/S, ROHA Dyechem Pvt. Ltd., GNT International B.V., DIC Corporation, and LycoRed Ltd. among others.

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Future Market Insights (FMI) is a leading market intelligence and consulting firm. We deliver syndicated research reports, custom research reports and consulting services which are personalized in nature. FMI delivers a complete packaged solution, which combines current market intelligence, statistical anecdotes, technology inputs, valuable growth insights and an aerial view of the competitive framework and future market trends.

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