The global oleoresin market size hit USD 1.35 billion in 2021. The market value is slated to rise from USD 1.42 billion in 2022 to USD 1.99 billion by 2029, exhibiting a CAGR of 5.0% during the forecast period. Oleoresins are rising in popularity across several North American and European markets, owing to the growing consumer attraction toward ethnic cuisines. Heightened consumer demand for ethnic foods with exotic flavors and more herb & spice extracts is creating new opportunities for market players, says Fortune Business InsightsTM in its report titled, “Oleoresin Market, 2022-2029”.
COVID-19 Impact -
Disruptions in Supply Chains of Herbs & Spices Impacted Market Growth
The COVID-19 pandemic created unprecedented challenges for the global food industry. Emergency measures and lockdown restrictions across major economies created roadblocks in the global supply chain of herbs and spices. Consequently, price hikes in certain regions affected oleoresins consumption. However, the market is slated to witness rapid recovery post-COVID-19.
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List of Key Market Players:
- Synthite Industries (India)
- PT Indesso Aroma (Indonesia)
- Ungerer & Company (U.S.)
- Universal Oleoresins (India)
- Plant Lipids, (India)
- Akay Group (India)
- Gazignaire SA (France)
- AVT Naturals (U.S)
- Kalsec Inc. (U.S.)
- Ozone Naturals (India)
By Product, Paprika to Hold Dominant Market Share during 2022-2029
Based on product, the market is segmented into paprika, black pepper, capsicum, ginger, turmeric, cinnamon & cassia, and others. The paprika segment is anticipated to hold the major share in the market owing to its wide use in the food industry as a coloring and flavoring agent. The product is experiencing demand owing to its antioxidant, anti-inflammatory, anti-aging, and anti-depression properties.
By Application, Food & Beverages Segment to Create Monumental Demand through 2029
In terms of application, the market is segregated into food and beverages, pharmaceuticals, animal feed, and cosmetics. Among these, the market is expected to witness robust demand from the food & beverages segment. The product finds wide use in a range of foods and beverages, from cheese, processed meats, and spice fixtures to orange juice, sauces, and sweets.
Drivers & Restraints-
Rising Processed Food Consumption to Create New Opportunities
The oleoresin market growth is primarily driven by the increasing consumption of packaged and processed food & beverage products. Consumer demand for cheeses, soups, sauces, dressings, processed meats, seafood, backed foods, snacks, and confectionery products has surged rapidly in recent years, especially since COVID-19. These factors along with the growing public awareness toward the benefits of oleoresin will augment its consumption.
However, price fluctuations and seasonal availability are some factors that could limit the product consumption in the forthcoming years.
Europe to Lead the Global Market Share owing to Changing Diet Patterns
Europe dominated the global oleoresin market share in 2021 and is expected to show similar trends during the projected period. The regional growth is attributable to the rising demand for spice oils among the population. In addition, rising incomes and changing lifestyles will positively influence the regional growth.
Meanwhile, the market in Asia Pacific will be driven by growing application of the product in cosmetics and pharmaceuticals. The presence of a large geriatric population base will create immense opportunities for local as well as international players.
Prominent Players’ Capacity Expansion to Cater to the Growing Demand
Leading market players are adopting various growth strategies to sustain in the intensifying global competition. One such strategy is the expansion of production capacity to meet the rising global demand. Other strategies include new product launches, mergers and acquisitions, and strategic collaborations.
Key Industry Development-
October 2021: Plant Lipids announced an investment of INR 200 crore expansion in Kerala, India.