The global oleoresins market size was estimated at USD1.15 Billion in 2013. The demand for the product grew due to the growth of end-use industries such as soap, perfumery and beverage. Furthermore, increasing use of oleoresins in pharmaceutical industry owing to its anti-oxidation and anti-inflammatory properties and for treatment of back pain, and stress is expected to drive the market growth over the forecast period.
Growing use of oleoresins in food industry owing to its increasing use as flavoring and coloring agent and in salad dressings is expected to drive the demand for the product over the forecast period. In addition, use of the product in high temperature applications such as frying and baking and its use as additive in food industry is expected to drive the market growth.
Growing demand for confectionary and baked food products, especially in developed regions is expected to bolster the demand for oleoresins. Increasing preference for natural ingredients over synthetic flavors and colors is also expected fuel the demand. However, fluctuation in the raw material prices coupled with high investments in initial stages of oleoresins extraction is expected to act as a restraining factor for market growth.
Flavors accounted for 30% market share of the overall market. Growing demand for flavors due to increasing shift of consumer preference towards lifestyle management is expected to drive the growth of the market. Processed food accounted for a significant market share of the overall market. increasing use of oleoresins in meat canning, sauces and confectionary is expected to drive the growth of the market over the forecast period. Growing demand for spice mixes and spices is also expected to aid the market growth especially in countries such as India. Pharmaceutical applications are estimated to be the fastest growing segment due to increasing use in medical drugs, and in anti-inflammatory applications.
Paprika accounted for 35% of the market share by revenue in 2014. Growing use of paprika oleoresins in processed food applications such as dressings, sausages, food coatings, snack food seasonings, and dry double seasonings is expected to be the major driver for the demand of the aforementioned product. Major oleoresins products include turmeric, chilly, paprika, cardamom, pepper, ginger and onion The oleoresin produced from black pepper is useful in stimulating the appetite and is also helpful in the treatment of nausea, dyspepsia, and dysentery, which is expected to drive the demand for the product. Furthermore, turmeric oleoresins segment is expected to witness highest growth over the forecast period due to its increased use in food processing industry owing to its flavor and coloring properties. The others segment is also expected to show sustained growth over the next seven years. this segment includes cinnamon, fenugreek, savory, vanilla, rosemary, tamarind, cocoa, white pepper, coriander, mustard, and west Indian bay.
Europe accounted for the majority of the market share of the global oleoresins market and accounted for a demand share of over 25% in 2014. Growing consumption of ethnic foods which predominantly contain oleoresins, in the countries such as Germany, Hungary, Romania and U.K. is expected to drive the demand for the market over the forecast period.
Furthermore, growing demand for healthy natural food in the region is expected to drive the growth of the market over next seven years.
Asia Pacific is expected to drive the growth of the global oleoresins market owing to the development of food processing industry in the developing countries such as India, China and Indonesia. Furthermore, increasing demand for spices and spice mixes in India is expected to drive the market growth over the forecast period. In addition, rapid development of healthcare and pharmaceutical industry in India and China is expected to be a major drive for the demand for oleoresins.
North America is expected to witness increasing demand from the growing pharmaceutical and food processing industry. Moreover, shift in consumer preferences towards a healthy alternative has driven the growth of the market over the forecast period.
The global oleoresins market is highly concentrated with a few companies accounting for a majority of the market share. the market is characterized by mergers, acquisitions and strategic alliances. For example, Kemin Industries Inc and AVt Natural Products entered into a partnership for their R&D activities to enhance product development of oleoresins.
Key market players include Asian Oleoresin Company,Asian Oleoresin companyUniversal Oleoresins, , Plant Lipids,Ungerer& Company Akay, , Indo World, Paprika Oleo’s,AVT Natural Products Ltd Paras Perfumers, Ambe Group, , Cymbio Pharma Pvt Ltd, Synthite, and Bioprex Labs.
Research Support Specialist, USA