Oleoresin Experiences Demand as Industries Realize its Benefits
Spice oleoresins have highly potent active components and are free from microorganisms and enzymes. They offer several advantages over traditional spices and are more affordable than food formulators due to their longer shelf life. The use of spice oleoresins provides standardized flavours that it is nearly 5–20 times stronger than that of conventional spices on a per kilo basis. Oleoresins also dissolve in fats and oils and some lend colouring notes to food. They are thus replacing artificial flavouring and colouring agents in the food industry.
Oleoresins are also a rich source of antioxidants with excellent anti-inflammatory and medicinal properties, which has given them tremendous value in the pharmaceutical industry. In recent years, the cosmetic industry has also shown a significant demand for oleoresins as they are used in the production of perfumes, skincare, and toiletries products. The multitude of benefits of oleoresins for various industries is expected to propel the growth of the global market between 2021 and 2025.
Conscious Consumers Turn Tables for Global Spice Oleoresin Market
Expanding number of health-conscious consumers has created a demand for natural and plant-based or vegan ingredients. Increased consumer awareness about the side effects of artificial flavours and colouring agents has changed consumer buying behaviour. The constant requestioning and redefining of health standards has got a larger chunk of the population seeking “free from” products.
A growing base of the vegan population looking for yoghurt alternatives to protein ones are expected to create a high demand for spice oleoresins. These factors are collectively expected to boost the market demand over the forecast period. Furthermore, COVID-19 has had a positive effect on the demand for spice oleoresin market. Several spice oleoresins such as turmeric act as an immunity booster due to which its demand has increased in various processed food and beverages.
Food and Beverages Segment likely to Represent Largest Value Share
The global spice oleoresin market is segmented on the basis of product type, application, and region. By product type, the market is segmented into turmeric, pepper, paprika, cardamom, cumin, and capsicum. Analysts expect that the turmeric and paprika oleoresins are expected to collectively account for the largest value share by 2025. Increased usage of these oleoresins as immunity boosters and natural colouring agents in the food and beverages industry is expected to support the segment growth over the forecast period.
Based on nature, the market is segmented into organic and conventional. While based on application, the market is segmented into food and beverage, pharmaceutical, cosmetics and feed. Among all of these, the food and beverages segment is expected to represent substantial growth over the forecast period. Increased demand for food products comprising plant-derived ingredients is expected to fuel the segment growth in the near future.
India to Remain the Lead as the Country Remains Largest Exporter
Globally, India is the largest producer of spice oleoresins. The country has a wide array of spices and thus is one of the largest exporters of paprika, cumin, and turmeric oleoresins. India contributes more than 60% of the share in global oleoresin exports, while value-added spice products account for 51% of the volume share to the country’s total spice exports. However, due to the larger availability of raw materials in South East Asian countries, China and Sri Lanka have a strong presence of manufacturers such as Synthite Industries and Plant Lipids.
In terms of consumption, Europe is estimated to be the largest region to demand spice oleoresins. The continuous growth of natural food colours and flavours, especially from the countries such as U.K., Germany, and France is expected to fuel the market growth in the region. Along with this, the European food market is one of the largest markets generating more than 1.4 trillion value sales annually. Thus, increased demand for processed food is further expected to create growth opportunities for the global spice oleoresins market.
Global Spice Oleoresins Market: Key Players
Some of the major players considered in the report include Synthite Industries Ltd, Kalsec Inc., Givaudan, Pt. Indesso Aroma, Kancor Ingredients Limited, AVT Naturals, Akay Group Ltd., AOS Products Pvt. Ltd., Vidya Herbs Private Limited and Universal Oleoresins.