Oleoresins Market Size, Share, Forecast, & Trends Analysis by Source (Spices {Paprika, Black Pepper, Turmeric}, Capsicum, Marigold, Garlic), Extraction Process (Solvent Extraction), Application (Food and Beverages, Pharmaceuticals) - Global Forecast to 2031

Oleoresins Market Size & Forecast

The Oleoresins Market is expected to reach $2.49 Billion by 2031, at a CAGR of 4.9% from 2024 to 2031. The growth of this market can be attributed to several factors, including the increasing demand for oleoresins in the food & beverages industry, the growing demand in the pharmaceutical industry, the growing demand for natural colors and flavors, and the increasing adoption of ethnic food. Moreover, growing demand for natural and organic food products, increasing demand for vegan beauty products, and increasing utilization of oleoresins in animal feed are expected to offer growth opportunities for the players operating in this market.

Oleoresins Market Growth Drivers

Increasing Demand for Oleoresins in the Food & Beverages Industry

The growth of the food industry is attributed to rising technological advancements in product manufacturing methodologies, growing health and wellness trends, rising consumer expectations for innovative and healthy food products, a changing food landscape, a growing population, and rising consumer expenditure & disposable income. In addition, R&D activities are also carried out to reduce product costs, enhance sensory properties to make food more attractive, improve nutritional value, increase the shelf-life of products, and offer greater choices of food items to consumers.

However, the food industry is using oleoresins more frequently due to rising demand for natural food additives and flavors, as well as for ready-to-eat and processed food products. There is also an increasing demand for natural and clean ingredients in food and beverages due to increasing concerns about the potential health risks associated with artificial ingredients. These factors are boosting the adoption of oleoresins, further driving the growth of this market.

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Growing Demand in Pharmaceutical Industry

Oleoresin is gaining traction in the pharmaceutical industry as it is used for the development of health supplements due to its high concentration of active compounds. Oleoresins are naturally occurring combinations of oils and resins that can be extracted from plants and have high anti-inflammatory and strong antioxidant properties. As an antioxidant, oleoresins help to scavenge free radicals and protect the body against oxidative damage, correlating to cardiovascular health benefits, sports nutrition and recovery, and skin and joint health. This therapeutic potential has led pharmaceutical companies to increasingly utilize oleoresins in their products, further boosting demand globally. However, herbal and natural remedies have gained popularity in recent years due to natural, green therapy with fewer negative side effects. Therefore, these factors are propelling the growth of the market.

Oleoresins Market Trends

Increasing Adoption of Clean-label Products

Clean labeling is a consumer-driven initiative primarily shaped by consumer perception of ingredient acceptability. Food products containing natural, familiar, and simple ingredients are clean-label products. Factors such as rising demand for organic, natural, and ‘free from’ artificial ingredients are expected to drive the demand for natural food color across the globe.

Additionally, growing health concerns among the global population, coupled with increasing awareness about the benefits of clean-label ingredients, are the key factors driving the growth of the clean-label ingredients market. Moreover, the global sales of clean-label food ingredients are projected to reach around USD 64.1 billion by 2026 [source: Dairy Farmers of America, Inc. (U.S.)]. The demand for clean-label food and consumer packaged goods is driven by consumers' increasing focus on health and wellness. As a result, food manufacturers are increasingly adopting clean-label ingredients like oleoresins to cater to the changing consumer preferences for healthier and more transparent food options. These natural extracts derived from spices and herbs align with the clean-label trend, offering a more recognizable and transparent ingredient option for food and beverage manufacturers.

Increasing Need for Self-grooming Products

Rising disposable incomes and improving living standards are driving the demand for personal care/self-grooming products globally. Personal care and self-grooming trends are driving the demand for cosmetics and personal care products. The increasing need for self-grooming products is boosting the demand for oleoresins enriched with vitamins and minerals to prevent skin problems, including dryness, sunburns, and roughness. They are mostly used in the preparation of soaps, hair lotions, and hair spray and as aroma enhancers in the perfumery industry. In cosmetics, oleoresins are mostly used for their anti-inflammatory, antibacterial, and antiviral properties, as well as their ability to serve as natural preserving agents. Further, oleoresins offer a more recognizable and transparent ingredient option for perfume manufacturers, aligning with the clean label trend and appealing to consumers seeking products with natural ingredients. Thus, people’s increasing need for self-grooming products is a prominent trend that positively influences the oleoresins market.

Oleoresins Market Opportunity

Increasing Demand for Vegan Beauty Products

The demand for vegan beauty products is driven by various factors, including the rise of veganism as a lifestyle choice and social movement, increasing awareness of the benefits of vegan cosmetics for the skin and the environment, and the innovation and diversification of vegan cosmetic products and brands. Vegan cosmetic products contain naturally extracted vitamins, minerals, antioxidants, and other ingredients. Vegan cosmetic products do not contain animal-derived ingredients or animal byproducts. Vegan beauty products contain toxin-free ingredients and, therefore, offer several advantages over chemical-based cosmetics in managing skin acne and improving skin health. Different types of oleoresins are used in the formulation of cosmetics products due to their various benefits. Turmeric-sourced oleoresins are used to treat skin problems such as acne and eczema, to prevent and heal dry skin, and to hinder the aging process. It is used in cream formulations and majorly used in sunscreens lotions.

Thus, the growing adoption of vegan beauty products will increase the demand for oleoresins, further creating opportunities for manufacturers operating in this market.

