The facility in Kochi, Ernakulam district, is housed on the site of Oterra’s Akay Natural Ingredients subsidiary. It includes color blending and application labs to support customers in their journey to transitioning to natural colors.

“India and the wider APAC region is a market that is growing in importance for us as consumers increasingly favor products made with natural ingredients,” said Oterra CEO Martin Sonntag.

“India’s strategic location offers easy access to emerging sectors not only in India itself, but also in neighboring regions such as the Middle East. We have customers in all these locations and can now offer them an even better service.”

Previously, the company exported raw materials to Oterra factories in Europe for processing and imported the finished blends for use in India. Now, Oterra can supply directly from this facility some of the most commonly seen color shades used in the food and beverage industry, including yellow, orange, red, and pink made from raw materials such as turmeric, paprika, annatto and red beet.

The company employs 120 workers in both production and laboratories at the site. The raw materials go through a process of spray drying and then mixing for use in food and beverages. The site also includes an innovation and application laboratory with the latest equipment.

“We will be able to support the majority of our customer’s needs from our lab in India for products such as juices, concentrates, hard-boiled candy, jelly gums, biscuits, and cakes,” said Akay Natural Ingredients Director and Head of Operations Manu Raj V.

“Having a local facility allows us to streamline the supply chain and ensure a more consistent supply of high-quality natural colors,” he added. “It also allows us to respond more quickly to customer demands, reducing lead times and improving our ability to meet market needs in India and the surrounding regions.”

According to NATCOL, the Natural Food Colors Association, there is an exciting potential for natural colors in Indian food and drink industry. In its report from July 2024*, it points out that while Indian home cooking is known for its vibrant colors and use of natural fresh ingredients, the packaged goods industry in the country uses nearly exclusively artificial colors. However, changing consumer trends and growing food and drink exports to countries where natural colors are welcomed, could see natural alternatives grow.

Market research company Innova Market Insights** has reported that Indian consumers are increasingly favoring products made with natural and real ingredients. There is a growing demand for food and beverages that are free from artificial additives, preservatives, and processed ingredients, with many seeking out options that feature minimally processed ingredients.

*NATCOL | The outlook for natural colors in India: July 2024

** Innova Market Insights - Category Growth Drivers in India, Dec 2024.