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Oleoresins Market Drivers, Restraints and Opportunities by 2025

(Food-Beverage-News.Com, June 29, 2021 ) The oleoresins market is estimated to be valued at USD 1.2 billion in 2019 and is projected to reach USD 1.7 billion by 2025, recording a CAGR of 6.0% from 2019 to 2025. The rapidly growing demand for natural flavors in the food & beverage industry and the wide application of oleoresins in various other industries such as pharmaceuticals, personal care, and feed sectors are some of the key factors driving the growth of the market.

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Driver: Rise in the trend of using natural flavors in food processing

Oleoresins extracted from a particular spice or herb provide the flavor characteristics of its ground form with a more rapid flavor release. Oleoresins are produced to preserve the robust flavor and aroma of the spice and are extensively used in the natural food colors and flavors market. The increasing demand for natural and clean label products and strict regulations regarding the use of artificial colors and flavors in food products are factors driving the market demand for oleoresins. Moreover, additional health benefits of specific natural food colors and flavors and advanced technological innovations have boosted the growth of the natural food colors and flavors market, globally.

Restraints: Availability and maintaining stocks of raw materials and price fluctuations

Spices needed to produce oleoresins are available seasonally, whereas their requirement is throughout the year. The companies have to purchase and stock across seasons, bearing the risk of sudden loss. The prices of raw materials fluctuate and increase due to various agro-climatic reasons. The frequent price fluctuation in the commodity market poses a high risk for the stock.

Another serious concern faced by Indian manufacturers is the re-export time granted to processors. Processors can import spices but have to re-export them in a value-added form within 120 days or pay a duty of 70% of the import value. Indian processors are demanding an extension of the period, given that the availability of spices is dwindling in India due to the large scale dependence on the agro-climatic situation. The Oleoresins market has become a commodity product with thin margins. Reducing costs and moving up the value chain are the only ways companies can survive and grow in the market, making this a restraint for the entire market.

Opportunities: Increase in demand for feed phytogenics

Livestock require adequate nutrition and care for optimum growth and development; with the increase in awareness in terms of food safety, growing concerns about livestock health, and focus on increasing the feed intake, and greater resistance to the use of antibiotics in feed are some of the major factors that make oleoresins preferred ingredients in livestock nutrition.

Feed phytogenics or plant-based feed phytogenics such as herbs, essential oils, and oleoresins are a group of natural ingredients used in animal nutrition. They play an essential role in providing balanced nutrition to livestock. The rise in demand for various animal products such as eggs and meat are the major driving factors for the oleoresins market. To ensure that animals receive enough nutrition for better growth and development and, ultimately, good quality animal products, growers feed them with various products that increase their performance and productivity. The inclusion of feed phytogenics differs by livestock, depending upon their nutrient requirements and feed intake.

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This report includes a study on the marketing and development strategies, along with the product portfolios of the leading companies. It consists of the profiles of leading companies such as Akay Group (India), Synthite Industries Pvt. Ltd. (India), AVT Naturals (India), Givaudan (Switzerland), PT Indesso Aroma (Indonesia), Vidya Herbs Private Limited (India), Ungerer & Company (US), Kancor Ingredients Ltd. (India), Plant Lipids (India), Kalsec Inc.(US), Gazignaire (France), and Universal Oleoresins (India).

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MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.

Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the "Growth Engagement Model – GEM". The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write "Attack, avoid and defend" strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.

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Mr. Aashish Mehra


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