Market Size of Oleoresin Industry
| 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.
