Oleoresin Market Overview

Oleoresins are a naturally occurring combination of oil and resin that can be extracted from plants. They are a highly concentrated substance that exists in liquid form. Oleoresins are easy to store and transport because concentrated forms reduce space and bulk. They can be more heat-stable than raw spices and have a longer shelf life due to lower moisture content. Oleoresins are added to almost every food application to contribute the attributes of the natural spice such as flavor, color, or as a natural antioxidant. Because oleoresins are highly concentrated, they are usually diluted before use in a final application. They represent the flavor and non-volatile resinous fraction present in the spices. This means that it contains all the heat components, fixatives, natural antioxidants, and pigments.

 

Oleoresin Market experiencing significant growth of XX% every year and is expected to continue its growth during the forecast period. Synthite Industries Ltd., Kalsec Inc., Chenguang Biotech Group Co. Ltd., and Symrise are well-established players in the Oleoresin Market. Synthite Industries Ltd. is a global leader in the Oleoresin Market which offers a wide variety of products including Oleoresins, Essential Oils, Lutein and Marigold, Green Spice Extracts, Tea & Coffee Extracts, Liquid Seasonings, Natural Flavours, etc. Synthite Industries Ltd. accounts for more than 30% share in the global Oleoresin market, Synthite Industries offers whole, powdered, and even processed spices that meet global food safety standards.

 

The range of powdered and sterilized spices conforms to the stringent European Commission directives for microbial load, pesticide residues, aflatoxin, and other contaminants. North America region held the dominant segment in the Oleoresin Market in 2023. The Oleoresin Market is mainly driven by the Increasing Demand in the Food and Beverage Industry and Health Benefits of Oleoresin, which will lead to the rapid growth of the Oleoresin Market in the forecasting year 2024-2030. Fluctuating Raw Material Costs are the main challenges in the Oleoresin Market. Based on Sources, the Black Pepper segment dominated the Oleoresin Market in 2023 with a share of XX%.

 

Black Pepper Oleoresin is prepared by solvent extraction from the ground-dried berries of Piper nigrum L. Pepper oleoresin is a very nutrient-dense substance, containing thiamine, riboflavin, and vitamins C, E, B6, and K. Black pepper oleoresin reduces the risks associated with prostate cancer as well as it also helps to avoid depression. Prevention of brain aging and Alzheimer's is also supported by its piperine content. It will also increase the activity of nerves in the brain. Oleoresins are water-soluble, so they are perfect in liquid mixtures. These extracts are also conveniently shelf-stable for at least 12 months, require less storage space, and don’t need any special temperature considerations.

 

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Oleoresin Market Dynamics

Increasing Demand in the Food and Beverage Industry Boosting Oleoresin Market Growth

Oleoresins are largely used for flavoring food, particularly by large-scale food processing and flavoring industries like meat canning, sauces, soft drinks, pharmaceutical preparations, perfumery and soap, tobacco, confectionery, and bakery. The demand for oleoresins in developed countries is increasing day by day as more and more spicy snacks are being introduced by fast food chains with standardized tastes. The oleoresins are specially suitable for such snacks in that they can be used very conveniently (without any handling of raw spices like ginger, chili, onion, etc.) and produce a standardized effect on taste. Oleoresins of pepper, chili, and celery, are widely used. Turmeric and chili extracts are used to provide colour.

 

Oleoresins are concentrated spices, herbs, seeds, and other plant extracts used alone and as food additives. They are a resin-like residue, either solid, semi-solid, liquid, viscous oils, or thick pastes, one of two products obtained from spices and oils. These oleoresins display the same flavor profile and nutrient yield as the source product, yet with up to 20 times the flavor intensity. Oleoresins are water-soluble, so they are perfect in liquid mixtures. These extracts are also conveniently shelf-stable for at least 12 months, require less storage space, and don’t need any special temperature considerations.

 

They require only 1-10% of the space required by ground spices. They are more heat-stable than regular spices. India’s F&B generates 3 percent of the GDP, it accounts for around two-thirds of India’s overall retail market. Oleoresins are added to almost every food application to contribute the attributes of the natural spice such as flavor, color, or as a natural antioxidant. oleoresins produce excellent flavor and aroma, extend shelf life, and contribute beautiful color to food and beverage products across many varietals. These factors drive the growth of the Oleoresin Market.

