Bright days ahead for innovative natural colors

BRIGHT DAYS AHEAD FOR INNOVATIVE NATURAL COLORS THEMATIC SERIES N째2

Overview

From synthetic to natural colors: the future is already here The question is not whether it’s necessary to switch from synthetic to natural food colorings, but how worried food manufacturers should be if they have not already made the switch. Natural food coloring is no longer a future trend but an actual reality. Consumer impetus is strong for manufacturers to ‘clean’ up, as reflected in the rapid uptake of natural colors in new product launches.

However, some still hesitate to switch from synthetic additives for existing product ranges. Despite consumer expectations that even ‘non-healthy’ confectionery and snacks contain natural ingredients; transforming a ‘junk’ connotation into a sentiment of occasional indulgent pleasure. Think the ostracized trans-fat, reductions of salt and sugar, removal of preservatives – consumers are driving what is in their processed food.

The new market differentiator is not ‘if’ natural flavors and colors are being used, but ‘how’ they are being used; to innovate in craft, novel, functional and mainstream foods, which will catch the attention and imagination of emerging consumer groups such as the millennials.

Natural colors are increasingly used in food & drink launches1

NORTHERN AMERICA

50%

ASIA PACIFIC

69%

EUROPE

89%

Europe: a defining moment for natural food coloring In 2007, serious concerns were raised through research on the links between a combination of synthetic food colors – the Southampton six – and child hyperactivity. In its 2010 precautionary response, the EU applied obligatory warnings to children’s food labeling and reduced the acceptable daily intake levels of the colorings. Many EU confectioners switched to natural colors (to avoid the label warning), and this became a differentiator for parents and a vector for consumers to demand natural food colorants.

Consumers WANTING to see familiar ingredients in their foods2

73% 65%

68%

Despite later research documenting limited possible impacts to children already suffering from attention deficiency disorders, a collective consumer focus on synthetic colors was already entrenched. The logic was simple: why give children food containing unnecessary chemicals? The synthetic color tide was turning.

USA

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CHINA

EUROPE

United States: the natural color revolution is underway

The global uptake of natural food colors in new product development is generally positive, with Europe leading, and Asia Pacific following as the fastest growing natural color market3.

In Asia a driving force is the pervasiveness of food safety scandals: the recycling of waste industrial or animal oils, synthetically colored to be sold as healthier vegetable oils in Taiwan; toxic toothpaste produced in China and imported around the world; or high levels of lead in packet noodles in India.

Widening media exposure, consumer outrage, improving regulatory oversight, and losses in industry market value and share have all contributed to this rapid uptake of natural food additives across the region.

A picture of the food coloring market

According to market figures, the US has been lagging behind in making the switch to natural colors.

The trend is confirmed in Europe and Asia but still underway in the US. Recent Big Food announcements confirm that under growing pressure from consumer and health-interest groups, the natural color revolution is now in full swing.

For instance, in early 2015, confectionery giants Hershey and Nestlé USA both announced a move away from artificial flavors and colors, while Mars confidently reaffirmed the safety of these colors as used in the iconic M&M. And just a year later in early 2016, citing “increasing pressure to remove artificial colors due to growing demands for more natural ingredients in their products,” Mars announced that it will phase out all artificial flavors and colors from its entire global food and drink portfolio4.

EUROPE

LEGISLATION AND REGULATION

27%

6

WORRIED CONSUMERS*

5%

5

GERMANY

17%

FOOD AND DRINKS LAUNCHES USE ARTIFICIAL COLORS

CONSUMER LOBBIES & ASSOCIATIONS

6

25%

5

ASIA PACIFIC

FOOD AND DRINKS LAUNCHES USE ARTIFICIAL COLORS

42%

5

FOOD AND DRINKS LAUNCHES USE ARTIFICIAL COLORS

WORRIED CONSUMERS*

WORRIED CONSUMERS*

36%

65%

USA

6

WORRIED CONSUMERS*

FRANCE

Where legislation regulates food coloring, consumers are less concerned about artificial colors. But where legislation is still lacking and industry is left to regulate itself, consumers voice more concern about artificial colorings in their food.

NORTHERN AMERICA

Overview

Asia Pacific: stepping up to food safety challenges

CHINA

CONSUMER LOBBIES & ASSOCIATIONS

6

* CONSUMERS CONCERNED WITH THE USE OF ARTIFICIAL COLORING IN THEIR FOOD

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Overview

Consumers willing to pay up to 10% more for food and beverages that are natural7 Bright days ahead for innovative natural colors

55%

54% 47%

Food companies that aim to be part of the cleaner food future are investing now to develop the next natural food trends, fine-tune formulations with natural ingredient partners, and build the corresponding new or transitional brand stories that the consumers are waiting and wanting to hear.

