The global oleoresin market size was estimated at USD 1.8 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 6.9% from 2024 to 2030. This is attributed to the rising demand of oleoresins like turmeric in pharmaceutical and healthcare sectors due to its therapeutic benefits, which have bolstered the market growth. 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.
Application Insights
The food application segment dominated the market with a share of 28.0% in 2023.This high percentage can be attributed to oleoresins being extensively utilized in the food industry, especially for marinades, meat preparations, gourmet foods, and convenience food products. It provides the flavor and aroma of spices and herbs to food products. Turmeric and paprika oleoresins also provide color. Furthermore, the product is used to impart flavor to cold drinks. They have fast replaced the use of ground spice owing to their standardized taste and consistent aroma. They are economical, require less storage space, have no bacterial contamination, and possess a long shelf life.
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Product Insights
The black pepper oleoresin segment dominated the market with a share of 25.46% in 2023. This is attributable to the widely utilized black pepper in food products owing to its pungent taste and spicy aromatic properties. Black pepper oleoresin is generally prepared from ethanolic extraction combined with a small proportion of dried ground black pepper. Rising demand for the product owing to its antioxidant & antimicrobial properties is expected to positively affect the overall market over the forecast period.
Regional Insights
Europe dominated the market with a revenue share of 29.60% in 2023. This high share is attributable to the market growth in this region and increasing demand for flavorings & colorants from the food & beverage industry. Paprika oleoresin is extensively utilized as a coloring and flavoring agent in the food & beverage sector and accounts for a relatively higher market share compared to other product. Increasing competitive rivalry for herbs and spices to extract oleoresin is projected to prompt European importers to opt for new sources.
Key Oleoresin Companies:
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