Natural colors specialist Oterra has recently inaugurated a state-of-the-art color blending and application center in Kerala, India. This new facility aims to serve the burgeoning Indian, Asia Pacific, and Middle Eastern markets by supporting the transition from artificial to natural colors in food and beverage products. Located in Kochi, Ernakulam district, the center will streamline supply chains and enhance customer support through local production capabilities. The company’s CEO highlighted the strategic importance of this location for accessing emerging sectors in neighboring regions. Additionally, the facility employs 120 workers and includes an innovation lab to meet diverse customer needs.

The establishment of this cutting-edge facility marks a significant milestone for Oterra. Positioned within the premises of its subsidiary Akay Natural Ingredients, the center is equipped with advanced color blending and application laboratories. These labs are designed to assist customers in transitioning towards natural colors in their food and beverage formulations. According to Martin Sonntag, Oterra’s CEO, the growing significance of the Indian and broader APAC region prompted this investment. The strategic location of India provides easy access to emerging markets in nearby areas such as the Middle East.

Previously, Oterra relied on exporting raw materials to European factories for processing before importing finished blends back to India. Now, the new facility can directly supply popular natural color shades used in the food and beverage industry. These include vibrant hues like yellow, orange, red, and pink derived from plant-based sources such as turmeric, paprika, annatto, and red beet. The production process involves spray drying raw materials before mixing them for use in various products. The site also houses an innovation and application laboratory to cater to evolving customer demands.

Manu Raj V, Director and Head of Operations at Akay Natural Ingredients, emphasized the facility's capability to support a wide range of customer needs locally. From juices and concentrates to hard-boiled candy, jelly gums, biscuits, and cakes, the lab can facilitate the development of products using high-quality natural colors. This local presence allows Oterra to optimize the supply chain, ensuring consistent delivery of top-tier natural colors while reducing lead times and enhancing responsiveness to market requirements.

A recent study from the Natural Food Colors Association noted that while Indian home cooking is renowned for its colorful and fresh ingredients, the country's packaged goods industry predominantly uses artificial colorings. However, shifting consumer preferences and increasing exports to regions favoring natural colors suggest a promising growth trajectory for natural alternatives. Research from Innova Market Insights further supports this trend, revealing that Indian consumers are increasingly opting for products made with natural ingredients, aligning with the demand for foods and beverages free from artificial additives, preservatives, and processed components.

The opening of this new center in Kerala signifies Oterra's commitment to meeting the rising demand for natural colors in the region. By leveraging local resources and expertise, the company aims to offer more efficient and reliable solutions for its customers. This strategic move not only enhances Oterra's market position but also contributes to the broader shift towards natural and healthier food options in India and surrounding areas.