Global Capsicum Oleoresin Market - 2023-2030

Overview:

Global Capsicum Oleoresin Market reached US$ 31.7 million in 2022 and is expected to reach US$ 56.5 million by 2030, growing with a CAGR of 7.5% during the forecast period 2023-2030.

The globalization of culinary tastes and the growing popularity of ethnic foods drive the need for spicy and flavorful ingredients. The role of capsicum oleoresin as a natural and healthy ingredient increases its application as a culinary spice, driving the market growth. The longer shelf life and annual-wide availability of these products increase their demand in the global market.

Capsicum oleoresin is gaining popularity due to its bioactive compound, capsaicin. The various health advantages and therapeutic properties associated with capsaicin drive its demand in nutrition and medicinal applications. The analgesic and anti-inflammatory properties drive its use in medicated creams and lotions.

Capsicum is the raw material used in manufacturing capsicum olerein. According to USDA, 11 million pounds is the trade volume of capsicum in 2022-23. The high development in capsicum production and utility helps expand the market growth. With the increased applications, manufacturers are taking up comfortable packaging systems to distribute powdered and liquid products in pouches and bottles conveniently.

Dynamics:

Growing Demand for Natural Ingredients

Increasing consumer preferences towards spicy and flavorful food products increases the demand for capsicum oleoresin due to its greater role in serving the desired flavor to the food product. The rising health awareness among consumers greatly impacts their food choices, increasing their preferences toward natural product ingredients. Manufacturers are leaving off using artificial colors and synthetic additives and taking up natural ingredient practices to produce various products.

The demand for natural food ingredients hyped the demand for the product as they enhance its appeal due to its natural coloring and flavoring properties. Food manufacturers are adopting capsicum oleoresin at the industrial level due to their improved functionality and longer shelf life. Food products such as sauces and soups are widely incorporated with capsicum oleoresins.

Advancements in Extraction Methods

The rising demand for the various types of oleoresins, including capsicum oleoresin, drives manufacturers to take up novel technologies for better production technologies. Manufacturers of the product are looking for novel technologies that help reduce production costs and increase process efficiency. The ongoing research and innovations in developing effective extraction methods positively drive market growth.

With the aim of obtaining cost-effective and efficient extraction techniques for the extraction of capsicum oleoresins, the manufacturers depend on the ongoing research methodologies in the market. The combination methodologies of these novel technologies are expected to improve the processing results in a better way. Microwave-assisted, ultrasound-assisted and enzyme-assisted technologies are expected to have an increased application in the extraction of capsicum oleoresin, producing high-quality and cost-effective products.

High Costs and Competition

Capsicum peppers are the raw materials used in the production of oleoresins. These are highly sensitive to environmental conditions and climatic changes majorly impact crop yield and quality. The weather conditions and interruption in the demand-supply chain activities may result in the fluctuation of the raw material. The raw material price fluctuations and utility of specific extraction methods lead to high production costs, affecting the final product price.

The market players may undergo challenges to meet the regulatory requirements provided by the government, in case of the quality and food safety and labelling regulations. In addition, some industrial experts prefer using alternative products, such as synthetic ingredients, due to their cost-effectiveness and increased stability. The greater use of synthetic colours and flavors that replace the capsicum oleoresin functionality hinders market growth.

Segment Analysis:

The global capsicum oleoresin market is segmented based on nature, extraction method, distribution channel, end-use and region.

Wide Use of Solvent Extraction Method at a Commercial Level

The global capsicum oleoresin market is segmented on extraction methods into solvent extraction and supercritical fluid extraction. The solvent extraction method accounted for the largest share in the global market due to the wide adoption of the method in various applications. Solvents such as acetone and hexane are used to process the solvent extraction of the capsicum and other oleoresins. According to the National Institute of Health, ethylene acetate is the most effective solvent to extract capsaicin.

The solvent extraction method consumes low energy and has a greater production capacity. The new advancements taking place in solvent extraction processes for their application in the industry help expand the segment. Introducing new solvents and improvements in the modelling techniques and design methods allow solvent extraction at the sustainable industrial extraction process.

