Oleoresins are a combination of naturally occurring oil and resin, which can be extracted from plants. They are usually prepared from spices like capsicum or paprika, pepper, basil, cardamom, celery seeds, clove, cinnamon, fenugreek, ginger, mace, nutmeg, sage, rosemary, turmeric, parsley, etc. Oleoresins are prized for their ability to impart exotic flavors to food and beverages. They are also known for their superior solubility and are used extensively in the food & beverage and personal care industry. In the food & beverage industry, they are used as a coloring and flavoring agent in preparations such as jams, butter, jellies, meat preparations, desserts, and pickles.
Oleoresins market are basically used as a substitute for ground spices, as they have longer shelf life and possess standardized taste and aroma. All these make oleoresin a popular additive in the food & beverage industry. Moreover, their application in the pharmaceutical and personal care industry has also been growing consistently. For example, turmeric oleoresin is widely used in cosmetics and personal care products. It is also used in the healthcare industry for treating skin diseases.
Chilli oleoresins, on the other hand, are used in the pharmaceutical industry for their anti-inflammatory, antioxidant, and anti-cancer properties. All these developments will boost the growth of the global oleoresin market in the coming days. The global market is expected to grow at a CAGR of 9.1% during 2019 to 2026 to reach USD 2.4 billion by 2026. Growing demand for food additive and the increasing number of multi-cuisine restaurants across the world will drive the growth of the global market.
Further, increasing awareness about the side effects of synthetic flavor will increase the demand for oleoresins across the world. Similarly, growing awareness about the health benefits associated with herbal extracts will help drive the demand for oleoresins and thereby, propel the growth of the global market. Other factors that will impact the global oleoresins market positively are, increasing R&D activities and growing demand for oleoresins in the nutraceutical industry.
However, the growth of the global market may get limited by factors like increasing prices of various raw materials and consequently, an increase in the cost of production. But due to their longer shelf life and superior aroma and taste, the application of oleoresins will witness significant growth in the coming years. Among different types of oleoresins, the paprika oleoresin segment will dominate the global market in the coming years. Based on application, the food & beverage segment will display the fastest growth during 2019 to 2026.
Region-wise, the North American region will dominate the global oleoresin market during 2019 to 2026, by holding the largest market share. The dominance of this region can be explained by the high consumption of processed food. The European market will also witness significant growth due to increasing use of oleoresins in personal care & cosmetics, perfumery, and pharmaceutical products.
The major players operating in the global oleoresins market include Akay Group, AVT Naturals, Synthite Industries Pvt. Ltd., PT Indesso Aroma, Givaudan, Vidya Herbs Private Limited, Kancor Ingredients Ltd., Ungerer & company, Gazignaire, Plant Lipids, Kalsec Inc., and Universal Oleoresins.