Fairfield Market Research Annatto Extract Market Size, Share, Growth, Trends 2022-2029

Annatto Extract Market

Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

Published Date: Upcoming | Format:

Industry: Food & Beverage

Request TOC Request Customization $4,995.00Prebook

Plant-derived Natural Ingredient Properties Creating Growth Opportunities

Annatto extract, derived from red seeds of the achiote, is also known as Bixa Orellana. Primarily grown in tropical countries of Brazil, Peru, Mexico, Ecuador, India, and Sri Lanka its annual global production was more than 14,000 tons in 2017. Brazil is the largest producer of annatto seeds contributing to more than 50% of the global production share. This extract is widely used in the food industry as a colouring agent and sometimes as a taste enhancer. It lends yellow, orange, and red tones to food products. The pigment that produces the colours includes carotenoids, bixin, and norbixin.

Considered a natural food colour, annatto extract, has attained robust growth. Dwindling consumption of synthetic ingredients due to their side effects has prompted consumers to opt for organic or natural ingredients. Along with this, many countries have limited the use of synthetic colours in edible products. For instance, the USA allows seven food colours including Fast Red (which is prohibited in India and Sri Lanka) while the European Union (EU) permits sixteen synthetic food colours. On the other hand, Iran and Australia permit only thirteen food colours. Swelling health awareness across the globe coupled with the increased intervention of regulatory bodies regarding the usage of artificial colours in food products is expected to drive the annatto extract market growth over the forecast period.

Annatto: The Multifaceted Natural Colour for Various Industries

Annatto extract is extensively used in food industries. It is applicable in various food categories such as pasta, snacks, cheese, sauces, and butter. Apart from the food industry, it is being noticed by other industries such as cosmetics and textile.

The cosmetics industry uses annatto extract in shampoos, soaps, lipsticks, and skincare products. Increased consumer inclination towards chemical-free cosmetic solutions has boosted the demand for natural ingredients.

However, annatto extract is expensive, as annatto seeds are grown only in a limited number of countries resulting in higher dependency of end-use industries on import. In addition, annatto extract is less stable, and prone to colour degradation when exposed to high temperature or light, which may restrain the market growth. In 2016, the European Food Safety Authority announced the use of Annatto C and Annatto B extracts instead of the ones which were being used earlier. This is expected to slow down the growth of the market as the use will remain limited.

Annatto Extract to Gain Traction from Cosmetic Industry

The global annatto extract market is segmented on the basis of nature, product type, application, and region. Based on nature conventional segment is estimated to account for the largest value & volume share. While the organic segment is to register a relatively high-value CAGR over the forecast period. Increased demand for organic food products due to associated health benefits is expected to drive the segment growth over the forecast period.

Based on application, the cosmetic segment is expected to generate the relatively highest incremental dollar opportunity over the forecast period. The annatto pigment is used as a natural dye in several cosmetics such as hair colouring products, lipsticks, and paints amongst others. Increased demand for cosmetic products comprising plant-derived or natural ingredient is expected to boost the segment growth over the forecast period.

Health-conscious Consumers Boost Demand for Natural Ingredients in European Region

Europe is one of the largest markets for food and beverages products and is thus expected to lead the global annatto extract market. In 2018, the output of the food and drink industry reached US$1.4 trillion. In the past few years, demand for organic and natural food products in the region has seen robust growth. An increased number of health-conscious consumers demanding healthy alternatives are supporting the growth of natural food products.

In addition, strong EU regulations regarding the use of synthetic additives is also generating demand for natural ingredients. Manufacturers in the region are shifting their preferences from artificial to natural food additives. Thus, increased demand for natural food additives is expected to fuel the annatto extract market growth in the country.

Global Annatto Extract Market: Key Players

Some of the major players considered in the report include DDW The Color House, Naturex S.A, Sensient Colors LLC, Kalsec Inc, Chr. Hansen Holding A/S, Daxia Ingredientes e aditivos LTDA, WILD Flavors, Givaudan SA, IFC Solutions, and International Flavors & Fragrances Inc. (Frutarom Natural Solutions Ltd).

Key Elements Included In The Study: Global Annatto Extract Market

  • Annatto Extract Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value, 2018 - 2021
  • Market Value at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

Post Sale Support, Research Updates & Offerings

We value the trust shown by our customers in Fairfield Market Research. We support our clients through our post sale support, research updates and offerings.

  • The report will be prepared in a PPT format and will be delivered in a PDF format.
  • Additionally, Market Estimation and Forecast numbers will be shared in Excel Workbook.
  • If a report being sold was published over a year ago, we will offer a complimentary copy of the updated research report along with Market Estimation and Forecast numbers within 2-3 weeks’ time of the sale.
  • If we update this research study within the next 2 quarters, post purchase of the report, we will offer a Complimentary copy of the updated Market Estimation and Forecast numbers in Excel Workbook.
  • If there is a geopolitical conflict, pandemic, recession, and the like which can impact global economic scenario and business activity, which might entirely alter the market dynamics or future projections in the industry, we will create a Research Update upon your request at a nominal charge.


  • The segmentation/company profiles/countries depicted above may vary in the actual report.

Request Table of Contents

Our Research Methodology

Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.

View Methodology
Fairfield Quality assured
Fairfield Confidentiality assured
Fairfield Custom research services