Oleoresin Global Market Report 2024

The oleoresin market size has grown strongly in recent years. It will grow from $1.53 billion in 2023 to $1.63 billion in 2024 at a compound annual growth rate (CAGR) of 6.1%. The growth observed in the historical period can be attributed to factors such as the expansion of the food and beverage industry, a preference for natural ingredients, an increased use of oleoresins in seasonings and spices, growing demand from the pharmaceutical industry, and the expansion of the cosmetic industry.

The oleoresin market size is expected to see strong growth in the next few years. It will grow to $2.05 billion in 2028 at a compound annual growth rate (CAGR) of 5.9%. The anticipated growth in the forecast period can be attributed to the expanding applications of oleoresins in nutraceuticals, the development of novel oleoresin varieties, the rising popularity of plant-based products, increased demand for ethnic and exotic flavors, and the expansion of the aromatherapy market. Major trends in this period include technological integration in agriculture, biotechnological advancements, technological innovations in extraction methods, flavor innovation in the beverage industry, and the influence of the clean label movement.

The oleoresin market is poised for growth, driven by the increasing demand for fast food. The hectic lifestyles and limited time for food preparation have led to a rise in people's preference for fast food, consequently boosting the demand for oleoresin. Oleoresin serves as a crucial ingredient, providing flavoring agents and food colorants for fast food products. For example, in 2022, the UK fast food market witnessed a 9% growth, reaching US$22.45 billion (£20.61 billion) from US$20.6 billion (£18.9 billion) in 2021, as reported by Avika, a Netherlands-based potato processing company. This surge in fast food consumption is a key factor driving the growth of the oleoresin market.

The oleoresin market is also expected to benefit from the growing awareness about health and fitness. Increased consciousness about maintaining physical and mental well-being through healthy lifestyle choices, exercise, and nutrition is creating a favorable environment for oleoresins. This positions oleoresins as valuable components in products targeting the wellness-oriented consumer demographic. A survey report by Nutrisystem in January 2022 revealed that 53% of 2,000 participants aimed to lose weight in 2022, with an average target of 14 pounds. This heightened focus on health and fitness is a significant driver for the growth of the oleoresin market.

A prominent trend in the oleoresins market is the emphasis on product innovations by major companies. These companies are adopting new production techniques to manufacture oleoresins, ensuring sustainability and maintaining their competitive positions. For instance, in May 2022, Algalif and Divi’s Nutraceuticals collaborated to develop highly concentrated beadlets of sustainable natural astaxanthin oleoresin from microalgae. This innovative oleoresin has applications in various products such as fortified drinks, nutrition bars, gummies, tablets, and Twizzlers, showcasing its versatility in the food and beverage industry.

Major companies in the oleoresin market are actively launching oleoresin products to meet consumer demands. In March 2021, Lycored introduced an oleoresin derived from Haematococcus pluvialis algae, specifically formulated for soft gel usage. The product reflects the company's commitment to delivering high-quality solutions and an effective delivery system, addressing the rising demand for vegetarian and vegan options. This oleoresin stands out for its unique origin, compatibility with soft gels, and alignment with the growing preference for vegetarian and vegan products.

In July 2022, Oterra, a Denmark-based manufacturer of natural coloring ingredients, acquired Akay Group Ltd. for an undisclosed amount. This acquisition aims to strengthen Oterra's presence in the natural colors market by leveraging Akay Group's oleoresin production expertise, advanced manufacturing plants, and robust research and development capabilities.

Major companies operating in the oleoresin market report are AVT Natural Products Ltd, Ozone Naturals, Akay Natural Ingredients Private Limited, Kalsec Inc., Paprika Oleo's India Limited, Universal Oleoresins Private Limited, Plant Lipids Private Limited, Kancor Ingredients Ltd., Synthite Industries Ltd., All-Season Herbs Private Limited, Chenguang Biotech Group Co. Ltd., TMV Aromatics Pvt Ltd, PT Indesso Aroma, Jean Gazignaire S.A.S., Givaudan SA, Ungerer & Company, Bioingredia Natural Pvt Ltd., Sensient Technologies Corporation, Vidya Herbs Pvt. Ltd., Döhler GmbH, Naturex SA, Algatechnologies Ltd, Cargill Inc., Mitsubishi Chemical Holdings Corporation, Symrise AG, Greenleaf Extractions Pvt. Ltd., Reckitt Benckiser Group plc, Young Living Essential Oils Ltd., Middle Earth Organics, Ransom Naturals Ltd.

Europe was the largest region in the oleoresin market in 2023. Asia-Pacific is expected to be the fastest-growing region in the oleoresin market report during the forecast period. The regions covered in the oleoresin market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the oleoresin market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary product types of oleoresin include paprika, black pepper, capsicum, turmeric, ginger, garlic, onion, seed spices, herbs, and others. Paprika, for instance, is a spice derived from dried and ground sweet red pepper fruit pods of the Capsicum Annum family. Oleoresins are obtained from a variety of raw materials such as leaves, seeds, flowers, roots, berries, and other plant parts, utilizing extraction processes such as solvent extraction, supercritical fluid extraction, and others. These oleoresins are utilized in various applications, including food, beverages, fragrances, pharmaceuticals, nutraceuticals, and more.

The oleoresin market research report is one of a series of new reports that provides oleoresin market statistics, including oleoresin industry global market size, regional shares, competitors with an oleoresin market share, detailed oleoresin market segments, market trends, and opportunities, and any further data you may need to thrive in the oleoresin industry. This oleoresin market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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