Paprika Oleoresin Market

Paprika Oleoresin Market Size, growth (2023-2028)

Paprika Oleoresin Market share value in 2022 was 209.24 million, and it is expected to grow at a CAGR of 7.30% during the forecast period 2023-2028 to reach USD 319.32 million by 2028.

Paprika Oleoresin Market Overview:

Paprika is a type of spice. It is made from air-dried fruits of chili pepper and capsicum annum, arising from the family of Solanaceae. Oleoresin is one of the types of extract obtained from various herbs and spices. These resin and oil combinations are derived from plants. Oleoresin can be derived from a variety of plant sources, including coriander, paprika, turmeric, valerian, clove, and chili. A Paprika oleoresin extract is made from dried and crushed sweet pepper pods; paprika oleoresin is an oil-soluble product. These sweet pepper pods are also known as fruits of Capsicum annum Linn. The paprika extract has a characteristic odor. The extract is reddish-brown in color and viscous. Food products, including sausage, dry soluble seasonings, food coatings, and snack food seasonings, are primarily used as a coloring and flavoring because they dissolve readily in oil. It is mostly used as a coloring and flavoring agent in a variety of food products because of its two major coloring components, capsanthin and capsorubin. To enhance the color of egg yolks, it is frequently included in chicken feed.

Paprika Oleoresin Market Drivers:

The rise in requirement for organic and clean-label products in the food and beverage industry is one of the major driving factors in the paprika Oleoresin Market. This is due to the increase in health awareness about the consumption of healthy and naturally obtained food products. The presence of antioxidizing agents in paprika oleoresin is increasing the demand for it in the food industry and nutraceuticals. Additionally, the use of paprika oleoresin is increased as a colorant because of its properties. In addition, there is an increase in demand for paprika oleoresin as it is also used in nutraceuticals. This is used in products that have no salt in them, as the paprika oleoresin helps to mask that in these nutraceutical products.

The increase in the demand for paprika oleoresin in numerous food products such as sauces, cheese, spice mixes, orange juice, and meat foods increases the market growth for paprika oleoresin. This also helps to add diversity to these food products. Additionally, the increase in the launch of new products using paprika oleoresin increases the market growth. For instance, DDW introduced EmulsiTech cloudy paprika for orange beverages in 2018; this non-GM, palm-free orange tint for soft drinks. The increase in the use of paprika oleoresin in the manufacturing process of various meat products, as the small amount of paprika oleoresin helps to replace the traditionally used spice in kilos. Additionally, the increase in demand from the confectionery and baked food industry is due to the increase in the use of natural food additives instead of artificial flavoring agents. 

Paprika Oleoresin Market Restraints:

The high cost associated with the production of paprika oleoresin is one of the major restraining factors in the growth of paprika oleoresin. This is due to supply issues such as the limited supply and issues in the supply chain distribution of paprika, which decreases the production of paprika oleoresin. This leads to an imbalance in the demand and supply of paprika oleoresin in the market and leads to an increase in the price of the final product. Additionally, the health issues caused by the consumption of Paprika oleoresin via various food products decrease the demand for paprika oleoresin market. The use of paprika oleoresin in large quantities of various food products results in an allergic reaction that is hindering the market growth rate. Additionally, the increase in competition and the presence of various alternatives in the market for paprika oleoresins, such as red chili powder, ground cayenne, dried chili, and crushed red pepper, decreases the demand for paprika oleoresin market across the globe. 

Paprika Oleoresin Market Opportunity:

The increase in demand for food products that help in the digestion process and also contain natural plant-derived materials is creating opportunities for the paprika oleoresin market growth over the forecast period. Additionally, the increase in demand for paprika oleoresin in the pharmaceutical industry increases the demand for them across the world. This is due to its use in the treatment of various health-related issues. These are used to treat backaches, sprains, minor musculoskeletal and joint problems, and arthritis. They contribute to the body's detoxification from free radicals. There are numerous health advantages of paprika oleoresin, such as helping to treat cramps, upset stomach, intestinal gas, and digestive disorders. Paprika oleoresin is a crucial component in cosmetics and personal care products because of its useful properties as it is used in the manufacturing of nail paints, lipsticks, eyeshadows, and hair products. Additionally, the increase in research and development in the extraction process of paprika oleoresin increases the demand for paprika oleoresin across the globe. 