The advancements in the automation and faster action capabilities of the method drive the segment growth. Most capsicum oleoresin operational manufacturers use this technology at the industrial level. For instance, Mane Kancor, an Indian-based natural ingredient manufacturer, is one of the leading manufacturers of capsicum oleoresin. Solvent extraction manufactures liquid capsicum oleoresin with a sharp, pungent sensation.

Geographical Penetration:

Increased Demand for Packaged Food Products in Asia Pacific

The high production of capsicum, the primary raw material used for manufacturing capsicum oleoresins in this region, helps in the abundant availability of raw material resources for product production. According to the Food and Agriculture Organization, Asia-Pacific accounts for up to 67.5 % of the production share of chilies and peppers, including capsicum spp. In 2021, China harvested 754,718 ha of chilies and peppers and produced around 16,749,718 t of the same.

Capsicum oleoresin has diverse applications. The pungent and spicy flavor of capsicum oleoresin improved its use in the traditional cuisines of this region. Apart from its use as a natural ingredient in the food industry, capsicum oleoresin has wide applications in traditional medicine. The product's potential health benefits increased its use in Indian and Chinese traditional medicine and Ayurveda purposes.

The increase in the region's industrialization helped develop various industries, including food & beverage, pharma and nutraceuticals. The higher development of these markets drives the demand for essential ingredients needed to produce various products. In various applications, capsicum oleoresin is used to develop innovative natural products as a natural coloring and flavoring agent.

Competitive Landscape

The major global players in the market include: Ozone Naturals, Trilogy Essential Ingredients Inc, MANE Kanor, Synthite Industries Ltd, Universal Oleoresins, Akay, Bioingredia Natural Pvt Ltd, Avi Naturals, HDDES Group and BOS Natural Flavors Pvt. Ltd.

COVID-19 Impact Analysis:

The outbreak of the COVID-19 pandemic moderately impacted the global capsicum oleoresin market. The strict regulations from the government resulted in the interruption of processing of manufacturing industries. The disruption in the supply chain activities troubled the manufacturers arranging the raw materials and required resources. In addition, the labour shortages also halted production at the industrial level.

The pandemic resulted in a shortage of ingredients in the processing industries. The disturbed production and distribution of the capsicum oleoresins made food and pharma industries to discontinue their processing facilities for a while. In contrast, the rise in consumer awareness about the benefits of natural ingredients raised the market demand due to its increased applications in food and medicine preparations. In addition, the adoption of online sales channel, helped in covering the market sales.

Russia- Ukraine War Impact

The Russia-Ukraine war had a negative impact on many industrial sectors, including food. The war disrupted the supply chain and halted the raw materials and product distributions. The manufacturers faced challenges in sourcing raw materials from different regions. The import and export restrictions disturbed the process flow of the market. The political and economic uncertainty created due to the war had a negative impact on the capsicum oleoresin market.

By Nature

• Organic
• Conventional

By Extraction Method

• Solvent Extraction
• Supercritical Fluid Extraction
• Others

By Distribution Channel

• B2B

• B2C
  • Supermarkets/Hypermarkets
  • Specialty Stores
  • Online Stores

By End-Use

• Food & Beverage
• Pharmaceuticals
• Nutraceuticals
• Household

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In March 2021, a leading processor and supplier of natural food ingredients, Sensient Natural Ingredients LLC, declared its acquisition of New Mexico Chili Products Inc., a dehydrated chili production facility that processes capsicums. The acquisition will help the company increase its global sales volume.
• In January 2020, BASF SE, a European multinational company, introduced CosmediaSP, a purified form of capsaicin, for its application in personal and skin care products.
• In March 2020, Chenguang BioTech Group Co. Ltd, a manufacturer of natural colors, including capsicum oleoresin and paprika oleoresin, invested in new production lines and technology to expand the company's capsaicin production capacity. The new technology helps the company meet the increasing product demand.

Why Purchase the Report?

• To visualize the global capsicum oleoresin market segmentation based on nature, extraction method, distribution channel, end-use and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of capsicum oleoresin market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global capsicum oleoresin market report would provide approximately 66 tables, 69 figures and 243 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies