According to MarketsandMarkets, the global natural food colors & flavors market size is estimated to be valued at USD 5.0 billion in 2020 and projected to reach USD 6.8 billion by 2025, recording a CAGR of 5.4% in terms of value. Emerging markets in upcoming economies such as the Asia Pacific and South American countries are going to be potential markets for the natural food colors & flavors manufacturers. The increase in per capita income and change in the trends of food consumption are poised to increase the share of the market. These factors are projected to drive the growth of the natural food colors & flavors market during the forecast period.
Food is the dominating application segment for both colors and flavors. Majorly dairy, bakery and confectionary applications are using natural ingredients. Due to the shift in consumption habit of consumers the popularity of natural food colors & flavors among food manufacturers is on rise.
Caramel is the dominating type segment for food colors and natural extracts is the dominating type for food flavors market. The demand for colors and flavors directly extracted from plant sources is driving the market for both.
Liquid & gel form is the form of natural colors& flavors which is high in demand. It is quite popular because of its uniform mixing nature in the recipe, which gives consistent color & flavor.
South America is projected to witness the fastest growth in the natural food colors & flavors market during the forecast period due to the increase in the production and supply of natural food colors & flavors for various applications of food & beverages.
A consumer base shift has been observed in the past few years on various scales, such as physical activities, health awareness, connoisseurs, and food choices about including meat or following a vegan diet. Due to this reason, the demand for a wide portfolio of flavors is increasing for various categories of food & beverages. To match this consumer demand, food manufacturers are constantly conducting R&D to achieve an innovative product portfolio.
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The rising health awareness among the global population has had a major influence on the demand for natural food ingredients. The global market is witnessing the development of a wide range of applications of functional food ingredients, such as fortifying food & beverage products.
The increase in the demand of plant based food products is driving the market. Especially after Covid-19 the decrease in the demand of meat, seafood and poultry has increased the demand of plant based flavors.