41% 33%

Beating a colorful path to the millennial table

D M

DO

NG

KI

ND

LA

Y

AN

IA

ITE

UN

SS

RU

CE

RM

GE

AN

ER

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FR

• More food transparency, safe and healthy products • New local and international foods, which tell a complete story on health, sustainability, traceability, entrepreneurship, human interest…

• Slow foods that source and value local ingredients • Technology tricks that rapidly transform food in a fun way • New horizons in color and flavor associations • Food that can be enjoyed and shared visually, virtually and virally • Building virtual communities through food, which is colored to match visually recognizable political, social or humanitarian causes and aspirations

ITZ

So what is the globally connected millennial looking for on their table?

SW

As synthetic colors fade from view, new trends in brightly colored foods are emerging. The millennial generation is not only comfortable with vibrantly colored food, but is looking for innovative brands and products that speak a healthy and fun language, while meeting new and adventurous expectations.

Today’s millennial is also tomorrow’s parent, which opens a new era of entertaining and healthy children’s food. At the current speed, within fifteen years, synthetic flavors and colors should be nothing but a distant memory, as the food industry innovates to anticipate the joyous, yet demanding expectations of the comings generations.

focus

From experimentation to innovation in natural color The modern renaissance of natural colors The market for natural colors is growing steadily and is expected to be worth 1.7 billion USD by 20208.

Despite disparate regulatory status across markets, natural alternatives in all main colors are available, with new additions coming through the R&D pipeline regularly. Natural ingredient companies are making constant progress and work closely with food manufacturers to develop optimal formulations for each given product.

Intricate modern extraction processes have allowed the full potential of many plants to be sourced, a real renaissance for botanical ingredients. An added bonus, many of the plant sources offer nutraceutical and nutritional benefits too. So along with great natural colors, come powerful active ingredients, such as antioxidants or micronutrients.

Coloring foodstuffs: clean and clear The most recent addition to the natural food color palette is coloring foodstuffs. Where these differ from synthetic and natural colors, is their status as an actual food ingredient. Some natural coloring additives may be extracted from animal or plant sources that are not identified ‘for human consumption,’ such as alfalfa, whereas coloring foodstuffs are just that; a food that could be eaten, and thus an ingredient.

In Europe, the coloring foodstuff category is well defined, with guidance published since 2013 & 2014: • Used primarily to color food • Sources recognized as edible foods within the EU, and subject to traditional processing methods • Non-selective physical or chemical extraction European coloring foodstuffs are not associated with the much maligned ‘E’ codes, or difficult to identify names on labels. Instead, the name of the food itself features, allowing consumers to easily identify the ingredient. The much sought after clear and clean label.

From synthetic to naturaL: The red color exAmple

What’s available in natural colors today To meet consumer expectations, particularly the millennials, the food industry is moving towards gentler extraction and production processes, with less chemical interactions and the preservation of ingredients innate naturality. Natural food colors adopt these processes in differing measures as illustrated here:

Synthetic

Naturally sourced colors

Coloring foodstuff

Natural Origin

Fully natural

Chemical synthesis

Extraction + Chemical modification (aluminium lake)

Selective extraction + concentration

Juicing / water extraction + concentration

Allura Red E 129 Or Red #40

E 120 carmine lake

Anthocyanin (E163) or Betanin (E162)

Black carrot concentrate Beetroot concentrate

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focus

A bright future for innovative natural blues In the world of 100% natural food coloring, blue has been one of the most challenging colors to master, with irregularities in both shading and stability, depending on the application. For this reason, synthetic Brilliant Blue was still used in 67 percent of food and drink launches from 2014 to 2015 including blue or green9.

Ongoing innovation is seeing efficient and stable natural blues come to market. This makes the use of natural blue both modern and fun for consumers, and a source of innovation for the food industry.

As the uptake and harmonization of natural food colors gains ground, manufacturers are looking for innovative blue solutions with a large geographic footprint. Colors available only in certain regions today, could thus gain worldwide regulatory status in the near future.

Blue, combined with yellow, also opens the door to natural greens – another important color for the food and drink industry.

