December 5, 2023

Paprika Oleoresin Market Growth Driven by Organic Food Industry Trends 2030

Paprika oleoresin, extracted from red paprika or red chili pepper, is experiencing remarkable growth in demand as consumers and food manufacturers increasingly recognize its value as a natural food colorant and flavoring ingredient. This oleoresin is rich in carotenoids such as capsanthin and capsorubin, making it an ideal coloring agent, while its capsaicin compound adds a delightful pungent taste to food when used in higher concentrations.

Acknowledgments from reputable global food authorities such as the Food and Agriculture Organization (FAO), the World Health Organization (WHO), and the U.S. Food and Drug Administration (FDA) have solidified paprika oleoresin’s status as a Class A Capsanthin pigment and a safe natural coloring agent for use in food products. These recognitions have propelled paprika oleoresin to become a preferred ingredient for food and feed manufacturers. Recent years have seen a surge in demand for clean label food products, driven by the growing momentum of the ‘free from’ movement as consumers seek healthier alternatives. As awareness of the harmful effects of processed foods rises, food manufacturers are increasingly opting for natural ingredients over synthetic agents, further boosting the global paprika oleoresin market between 2022 and 2026.

Organic Paprika Oleoresin Segment to Soar as Consumers Seek Healthy Options

The global paprika oleoresin market is segmented based on nature, application, and region. In terms of nature, analysts anticipate that the conventional segment will continue to hold a relatively high value share. However, the organic segment is expected to surpass it as the organic food industry maintains its double-digit growth rate. The global organic food industry achieved an annual growth rate of over 12% in 2019, with organic food and ingredient sales exceeding US$45 billion in the U.S. Increased demand for organic products for health reasons is expected to translate into higher sales of organic paprika oleoresin.

Regarding applications, the market is divided into food, cosmetics, feed, and the pharmaceutical industry. The food segment is expected to exhibit incremental growth opportunities over the forecast period. The demand for paprika oleoresin will be driven by its numerous health benefits, including antioxidant properties, immune system enhancement, and anti-inflammatory properties. Additionally, paprika oleoresin aids in weight management by promoting the oxidation of abdominal fat.

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Europe to Lead Global Paprika Oleoresin Market as Demand for Seasoning Processed Meat Increases

Europe and North America are poised to collectively capture the largest share of the global paprika oleoresin market in terms of value during the forecast period. Europe is a significant importer of paprika oleoresin on a global scale, with Spain being a prominent producer and importer in the region. India, China, and Peru are among the key suppliers to the European market. The steady import of paprika oleoresin in Europe is attributed to the relatively high consumption of processed meat, with countries like Germany and the U.K. utilizing the distinct flavor and color of paprika in seasoning processed meat to appeal to a wider consumer base.

India is a leading producer and exporter of paprika oleoresin, closely followed by China, which has gained dominance in the spice oleoresin market in recent years. China has been cultivating paprika in the Northwestern Xinjiang province and has established two factories in India to capitalize on the availability of high-quality raw materials. Analysts predict that the growing number of new food manufacturing units in the Asia Pacific region, combined with rising health awareness and disposable income, will drive market growth in the region.

Global Paprika Oleoresin Market: Competitive Landscape

Key players in the global paprika oleoresin market include DDW The Colour House, Universal Oleoresins, BIOCONCOLORS, Synthite Industries, Plant Lipids, AVT Natural Products Ltd, Kalsec Natural Ingredients, Naturex, Holland Ingredients, and Akay Group Ltd.

In early 2018, DDW The Color House, a major food ingredient manufacturer, introduced EmulsiTech cloudy paprika, a non-GMO, palm-free, water-dispersible coloring ingredient that imparts a cloudy orange hue to soft drinks. This ingredient was launched as an alternative to cochineal extract and aimed at catering to the vegan food industry. Analysts at Fairfield Market Research anticipate that paprika oleoresin manufacturers will capitalize on the wave of veganism to profit from evolving consumer preferences.

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Global Industry Analysis (2018 – 2021) – Growth Trends and Market Forecast (2022 – 2029)

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This press release first seen on Brilad