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 rapidly growing demand for natural flavors in the food & beverage industry and the wide application of oleoresins in various other industries such as pharmaceuticals, personal care, and feed sectors are some of the key factors driving the growth of the market.
The rising trend of using natural flavors in processed food and an increasing number of QSRs have led to a surge in demand for oleoresins. The rise in awareness regarding the side-effects of synthetic flavors and health benefits offered by phytomedicines and herbal extracts has significantly driven the growth of the market.
Oleoresins extracted from a particular spice or herb provide the flavor characteristics of its ground form with a more rapid flavor release. Oleoresins are produced to preserve the robust flavor and aroma of the spice and are extensively used in the natural food colors and flavors market. The increasing demand for natural and clean label products and strict regulations regarding the use of artificial colors and flavors in food products are factors driving the market demand for oleoresins. Moreover, additional health benefits of specific natural food colors and flavors and advanced technological innovations have boosted the growth of the natural food colors and flavors market, globally.
The oleoresins market in North America is projected to witness high growth due to the strong local and export demands. The US is one of the major importers of oleoresins across the globe. Although the production of oleoresins in the North American region is not at par with the domestic demand and the consumption rate in the region is comparatively higher. Oleoresins witness high demand in the processed food sector in developed countries, where the purchasing power of consumers is high as compared to the developing countries. The growth in the pharmaceutical industry and increasing consumer preferences for natural diet supplements in the North American countries are projected to drive the growth of the oleoresins market in the region.
Key players are Akay Group (India), Synthite Industries Pvt. Ltd. (India), AVT Naturals (India), Givaudan (Switzerland), PT Indesso Aroma (Indonesia), Vidya Herbs Private Limited (India), Ungerer & Company (US), Kancor Ingredients Ltd. (India), Plant Lipids (India), Kalsec Inc.(US), Gazignaire (France), and Universal Oleoresins (India).
