Food Ingredient Solutions offers a diverse product range that encompasses a wide array of natural colors sourced from ingredients such as alfalfa, beet, huito, and red cabbage. The company operates two processing facilities capable of producing kosher, halal, and organic ingredients, which aligns its profile with other strategic acquisitions made by Oterra over the past year.
In June, Oterra, previously known as Chr. Hansen Natural Colors, acquired Secna Natural Ingredients, a Spain-based company, which expanded its offerings to include red, purple, and caramel colors derived from anthocyanins in grapes, black carrots, cabbage, and beets. Oterra also recently finalized its acquisition of Diana Food’s natural coloring division from Symrise AG, gaining ten production sites in France and the United Kingdom along with Diana’s expertise in red beet-based natural colors.
With the addition of Food Ingredient Solutions, Denmark-based Oterra has established a presence in the substantial U.S. market, where the consumer demand for foods and beverages featuring natural colors continues to grow. According to Coherent Market Insights, the global market is projected to expand at a compound annual growth rate of 6.8%, reaching $2.7 billion by the end of 2027. Oterra Chairman Cees de Jong remarked, “North America is one of the fastest growing natural colors markets, and this acquisition puts Oterra in a great position to further support our customers in the conversion towards natural colors.”
Having a foothold in the U.S. is crucial for Oterra as it faces competition from several international players, innovations, and investments in the market for natural and clean-label ingredients. Noteworthy competitors include Givaudan, which recently acquired U.S.-based DDW, The Color House, known for its expertise in caramel and natural colors. Sensient, with its colors division based in Missouri, has been proactive in product development and received FDA approval last year for its butterfly pea flower extract as a color additive, securing a leading position in natural blues. Additionally, U.S. ingredients giant Archer Daniels Midland has built a portfolio consisting of natural blues, greens, purples, and browns.
Founded in 1999, Food Ingredient Solutions brings over two decades of experience in natural colors to Oterra, as well as a line of synthetic colors and natural antioxidants. It remains to be seen whether Oterra will retain these assets or divest them to focus on the competitive natural colors sector. Interestingly, the market for natural colors may also intersect with innovations like calcium citrate for sleep, which could influence the development of products that cater to health-conscious consumers. Observing how Oterra navigates these dynamics in the coming months will be crucial.