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Natural Colours - Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost And Revenue, Plant Layout

-Capsanthin(paprika oleoresin) from chilly/ paprika capsicum -Curcumin from turmeric -Lycopen from tomatoes and other red fruits India, recognized as one of the hotspots of biodiversity is home to a range of economically important plants. Some of these plant species have found use in the preparation of natural dyes. Natural dyes are colorants having several applications in textiles, inks, cosmetics, etc. ‘Natural’ has become a word consumers like to see on food product packages, while ‘clean label’ is an industry term to describe an E-number-free ingredients list. Natural colours have an advantage over synthetic colours in that they are perceived as being preferable because they are natural.The market for colours is shifting to favour natural colours, but there is still a big need for certain synthetic colours. Natural dyes are a great source from plants. Roots, nuts and flowers are just a few common natural ways to get many colors. Yellow, orange, blue, red, green, brown and grey are available. While natural plant extracts were largely used in the food colourings earlier, the synthetic colours have replaced the natural plant extracts in recent times. With imposition of ban on use of several synthetic colours particularly in Europe in recent years, the natural colours are gaining importance. The six colours identified by the Southampton study are: sunset yellow E110, tartrazine E102, carmoisine E122, ponceau 4R E124, quinoline yellow E104 and allura red E129. These were identified in a study conducted at Southampton University and published in The Lancet in 2007, and were linked to hyperactivity in children. Products containing any of the so-called Southampton Six food colours will have to carry a warning on packaging under European law. Although plants exhibit a wide range of colours, not all of these pigments can be used. * Some do not dissolve in water * Some cannot be adsorbed on substrates * Some others fade when washed or exposed to air or sunlight. * Therefore, the use of plant materials as natural colour is selective. Some natural colours include anthocyanin from strawberries, raspberries, grape peel, blueberries etc, capsanthin (paprika oleoresin) from chilly/ paprika capsicum, curcumin from turmeric, lycopen from tomatoes and other red fruits etc. Betalains are water-soluble natural pigments that include red-violet betacyanins and yellow betaxanthins. Market potential Natural colours – which lost their appeal when synthetic colours arrived on the scene, promising higher consistency, heat stability, colour range and cost – are coming back into fashion as consumer awareness increases over the link between diet and health. Natural colours now make up 31 per cent of the colourings market, compared with 40 per cent for synthetics, according to Leatherhead Food International, LFI. Market growth The colours market is estimated by RTS to be worth USD $1.7billion, with natural colours said to make up USD $0.65 billion. Speaking at the HiE conference, Steve Rice of RTS said the colours market was an “important but changing market”, noting the recent shift towards more natural colours has meant the market for synthetics has decreased, with demand for natural colours growing at a much faster rate. “Total colour usage has been growing by about 4 per cent year on year, but naturals are growing by 6.5 per cent year on year, so inevitably we can see that it’s synthetic colours that are being squeezed out,” said Rice. “Our forecasts now show very little growth for synthetics, with all of the growth coming from naturals.” Emerging markets Jamie Rice, also of RTS, said that the largest value markets for natural colours remained Western Europe and North America, accounting for 32 and 29 per cent of the market share respectively, but emerging markets offer growth. “A lot of the high growth is in actually in the emerging markets of Eastern Europe, Central and South America, and Asia pacific. These regions are offering growth rates in excess of 8 per cent,” he said. “It’s very important to understand that there is good value is in developed markets, but there is very big growth coming from the emerging markets,” he added. Segmentation Jamie Rice noted the split between natural and synthetic is very different in different product categories. For soft drinks, he said that in the last ten years natural colours have taken an increasing share of the market, and the same applies to confectionery: “We forecast over the next five years that the confectionery market will see almost a 50:50 split between naturals and synthetics,” said Mr Rice. In meat and savoury products there has always been a high use of natural colours, however yogurts and deserts have been increasing the use of natural colours, and currently use just over half use natural colours at the moment – which, according to Jamie Rice “looks set to increase even more looking to the future.” This has accelerated the drive towards using ‘natural colours’. The Natural Food Colours Association (NatCol) has a list classifying colours according to whether they occur in nature and are naturally-sourced, occur in nature but can be synthetically manufactured, or do not occur in nature and are manufactured synthetically, but these are not legal definitions. Both colours that are naturally sourced and synthetically manufactured are attributed an E-number which has to be used on product packaging in the EU – but consumers may not be aware that no all E-numbers are artificial. A way to avoid having to use an E-number coloured is to use a colouring foodstuff, that is, ingredients that used in their natural food form to lend their colour to the formulation, without any purification having taken place. Food companies tend to couch references to colourings carefully. For instance, a manufacturer may declare their products contain ‘no artificial colourings’, but they may still have colours that do exist naturally but which tend to be synthetically produced when used on an industrial scale. Forecast According to RTS, one key point is that manufacturers are looking ever more intensely at the stability of natural colours, and at potential new natural extracts. Jamie Rice added that the area “is going to become much more competitive over the coming years.” However, he warned that for now at least, industry should not get “too carried away” with natural colours, because not all ingredients can be natural and synthetics are still important in the production of certain products. “Yes there is a shift towards naturals, but it’s not the end of synthetics … yet! There are still cases where synthetics are necessary, whether that’s because of the production processes or because of the final colour presentation needed,” he said. Moreover, since July 2010 products containing the six additives (E 110, E 104, E122, E129, E102 E124) must now carry warning labels, which is undesirable for both manufacturers or retailers from a sales perspective. Indian supply scenario Installed capacity for natural colours (other than natural Indigo) is around 250 tonnes per annum while the production of natural colours (other than natural indigo) is around 100 tonnes per annum. To compete in the global market, quality parameters and sustainable supply capability are vital needs for the Indian units. Indian units have to go a long way for capturing market. Some Indian producers * Aarkay Food Products Ahmedabad * Asian Herbox Ltd.,Hyderabad * Akay Flavours, Kerala * AVT Natural Products,Tiptur, Karnataka * Bhagat International Pvt. Ltd., / Vinayak Ingredients Mumbai * Chillies Export House Ltd., Virudhunagar, Tamil Nadu * Enjayes Spices Chemicals & Oils Ltd., Kottayam,Kerala * Kancor Ingredients Ltd * KCP Biotech Ltd, Hyderabad * Sanat Products New Delhi * Sears Phytochem Ltd.,Madhya Pradesh
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Return: 1.00%Break even: N/A
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