Oleoresin Market Analysis - Global Industry Size, Share, Trends and Forecast 2022 - 2030

The Global Oleoresin Market size accounted for USD 1,392 Mn in 2021 and is expected to reach USD 2,439 Mn by 2030 with a considerable CAGR of 6.6% during the forecast timeframe of 2022 to 2030.

Oleoresins are used in a variety of industries, including food and beverage, as well as pharmaceuticals. They are used by food processors to make beverages, processed and fast foods, curry powders, sweets, soup powders, sauces, and noodles. Oleoresins are widely used in the food and beverage industries due to their strong base flavor and simple flavor profile. Aside from that, these are used to add natural color to foods and beverages, increasing demand for oleoresins and, as a result, driving the oleoresins market growth. Furthermore, Oleoresins are widely available, allowing them to create novel or enhanced organic foods and flavorings. Some manufacturers prepare marinades as well as other forms of spices rather than flavoring them. Aside from that, oleoresins are used as additives in the production of marinades, sauces, mayonnaise, and chutney, which drives the oleoresin market.

Drivers

• The rise in the tendency of using natural flavors in food preparation
• Improving demand from the pharmaceutical industry.
• Increase in the prevalence of comprehensive food ingredient
• Excessive consumption of fast foods

Restraints

• Price fluctuations in the raw material
• Production availability varies by season.

Opportunity

• Increasing demand for feed phytogenics
• Growing awareness of the health benefits of oleoresins

Report Coverage

Oleoresin Market Dynamics

The fast-growing food and beverage industry is aiding and abetting the expansion of the oleoresin market. However, because oleoresin has the same taste, fragrance, and texture as the original spice but has a longer life span, it is progressively being used in the food and beverage industry, which is fueling oleoresins market revenue. The growing preference for oleoresins in the food and beverage industries due to their ease of quality control, economic feasibility, non-volatility, and need for less storage space is driving the oleoresin industry forward. Furthermore, the growing popularity of nutritional supplements for emotional and physical well-being is driving oleoresin market trends.

The increasing popularity of traditional dishes with iconic flavors in countries such as Germany, the United Kingdom, India, Italy, France, Spain, and the United States, among others, is driving oleoresin market size. Furthermore, the rising consumption of natural flavoring agents due to increased consumption of baked goods, confectionery products, and processed meat, as well as the introduction of quick-service restaurants in emerging markets, is driving the market growth. Besides that, the continued growth of oleoresin in a variety of end-use industries such as pharmaceutical, food, and beverage, cosmetic, and personal care is positively impacting the oleoresin industry's growth.

Oleoresins Market Segmentation

The global oleoresin market segmentation based on the product, application and geographical region.

Market by Product

• Paprika
• Capsicum
• Black Pepper
• Garlic
• Turmeric
• Ginger
• Onion
• Herbs
• Seed Spice
• Others 

In terms of product, the black pepper segment is expected to have the largest oleoresin market share in 2021. Black pepper oleoresins have grown in popularity as a natural ingredient food additive in a wide range of processed food products, driving revenue growth of the segment. The widespread use of black pepper oleoresins in the food industry, with a concentration on nutritional potential, is primarily due to end-use industries' need for these to utilize black pepper's antimicrobial and antioxidant properties. In recent years, the revenues of black pepper oleoresin have increased due to increased adaptation in the healthcare market.

Furthermore, the paprika oleoresin segment is expected to grow significantly in the coming years. Because of its distinct colorant characteristics and distinct pungent flavor, paprika oleoresin reveals its use in the food business. Paprika oleoresin, derived from red paprika or red chili pepper, has skyrocketed in popularity as consumers recognize its value as a natural food coloring and flavoring ingredient. It is commonly found in processed foods, spice blends, desserts, sauces, and cheese.

Market by Application

• Food
• Beverages
• Nutraceutical
• Fragrances
• Pharmaceutical
• Others

Based on the application, the food segment is expected to account for the largest market share in 2021. This expansion can be attributed to the widespread use of oleoresins in food as ingredients, flavoring agents, coloring agents, antioxidants, and other applications. Furthermore, rather than using marinades from food additive producers, meat product manufacturers, and distributors, such as sausages, frequently use oleoresins as ingredients. Some of them use oleoresins and other spice formulations to make marinades. Furthermore, increased demand for fast food and baked goods, as well as increasing popularity for natural ingredients over synthetic flavor or color, are driving oleoresin demand in the food and beverage industry. Besides that, paprika oleoresin is recognized as a Capsanthin pigment of Class A by both the Food and Agriculture Organization and the World Health Organization. The Food and Drug Administration in the United States has approved paprika oleoresin as an organic food colorant that can be used safely in food products. As a result of these factors, the demand for oleoresins in the food and beverage industry is increasing.

Oleoresin Market Regional Overview

North America

·         U.S.

·         Canada

Europe

·         U.K.

·         France

·         Germany

·         Spain

·         Rest of Europe

Latin America

·         Mexico

·         Brazil

·         Rest of Latin America

Asia-Pacific

·         India

·         China

·         Japan

·         Australia

·         South Korea

·         Rest of Asia-Pacific

Middle East & Africa

·         South Africa

·         GCC

·         Rest of Middle East & Africa