The global oleoresin market size was valued at USD 1.43 billion in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 6.9% from 2022 to 2030. Growing demand from healthcare, pharmaceutical, food, and beverage industries are driving forces of the global oleoresin market. Oleoresins are made from varied ingredients and spices, which are found all around the world. It is usually found in semi-solid extract form. A variety of oleoresins has multiple characteristics based on the spice they are derived from. They exhibit numerous therapeutic as well as antioxidant properties as well and are utilized in the pharmaceutical, healthcare, food, and beverage industries.
The U.S. is the largest market for oleoresins in North America contributing to a revenue share of more than 80% in 2021. This high consumption of the product in the U.S. is attributable to high demand from the food, beverage, and pharmaceutical industries. The most extensively consumed oleoresin product is nutmeg oleoresin. It is utilized widely in the food and beverage industry as an additive for the enhancing flavor and fragrance of the product.
Moreover, increasing consumption of organic food & beverages has bolstered the demand for organic spices, which, in turn, is likely to create ample growth opportunities for organic oleoresins in food & beverage applications. Consumers opt for convenience products that have more non-volatile content. Oleoresins have a high content of non-volatile matter as compared to essential oils and are thus gaining popularity among the manufacturers of pharmaceuticals, cosmetics, and flavors & fragrances.
Black pepper products dominated the global oleoresin market with more than 23% revenue share. The growth of the segment is attributable to the extensive use of black pepper in the food and beverage industry. Black pepper is used as a spice, flavoring agent, additive, and as well as coloring agent. It is also used for healing cuts and wounds and also sometimes used in the perfume industry.
Turmeric is the fastest growing product segment exhibiting proliferate growth in terms of revenue during the forecast period. This growth rate is attributed to high demand from the food, beverage, cosmetic, pharmaceutical, and healthcare industries. Turmeric is used as a flavoring agent, coloring agent, antioxidant and healing wounds among others. India is the largest producer and exporter of turmeric globally.
Furthermore, paprika and garlic are utilized extensively in the food industry as an additive. Paprika is used as a coloring agent as well as for its distinctive taste. It is also consumed in sweets, emulsified processed meats, spice mixtures, sauces, orange juice, and cheese.
In recent years, capsicum oleoresin has gained wide popularity among law enforcement & police agencies owing to its usage as a pepper spray, which acts as a safe and effective means to avoid danger or threat from individuals. Depending on consumer preferences, manufacturers make these spray products in various formulations, distance ranges, types of trigger mechanisms, and spray patterns.
End users in the pharmaceutical and food & beverage industries have entered into long-term supply agreements with capsicum oleoresin processors located across Spain and India in order to ensure a constant supply. However, exporters must comply with ISO standards to determine the capsaicinoid content in the fruit, thereby maintaining the quality of the product.
Food application dominated the market with a revenue share of over 27% in 2021. Its high share is majorly attributable to the extensive use of a variety of oleoresins in food as additives, flavoring agents, coloring agents, antioxidants, and others. Oleoresin gives the food distinct flavor and fragrance making the food attractive, pleasurable, and flavorful.
The pharmaceuticals application segment is expected to exhibit a CAGR of 7.2% in terms of revenue during the forecast period. This is attributable to multiple health benefits of oleoresins and growing investment in pharmaceutical research and development. The pharmaceutical company is utilizing these products to manufacture organic solutions for health problems. Oleoresins only have benefits for consumption and they do not have any side effects in comparison to synthetic medicines. Pharmaceutical industry players are utilizing the therapeutic properties of oleoresins to expand their product portfolio, which has resulted in growing demand from the pharmaceuticals application segment.
Rising consumer awareness regarding the health benefits associated with oleoresins has prompted pharmaceutical drug manufacturers to focus on the utilization of oleoresin extracts for drug formulations. Increased product demand for drug formulations coupled with several health benefits of oleoresins is the major factor projected to drive the market during the forecast period.
The European region led the market with a revenue share of more than 30% in 2021. This is attributed to the increasing demand for flavors and coloring agents from the food & beverage industry. Another factor contributing to increased demand for the product in the region is the demand from cosmetic, fragrance, and personal care products industries that act as a hefty end-use industry for oleoresins. The shift in consumer predilection toward traditional foods and rising utilization of oleoresins in healthcare remedies and applications are likely to develop as major factors driving the market in this region.
Givaudan, Symrise AG, and MANE are some of the major users of oleoresins based in Switzerland, Germany, and France, respectively. These companies produce a variety of flavors for foods & beverages in Europe as well as globally. Furthermore, the presence of large flavoring industries in the U.K., Spain, and Germany offers higher sales opportunities for the European oleoresin producers. This has bolstered product demand in the region.
Furthermore, Canada and Mexico are some of the major importers of spices worldwide. Garlic, oregano, paprika, capsicum, and black pepper are some of the most commonly used spices in these countries. Robust demand for food additives in these regions is projected to drive the oleoresins market in the long run. Additionally, growing expenditure on plant-derived nutritional and health products by key manufacturers is estimated to trigger market growth in the near future.
An increase in the number of oleoresin processing plants across emerging economies is likely to fuel market growth. Manufacturers are focusing on the export of black pepper owing to high demand for the same in developed countries of Europe and North America.
