According to MarketsandMarkets, the oleoresins market is estimated to be valued at USD 1.2 billion in 2019 and is projected to reach USD 1.7 billion by 2025, recording a CAGR of 6.0% from 2019 to 2025. The rapid growth in demand for natural flavors in the food & beverage industry and the increasing application of oleoresins in various other industries such as pharmaceuticals, personal care, and feed, are some of the factors driving the market growth.
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The use of oleoresins was commercialized since the early 20th century. However, its use has gained momentum since the last decade. The oleoresins market is witnessing various innovations, as key manufacturers are introducing a variety of flavors that can be used in various applications. The leading consumers of oleoresins include the processed food sector in developed countries, where the purchasing power is high. Its customers include flavor and fragrances producers, seasoning companies, spice blenders, meat processors, and organic retail chains. As consumers are becoming more health-conscious, there is a surge in demand for natural coloring and flavoring agents. This is a major factor projected to drive the growth of the oleoresin market during the forecast period. In addition, these factors have led to a surge in demand for oleoresins in the beverage, bakery, seasonings & condiments, meat & seafood, pharmaceutical, and food & beverage industries.
The growing awareness about the health benefits associated with oleoresins results in increasing industrial applications in the pharmaceuticals & nutraceuticals industries. The anti-inflammatory and antimicrobial nature of oleoresins helps in prevention of chronic diseases, due to which it is becoming popular among consumers. Various spices are known to provide a range of health benefits that makes them an indispensable part of traditional foods and medicines. Oleoresins are available in more concentrated forms of their respective spices, and the growing awareness regarding their benefits are factors driving their demand across industries. According to a study by the Nutrition Foundation of India, oleoresins are increasingly used to prevent chronic diseases in pharmaceutical applications due to their antioxidant and anti-inflammatory properties. Oleoresins increasingly find applications as a counterirritant, antiseptic, and rubefacient. In addition, oleoresins of dried berries are also used to improve digestive health and provide relief from nausea, dysentery, and dyspepsia.
The formulation of oleoresins from chili plant such as paprika and capsicum is very common. They are used in pharmaceutical applications due to their analgesic, antioxidant, and anti-inflammation features; chili oleoresins (oleoresins extracted from paprika and capsicum) are also being studied for anti-carcinogenic effects. According to CBI (Ministry of Foreign Affairs), the paprika segment accounted for nearly 25% share in the total oleoresin market, in terms of value, in 2015. Moreover, one-third of the Indian oleoresin production is derived from paprika. The increased demand for paprika oleoresin in the market is due to the increasing inclination of consumers toward natural food extracts with coloring properties.
The Asia Pacific oleoresins market is projected to have higher growth potential in the coming years. Chilies such as paprika and capsicum are the major spices that are used in cuisines in Asia. The growing food and beverage industry and the increasing consumer preference for diets that includes natural flavors and fragrances are factors projected to drive the growth of the oleoresin market in the region. With the rising middle-class population in developing Asian countries, growing disposable income of the consumers, and imports of oleoresin products offered at lower prices from China to other Asian countries are key factors projected to drive the growth of the oleoresins market in the region.