Oleoresin Market Size
| Study Period | 2018 - 2028 |
| Market Size (2023) | USD 1.60 Billion |
| Market Size (2028) | USD 2.16 Billion |
| CAGR (2023 - 2028) | 6.20 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Europe |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Oleoresin Market Analysis
The Oleoresin Market size is expected to grow from USD 1.60 billion in 2023 to USD 2.16 billion by 2028, at a CAGR of 6.20% during the forecast period (2023-2028).
The utilization of oleoresin with its functional properties has immense importance and demand in emerging countries. Thus, with the sudden outbreak of COVID-19, the oleoresin market rapidly grew with its high demand in the food and beverage sector, pharmaceuticals, and nutraceutical industry. Various medical researchers have claimed that the use of capsicum oleoresin is rising in the medication of neuropathic pain relief sprays. It supports providing temporary relief of minor pains or aches of the body joint or muscles owing to its analgesic properties in topical OTC preparations. However, during the initial phase of the pandemic, the demand for processed and packaged food was oversized, which led the manufacturers to shift towards utilizing oleoresins as an alternative to ground spices, thus boosting the growth of the oleoresin market.
Oleoresins are popular in the beverages industry since they can be a great base flavor or part of a complex flavor profile. These can also be used to add natural color to beverages, further increasing their usability in this industry. The wide varieties of oleoresins give them numerous possibilities to formulate new or improved natural foods and flavorings. Adding to this, in developed economies that are largely dependent on imports from developing countries, initially, supply chain risk persisted. However, being one of the most sought-after destinations for herbs, spices, and seasonings, as well as products having a recognizable value and local demand, the market entry at present is less impacted by the same.
Oleoresins are used in making scents, fragrances, and several cosmetics products. Its consistency, texture, and subtle scents and flavors make them perfect for making hair loss lotion, perfume, colognes, and other cosmetics. While in the pharmaceutical industry, it is being used as an ingredient in medicines, medicinal soaps, etc. Furthermore, chili oleoresins are utilized in pharmaceutical applications because of their anti-inflammation, antioxidant, anti-cancer, and analgesic features, as they help decrease the body's free radicals.
Oleoresin Market Trends
This section covers the major market trends shaping the Oleoresin Market according to our research experts:
Increasing Demand From Food Manufacturers
The ethenic foods are gaining popularity i. countries such as Italy, the United Kingdom, India, China, Mexico, Spain, etc., owing to their authentic flavors with the use of turmeric oleoresin is propelling the market growth. Especially manufacturers of meat products, such as sausages, frequently apply oleoresins as ingredients instead of using marinades from flavoring manufacturers. Some prepare their own marinades from oleoresins and other spices (for example, dried spices). Moreover, the rising demand for confectionery and baked food products and increasing preference for natural and organic ingredients over artificial flavor or colors propel the demand for oleoresins in the food and beverage industry. Several giant producers of mayonnaise, sauces, marinades, and pickles also apply oleoresins as ingredients instead of using products from artificial flavoring agents. Oleoresins are also heat-stable and easy to store, and they are not susceptible to microbiological contamination and have a much longer expiration than fresh or dried spices. Thus, the oleoresins market is propelling higher growth owing to its increased demand in food and beverage manufacturers worldwide.
Europe Holds a Significant Market Share
The United Kingdom, Germany, and Spain are prominent users of oleoresins in the region, with the largest food and beverage industries. The region imports most of its oleoresins from Asian counties, particularly India. Furthermore, several industries in Europe like perfumery, personal care & cosmetics, pharmaceutical, and food and beverage extensively incorporate oleoresins and ingredients in their commodities. The rising popularity of ethnic cuisines, such as Indian, Mexican, and Thai, has spurred the demand for oleoresins derived from spices among food manufacturers, for instance, pepper oleoresin, in order to mimic fresh pepper flavor. The region offers huge potential for oleoresin manufacturers, owing to increasing demand and fluctuations in the raw material supply within the region. For instance, oleoresin extractions for cardamom take place in countries such as India and Sri Lanka. So they have export opportunities in the region, provided that they comply with the European regulations and standards for oleoresins. For example, European legislation has permitted the usage of only a few extraction solvents, namely, propane, butane, ethyl acetate, ethanol, carbon dioxide, acetone, and nitrous oxide.