Oleoresins Market Analysis: Key Findings

By Source: In 2024, the Spices Segment to Dominate the Oleoresins Market

Based on source, the oleoresins market is segmented into spices, capsicum, marigold, garlic, onion, herbs, and other sources. In 2024, the spices segment is expected to account for the largest share of 44.6% of the oleoresins market. The large market share of this segment can be attributed to factors such as increasing usage of the spice’s oleoresins in various industries, including food & beverage, pharmaceuticals, animal feed and cosmetics industry as a flavoring and coloring agent, health supplements, and formulation in drugs. Spice oleoresins, such as paprika oleoresin, are mostly used as a source of color in canned meats, sausages, smoked pork, sandwich spreads, soups, cheeses, orange juice, spice mixtures, sauces, and other food products. Moreover, this segment is also slated to register the highest growth rate of 5.7% during the forecast period due to the increasing demand for natural ingredients, the adoption of ethnic food, and various health benefits that further support the growth of the market.

By Extraction Process: In 2024, the Solvent Extraction Segment to Dominate the Oleoresins Market

Based on extraction process, the oleoresins market is segmented into solvent extraction, supercritical fluid extraction, and other extraction processes. In 2024, the solvent extraction segment is expected to account for the largest share of 71.2% of the oleoresins market. The large market share of this segment can be attributed to factors such as cost-effective processes, established industry practice, suitable for large scale production, and mostly used for various industrial applications.

However, the supercritical fluid extraction segment is projected to witness the highest growth rate of 5.3% during the forecast period of 2024–2031. This growth is driven by the adoption of advanced extraction technology, which produces high-quality oleoresins with minimal solvent residues and high yields. Supercritical fluid extraction uses carbon dioxide under high pressure to extract oleoresins. It also retains flavor and medicinal properties by excluding chemical contaminations, which further fuels the market's growth.

By Application: The Food and Beverages Segment to Witness Highest Demand During the Forecast Period

Based on application, the oleoresins market is segmented into food and beverages, cosmetics and personal care, pharmaceuticals and nutraceuticals, animal feeds, and other applications. In 2024, the food and beverages segment is expected to account for the largest share of 36.1% of the oleoresins market. The large market share of this segment can be attributed to the increasing adoption of natural or organic ingredients in different food products, increasing awareness regarding the benefits associated with the use of oleoresins in food and beverages products, increasing usages for enhancing flavor, color, and aroma in a wide range of food products, and increasing use in many food and drinks such as spice mixtures, sauces, cheese, processed meats products, sweets, and various fruits drinks.

However, the pharmaceuticals and nutraceuticals segment is projected to witness the highest growth rate of 5.4% during the forecast period of 2024–2031. This growth is driven by its potential health benefits and its medicinal properties. Oleoresins have high anti-inflammatory and strong antioxidant properties and are therefore used in painkillers, anti-inflammatories, and dietary supplements. Furthermore, the rising demand for natural remedies and health-focused products is supporting the growth of the market.

Geographical Analysis

Based on geography, the oleoresins market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Europe is expected to account for the largest share of 34.5% of the oleoresins market, followed by North America and Asia-Pacific. Europe's significant market share can be attributed to several key factors, including the growing awareness regarding health and wellness, growing demand for natural ingredients in food products for coloring and flavoring, stringent regulation and food safety in the region, and shifting consumer preferences towards ethnic cuisine. Moreover, the growing consumer preferences for vegan cosmetics and personal care products and rising spending on health and wellness products further support the growth of the region.

However, the Asia-Pacific region is slated to register the highest CAGR of 5.4% during the forecast period. The growth of this regional market is attributed to factors such as rising disposal income, changing lifestyles, rapid urbanization, increasing spending on premium food products, growing consumption of healthy food & Ingredients, and rising awareness regarding the side effects of synthetic ingredients. Moreover, the growing cultivation of various spices and herbs and the increasing presence of various manufacturers in the region are supporting the growth of the market.

Oleoresins Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the Oleoresins market are Synthite Industries Ltd. (India), Kalsec Inc. (U.S.), Symrise AG (Germany), Universal Oleoresins (India), Ozone Naturals (India), Givaudan SA (Switzerland), Akay Natural Ingredients Private Limited. (a subsidiary of Oterra A/S) (India), Mane Kancor Ingredients Private Limited (India), Paprika Oleos [India] Ltd (India), Plant Lipids Private Limited (India), AVT Natural Products Limited (India), Henry Lamotte Oils GmbH (Germany), Vidya Herbs Pvt Ltd. (India), Extractos Vegetales S.A. (EVESA) (Spain), and Rüther Gewürze GmbH (Germany).

Oleoresins Industry Overview: Latest Developments from Key Industry Players

• In August 2023, Synthite Industries Ltd. (India) partnered with TÜRER Bitkisel A.Ş. (Turkey) to access Mediterranean herbs, & essential oils from Turkey and surrounding countries and give Türer Bitkisel access to more sales channels.

• In May 2023, Mane Kancor Ingredients Private Limited (India) opened its largest manufacturing facility in Karnataka, India. This facility is built on 50 acres of land and contains a supercritical fluid extraction plant.

• In July 2022, Oterra A/S (Denmark), a supplier of natural colors, acquired Akay Group (India), a manufacturer of natural ingredients. The acquisition will expand Akay’s access to natural colors and manufacturing and R&D capabilities.
• In March 2021, Lycored Corp. (U.S.) launched Haematococcus pluvialis algae-based oleoresin, which can be used in soft gels.

Oleoresins Market Research Summary

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