Red and Yellow Natural Colors to Grow 7.6% Annually Through 2021

Red and yellow natural colors were the largest classes in 2016, each accounting for just over 20% of total demand, at $45 million each. They will remain the leading segments, each growing 7.6% a year to $65 million. Gains will be supported by healthy demand from cheese and butter, as well as candy, breakfast cereals, and other products primarily marketed to children. Green natural colors will post the fastest growth, expanding at a near double-digit rate as spirulina products further penetrate the market and widen the possibilities for green- and purple-hued blends. These and other trends are presented in Food & Beverage Natural Colors Market in the US, a new study from The Freedonia Group, a Cleveland-based industry research firm.

According to analyst Christine O’Keefe, “Brown natural colors will post growth slightly below the overall average, as stronger gains are restrained by declining carbonated soft drink (CSD) production and concerns regarding the health impact of darker caramel food coloring classes.” Red, yellow, orange, and brown shades have historically accounted for the majority of the natural colors used in food and beverages. Their dominance arose from the established use of annatto, caramel, carotenoids, curcumin and cochineal.

The overall US demand for food and beverage natural colors is forecast to rise nearly 8% yearly to $295 million in 2021. Growth will be supported by wider trends in the food and beverage markets, including “all natural” and “clean label” preferences; increasing availability of new natural color products with increased functional stabilities; and rising consumption of some foods, in particular cheese, butter, and functional beverages.

Food & Beverage Natural Colors Market in the US (published 07/2017, 110 pages) is available for $5500 from The Freedonia Group. For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by phone 440.684.9600 or email pr@freedoniagroup.com.

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