 

• February 2020: Mane Kancor Ingredients Pvt. Ltd., a food ingredient company, invested USD 20 million to expand its existing production facilities. This investment will help the company expand its production capacity and increase revenue in the Indian and international markets.

 

Health Benefits of Oleoresin to Drive Oleoresin Market

Pepper oleoresin has good nutrients such as thiamine, riboflavin, vitamins C, E, B6, and K. Black pepper oleoresin contains high amounts of piperine, an alkaloid responsible for the sharp taste and pungency. This component is rich in antioxidants. Quenching free radicals and reactive oxygen species like hydroxyl radicals protect from oxidative damage by piperine. The daily consumption of black pepper oleoresins helps an individual to avoid any kind of infection. Antioxidants prevent and delay the effect of any sort of damage done by free radicals. The black pepper oleoresin assists in weight loss. The spice itself is a rich source of all the vitamins A, C, and K, minerals, and fatty acids. It provides a natural metabolism booster which is one reason behind many health benefits including loss of body fat.

 

It acts as a natural booster of metabolism, making it one of the reasons behind lots of health benefits, including weight loss. If one consumes food containing black pepper oleoresin, it burns calories even hours after eating. It hinders the formation of new fat cells thus inhibiting their accumulation. Additionally, it enhances the absorption of nutrients like selenium, beta carotene, and B vitamins found within the intestines. According to a study carried out in Canada, piperine helps relieve strain on the rectum hence preventing colon cancer. Black pepper oleoresin helps reduce the risks of prostate cancer too. Piperine improved the effectiveness of a chemotherapy medication called docetaxel used to treat prostate cancer.  It also helps to avoid depression. Prevention of brain aging and Alzheimer's is also supported by its piperine content. It will also increase the activity of nerves in the brain.

 

• In March 2021, LycoRed Ltd., one of the known value-added nutrition manufacturers, announced the launch of its all-new oleoresin, which can be used in soft gels and is formulated from algae called Haematococcus Pluvialis.
• According to the EU’s Industrial R&D Investment Scoreboard, health industries invested about €235.3 billion in R&D in 2021, accounting for 21.5% of total business R&D expenditure worldwide.

 

Oleoresin Market Challenges

Fluctuating Raw Material Cost

Oleoresins consist of approximately 66% resin acids, 25% turpentine (an essential oil), 7% non-volatile neutral material, and 2% water. Fluctuating prices of this raw material affect the price of Oleoresins. Oleoresins are produced by the living epithelial cells that line the resin ducts and that are especially active in the outer sapwood. Scarifying the tree trunk exposes the resin ducts, and oleoresin oozes out. Oleoresins are obtained commercially from pines by chipping, or cutting through the bark and exposing the surface of the sapwood. Oleoresin is prepared by extraction of the crushed spice with organic solvents followed by evaporation of the solvent. The composition of the oleoresin depends upon the raw materials and the solvents used for the extraction of oleoresin.

 

The oleoresin is a brownish to dark green oily liquid and two grades are normally available, based on the volatile oil content namely, 40–50 and 60–66 ml per 100 g. The use of green extraction technologies can increase yield and improve their quality. Pigments and phenolic compounds are the main non-volatile compounds present in oleoresins, and HPLC is the most used analytical separation technique to characterize the extracts. Due to a lack of adequate extraction technologies price of essential oil is increasing day by day as a result the price of Oleoresins is rising.

 

Cardamom oleoresin is a dark brown, yellow liquid with a sweet-spicy fragrance used as a spice or condiment to improve the flavor of many dishes, including biryanis, tea, meat, curries, desserts, and confectionery. Cardamom production in India fell by 30% due to a 60% rainfall shortage, climate change, and monsoon vagaries. Other top cardamom-producing countries, such as Nepal and Pakistan, have also experienced production drops due to rising temperatures. As a result, the price of Cardamom Oleoresins increases which is a main challenge in Oleoresin Market.

 

• According to the report, prices of Cardamom the "queen of spices" have shot up 20% month-on-month in October to ?1,900 per kg at the farm gate level.

 

Oleoresin Market Segment Analysis

Based on Sources, the Black Pepper segment dominated the Oleoresin Market in 2023 with a share of XX%. Black Pepper Oleoresin is prepared by solvent extraction from the ground-dried berries of Piper nigrum L. The final product has the characteristic aroma of black pepper with underlying pungency. The flavor is only slightly warm and pleasurable to start but gives a biting, pungent effect that follows. It is a viscous liquid, dark green to olive green in color. Black pepper oleoresin is utilized in the food industry mainly as a coloring and flavoring agent and in the production of classical and proprietary medicines. It is used to cure illnesses and diseases like heart disease, constipation, indigestion, insomnia, and joint and liver problems.

