Natural Dyes Market

Natural Dyes Market

The global natural dyes market is valued at USD 4.8 billion in 2024 and is projected to reach USD 6.4 billion by 2029, growing at 5.7% cagr from 2024 to 2029. Natural dyes extracted from plants, animals, and minerals are essential in enhancing sustainability across different industries. These dyes are alternatives to synthetic dyes, which are associated with environmental pollution and adverse health effects. Organic/natural dyes are mostly used in the textile & leather, food & beverage, cosmetics & personal care, packaging, stationery & art supplies, and other industries. With the increasing consumer demand and awareness of natural ingredient-based products, the market for natural dyes is growing to meet this demand.

Attractive Opportunities for Players in Natural Dyes Market

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Natural Dyes Market Dynamics

Driver: Stringent government regulations

The non-wastewater streams generated from the production of synthetic dyes, pigments, food, drugs, and cosmetic colorants are listed as hazardous waste, K181, by the United States Environmental Protection Agency (EPA). This list of waste streams potentially affects some dyes, including azo dyes, triarylmethane, and anthraquinone dyes and pigments. The US Food and Drug Administration (FDA) has amended certain regulations for the colorants used in the food & beverage and cosmetics industries. For instance, it has amended the color additive regulation that does not allow lead acetate use in cosmetic products designed for hair and scalp. Several regulatory bodies, including the European Union, have amended regulations for azo dyes. For instance, Regulation (EC) 1223/2009 restricts the usage of some azo dyes, such as benzidine-based azo dyes and o-Dianisidine-based azo dyes, in cosmetic products. REACH regulation prohibits using azo dyes that break down into amines, resulting in amine groups or compounds that are carcinogenic and harmful to human beings.

In 2024, the California state government announced it would introduce a bill banning six synthetic food dyes and titanium dioxide from foods served in public schools in the state. The state introduced the California Food Safety Act in 2023, which will ban cancer-causing Red 3 and three other harmful food additives from all foods sold in the state from 2027.

Conventional textile dyeing processes generate high levels of contaminants, such as unfixed dyestuffs and salts, which may be released into effluent water streams. Increasingly stringent regulations are imposed that mandate the release of cleaner mill wastewater to minimize the effect. The stringent regulations on the use and treatment of synthetic dyes have shifted manufacturers' focus on manufacturing environmentally friendly and sustainable natural dyes.

Restraint: High cost and accessibility of natural dyes

The high cost and accessibility are restraining the growth of the natural dye market. These dyes are more expensive than their alternative due to their high production cost. In the processing of natural dyes, extensive agricultural inputs and special extraction techniques are required. These additional steps result in increased production and product costs. Furthermore, the raw materials used in natural dyes, such as certain plants, insects, or minerals, may be scarce or seasonal, which impacts the price as well as the availability of raw materials for natural dyes. The limited availability of certain organic dye sources can lead to increased prices and constant supply. This is another factor that does not make natural dyes appropriate for bulk production. So, all these factors make natural dyes expensive, thereby restraining the growth of the natural dyes market.

Opportunity: Increasing use of natural dyes in pharmaceutical and personal care products

Consumers prefer pharmaceutical and personal care products made from natural dyes due to their natural origin and safety. This has been occasioned by rising consumer awareness and concern for quality products that are clean, safe, and free from synthetic additives. Another major factor is regulatory support, with many nations implementing rules and regulations that favor natural, non-harmful substances, encouraging producers to manufacture plant- and animal-based dyes to comply with the standards. The interest in natural dyes is due to their non-allergic characteristics, which means products manufactured using natural dyes are suitable for people with sensitive skin. The special focus on sustainability and environment-friendly products is also the major driving factor, as these dyes are biodegradable and have a smaller impact on the environment than synthetic dyes. All these factors align with the industry shift toward going green and appeal to environmentally friendly consumers. Also, the use of natural dyes is adaptive to the current market competition because it sets a company's products apart, especially in terms of natural and organic ingredients.