Natural blue options

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Blue Spirulina

Blue Gardenia

Blue Anthocyanins

Source

Spirulina

Gardenia fruit

Red cabbage

Shade

Blue/blue turquoise

Dark blue

Dark blue

Naturality

Coloring foodstuff in Europe Natural color in other countries

From a natural source, with the addition of an amino acid

Natural color

Regulatory

Permitted as a food additive: USA, Japan, China, Korea – coloring foodstuff in Europe

Permitted: China, Japan

Permitted: Europe, USA, Australia, Japan

Forms

Liquid and powder

Liquid and powder

Powder

Stability

Good to light Medium-fair to heat and in acidic conditions

Good to light and heat Medium-good in acidic conditions

Good to light Medium to heat Not usable in acidic conditions

Applications

Confectionery, ice-cream, pastry decoration

Ice-cream, confectionery, beverages, rice & flour goods

Panned confectionery, ice-cream

Advantages

Bright blues, equivalent to synthetic shades

Good overall stability

Permitted for use in many countries

Disadvantages

Limited stability in certain applications

Only permitted for use in Asia (at the moment)

Only suitable for pH neutral applications

solutions

The many wonders of Blue Spirulina Spirulina is a blue-green microalgae (Arthrospira platensis), originally discovered in the alkaline lakes of South America and Africa. It was traditionally part of the Aztec and Kanem diets in centuries past. As modernity arrived and natural habitats disappeared, spirulina fell somewhat into oblivion until a gradual renaissance over the last 3-4 decades.

Today, Spirulina is grown and harvested in sustainable aquatic farms across the world. It is a rich source of proteins, certain complex B vitamins, copper and iron, and has antioxidant properties. Present on the natural healthcare and specialty food scenes, Spirulina is already widely used as a dietary supplement in tablet form, and as a superfood in its powder form.

The microalgae family’s impressive credentials Spirulina is a member of the microalgae family, which counts around 40,000 strains. The most proliferous, overachieving and yet under recognized microalgae is marine phytoplankton, found in the world’s oceans, and which produces half of the earth’s oxygen10.

Some of the most well-known varieties of microalgae, already in use as superfoods are: Astaxanthin, Chlorella and Blue-Green Algae. Microalgae are being hailed as the most interesting superfoods in decades, both for their health properties and the promising prospects of sustainable production.

These tiny organisms have been around for millions of years, evolving into robust and adaptable species that rely on sunshine and a relatively limited amount of water to thrive and rapidly multiply. Despite microalgae’s long existence, the scientific community has only recently begun extensive research and development, so the best is still to come.

Blue Spirulina in food coloring Not only is Spirulina a great food, but its water-soluble phycocyanin pigment, specific to the Cyanobacteria family is highly abundant, giving Blue Spirulina its vibrant color. The original biomass is water extracted and filtered, resulting in an aqueous extract that holds the bright blue color. Combined with a natural yellow such as Safflower or Turmeric extract (curcumin), it produces shades of green; and with a red such as Black carrot, it produces shades of purple. Making it perfect for confectionery.

Also suitable for coloring bakery decoration, confectionery coating, ice-cream and water ice, and instant drinks, Blue Spirulina extract is versatile, and clean. It benefits from a coloring foodstuff classification in Europe and Australia, and a natural color additive status in other regions, where the coloring foodstuff category does not yet exist.

Permitted in the US since 2013, the use of Blue Spirulina has taken off in a big way.

ICE BLUE, BLUE SPIRULINA EXTRACT, LIQUID FORM

LIME GREEN, GREEN BLEND OF BLUE SPIRULINA AND SAFFLOWER EXTRACTS, LIQUID FORM

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solutions

healthy and fun Let’s take Spirulina as an example of healthy and fun innovation: • Sustainably produced natural ingredient, which is extracted gently and ethically • Has acknowledged nutritional properties, and is used as a dietary supplement and superfood • 100% natural, it is permitted across most of the world and features on clean and clear labeling • Provides high quality blue shades, close to current synthetic blue shades, ensuring seamless switches for existing products • Is fluorescent: blue in normal day light and a fun violet-rose color under UV light • Can be added in, or on confectionery or baked good as sparkling flakes • Can be added to water in order to create a nutritional product with unique flavor and color, which stretches beyond common product stereotypes

What’s the next best coloring food?

Yellow is the most highly used food coloring in all regions of the world, except Asia Pacific11. North and South America continue to favor the controversial synthetic color Tartrazine, while Europe, the Middle East and Africa lean more towards the natural color Curcumin. An exciting addition to the 100% natural colored foodstuffs family is Safflower Yellow.

An ancient plant (Carthamus tinctorius L) originating from the Mediterranean region, the flower petals were used by the Egyptians to color cotton, cosmetics and food, and also in traditional Chinese and Indian medicine.

Today, the Safflower is grown extensively across many countries and its seeds are used to produce Safflower oil, while the petals are making a clean, colorful and sustainable comeback to food coloring.

Safflower Yellow

SPARKLES EXCITING NATURAL COLOR POSSIBILITIES FOR CONFECTIONERY

Source

Safflower petals

Shade

Lemon yellow

Naturality

Coloring foodstuff in EU. Natural color petition underway in USA.

