“The new facility is a direct commitment to the US market,” says Oterra CEO Martin Sonntag. “Oterra already has a strong foothold in the North American market, catering to the demands of an environmentally conscious and health-focused consumer base. This puts Oterra in a great position to further support our customers in the conversion towards natural colors.”

Customers and partners can work directly with Oterra’s team of regulatory and application experts to find the perfect natural shade as they innovate and develop new products or reformulate with natural colors to help deliver on consumer demands faster.

A further 40,000 sq ft of expansion space is available for new color products and partner pilot production lines.

Consumer demand for natural colors

The Natural Colors Association (NATCOL) released a study in May that looked at U.S. consumer perceptions on natural food colors and the extent of which they were accepting different food colorings and how it influenced their purchasing decisions.

The appearance of food and beverage was ranked top five among consumers, while the specific awareness of color was lower compared to other components like taste, price, protein content, sugar content. There was, however, a significant preference for natural colors where 7 out of 10 consumers accepted natural coloring in their food and beverage and expressed positive connotations like "healthy," "safe," "good," "sustainable," and "appealing" in products containing them.

Since color in the U.S. is only labeled as "added color," U.S. consumers reportedly had difficulty understanding what natural colors are, but when explained, they were encouraged by claims that promised the presence of natural colors.

“We have observed notable shifts in consumer demand, primarily fueled by an increasing focus on health and wellness,” says Chari Rai, head of applications, North America.

“Consumers are becoming more informed and intentional about the choices they make, seeking products that align with their desire for healthier lifestyles. This trend extends beyond just nutritional value to include cleaner labels, natural ingredients, and sustainable sourcing. Additionally, regulatory changes in certain states are expected to further accelerate the demand for products that limit or eliminate the use of artificial dye," Rai continues.

“Oterra prides itself on making natural colors easy for customers and the opening of the new facility will help us fulfill that promise. Besides having the widest range of natural products, we can offer our customers world-class R&D and application labs, hands-on training, and team inspiration events that can help food and beverage companies stand out in the market," she finishes.

Related: Consumers look to branch out with food colors