Negative Consumer Perception of Synthetic Food Additives Boosts the Indian and the Middle East Natural Colors Market

Trends reveal that the Indian natural colors market will grow at a rate of 4.3 percent from 2008 to 2014 while the Middle East market is expected to grow at the rate of 5.5 percent for the same period. Products with natural additives have evoked good response from consumers and the slow but steady transition from synthetic colors to natural variants is evidenced in these regions.

19/01/09 Growing consumer preference for natural and nature-derived food products is a major trigger for the growth of the Indian and the Middle East natural colors markets. Trends reveal that the Indian natural colors market will grow at a rate of 4.3 percent from 2008 to 2014 while the Middle East market is expected to grow at the rate of 5.5 percent for the same period. Products with natural additives have evoked good response from consumers and the slow but steady transition from synthetic colors to natural variants is evidenced in these regions.

New analysis from Frost & Sullivan (http://www.food.frost.com), Strategic Analysis of the Indian and the Middle East Natural Colors Market, finds that the Indian and Middle East markets earned revenues of over $19.5 million and $ 17.1 million respectively in 2008 and estimates this to reach $26.1 million and $25 million in 2014.

The markets for natural coloring in India and the Middle East are in the growth stages as a limited number of end products using natural colors exist compared with the United States and Europe. Bans have been imposed in Europe and the United States on selective synthetic color usage. Although there is no such ban in India, the shift to natural color usage is becoming increasingly apparent.

"The shift from synthetic colors to natural variants has been backed significantly by the strong negative perception among consumers about synthetic colors," says Frost & Sullivan Senior Consulting Analyst Aditi Paul. "Global reports on allergic responses from synthetic color usage have only aggravated such views, indirectly driving the natural food color market, and as more of such effects of synthetic color usage are uncovered, the pace of transition to natural food colors will be stepped up."

Additional health benefits offered will pave the way for the utilization of natural colors in a host of food and beverage applications apart from the usual coloring properties. Food and beverage manufacturers are constantly exploring ways to include indigenous ingredients and provide new age, value-added, shelf-stable natural colors. Product development and product differentiation are required to enhance the coloring attributes, shelf stability, and bioavailability of the active component of natural colors.

Although consumer demand and advancements in technology have had a positive influence on the market, the price factor has slowed the pace of development. Natural colors have been perceived as premium products.

"Despite the fact that prices vary from product to product, natural food colors may be up to ten times more expensive than synthetic colors and this is a key challenge that this industry is facing at the moment," says Paul. "Low shelf stability of most of the natural colors is also an issue for manufacturers, especially since the synthetic variants have improved stability properties in this regard."

The market is characterized by a heightened level of competition and only new technology developments will allow the company to stand out from the rest of the competition. Accelerated research efforts by leading color manufacturers to develop unique products will benefit the market in the long term. The key to success is to manufacture improved color blends that would ideally suit the needs of the food and beverage product manufacturers.

Strategic Analysis of the Indian and the Middle East Natural Colors Market is part of the Food & Beverage Ingredients Growth Partnership Service program, which also includes research in the following markets: Indian Dietary Supplements Market, Indian Functional Foods and Beverages, Indian Market for Bakery Ingredients, Strategic Analysis for Protein Ingredients Market in India, Food Ingredients Market in India. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

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