Growth in the Asia Pacific region is attributed to the increased production rate as well as the use of new production technologies for production. Asia Pacific region is the largest producer and exporter of the product globally. India, China, Vietnam, Indonesia, and Malaysia among others are some of the significant spice-producing countries in the region. The large-scale production of paprika oleoresins across the Asia Pacific region results in price competitiveness. Oleoresins require additional processing, which results in less residual pungency, enhanced stability, and superior color intensity. The stability and compatibility offered by the product across the food & beverage and pharmaceutical applications are expected to result in its increased demand across the region.
The global market is highly competitive and has numerous players across the globe. The market is majorly driven by demand from the food, beverage, and pharmaceuticals industry. It is heavily affected by fluctuations and volatility in the raw material market. For ensuring the constant supply of raw materials, the players have long-term contracts with the raw material producers.
Companies are also focusing on increasing their production capacities by expanding their operations to different regions around the globe. For example, in November 2019, Givaudan expanded its Nantong manufacturing facility in China and doubled its flavor production capacity. The company invested USD 33.149 million in the facility expansion to meet the country's growing demand for food & beverages. Some prominent players in the global oleoresin market include
Chenguang Biotech Group Co. Ltd.
Kancor Ingredients Ltd.
Kalsec Inc.
Universal Oleoresins
Givaudan
Akay Group Ltd.
Synthite Industries Ltd.
AVT
Indo-World
Paprika Oleo's India Limited
Paras Perfumers
Manohar Botanical Extracts Pvt. Ltd.
Naturite Agro Products Ltd
MRT GREEN PRODUCTS
All-Season Herbs
TMV Aroma
Plant Lipids
Ozone Naturals
Report Attribute |
Details |
Market size value in 2022 |
USD 1.72 billion |
Revenue forecast in 2030 |
USD 2.60 billion |
Growth rate |
CAGR of 6.9% from 2022 to 2030 |
Base year for estimation |
2021 |
Historical data |
2018 - 2020 |
Forecast period |
2022 - 2030 |
Quantitative units |
Revenue in USD million, volume in tons, and CAGR from 2022 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, application, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Canada; Mexico; UK; Spain; France; Germany; Belgium; Austria; Italy; Netherlands; Switzerland; China; India; Japan; Vietnam; Indonesia; Sri Lanka; Oceania; Thailand; Malaysia; Bangladesh; Hong Kong; South Korea; Taiwan; Singapore; Australia; Brazil; Argentina; South Africa; Saudi Arabia; UAE; North Africa |
Key companies profiled |
Chenguang Biotech Group Co. Ltd.; Kancor Ingredients Ltd.; Kalsec Inc. Universal Oleoresins; Givaudan; Akay Group Ltd.; Synthite Industries Ltd.; AVT; Indo-World; Paprika Oleo's India Limited; Paras Perfumers; Manohar Botanical Extracts Pvt. Ltd.; Naturite Agro Products Ltd; MRT GREEN PRODUCTS; All-Season Herbs; TMV Aroma; Plant Lipids; Ozone Naturals |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global oleoresin market report based on product, application, and region:
Product Outlook (Revenue, USD Million, Volume, Tons 2018 - 2030)
Paprika
Black Pepper
Capsicum
Turmeric
Ginger
Garlic
Onion
Seed Spice
Herbs
Others
Application Outlook (Revenue, USD Million, Volume, Tons 2018 - 2030)
Food
Beverages
Fragrances
Pharmaceutical
Nutraceutical
Others
Regional Outlook (Revenue, USD Million, Volume, Tons 2018 - 2030)
North America
U.S.
Canada
Mexico
Europe
U.K.
Spain
France
Germany
Belgium
Austria
Italy
Netherlands
Switzerland
Asia Pacific
China
India
Japan
Vietnam
Indonesia
Sri Lanka
Oceania
Thailand
Malaysia
Bangladesh
Hong Kong
South Korea
Taiwan
Singapore
Australia
Central & South America
Brazil
Argentina
Middle East & Africa
South Africa
Saudi Arabia
UAE
North Africa
b. The global oleoresin market size was estimated at USD 1.43 billion in 2021 and is expected to reach USD 1.72 billion in 2022.
b. The global oleoresin market is expected to grow at a compound annual growth rate of 6.9% from 2022 to 2030 to reach USD 2.60 billion by 2030.
b. Europe dominated the oleoresin market with a share of over 30% in 2021. This is attributable to the of various end-use industries in Europe such as personal care & cosmetics, perfumery, and pharmaceutical extensively incorporating oleoresins in their products.
b. Some key players operating in the oleoresin market include Universal Oleoresins, Ungerer & Company, Akay, Synthite, AVT Natural Products Limited (AVT NPL), Indo World, Paprika Oleo’s, Paras Perfumers, Manohar Botanical Extracts Pvt. Ltd., Ambe Group, Gurjar Phytochem Pvt. Ltd., MRT Organic Green Products, Nature Plus Herbal Cosmetics, Cymbio Pharma Pvt. Ltd., All-Season Herbs Pvt. Ltd., Asian Oleoresin Company, Bioprex Labs, TMV Group, Plant Lipids, Ozone Naturals and Hawkins Watts.
b. Key factors that are driving the oleoresin market growth include the rising consumption of oleoresin as a food flavoring agent in processed meat, confectionery, and baked food products.
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