Challenge: Scalability issue of natural dyes

The scalability issue is the biggest challenge for the natural dyes market. Natural dyes are obtained from plants, animals, and minerals, and plant-based dyes are highly dependent on the availability of some crops, such as indigo, turmeric, or madder. However, in the agricultural sector, yields can be influenced by various factors such as farming practices, soil quality, and water availability. In addition, the availability of some dye plants is limited by seasonal crop yields; there may be short supplies or scarcity in a particular period of the year. The scarcity of land that can be used to grow crops for dye production, particularly in the areas where the availability of land is a problem, also poses a major challenge in scaling up the production of dyes because the crops used for dye production may compete with the food crops. Furthermore, various environmental factors, such as climate change, drought, and floods, also affect agricultural production and, thus, the supply of raw materials. Some natural dyes are available from plants that can grow only under certain conditions, making it more challenging to increase production. These challenges introduce some level of volatility in the supply chain, rendering it very hard for manufacturers to be in a position to supply the large industrial demand that is required.

Natural Dyes Market: Ecosystem

Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis

"Dyeing & coloring was the largest application segment of the natural dyes market in 2023, in terms of value."

The dyeing & coloring segment accounted for the largest share of the natural dyes market in 2023. Natural dyes are environment-friendly alternatives to synthetic dyes. In textiles, these dyes are used to dye fibers and yarns and to give fabrics special and brilliant tones, which are distinguishing features of natural dyes. Besides textiles, natural dyes are used in the food processing and drinks sectors to enhance the visual appeal of products. The application of natural dyes adds esthetic value and supports sustainable practices. The increasing demand for natural or chemical-free products has driven significant innovation in this market. Many companies are investing in new techniques to improve the performance of natural dyes. This move is the reaction to the increasing number of customers to have safer and more eco-friendly products.

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"Asia Pacific was the fastest-growing market for natural dyes, in terms of value."

Asia Pacific is the largest and the fastest-growing market for natural dyes. The cultural heritage and traditional textile industry drive the market. Many traditional textile manufacturers of the region have always used natural dyes, which propels the demand for these environment-friendly dyes. There is a shift in consumer trends toward green products due to the rising consciousness of the effects of the environment and the current trends that allow the use of natural products. The market for natural dyes in Asia Pacific is also stimulated by government actions and financial support for sustainable practices.

Natural Dyes Market Players

The key players in this market are Abbey Color (US), AMA Herbal (India), Pylam Products Company Inc. (US), Archroma (Switzerland), GNT Group (Netherlands), Stony Creek Colors (US), NIG GmbH (Germany), Givaudan (Switzerland), Dohler GmbH (Germany), and Couleurs DE Plantes (France)

Natural Dyes Market Report Scope

This report categorizes the global natural dyes market based on Type, Form, Application,  Structure , End-Use industry and Region.

Based on the Type:

• Plant Based
• Animal Based
• Mineral Based

Based on the Structure:

• Anionic
• Cationic
• Non-Ionic

Based on the Form:

• Powder Dyes
• Liquid Dyes

Based on the Application:

• Tanning
• Dyeing & Coloring
• Paints & Coatings
• Printing Inks
• Others

Based on the end-use industry:

• Food & Beverage
• Cosmetic & Personal Care
• Pharmaceutical
• Pulp & Paper
• Packaging
• Stationary & Art Supplies
• Others

Based on the region:

• Asia Pacific
• Europe
• North America
• South America
• Middle East & Africa

Recent Developments

• In May 2024, AMA Herbal launched Bio Indigo PreR. It is a biochemically modified pre-reduced natural indigo in liquid form. It is a very cost-effective and sustainable solution. The benefits of this product include reducing energy consumption, CO2 emission reduction, landfill savings, and economic opportunities for farmers.
• In January 2023, AMA Herbal signed a MoU with Amity School of Fashion Technology. This move will nurture and strengthen the inherent feeling of sustainability in fashion design students about natural dyes.
• In February 2023, Archroma announced that they acquired the Textile Effects business from Huntsman Corporation. This move adds to the rich heritage of Archroma, with Archroma having previously acquired the global textile chemicals business of BASF, M. Dohmen, and the stilbene-based paper optical brightener business of BASF.
• In April 2022, Archroma formed a strategic partnership with Stony Creek Colors, a trusted producer of traceable natural indigo dyes. With this partnership, both companies entered a strategic partnership to produce and bring Stony Creek's IndiGold high-performance plant-based pre-reduced indigo at scale.

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