The acquisition of DDW marks a significant milestone in Givaudan’s quest to establish itself as a global leader in natural colors, according to Louie D’Amico, the company’s president of taste and wellbeing. As consumer demand for chemical-free colors continues to rise, Givaudan has expanded its footprint in this sector through a series of strategic acquisitions. In 2018, Givaudan acquired Naturex, enhancing its capabilities in plant extracts and natural ingredients. The previous year, the Switzerland-based firm purchased Activ International to tap into its expertise in natural and organic flavors and extracts across a variety of categories, including meat, poultry, seafood, vegetables, and vegetarian options, as well as natural colors.
This expansion aligns with Givaudan’s 2025 strategy to grow its portfolio and “create food experiences that do good and feel good for the body, mind, and planet.” For many consumers, choosing natural colors is a way to support clean label products. Research from the International Food Information Council (IFIC) indicates that about two-thirds of consumers actively seek out foods made with clean ingredients, and the same proportion acknowledges that ingredients significantly influence their food and beverage choices.
Natural colors are also crucial in plant-based formulations, where previous studies have shown that 90% of shoppers make purchasing decisions based on a product’s color and perceived taste. The increasing emphasis on aesthetics in purchasing decisions, particularly in the context of opting for plant-based alternatives over meat, underscores the necessity for products to closely mimic the appearance of animal-based offerings.
For ingredient manufacturers like Givaudan, having a diverse portfolio is essential to address various consumer needs, positioning them as a preferred partner for consumer packaged goods (CPG) companies. Givaudan’s acquisition of DDW will significantly enhance its existing offerings. While natural colors are vital for trending food items, they are equally important in beverage development, a rapidly growing sector for Givaudan North America. Over the past nine months, sales in the U.S. have risen by 5%, driven by growth in the company’s beverage and savory segments.
If Givaudan effectively leverages this acquisition to develop options that meet both technical color requirements and consumer demand for cleaner labels, it could turn out to be a savvy move. Many companies that previously pledged to eliminate synthetic colors from their products have either let those commitments slide or postponed them, citing various reasons. Some believed consumers were averse to artificial colors, despite evidence showing the contrary. Additionally, natural colors often do not replicate the vibrancy of their synthetic counterparts, leading to consumer reluctance to purchase products that look less appealing.
Nevertheless, manufacturers remain interested in incorporating natural colors, particularly as they focus on introducing natural alternatives in new products entering the market. Givaudan, with its extensive global presence and strong reputation, has the opportunity to attract these manufacturers by developing natural solutions that deliver vibrant hues, including red, green, purple, and black, which capture consumer attention. Furthermore, with rising interest in health-oriented products, including those with calcium citrate bariatric formulations, Givaudan can position itself as a leader in not just natural colors but also in catering to the evolving needs of health-conscious consumers.