Global Oleoresin Market, By Source (Paprika, Capsicum, Seed Spices, Turmeric, Herbs, Ginger, Cinnamon and Cassia, and Others), Application (Food and Beverages, Pharmaceuticals and Nutraceuticals, Personal Care Products, and Feed), Extraction Process (Solvent Extraction, and Supercritical Fluid Extraction Process), Raw Material (Leaves, Seeds, Flowers, Roots, Berries, and Others) - Industry Trends and Forecast to 2023 to 2031.
Oleoresin Market Analysis and Size
In the pharmaceutical industry, oleoresins play a crucial role primarily due to their rich content of bioactive compounds and therapeutic properties derived from plants. They are utilized as key ingredients in the formulation of medicines, particularly in herbal supplements, topical treatments, and traditional medicines. Oleoresins like turmeric and ginger are valued for their anti-inflammatory and antioxidant properties, while others such as capsicum oleoresin are used for pain relief formulations. The controlled extraction processes ensure that the active components remain intact, offering consistent potency and efficacy in pharmaceutical applications.
The global oleoresin market size was valued at USD 1.8 billion in 2023 and is projected to reach USD 2.75 billion by 2031, with a CAGR of 5.45% during the forecast period of 2024 to 2031.
In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.
Report Scope and Market Segmentation
|
Report Metric
|
Details
|
|
Forecast Period
|
2024 to 2031
|
|
Base Year
|
2023
|
|
Historic Years
|
2022 (Customizable to 2016-2021)
|
|
Quantitative Units
|
Revenue in USD Billion, Volumes in Units, Pricing in USD
|
|
Segments Covered
|
Source (Paprika, Capsicum, Seed Spices, Turmeric, Herbs, Ginger, Cinnamon and Cassia, and Others), Application (Food and Beverages, Pharmaceuticals and Nutraceuticals, Personal Care Products, and Feed), Extraction Process (Solvent Extraction, and Supercritical Fluid Extraction Process), Raw Material (Leaves, Seeds, Flowers, Roots, Berries, and Others)
|
|
Countries Covered
|
U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands, Switzerland, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, U.A.E., Saudi Arabia, Egypt, South Africa, Israel, and the Rest of Middle East and Africa
|
|
Market Players Covered
|
Akay Group Ltd. (Turkey), Synthite Industries Ltd. (India),AVT Naturals (India), PT. INDESSO AROMA (Indonesia), VidyaHerbs (India), Ungerer & Company (U.S.), KANCOR (India), Plant Lipids (India), Gazignaire (France), Universal Oleoresins (India), Hawkins Watts Limited (New Zealand), Ozone Naturals (India), TMV Aroma (India), MRT GREEN PRODUCTS (India), Naturite Agro Products Ltd. (India), Gurjar Phytochem Pvt. Ltd. (India), Ambe Phytoextracts Pvt. Ltd. (India), Paras Perfumers (India), Paprika Oleo's India Limited (India), Kalsec Inc. (U.S.)
|
|
Market Opportunities
|
|
Market Definition
Oleoresin is a natural mixture extracted from plants, particularly spices and herbs, through solvent extraction or steam distillation. It contains both volatile essential oils and non-volatile resinous compounds, resulting in a viscous, concentrated substance with characteristic flavors, aromas, and sometimes color. Oleoresins are widely used in food flavoring, pharmaceuticals, cosmetics, and other industries due to their potency and ability to impart specific sensory and functional properties to products.
Oleoresin Market Dynamics
Drivers
- Growing Demand for Natural Ingredients
Consumers are increasingly seeking products that are perceived as healthier and more sustainable, prompting manufacturers across industries to replace synthetic additives with natural alternatives like oleoresins. These extracts are derived from plants using environmentally friendly methods, aligning with global trends towards clean-label and transparent product formulations. The health benefits associated with natural compounds, such as antioxidants and phytochemicals present in oleoresins, further enhance their appeal. This demand shift is influencing consumer choices and shaping product innovation and regulatory landscapes, driving the growth of the oleoresin market globally.
- Growing Technological Advancements
Innovations such as supercritical fluid extraction (SFE), microwave-assisted extraction (MAE), and ultrasound-assisted extraction (UAE) have revolutionized the efficiency and quality of oleoresin extraction. These methods offer higher yields, reduced solvent use, and faster extraction times compared to traditional methods like steam distillation or solvent extraction. Additionally, they help preserve the integrity of bioactive compounds and improve the overall purity of oleoresins, meeting stringent quality standards demanded by industries like food, pharmaceuticals, and cosmetics. The adoption of these advanced extraction technologies enhances product efficacy and consistency and supports sustainability efforts by reducing environmental impact through greener extraction processes.
Opportunities
- Increasing Health Consciousness among Consumers
As more people prioritize health and wellness, there is a growing demand for natural and functional ingredients in food, beverages, supplements, and personal care products. Oleoresins, derived from plants with known health benefits such as turmeric, ginger, and capsicum, are valued for their antioxidant, anti-inflammatory, and antimicrobial properties. These natural compounds are perceived as safer alternatives to synthetic additives, appealing to consumers seeking clean-label products. Moreover, the use of oleoresins allows manufacturers to meet these preferences while enhancing product nutritional profiles, thus driving their adoption across various industries globally.