Regulatory

Permitted as a food additive : China, Japan - coloring foodstuff in Europe

Forms

Liquid and powder

Stability

Good to light, heat and in acidic conditions

Applications

Beverages, confectionery, ice-cream, dairy

Advantages

Vibrant and stable yellows, equivalent to synthetic shades

Disadvantages

Not yet widely permitted. Need for global regulatory harmonization

LEMON YELLOW, SAFFLOWER EXTRACT, LIQUID FORM

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solutions

Eating with the eyes, the mind and the soul Until today, flavor was a major vector for innovative food, but color is now gaining a place in its own right.

With the advent of natural colors and coloring foods, consumers and their children can safely enjoy new culinary experiences; through innovations in flavor, texture and color associations.

Cutting edge extraction and manufacturing technology, which is becoming more environmentally respectful, is delivering processed foods in a more ethical way.

Together with increased traceability and sustainability of natural ingredients, brands can build honest product stories that inspire, reassure and delight.

Food colors today aren’t just about visual appeal or flavor illustration. Color is in itself a way for food manufacturers to incarnate new consumer behaviors and interests, such as social engagement. Think of the buzz around Doritos 2015 rainbow corn chips to support LGBT youth: special rainbow packs of Doritos, raising money for an anti-homophobia charity sold out in a few days.

The food industry isn’t just looking for manufacturers that sell high quality natural ingredients, flavors and colors. They need partners to inspire and help them innovate to bring great new products and applications to the market.

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summary

key information AT A GLANCE

IN EUROPE

IN AMERICAS AND ASIA, CONSUMER ADVOCACY PLAYS AN IMPORTANT ROLE

LEGISLATION REGULATES THE USE OF FOOD COLORING

73% of US consumers

65%

50%

AND

BLUE

69%

ASIA PACIFIC FOOD AND DRINKS LAUNCHES USE NATURAL COLORS

EUROPE FOOD AND DRINKS LAUNCHES USE NATURAL COLORS

2015 FOOD 2016

SYNTHETIC BRILLIANT

WANT TO SEE FAMILIAR INGREDIENTS IN THEIR FOOD

of European consumers

89%

NORTHERN AMERICA FOOD AND DRINKS LAUNCHES USE NATURAL COLORS

BETWEEN

68%

of Chinese consumers

DECIDED TO SWITCH TO NATURAL COLORS DUE TO CONSUMER PRESSURES

SEVERAL MAJOR

COMPANIES

67%

LAUNCHES INVOLVING

BLUE OR

GREEN

OF FOOD AND DRINK

IN 2014 AND 2015

WAS STILL USED IN

NATURAL COLORS

OPEN THE FIELD

OFFERS COLORING FOODSTUFFS OF VARIOUS SHADES

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FOR FUNNIER HEALTHIER

MORE CREATIVE INNOVATIVE FOOD

THAT SPEAKS TO

NEW GENERATIONS

OF CONSUMERS

OFFERS NATURAL FLAKES & GLITTERS FOR A FUN VISUAL IMPACT

Sources 1. Mintel, 2016 Food & Drink Trends, October 2015 2. I nnova Market Insights, Consumer insights: Naturality, naturalness, authenticity, safety, health & wellness, July 2015 3. MarketsandMarkets, Food Colors Market by type, applications and geography – Global Trends & Forecasts To 2019, 2014 4. Food Navigator, Niamh Michail, Mars to ditch all artificial colours from its entire global food portfolio, February 2016, available at: http://www.foodnavigator.com/ Market-Trends/Mars-M-M-s-free-of-artificial-colours Confectionery News, Oliver Nieburg, Mars defends artificial dyes and says natural switch ‘won’t happen overnight’, February 2015, available at : http://www. confectionerynews.com/Ingredients/Mars-defends-MM-s-artificial-colors-says-natural-switch-takes-time 5. Mintel, Ingredients Insight: Colours, July 2015 6. I nnova Market Insights, Consumer insights: Naturality, naturalness, authenticity, safety, health & wellness, July 2015 7. I nnova Market Insights, Consumer insights: Naturality, naturalness, authenticity, safety, health & wellness, July 2015 8. F MI (Future Market Insight), Natural Food Colours Market : Global Industry Analysis and Opportunity Assessment 2014-2020, 2015 9. Mintel, Ingredients Insight: Colours, July 2015

Design & supervision: Havas Worldwide Paris / writing: Mensquare / pictures: Shutterstock.

Non-contractual pictures and illustrations.

10. National Geographic, Source of Half Earth’s Oxygen Gets Little Credit, June 2004, available at http://news.nationalgeographic.com/ news/2004/06/0607_040607_phytoplankton.html 11. Mintel, Ingredients Insight: Colours, July 2015

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