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Oct 8, 2019 5:00 AM ET

Oleoresin Market | 5.66% CAGR | Strategic Analysis | Industry Data | 2019-2025 | OGAnalysis

iCrowd Newswire - Oct 8, 2019

Global Oleoresin Market size is forecasts to grow at a 5.66% CAGR through 2025

Oleoresin Market Value forecast by Application, $Million, 2019

The Oleoresin Market is emerging with a CAGR of 5.66% between 2019 and 2025 with an estimated market value of $1.4 billion during 2019.

Growing Demand for Oleoresin across the Pharmaceutical and Food Colorant Industry, growing investments in the industry, and growth in end-user markets are some of the major drivers of the oleoresin market.

Countries with large flavor industries will remain the key focus areas for oleoresin suppliers with product formulations varying country wise. The global market for flavors is estimated to be around $15 billion accounted by contributions from Germany, the U.S, Switzerland, Japan, France and Hong Kong.

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Commencement of new plants, acquisition of assets and forming joint ventures remain the major strategies of key companies targeting to expand globally. Oleoresins producers are rapidly penetrating into essential oils predominantly in food and beverages segment with advantages of less competitive suppliers of essential oils.

However, volatility of raw material prices, regulatory changes and intense competition along with minimizing the inventory costs and maximizing the orders are amid factors hindering market growth.

Strong demand for key product types is shaping the market value through 2025

Paprika segment accounted for the largest market size across pharmaceutical and cosmetic industries with high preference for Liquid Paprika oleoresin as natural colouring and flavouring agent.

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Dual demand of oleoresin for both oil soluble and water-soluble forms with quality in compliance with Kosher & Halal certification is forcing key producers to invest in both form of product. For instance, Kancor Mane produces both water-oil soluble liquid form of oleoresin with halal and kosher certification.

Further, Black pepper oleoresin is penetrating oleoresin market growth as a largely consumed ingredient by growing and innovating food industry with benefits of palpable and natural flavours. In addition, Health and Nutraceuticals industry significantly drives the pepper oleoresin market owing to huge demand of Bioperine-branded extract of black pepper.

Increased production of Capsicum Oleoresin is driven as an effective coloring and flavouring agent in food products and as cattle feed additive. Accordingly, in 2018, India exported 27, 77,450 tonnes of capsicum oleoresins to its major importers around the world that includes China, USA, Indonesia, Korea, Thailand, and others.

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Growth in end-user markets is set to entice the oleoresin market value over the forecast period

Growing demand for increased shelf across Food and beverages processing market life is one of the major factors driving the oleoresin market growth. In addition, wide adoption of natural ingredients by food and flavouring sectors alternative to artificial ingredients is a key driver for oleoresins market growth.

Increased consumption of food products such as meat preparations, marinades, and gourmet foods as well as convenience foods is driving the demand for oleoresins across food and beverages industry

Further, the market growth is driven across pharmaceutical industry by significant market share for Chilli oleoresins owing to its effective properties such as anti-oxidant, anti-cancer, anti-inflammation, and analgesia.

Furthermore, the growth of oleoresins in pharmaceuticals is triggered by increase consumption of capsicum oleoresins with benefits for gastrointestinal and cardiovascular system. In addition, turmeric oleoresins market segment is driven by pharmaceutical and cosmetics industries for the production of skin creams, capsules, and tablets and other products.

Regional market trends positively impacting oleoresin market growth

The oleoresin market growth across Europe is driven by high inclination towards natural ingredients and extracts used in various food products. Growing consumption of ethnic foods which predominantly contain oleoresins, in Germany, Hungary, Romania and U.K. drives the demand for the market growth over the forecast period.

Further, North America accounts as one of the largest regional shares in global Oleoresins market with the United States as a large producer of Turmeric Oleoresin. In addition, change in consumer preferences towards a healthy alternative has driven the oleoresin market growth over the forecast period.

Whereas, emerging demand provide strong diversification across Asian countries. Malaysia, China, Sri Lanka, Pakistan, Bangladesh are emerging as key market share holders and pose stiff competition to traditional buyers such as Saudi Arabia and UAE. These countries are successfully re-exporting the spices imported from India in oleoresins form.

Innovative products and increasing production are amid key strategies observed across market players

Key players are investing in special technologies to innovate their product portfolio. For instance, in May 2019, Vidya Herbs developed its SFT (Six Featured Technology) Range, a special technology to make uniform size micro beadlets of oleoresin.

Further, key market OEMs are investing in natural based production of oleoresin. For instance, in 2018, Alga Technologies Ltd. launched all-natural patented oleoresin “Fucovital”, extracted from microalgae.

In addition, major players are focusing on opening industrial facilities to enhance productivity and marketing strategies. For example, In January 2019, Givaudan inaugurated a new technical and commercial center for oleoresin flavors.

Amidst growing competition, suppliers plan to set up production based in buyer markets, accordingly, Synthite Industries, Kancor and other leading suppliers are focusing on setting up oleoresin manufacturing plants in proximity to end user markets including the US and western European countries.

Moreover, Key participants operating in Oleoresin Market include Akay Group, Synthite Industries Pvt. Ltd., AVT Naturals, Givaudan, PT Indesso Aroma, Vidya Herbs Private Limited, Ungerer& Company, Kancor Ingredients Ltd., Plant Lipids, Kalsec Inc., Gazignaire, and Universal Oleoresins.

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