Oleoresins Market Trends

Global Oleoresins Market Overview

Oleoresins Market is expected to register 6.04% CAGR from 2024 to 2032 and reach USD 2.27 billion by the end of 2032. Oleoresins are volatile or non-volatile produced from the extraction of spices with the help of non-aqueous solvents.

Oleoresins have a great base flavor and little complex flavor profile; oleoresins have become popular in the beverages industry. Apart, these are also used to add natural color to beverages, which increases the demand for oleoresins and thus increases the growth of the oleoresins market. Oleoresins are having wide varieties which brings them an opportunity to produce innovative or improved natural foods and flavorings. Some manufacturers are preparing their marinades and other forms of spices instead of using flavoring marinades. Apart, oleoresins are used as ingredients in the production of sauces, marinades, mayonnaise, and pickles which propels the demand over the oleoresins.

Covid-19 Analysis

The COVID-19 pandemic drastically impacted various sectors like automobiles, agriculture, food & beverages, semiconductor, electrical & electronics, and many more. This pandemic hits not only on humans’ health but also impacts financial growth. Due to the various regulations imposed by the governments like lockdowns, transportation bans, and shutdowns of various sectors, the manufacturing sectors are stopped production due to supply chain disruptions, lack of labor, and shortage of raw materials.

The oleoresins market is also impacted negatively in this pandemic situation. The production of oleoresins is halted, sales of oleoresins retail shops are closed, people stay in their houses due to lockdown are the factors declining the demand of the oleoresins and hence reduces the growth of the market. Further, the completion of lockdowns and ends to the social distancing may return the demand for the oleoresins. Moreover, due to its wide usage in the food & beverages industry and pharmaceuticals, and benefits regarding this product may propel the growth of the oleoresins industry.

Market Dynamics

Drivers

Due to the growing demand for natural aroma and flavor in food, the oleoresins market is predicted to grow the highest share during the forecast period. These are not susceptible to microbiological contamination and hence have a long expiration period compared to fresh or even dried spices which boost the growth of the market. Oleoresins are predicted to substitute ground spices without compromising on flavor, aroma, or texture. Due to the same properties as spices, convenient storage, and transport are the factors escalating the market growth.

As oleoresins require less storage space and simple quality control, these are preferred by the manufacturers of pharmaceuticals, food & beverages, and other industries. Oleoresins contain many non-volatiles in contrast to essential oils which makes them more preferable in the flavor and food industry. Moreover, oleoresins from spices create a preferable ingredient for manufacturers of the food to create ethnic foods like Indian, Thai, and Mexican foods. Manufacturers of meat products use oleoresins as sausage.

Restraint

The spices needed for the production of oleoresins are available seasonally, but they are required throughout the year. The companies related to oleoresins have to purchase in the particular seasons and have to bear the risk of sudden loss. These are the major restraints of the oleoresins market.

Opportunities

The innovation of oleoresins is cost-effective and gives better results by using a limited amount which allows increasing the growth of the market. Changing the trend among the consumers towards using natural and organic food products leads to the use of non-synthetic flavoring agents in the food & beverage industry is boosting the market growth in the coming years.

Challenges

The raw material prices are fluctuating and increasing due to various agro-climatic reasons. Frequently, this fluctuation in the market may pose a high risk for the huge stock which is the challenging factor of the oleoresins market.

Study Objectives

• To provide detailed information about the oleoresins market structure along with various forecast segments and sub-segments for the next 10 years.


• To provide the factors that are affecting the growth of the oleoresins industry value.


• To analyze the oleoresins industry analysis based on porter’s five force analysis, factors-price analysis, supply chain analysis, etc.


• To provide history and forecast revenue segments and sub-segments of the oleoresins industry revenue for the main geographies.


• To provide the country-level analysis of the current oleoresins industry size and future prospective. 


• To provide country-level analysis of the oleoresins market industry growth by region, form, and application.


• To provide a strategic profile of the prominent key players in the market, analyze their core competencies, and draw a global oleoresins industry growth landscape.


• To track and analyze new product developments, strategic alliances, and global market research.

Segmentations

The oleoresins market has been divided into segments based on product, raw material, application, and region.

Based on Product

Based on product, the global oleoresins market has been segmented into various types such as capsicum, tomato, marigold, onion, ginger, garlic, turmeric, paprika, black pepper, and others. Out of these, paprika is dominating the largest market share due to the rising use of paprika oleoresins in the processed food industry as a coloring and flavoring agent.

Based on Raw Material

The oleoresins market has been segmented into flowers, berries, seeds, leaves, and others based on raw materials. Among them, the berries lead the market as the dried berries plant stimulates the appetite, and due to its anti-inflammatory and insecticidal properties, it controls fever and pain.

Based on Application

Oleoresins market has been classified into pharmaceutical, flavoring & coloring agent, food & beverages, and others based on application.  Among these applications, the food & beverages segment is dominating the largest market share due to the wide usage of oleoresins to provide a natural fragrance and flavor in confectionaries and beverages.

