Oleoresin Market

The global oleoresin market size was estimated at USD 1.8 billion in 2023 and is projected to reach USD 2.83 billion by 2030, growing at a CAGR of 6.9% from 2024 to 2030. This is attributed to the rising demand for oleoresins like turmeric in the pharmaceutical and healthcare sectors due to its therapeutic benefits, which have bolstered the market growth.

Key Market Trends & Insights

Europe dominated the market with a revenue share of 29.60% in 2023.
Asia Pacific stands out as a significant player in spice production and oleoresin processing.
Based on product, the black pepper oleoresin segment dominated the market with a share of 25.46% in 2023.
In terms of application, the food application segment dominated the market with a share of 28.0% in 2023.

Market Size & Forecast

2023 Market Size: USD 1.8 Billion
2030 Projected Market Size: USD 2.83 Billion
CAGR (2024-2030): 6.9%
Europe: Largest market in 2023

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Turmeric oleoresin is widely used in healthcare and pharmaceutical industries due to its applications, which include pain relief and reduction in stress and depression, exhibiting robust growth in demand for the overall market over the forecast period. It is also called pinyon gum and has been considered to have medicinal properties and used by consumers globally.

Spain is among the major importers of oleoresins in Europe, along with Germany, UK, Belgium, and Austria being the other key importing countries. The country’s demand for the product is driven by several industries, including personal care & cosmetics, perfumery, and pharmaceuticals, which extensively incorporate it into their products. In addition, Spain’s preference for ethnic food and the ascending demand for the market in healthcare applications contribute to the market growth in the region.

Spain is also one of the largest producers of olive oil, and the country’s agricultural conditions, such as drought, can impact prices and production in the market. As the olive oil is considered a staple ingredient in Spanish cuisine, it is extensively used in cooking for sautéing, frying, and as a final change in various dishes.

Garlic is another essential ingredient in Spanish cuisine, known for its aromatic and flavorful properties. It is widely used in various dishes, such as stews, sauces, and marinades. Garlic is often combined with olive oil to create a flavorful base for many Spanish recipes. Paprika, which is produced as a non-pungent oleoresin in Spain, is also a popular ingredient in the local cuisine. It adds vibrant color and a distinct smoky flavor to dishes like paella, chorizo, and various sauces.

Market Concentration & Characteristics

The global market is characterized by its fragmented nature, with dominant players such as Givaudan, Kancor Ingredients Ltd., Kalsec Inc., Chenguang Biotech Group Co. Ltd., Universal Oleoresins, Akay Group Ltd., and Synthite Industries Ltd. These manufacturers rely on products for their natural flavors, colors, and therapeutic properties. The market is influenced by the fluctuations and volatility in the raw material market, as it is derived from spices and herbs. To ensure a steady supply of raw materials, industry players often establish long-term contracts with raw material producers.

The market’s highly fragmented nature is also influenced by the rising prevalence of gastrointestinal diseases among people and is expected to drive the demand for the product due to its anti-inflammatory and antioxidant properties. Chilli, for example, is used in pharmaceutical applications due to its analgesic, antioxidant, anti-cancer, and anti-inflammatory features. It also helps to reduce free radicals in the human body.