More consumers going for natural colourants, flavours

With natural food products quickly gaining importance amongst consumers, analysts expect the natural colourant and flavour market to expand accordingly. In its most recent report, Research and Markets notes this sector to grow at a CAGR of 6.35% from 2013-2018. The market is buoyed by the continuing growth in the food & beverage industry (frozen, fresh, processed, confectionery, etc), which is forecast to reach a CAGR of 3-5% in 2014.  The establishment of organised retailers worldwide helps to boost availability of packaged food products which use natural colour or flavour, the report notes. Likewise, consumers with higher disposable incomes such as those coming from countries like Viet Nam, China and India, generate demand for higher quality products.

The key challenge in natural flavours and colours production is overcoming instability, and remains a setback to growth, according to ingredients companies.

The report mentions Chr. Hansen A/S, D.D. Williamson & Co., Firmenich S.A., Givaudan S.A., Royal DSM N.V., Sensient Technologies Corp., and Sethness Products Co as dominating the natural flavour and colour industry. Other companies include Aarkay Food Products Ltd., Allied Biotech Corp., BASF SE, David Michael and Co., Fiorio Colori S.p.A, Flavorchem Corp., FMC Corp., Frutarom Industries Ltd, GNT Group, LycoRed Inc., Mane SA, Naturex SA, Pronex SA, Robertet SA, Roha Dyechem Pvt. Ltd., Royal DSM NV, San-Ei Gen F.F.I. Inc., Symrise AG, T. Hasegawa Co. Ltd, Takasago International Corp., and Wild Flavors GmbH.