Ginger Oleoresin Market

Global Ginger Oleoresin Market Size (2024 to 2029)

The global ginger oleoresin market size is expected to be worth USD $21.09 Million in 2024. It is expected to grow at a CAGR of 10.4% during the forecast period and reach a value of USD $34.59 Million by 2029.

Ginger oleoresin is a thick, viscous liquid that ranges in color from bright yellow to dark brown, featuring the distinct scent and flavor of ginger. This natural extract is derived from ginger root, and it contains volatile oils obtained from both fresh and dried sources. The primary active compounds found in ginger oleoresin are gingerols, which are responsible for its therapeutic properties. While most oleoresins are primarily utilized in the fragrance and flavor industry, some also have medicinal applications, such as the oleoresin extracted from dried Cannabis infructescence. In the case of ginger oleoresin, it is employed in preserving raw sugarcane juice, ensuring food safety, and adding nutraceutical benefits to the product.

The Ginger Oleoresin market is poised to benefit from promising opportunities driven by the surging consumer preference for natural and organic food products. This evolving consumer trend presents a significant opening for ginger oleoresin as a natural flavoring and coloring agent in diverse food and beverage applications. Furthermore, the expanding functional food and nutraceutical industry creates potential avenues for ginger oleoresin to be integrated into products that promote health and well-being, capitalizing on its anti-inflammatory, antioxidant, and digestive properties. The growing emphasis on health consciousness among consumers is fueling the demand for ginger oleoresin in functional foods and dietary supplements.

Global Ginger Oleoresin Market Drivers:

The Ginger Oleoresin Market is being driven by several key factors. One significant driver is the growing usage of ginger oleoresin in the HoReCa (Hotels, Restaurants, and Café) industry, which is providing a stable source of revenue for manufacturers. Consequently, manufacturers are diversifying their product offerings to boost profitability. Also, the increasing consumer awareness, particularly among health-conscious individuals, is playing a pivotal role. Consumers are becoming more informed about the health benefits associated with oleoresins, such as their potential to reduce cancer risk and alleviate colic, flatulence, joint and muscle pain, urinary tract infections (UTIs), and digestive issues, among other ailments. This heightened awareness is driving growth in the ginger oleoresin market.Furthermore, the ginger oleoresin market is undergoing significant changes, as an increasing number of consumers prefer natural or organic components in their food, pharmaceutical, and nutraceutical products, with organic ginger oleoresins experiencing rapid growth, although conventional ginger products still dominate a market share exceeding 90%. This trend is further propelling the expansion of the ginger oleoresin market.

Global Ginger Oleoresin Market Restraints:

There are certain factors that may hinder the growth of the Ginger Oleoresin Market, primarily related to the increasing use of Ginger Essential Oil. Ginger essential oil products are emerging as competitors to ginger oleoresin, primarily because they often possess stronger flavors. However, it's worth noting that, unlike essential oils, oleoresins offer advantages such as flavor standardization and a longer shelf life. While the global ginger oleoresin market is expected to experience healthy growth, there is a need to enhance its suitability for HoReCa and other industries, particularly by extending its shelf life.

Manufacturers are actively addressing this challenge by adhering to regulatory guidelines and working on improving product compositions to achieve longer shelf lives. Additionally, they are investing more in research and development efforts aimed at enhancing extraction processes, such as Supercritical Fluid Extraction (SCFE) and solvent extraction, to produce superior oleoresin products. These efforts are essential for sustaining and expanding the ginger oleoresin market.

Impact Of COVID-19 on the Ginger Oleoresin Market:

The global COVID-19 pandemic caused significant disruptions across various industries as governments enforced lockdown measures to curb the virus's spread. These disruptions included challenges in ginger production and transportation, which affected the market due to supply chain interruptions. 

Consequently, the COVID-19 pandemic has had an impact on the ginger oleoresin market. The food and beverage sector experienced a notable increase in demand during and after the pandemic, primarily due to consumers seeking natural and organic food supplements. As consumers prioritize health and explore natural remedies, there has been a surge in demand for ginger-based products and ingredients. Ginger oleoresin, known for its potential immune-boosting and anti-inflammatory properties, has gained attention in the pharmaceutical and health food sectors. Additionally, the pandemic has underscored the significance of clean labels and natural products, further driving the demand for ginger oleoresin as a natural flavoring agent.

REPORT COVERAGE:

This research report on the global ginger oleoresin market has been segmented and sub-segmented based on nature type, application, distribution channel & region.

