Global Oleoresins Market to Reach US$1.7 Billion by the Year 2026

Oleoresins, the extracts of fatty or essential oil and resin in a semi-solid form, are acquired by evaporating the solvents utilized in oleoresin production, and the oleoresins that occur naturally are called balsams. Oleoresins are extracted from spices like capsicum, basil, celery seed, cardamom, clove bud, cinnamon bark, fir balsam, fenugreek, ginger, labdanum, jambu, marjoram, mace nutmeg, white/black pepper, parsley, pimenta, sage, rosemary, savory, turmeric, thyme, West Indian bay leaves, and vanilla. The demand for spices in Indonesia, Argentina, and Thailand is increasing and the demand for natural food products is anticipated to be the key driver of the oleoresins market. Oleoresins are increasingly emerging to be the most preferred form of spices, given the exceptional consistency in taste and aroma. Consumer penchant for new tastes and flavor options, demand for ethnic hot and spicy foods, expanding population base, escalating income levels, changing lifestyles and heightening health awareness are expected to augment demand for oleoresins in the spices and seasonings market. The quest to explore different nutraceuticals for health benefits is poised to open new avenues for oleoresins that are extracted from specific spices and hold powerful medicinal properties. Oleoresins are finding increasing acceptance for their antioxidant properties along with potential to mitigate aches and pains, reduce cholesterol levels and other benefits. The increasing use of oleoresins in the manufacture of body lotions and soaps boost markets prospects in the cosmetics and personal care market.

Amid the COVID-19 crisis, the global market for Oleoresins estimated at US$1.2 Billion in the year 2020, is projected to reach a revised size of US$1.7 Billion by 2026, growing at a CAGR of 6.3% over the analysis period. Seed Spices, one of the segments analyzed in the report, is projected to grow at a 7.6% CAGR to reach US$433.6 Million by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Paprika segment is readjusted to a revised 6% CAGR for the next 7-year period. This segment currently accounts for a 17.5% share of the global Oleoresins market. The paprika oleoresin finds wide use as a flavoring agent and colorant. Paprika oleoresins are used to flavor cheese, orange juice, confectionery items, sauces, and processed meats. The focus on food safety and demand for natural food colors promotes growth opportunities for Paprika segment.

The U.S. Market is Estimated at $472.3 Million in 2021, While China is Forecast to Reach $178.4 Million by 2026

The Oleoresins market in the U.S. is estimated at US$472.3 Million in the year 2021. The country currently accounts for a 37.4% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$178.4 Million in the year 2026 trailing a CAGR of 9.4% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 4.8% and 5.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.5% CAGR while Rest of European market (as defined in the study) will reach US$195.1 Million by the end of the analysis period. The spice oleoresin market of India accounts more than half of the world`s total oleoresin production. India has favorable soil and climatic conditions to grow semi-tropic herbs and spices and therefore India is among the leading countries that produce spices.

Capsicum Segment to Reach $262.7 Million by 2026

Capsicum oleoresin is an organic and very concentrated substance and a mixture of both resin and oil acquired from the capsicum plant. Capsicum oleoresins with their strong flavor are used primarily for flavoring. Capsicum oleoresins are added to various types of medical creams and lotions used to treat muscle and joint pain. In the global Capsicum segment, USA, Canada, Japan, China and Europe will drive the 7% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$140.6 Million in the year 2020 will reach a projected size of US$223.2 Million by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$24.7 Million by the year 2026, while Latin America will expand at a 8.3% CAGR through the analysis period.