The global oleoresin market is forecasted to register a CAGR of 5.6%, during the forecast period (2020-2025).
- Oleoresins are popular in the beverages industry since they can be a great base flavor or part of a complex flavor profile. These can also be used to add natural color to beverages, further increasing their usability in this industry. The growing beverage industry directly drives the market growth for oleoresins. The wide varieties of oleoresins give them numerous possibilities to formulate new or improved natural foods and flavorings.
- Manufacturers from food and beverage, pharmaceuticals, and other industries prefer utilizing it, as oleoresins are an economical option, with easier quality control and also require lesser storage space.
- In contrast to essential oils, oleoresins contain many more non-volatiles. This fact makes them more interesting in the flavor and food industry.
Key Market Trends
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.
Europe Holds a Significant Market Share
The United Kingdom, Germany, and Spain are prominent users of oleoresins in the region, with the largest food and beverage industries. The region imports most of its oleoresins from Asian counties, particularly India. The ports in Belgium and Netherlands are important points of entry for imports to Northwestern Europe. The rising popularity of ethnic cuisines, such as Indian, Mexican, and Thai, has spurred the demand for oleoresins derived from spices among food manufacturers for instance pepper oleoresin, in order to mimic fresh pepper flavor. The region offers huge potential for oleoresin manufacturers, owing to increasing demand and fluctuations in the raw material supply within the region. 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 market for oleoresins is a highly competitive market, comprising of many small and major players, like Synthite, Kancor, Universal Oleoresins, Ungerer & Company. The most adopted strategies of companies to acquire a major market share remains offering a large variety of product formulations to the consumers and constantly investing capital in upgrading and extending the products being offered. Product innovations are the next strategies preferred by companies to strengthen their market dominance. For instance, in June 2018: Algatechnologies Ltd. had launched all-natural patented oleoresin “Fucovital”, which is three percent fucoxanthin oleoresin produced and extracted from microalgae
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