Global Ginger Oleoresin Market - By Nature Type:

• Organic
• Conventional

Based on nature type, the organic ginger oleoresin segment dominated the Ginger Oleoresin market in 2022 and is anticipated to grow at the highest CAGR during the projected period. Organic ginger oleoresin meets the increasing need for natural and organic items, resonating with consumers who give preference to clean labels and sustainable components. In contrast, conventional ginger oleoresin is aimed at customers looking for cost-efficient choices and broader market accessibility.

Global Ginger Oleoresin Market – By Application:

• Cosmetic & Personal Care

• Aromatherapy
• Fragrance
• Hair Care
• Skin Care
• Others

• Food & Beverage

• Bakery & Confectionary
• Beverages
• Dressing & Condiments
• Sauces, Spreads & Soups
• Others

• Pharmaceutical
• Household

Based on the application, in 2022, the food and beverage sector claimed the largest market share in the global ginger oleoresin market. This dominance can be attributed to the rising demand within the food and beverage industry, where ginger oleoresin is utilized by manufacturers to impart distinct tastes, flavors, and aromas to their products. The growing global appetite for flavored beverages and juices has driven manufacturers to incorporate natural ingredients and flavors into their offerings.

Looking ahead, the pharmaceutical sector is expected to witness substantial growth in the global ginger oleoresin market in the coming years. This growth is fueled by the numerous health benefits associated with ginger oleoresin and increased investments in pharmaceutical research and development. The pharmaceutical industry is harnessing these products to formulate organic health solutions. Unlike manufactured drugs, oleoresins provide benefits without adverse effects, making them an attractive option. Pharmaceutical companies are leveraging the medicinal properties of oleoresins to expand their product portfolios, resulting in heightened demand within the pharmaceutical application category.

Global Ginger Oleoresin Market - By Distribution Channel:

• Direct Sales (B2B)
• Indirect Sales (B2C)

• Hypermarket/Supermarket
• Specialty Stores
• Mass Grocery Stores
• Online Retail

Based on the distribution channel, direct sales are expected to lead the upcoming ginger oleoresin market. The distribution channel segment defines the pathways through which ginger oleoresin reaches its end consumers. Direct sales involve establishing direct connections with customers, providing personalized service, and tailoring product solutions to their needs. Distributors and wholesalers are essential in the distribution network, as they are responsible for delivering ginger oleoresin to a diverse customer base, including food manufacturers and retailers. 

Additionally, online retail has emerged as a significant distribution channel, allowing consumers to conveniently purchase ginger oleoresin through e-commerce platforms.

Global Ginger Oleoresin Market – By Region:

• Asia Pacific
• Europe
• Middle East and Africa
• North America
• Latin America

Based on region, the Asia Pacific region currently holds the dominant market share in the global ginger oleoresin market, primarily driven by factors like a rising population and increased urbanization activities. The demand for ginger oleoresin has grown in tandem with the development of specialty stores and the expansion of supermarkets/hypermarkets in the region. In recent years, market expansion has been further fueled by population growth and increased disposable income in emerging countries. For instance, India and China have seen rapid growth in the consumption of ginger oleoresin, driven by increased government investment and the adoption of new industrial technologies, leading to higher production rates. Asia Pacific region is the world's leading producer and exporter of ginger oleoresin. Key spice-producing countries in this region include India, China, Vietnam, Indonesia, and Malaysia, among others.

On the other hand, North America is anticipated to experience the highest growth rate in the global ginger oleoresin market during the forecast period. This growth can be attributed to investments in research and development aimed at advancing extraction technologies like Supercritical Fluid Extraction (SCFE) and solvent extraction, resulting in the production of improved oleoresin products.

Besides this, the rest of the world is expected to have a moderate growth rate in the upcoming year.

KEY MARKET PLAYERS:

Major Players in the Ginger Oleoresin Market are AOS Products Pvt. Ltd., Kanta Enterprises Private Limited, Mountain Rose Herbs, PLANT THERAPY, Edens Garden, Young Living Essential Oils, LC, NOW Health Group, Inc., Rocky Mountain Oils, LLC, Mane KANCOR, Synthite Industries Ltd., NATUREX SA, Akay, BOS Natural Flavors (P) Limited, Sami Spices

RECENT HAPPENINGS IN THE MARKET:

In March 2020, Akay introduced SPICEUTICALS, a brand set to provide an array of innovative and patented products manufactured in their newly certified GMP plant.