Natural colours specialist Oterra has inaugurated a new colour blending and application centre in Kerala, India, to serve the Indian, Asia Pacific and Middle East markets.

The facility is located in Kochi, Ernakulam district, housed on the site of Oterra’s Akay Natural Ingredients subsidiary. It includes colour blending and application labs to support customers in transitioning toward natural colours in their F&B products.

Oterra’s CEO, Martin Sonntag, explained that India and the wider APAC region is growing in importance for the company. He added that India’s strategic location offers easy access to emerging sectors in neighbouring regions like the Middle East.

Previously, Oterra exported raw materials to its factories in Europe for processing, before importing the finished blends for use in India. From the new facility, it can now directly supply the most commonly seen colour shades used in the food and beverage industry, including yellow, orange, red and pink made from raw, plant-based materials such as turmeric, paprika, annatto and red beet.  

The company employs 120 workers in production and laboratories at the site. Raw materials go through a spray drying process, before being mixed for use in food and beverage products. The site also includes an innovation and application laboratory.

Manu Raj V, director and head of operations at Akay Natural Ingredients, said: “We will be able to support the majority of our customers’ needs from our lab in India for products such as juices, concentrates, hard-boiled candy, jelly gums, biscuits and cakes”.

“Having a local facility allows us to streamline the supply chain and ensure a more consistent supply of high-quality natural colours. 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.”

A recent report from the Natural Food Colors Association found that while Indian home cooking is known for its vibrant colours and use of fresh ingredients, the country’s packaged goods industry uses ‘nearly exclusively’ artificial colourings. However, changing consumer trends and growing food and drink exports to countries where natural colours are preferred could see the growth of natural alternatives.

Additionally, research from Innova Market Insights has found Indian consumers are increasingly favouring products made with natural ingredients, in line with growing demand for foods and beverages that are free from artificial additives, preservatives and processed ingredients.