Impact of COVID-19 on the Paprika Oleoresin Market:

The pandemic moderately impacted the growth of the paprika oleoresin market. In the initial phase of the pandemic, the food and beverage industries were closed, which decreased the demand for the paprika oleoresin market. The disruption in supply chain management of the raw materials required for the production of paprika oleoresin was also halted during the pandemic. This disruption of the supply chain of raw materials, such as paprika, was due to the imposition of lockdown and travel bans. However, after the initial phase of the pandemic, there was a slight increase in demand for the paprika oleoresin market growth. This was due to the reopening of the food and beverage industry, etc. Also, the reopening of hotels, restaurants, cafes, etc., increased the demand for paprika oleoresin. Additionally, the pandemic changed consumers' purchasing patterns, as now they are purchasing food products with clean labels, such as paprika oleoresin. These are the factors that impacted the growth of the paprika oleoresin market during the pandemic.

Key Developments in the Paprika Oleoresin Market:

• In May 2023, EXBERRY developed purely oil-based food coloring. GNT’s pioneering paprika oil opens up new options for orange shades in fat-based and low-water applications

Paprika Oleoresin Market- Segmentation,

By Type

• Spices

• Oleoresins

• Flavors

Among these, the Spices segment dominates the paprika oleoresin market due to the growing use of spices as natural food colorants. These are used in food products like sauces, soups, and snacks. This helps to provide a pungent flavor and vibrant red color. The oleoresins segment is expected to show the fastest CAGR growth in the market over the forecasting period with the use of oleoresins in the food and beverage industry to maintain uniform color and flavor in snack foods, meat products, and convenience foods. Oleoresins are preferred because they are easy to handle and store.

By Nature

• Organic

• Conventional

Among these, the organic segment dominates the paprika oleoresin market. The organic segment is expected to show its dominance in the market for the paprika oleoresin. This is due to an increase in demand for the use of natural and organic food products, including paprika oleoresin. The conventional segment is expected to show the fastest CAGR growth in the paprika oleoresin market. Conventional paprika oleoresin is cheap when compared to organic.

By Extraction method

• Supercritical Fluid Extraction (SFE)

• Solvent Extraction

• Other Extraction Methods

Among these, the supercritical fluid extraction segment is expected to show its dominance over the forecasting period due to the use of cosolvents such as 1% ethanol or acetone, which resulted in a higher yield of paprika oleoresins. The solvent extraction segment is expected to show the fastest CAGR growth in the market over the forecasting period.

By Application

• Food & Beverage

• Pharmaceuticals

• Cosmetics & Personal Care products

• Others

Among these, the food and beverage segment dominates the paprika oleoresin market share. The food and beverage segment is expected to show its dominance in the market for paprika oleoresin over the forecasting period. Oleoresins are concentrated extracts that ensure uniform color and flavor in convenience meals, meat products, and snacks. Oleoresins are preferred because they are easy to handle and store. The pharmaceutical segment is expected to show the fastest CAGR growth in the market for paprika oleoresin over the forecasted period. The natural antioxidant and anti-inflammatory properties of paprika oleoresin are anticipated to fuel the market demand in the coming years. 

Paprika Oleoresin Market Regional Analysis:

• Asia Pacific

• Europe

• Middle East and Africa

• North America

• Latin America

Regionally, the North American region dominates the Paprika Oleoresin Market with the increase in the use of clean-labeled food products, including paprika oleoresin. The increase in the use of paprika oleoresin in the food and beverage industry as a natural coloring and flavoring agent is also to promote the market shares to the extent. 

The European region is expected to show significant growth in the paprika oleoresin market over the forecasting period. The European region is one of the main importers of the paprika oleoresin. Additionally, the region's import of paprika oleoresin is expected to stay consistent due to the relatively high processed meat consumption in Europe. Since flavoring processed meat is a key component of the product's recipe, nations like Germany and the U.K. are large consumers of this spice.

The Asia Pacific region is expected to show the fastest CAGR growth in the paprika oleoresin market over the forecasting period. In this region, emerging countries such as India and China are the major exporters of paprika oleoresin. China has maintained its position as the market leader for spice oleoresins in recent years. 

Paprika Oleoresin Market Key Players:

1. Universal Oleoresins

2. Ungerer & Company

3. Akay

4. Synthite

5. AVT Natural Products Limited (AVT NPL)

6. Indo World, Paprika Oleo’s

7. Paras Perfumers

8. Manohar Botanical Extracts Pvt. Ltd.

9. Ambe Group

10. Gurjar Phytochem Pvt. Ltd.

11. MRT Organic Green Products

12. Nature Plus Herbal Cosmetics.