Oterra, a global leader in natural colors for the food and beverage sector, has inaugurated a new color blending and application center in Kerala, India, to serve the growing Indian, Asia Pacific, and Middle East markets.

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 the Indian food and drink industry. In its report from July 2024^[1], 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^[2]. 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.

^[1] NATCOL | The outlook for natural colors in India: July 2024

^[2] Source: Innova Market Insights – Category Growth Drivers in India, Dec 2024.

About Oterra

Oterra is the largest provider of naturally sourced colors worldwide. Since our first color launch in 1876, we’ve utilized the power of nature’s true colors and championed that natural is best. We continue to share our unrivalled expertise in colors for food, beverage, dietary supplements, and pet food to help manufacturers bring appealing products to consumers around the world. And we continue to empower our partners to meet the demand for safe, sustainable, and natural food on our journey together towards natural.

About Akay

Founded in 1995, Akay is a leading player in natural ingredients for the food and beverage and nutraceuticals market globally. Its product range includes natural colors and flavors, nutraceutical and dietary supplement ingredients, spices, and seasonings. Oterra acquired Akay Group in October 2022.