Based on Region

Region-wise, the oleoresins market has been classified into four main geographies like Europe, North America, Asia-Pacific, and the rest of the world. Out of these regions, Europe is holding the largest oleoresins industry share for the high inclination of natural ingredients and extracts used in the production of food products.

Regional Analysis

Geographically, the oleoresins market is divided into North America, Europe, Asia-Pacific, and the rest of the world. Among these regions, Europe is accounting for the largest market share due to the high inclination of natural ingredients and extracts used in the production of food products. The production of oleoresins is highly profitable compared to the production of raw materials. These are mainly used in the preparation of soups, meats, sauces, and dairy products.

Due to the growing preference for natural ingredients like pepper and chilies, Asia-Pacific is accounting for the largest revenue share. Emerging countries like India and China prefer a variety of spices in the preparation of meat and vegetables. Hence, spice oils have high demand in this region. Apart from, rising population and growing per capita disposable income are the factors that increase the market growth in this region.

Competitive Landscape

The prominent key players in the oleoresins market outlook are the following:

• Oleoresin Company (India)


• Silverline Chemicals Ltd (India)


• Jean Gazignaire SA (France)


• Qingdao Ruibang Biotechnology Co., Ltd (China)


• Agnes Herbs (India)


• Shijiazhuang City Bio-Technology Co., Ltd (China)


• Adani Pharmachem Private Limited (India)


• Kancor Ingredients Limited (India)


• Ozone Naturals (India)


• Plant Lipids (India)

Recent Developments

• November 2023- A Kochi-based B2B marketplace for spices, Growcoms, has made headlines by ensuring USD 3.5 million in funding led by Arali Ventures and JSW Ventures. The funding round also witnessed involvement from present investor InfoEdge Ventures. According to the startup, the recently raised funds will be utilized to improve its product offerings and technology infrastructure. The startup strategizes to concentrate on enabling traceability for exports, developing capabilities, and development of value-added spices. The deal signifies the foray of JSW and Arali Ventures into agritech investments. Established by Bibin Mathews, George Kurian, and Narendranath P in 2020, Growcoms is a Kochi-based B2B marketplace for spices connecting sellers and buyers in the spice market, also offering a suite of additional features. Thriving with a mission to transform the spice market, the startup guarantees traceability and quality through blockchain technology, thereby improving the efficiency of the entire value chain. In terms of growth, the co-founder and CEO of Growcoms, George Kurian, underlined the organization's target to enhance the spice value chain. The startup focuses on doing this by boosting production capacities, supplying traceable spices to global markets digitally, and empowering farmers. He further added that the funding and collaboration with like-minded investors will help Growcoms empower its global presence and enhance efficiencies throughout the value chain. The startup's set of services includes product development, quality inspection, and, most notably, traceability, which are vital for allowing exports of high-value spices. Along with the spices, the Kochi-based startup also supplies oils, seasonings, oleoresins, and powders. In 2022, Growcoms raised USD1 million (around Rs 7.8 crore) in a pre-series A round of fundingled by Info Edge.

• September 21, 2023: The EU Commission modified regulations for labeling and usage conditions of novel food astaxanthin-rich oleoresin from Haematococcus pluvialis algae, responding to a request from NAXA. This opens up new opportunities for companies involved in this specific type of oleoresin


• In June 2021, one of the leading enterprises, Algatechnologies introduced an all-natural patented oleoresin named ‘Fucovital’ from which three percent fucoxanthin oleoresin is produced and extracted from microalgae.


• In January 2021, a famous vendor, Givaudan started a new Flavours technical and commercial center to meet the evolving needs of its African customers with a new taste and flavor solutions in Casablanca, Morocco.


• In December 2021, a popular company PT. Indesso Aroma announced the launch of a new R & D center at the Cileungsi plant in Indonesia that would support the company’s vision in developing the new ingredients for the flavor, food, and fragrance industry.

Report Outlook

Globally, the oleoresins market research includes the Market Overview, COVID-19 analysis, Market Dynamics, Study Objectives, Segment Overview, Regional Analysis, Competitive Landscape, Recent developments, Segmentation Table, and FAQs. The market scenario includes the oleoresins market drivers, restraints, challenges, and opportunities. The oleoresins industry forecast segments are product, raw material, application, and region.

Segmentation Table

The oleoresins market trends have been segmented globally based on the product, raw material, application, and region.

By Product

Capsicum, tomato, marigold, onion, ginger, garlic, turmeric, paprika, black pepper, and others.

By Raw Material

Flowers, berries, seeds, leaves, and others are based on raw materials.

By Application

Pharmaceutical, flavoring & coloring agents, food & beverages, and others based on application.

By Region

Europe, Asia-Pacific, North America, and the rest of the world are the four main geographies included in the oleoresins market.