 

The oleresins represent complete spice flavor whereas essential oils only the aroma. Black Pepper Oleoresin (40/20) is a natural food additive obtained by solvent extraction from the berries of Piper nigrum L. with 40-41% Piperine and 20-21% volatile oil. It exists as a free-flowing oleo-green liquid at ambient temperatures, possessing the characteristic aroma of pepper with a pungent taste. It is used in flavoring meat products and as a preservative. Daily intake of black pepper oleoresins will help in preventing infections like inflammation, premature aging, etc. because black pepper oleoresin contains a high amount of piperine, which is rich in antioxidants and protects from oxidative damage.

 

Overall, pepper oleoresin is a very nutrient-dense substance, containing thiamine, riboflavin, and vitamins C, E, B6, and K. Black pepper oleoresin contains large amounts of piperine, a green alkaloid responsible for its sharp taste and pungency. Black pepper oleoresin reduces the risks associated with prostate cancer as well. Piperine improved the effectiveness of a chemotherapy medication called docetaxel used to treat prostate cancer.  It also helps to avoid depression. Prevention of brain aging and Alzheimer's is also supported by its piperine content. It will also increase the activity of nerves in the brain.

 

• According to reports, Consumption of black pepper oleoresin in India is projected to be 5,284 MT by the end of 2032, which accounts for a share of 77.2% in the South Asia market for Black Pepper Oleoresin

 

Oleoresin Market Regional Insights

North America dominated the Oleoresin Market and accounted for an XX% share in 2023. Changing lifestyles and food habits, increasing urbanization, rising household consumption rates, and awareness regarding the importance of proper nutrition have also been driving the Oleoresin Market. An important driver for oleoresin demand is modern food and beverage industrialization, which prefers convenient and processed food products. In addition, increasingly health-conscious consumers in North America are now preferring natural and clean-label products, which align well with the oleoresins market. Furthermore, a robust regulatory framework ensures product safety and quality, building consumer trust. The region's technological advancements in oleoresin extraction and processing have also contributed to its market leadership.

 

The Oleoresin Market grew more significantly in North America because of the growing pharmaceutical and cosmetics sector. Oleoresin finds an application in pharmaceutical formulations due to its therapeutic properties, and also as a natural alternative to synthetic drugs. Some oleoresins possess antimicrobial, antioxidant, and anti-inflammatory properties, which are useful in pharmaceutical preparations focused on treating different health conditions. Oleoresin is incorporated into skincare products, perfumes, and hair care formulations for their natural fragrance, color, and antioxidant benefits. The trend towards clean beauty products has bolstered the demand for plant-based ingredients like oleoresins, which offer multifunctional benefits while aligning with consumer preferences for sustainable and natural alternatives.

 

• In January 2022, Givaudan acquired a 48% stake in Nanovetores Group from The Criatec Fund, signaling a strategic move to strengthen its foothold in the beauty products market. This acquisition enhances Givaudan's capabilities in delivering innovative solutions for the cosmetics industry, leveraging Nanovetores' expertise in nanotechnology for active ingredients. The investment underscores Givaudan's strategy to expand its portfolio and technological capabilities in the rapidly evolving beauty and personal care sector
• In July 2023, in their Exberry collection, KLK OLEO, GNT unveiled the shade brilliant orange - OS, a revolutionary 100% plant-based, oil-soluble color. The source of this hue is non-GMO paprika. With a variety of uses, this innovative color solution replaces artificial coloring and paprika oleoresin and meets the requirement for clean-label components.

Oleoresin Market Scope

 

Oleoresin Market by Region

North America (United States, Canada, and Mexico)

Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)

Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)

Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest)

South America (Brazil, Argentina, Rest of South America)

 

Oleoresin Market Key Players.

• Synthite Industries Ltd.
• Kalsec Inc.
• Symrise
• Chenguang Biotech Group Co. Ltd.
• Kancor Ingredients Ltd.
• Universal Oleoresins
• Akay Group Ltd.
• PT Indesso Aroma
• Ungerer & Company
• Gazignaire SA
• Oleoresin Company
• Universal Oleoresins
• Qingdao Ruibang Biotechnology Co., Ltd
• AVT Natural
• Paprika Oleo's India Limited