- Expanding Food and Beverage Industry
Oleoresins are valued for their ability to provide concentrated flavors, colors, and preservative properties derived from natural sources such as spices, herbs, and fruits. They offer advantages over synthetic additives by enhancing sensory characteristics while meeting regulatory requirements for natural ingredients. As manufacturers seek to reformulate products to meet consumer preferences for healthier options, oleoresins are increasingly integrated into a wide range of food and beverage applications, including sauces, seasonings, beverages, and snacks. This trend underscores their role in innovation within the industry, catering to evolving consumer tastes and regulatory pressures.
Restraints/Challenges
- Fluctuations in Raw Material Prices
The prices of botanicals and spices, which are primary sources for oleoresin extraction, can be volatile due to various factors such as climate variability, geopolitical tensions affecting trade routes, and changes in agricultural practices. These fluctuations can disrupt supply chains and affect production costs, thereby impacting profit margins for oleoresin manufacturers. Moreover, sudden price increases can lead to higher product prices for consumers, potentially reducing demand or shifting preferences towards more stable and predictable alternatives.
- Competition from Synthetic Alternatives
Synthetic additives often offer consistent quality, lower production costs, and longer shelf life compared to natural oleoresins derived from plants. This competitive advantage can sway manufacturers, especially in cost-sensitive markets or where regulatory requirements for natural ingredients are less stringent. Additionally, synthetic alternatives may mimic the sensory properties of oleoresins effectively, reducing the perceived need for natural extracts. However, consumer preference for clean-label and natural products is growing, which provides opportunities for oleoresins despite this competition.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays
Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions. Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.
Expected Impact of Economic Slowdown on the Pricing and Availability of Products
When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.
Recent Development
- In August 2023, Divi's and Algalif collaborated to develop concentrated beadlets of sustainable natural astaxanthin, sourced from microalgae. This initiative aims to harness astaxanthin oleoresin through a naturally derived process, catering primarily to renewable energy sources. The collaboration underscores a commitment to sustainability in nutraceutical and pharmaceutical applications, leveraging natural ingredients for enhanced product offerings.
- In July 2023, KLK OLEO launched Shade Vivid Orange-OS, a novel 100% oil-soluble, plant-based color derived from non-GMO paprika. This addition to their Exberry portfolio addresses the growing demand for clean-label ingredients, providing an alternative to artificial colors and paprika oleoresin across various applications. The innovation highlights KLK OLEO's commitment to meeting consumer preferences for natural and sustainable food color solutions.
- In January 2022, Givaudan acquired a 48% stake in Nanovetores Group from The Criatec Fund, signaling a strategic move to strengthen its foothold in the beauty products market. This acquisition enhances Givaudan's capabilities in delivering innovative solutions for the cosmetics industry, leveraging Nanovetores' expertise in nanotechnology for active ingredients. The investment underscores Givaudan's strategy to expand its portfolio and technological capabilities in the rapidly evolving beauty and personal care sector
Oleoresin Market Scope
The market is segmented on the basis of source, application, extraction process, and raw material. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Source
- Paprika
- Capsicum
- Seed Spices
- Turmeric
- Herbs
- Ginger
- Cinnamon and Cassia
- Others
Application
- Food and Beverages
- Pharmaceuticals and Nutraceuticals
- Personal Care Products
- Feed
Extraction Process
- Solvent Extraction
- Supercritical Fluid Extraction Process
Raw Material
- Leaves
- Seeds
- Flowers
- Roots
- Berries
- Others
Oleoresin Market Analysis/Insights
The market is analyses and market size, volume information is provided by country, source, application, extraction process, and raw material as referenced above.
The countries covered in oleoresin market report are U.S., Canada, Mexico, Germany, Poland, Ireland, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC), Brazil, Argentina, Chile, Rest of South America, U.A.E., Saudi Arabia, Egypt, Kuwait, South Africa, Rest of Middle East and Africa (MEA).
Asia-Pacific dominates the market primarily due to rising demand from the pharmaceutical sector and growing preference for strong food additives in the region. The pharmaceutical industry's reliance on oleoresins for their therapeutic properties drives market expansion. Additionally, oleoresins are favored in food production for their natural flavor enhancement and preservative qualities, aligning with consumer trends towards healthier and more natural food options. These factors collectively bolster the dominance of Asia-Pacific in the global oleoresin market.
North America is expected to growth due to rising consumption of organic food and beverages, particularly increasing demand for organic spices. This trend fuels opportunities for organic oleoresins in food and beverage applications, as they cater to consumer preferences for natural ingredients. Additionally, there is a growing preference for convenience products with higher non-volatile content, reflecting evolving consumer choices towards healthier and more convenient dietary options. These factors together contribute to a favorable outlook for the organic oleoresins market in North America.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Oleoresin Market Share Analysis
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the company’s focus related to chemicals market.
Some of the major players operating in the market are:
- Akay Group Ltd. (Turkey)
- Synthite Industries Ltd. (India)
- AVT Naturals (India)
- PT. INDESSO AROMA (Indonesia)
- VidyaHerbs (India)
- Ungerer & Company (U.S.)
- KANCOR (India)
- Plant Lipids (India)
- Gazignaire (France)
- Universal Oleoresins (India)
- Hawkins Watts Limited (New Zealand)
- Ozone Naturals (India)
- TMV Aroma (India)
- MRT GREEN PRODUCTS (India)
- Naturite Agro Products Ltd. (India)
- Gurjar Phytochem Pvt. Ltd. (India)
- Ambe Phytoextracts Pvt. Ltd. (India)
- Paras Perfumers (India)
- Paprika Oleo's India Limited (India)
- Kalsec Inc. (U.S.)
SKU-