Natural colors and flavors are widely gaining popularity due to consumer awareness towards healthy foods and the Government strictness in using natural colors and flavors in food production. Natural colors and flavors are more in demand for their additional health benefits. Consumers and the Government are getting aware of artificial colors and flavors ill effects; this is one of the driving elements in natural colors and flavors market. High price and high dosage are the major restraints of natural colors and flavors. To reduce these constraints, manufacturers are coming up with newer technology, which will lift the demand for natural colors and flavors.

Multi-functionality of natural colors and flavors has added to its demand. Natural food is considered safe, manufacturers are carrying out accreditation to mark the food as natural and safe, and it is one of the winning imperatives for the industry. Merger and acquisition is another winning imperative, where companies are expanding themselves to overcome the lost opportunities. This is done to gain larger sales and expertise in various areas.

The global natural colors market in terms of revenue was estimated to be worth around $732 million in 2011 and is expected to reach $1,320 million by 2017, growing at the CAGR of 10.4% from 2012 to 2017. North America is the largest market. The demand for natural colors is expected to rise in Europe due to an increase in regulations and health awareness and ill effects of the artificial colors. The global natural flavors market in terms of revenue was estimated to be worth around $3,546 million in 2011 and is expected to reach $5,078 million by 2017, growing at the CAGR of 6.2% from 2012 to 2017. Europe is the largest market. The demand for natural flavors market is expected to rise in North America due to an increase in regulations banning artificial flavors.