Oleoresin Industry Overview
The global market for oleoresins is highly competitive, comprising many small and major players, like Kalsec Europe Ltd, Synthite Industries Ltd, Kancor Ingredients Ltd, Universal Oleoresins, and Ozone Naturals. The most adopted strategies of companies to acquire a major market share remain offering a large variety of product formulations to the consumers and constantly investing capital in upgrading and extending the products being offered. Product innovations are the next strategies preferred by companies to strengthen their market dominance. Advanced distribution network and manufacturing expertise give an upper edge to the manufacturers to expand their range of products worldwide.
Oleoresin Market Leaders
Kancor Ingredients Ltd
Synthite Industries Ltd
Kalsec Europe Ltd
Universal Oleoresins
Ozone Naturals
*Disclaimer: Major Players sorted in no particular order
Oleoresin Market News
· In 2021, SH Kelkar and Company Ltd (SHK), which is an India-based flavor and fragrance company, announced with its completely owned subsidiary Keva Europe BV its acquisition of a 100% stake in a subsidiary of Holland Aromatics’ BV, in the Netherlands. Through this, the company will cater to the new market and increase its business operations.
· In 2021, Sensient Natural Ingredients LLC announced the acquisition of New Mexico Chili Products Inc., a dehydrated chili production facility in Deming, that processes capsicums and a variety of specialty chilies for commercial use sale to CPG food manufacturers, spice blenders, and foodservice customers. With this acquisition, the company will be able to increase its sales volume around the globe.
· In 2020, Givaudan declared its acquisition of the United States well-known company Ungerer & Company, which is specialized in Flavour, Fragrance, and Specialty Ingredients. The oleoresins market will boost through this acquisition as a large volume of fragrance and essential oil will be manufactured per customer demand.
Oleoresin Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Paprika
5.1.2 Black Pepper
5.1.3 Turmeric
5.1.4 Capsicum
5.1.5 Vanilla
5.1.6 Other Product Types
5.2 By Application
5.2.1 Food and Beverage
5.2.1.1 Beverage
5.2.1.2 Bakery
5.2.1.3 Seasonings and Condiments
5.2.1.4 Meat and Seafood Products
5.2.1.5 Other Food and Beverages
5.2.2 Fragrance Industry
5.2.3 Pharmaceuticals and Nutraceuticals
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Spain
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Germany
5.3.2.5 Russia
5.3.2.6 Italy
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 South Africa
5.3.5.2 United Arab Emirates
5.3.5.3 Rest of Middle-East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Market Share Analysis
6.2 Strategies Adopted by Players
6.3 Most Active Companies
6.4 Company Profiles
6.4.1 Kancor Ingredients Ltd
6.4.2 Synthite Industries Ltd
6.4.3 Kalsec Europe Ltd
6.4.4 Universal Oleoresins
6.4.5 Ungerer & Company
6.4.6 Mitsubishi Chemical Holdings Corporation (Taiyo Nippon Sanso)
6.4.7 Akay Group Ltd.
6.4.8 Ozone Naturals
6.4.9 Cargill Inc.
6.4.10 Algatechnologies Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
Oleoresin Industry Segmentation
Oleoresins are naturally extracted from various plants and can induce color, holistic taste, aroma, and texture. The market is segmented by product type into paprika, black pepper, turmeric, capsicum, vanilla, and other product types. By application, the market has been segmented into food and beverage (beverage, bakery, seasonings, condiments, meat and seafood products, and other food and beverage), fragrance industry, pharmaceuticals, and nutraceuticals. The market is geographically segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
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| Paprika | |
| Black Pepper | |
| Turmeric | |
| Capsicum | |
| Vanilla | |
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| Pharmaceuticals and Nutraceuticals |
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Oleoresin Market Research FAQs
How big is the Oleoresin Market?
The Oleoresin Market size is expected to reach USD 1,601.08 million in 2023 and grow at a CAGR of 6.20% to reach USD 2,162.90 million by 2028.
What is the current Oleoresin Market size?
In 2023, the Oleoresin Market size is expected to reach USD 1,601.08 million.
Who are the key players in Oleoresin Market?
Kancor Ingredients Ltd, Synthite Industries Ltd, Kalsec Europe Ltd, Universal Oleoresins and Ozone Naturals are the major companies operating in the Oleoresin Market.
Which is the fastest growing region in Oleoresin Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Oleoresin Market?
In 2023, the Europe accounts for the largest market share in the Oleoresin Market.
Oleoresin Industry Report
Statistics for the 2023 Oleoresin market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Oleoresin analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
