Global Oleoresins Market - 2021-2028
Oleoresin is a natural mixture of oil and resin extracted from plant sources. These are concentrated liquids and represent the overall flavor profile of the spice it is sourced from. As a result, oleoresins are capable of providing flavor fragrance and texture of the ground spices to end products. Also, oleoresins offer significant advantages such as efficient adding to end product through spraying and ease of transport and storage. These factors led to the use of oleoresins as replacement of whole spices in several applications. There are over 100 plant sources of oleoresins. Curcumin, Turmeric, Chili and Paprika are the most widely used sources of oleoresins in the world. The global oleoresins market valued USD XX billion in 2020 and is estimated to reach USD XX billion by 2028, at a CAGR of XX% during the forecast period.
Increasing demand from food manufacturers
Ethnic foods are gaining popularity worldwide. Indian, Thai, and Mexican foods are some of the most popular international flavors. Oleoresins from spices are interesting ingredients for food manufacturers to create such ethnic foods. Especially manufacturers of meat products, such as sausages, frequently apply oleoresins as ingredients. Instead of using marinades from flavoring manufacturers, some of them prepare their own marinades from oleoresins and other forms of spices (for example, dried spices). Several manufacturers of mayonnaise, sauces, marinades, and pickles also apply oleoresins as ingredients, instead of using products from flavoring manufacturers. Oleoresins are also heat-stable and easy to store. They are not susceptible to microbiological contamination and have a much longer expiration period than fresh or even dried spices. Food and flavoring manufacturers are constantly looking for unique flavors to develop new products. They are particularly interested in new types of oleoresins that are cost-effective and can give great results with limited usage.
The increased utilization of oleoresins in food and beverage production coupled with flavor and aroma benefits of these plant extracts is the primary factor driving the market growth globally. The interest towards use of natural flavoring and coloring ingredients is promoting oleoresin adoption in processed food industry. Flavoring is a vital component in confectionery, snacks and baked food products. Oleoresins in liquid forms are capable of applying by spraying or dusting, thus adding flavor without affecting the texture of the product. Also, oleoresins extracted from turmeric and chilli are used to impart color to the end food product. Also, these ingredients are proven to improve the shelf life of the food products.
Food and beverages are the largest end use industry of oleoresins in the global market
Oleoresins have been extensively in use as flavor and aroma ingredient in food and beverages industry. Oleoresins are finding applications in various food products ranging from confectionery, sauces, soups, dairy products, baked foods, snacks and meat products. Also, these are used in preparation of soft beverages like ginger beer. Cosmetic application of oleoresins is also gaining prominence with adoption in wide range of products. These are widely used in soaps, face creams, lip sticks and shampoos among others.
In addition, wide application in pharmaceuticals is expected to further fuel the market growth over the forecast timeframe. The product is likely to witness significant growth in demand over the forecast period owing to its inclusion in the Italian positive list. India is one of the major manufacturers and exporters of turmeric oleoresins. High demand for turmeric oleoresin in cosmetics and personal care sectors is projected to drive the market in Asia Pacific. Turmeric oleoresins are widely utilized in the healthcare industry to treat several skin diseases.
Asia Pacific is expected to dominate the global oleoresins market during the forecast period
By Geography, Asia Pacific is leading the global oleoresins market owing to the well-established processed food and cosmetics manufacturing industry in the region. China, Japan and India are top 3 national markets accounting for over 70% of the regional demand. Also, India is the largest exporter of oleoresins in the world. The population in these countries have been using plant extracts and phytochemicals in food, medicinal and beauty products historically. This has resulted in large-scale production and consumption of oleoresins in these industries. Countries such as Vietnam, Thailand and Indonesia are also witnessing considerable growth in the market.
Europe oleoresins market is expected to grow with a CAGR of XX% during the forecast period. Various end-use industries in Europe such as personal care & cosmetics, perfumery, and pharmaceutical extensively incorporate oleoresins in their products. Countries, such as the UK, Germany, France, the Netherlands, Italy and Spain are the biggest importers of oleoresins in Europe. Shifting consumer preference toward ethnic food and ascending product demand in healthcare applications are expected to emerge as the major factors driving the market in this region. There is also a growing popularity of ethnic food in some countries, such as the UK and France. This offers opportunities to exporters of oleoresins in developing countries because oleoresins, such as turmeric oleoresin, are increasingly used in ethnic foods. For instance, oleoresin extractions for cardamom take place in countries, such as India and Sri Lanka; so they have export opportunities in the region, provided that they comply with the European regulations and standards for oleoresins. For example, the European legislation has permitted the usage of only few extraction solvents, namely, propane, butane, ethyl acetate, ethanol, carbon dioxide, acetone, and nitrous oxide.
The global oleoresins market is highly fragmented with the presence of large number of companies and high product differentiation in terms of sources. The high product differentiation is resulting in entry of new companies into the market with novel formulations. Synthite Industries Ltd., Akay Group Ltd., Ungerer & Company, Universal Oleoresins and Plant Lipids are some of the key companies in the market. Limited geographic reach of existing players is limiting the competition among players, thus resulting in price hikes in recent times. India is one of the key strategic countries in the global oleoresin industry with most of the global production constituted in the country. Only three players - Kancor Ingredients, Synthite and Plant Lipids located in Southern Indian State of Kerala is responsible of nearly 80% of global oleoresin exports. Companies are focusing on increasing their production capacities by expanding their operations to different regions. In January 2019, Givaudan opened a new Flavors technical and commercial center in Casablanca, Morocco. The new center is designated to meet the evolving needs of its African customers with innovative taste and flavor solutions. PT. Indesso Aroma launched its new R&D; center at its Cileungsi plant in Indonesia. The center would support the company’s vision in developing ingredients for food, flavor, and fragrance industry.
COVID-19 Impact: Positive impact on the oleoresins market
Rising demand for ready-to-eat products across the world has helped the spice oleoresin industry survive the Covid-19 outbreak despite logistics roadblocks. A leading exporter of spice oleoresin, Synthite, said that their products are used in noodles, pasta and other food products which people confined to homes consume. Despite delays in Kochi and Chennai ports, they have managed to produce with skeletal staff and export the product to the US as well as to Europe. Initially, the company faced hurdles in transportation of raw materials to its units in Andhra Pradesh and Karnataka. But, since food comes under essential category, things have been sorted out to a large extent.
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