According to Future Market Insights research, during the projected period, the Annatto Extract market is expected to grow at a CAGR of 5.50%. The market value is projected to increase from US$ 213.0 million in 2022 to US$ 363.8 million by 2032. The Annatto Extract market was valued at US$ 201.3 million at the end of 2021 and is anticipated to exhibit a CAGR growth of 5.80% from 2016 to 2021.
| Attributes | Details |
|---|---|
| Market Size Value in 2022 | US$ 213.0 million |
| Market Forecast Value in 2032 | US$ 363.8 million |
| Global Growth Rate (2022 to 2032) | 5.50% CAGR |
| Forecast Period | 2022 to 2032 |
| CAGR of the United Kingdom in Europe | 6.00% |
Annatto is a natural pigment and spice derived from the achiote tree, used as a food color and as a flavoring. Annatto also serves as a food dye. Annatto is a pigment or a coloring agent emitted from the red seeds of the achiote tree (Bixa Orellana), a tropical tree.
The fruit is shaped like a heart and has hairs on its surface. Consequently, when the fruit ripens and the pod opens, the red seeds can be collected. The yellow to orange color range found in many industrial products is a result of annatto. The extract of annatto is prepared as a powder, paste, or by cooking it directly in the oil.
Butter, yogurt, and beverages are among the many products that use annatto extract. Additionally packed with numerous medicinal qualities, Annatto extract is used in cooking and other culinary processes. The three main components of high-quality food are color, texture, and flavor.
The taste and aesthetic appeal of the food are traditionally determined by the color of the food that triggers the coloring agent market like the annatto extract market, which attempts to develop and add all-natural and synthetic coloring agents for the foodstuff, cosmetics, and textile industry. One of the highly favored spices and natural coloring agent is Annatto extract.
A new report published by Future market insights, titled, Annatto Extract Market - Global Opportunity Analysis and Industry Forecast, 2022 to 2032, projects the global Annatto Extract market to reach US$ million by 2032. The market was valued at US$ 151 million in 2016 and is expected to grow at a CAGR of 5.50% from 2022 to 2032.
On the basis of the geographical market segment, it is segmented into seven different regions: North America, Latin America, Eastern Europe, Western Europe, Asia-Pacific region, Japan and the Middle East, and Africa.
The market for annatto extract in North America is currently leading the global market since demand from consumers continues to rise. For that reason, companies such as Sherwin-Williams are choosing to use the natural coloring agent necessary for producing these necessary ingredients.
The Annatto Extract market is growing at a rapid rate, with an estimated annual compound growth of 4-5%. The reason why the market is expanding so quickly is because of its unique health benefits. Annatto extract is derived from the seeds of the achiote tree and it's packed with antioxidants, vitamins, minerals, and other essential nutrients. This natural solution has been used traditionally to treat maladies such as digestive issues and skin problems.
Due to its versatility in culinary recipes, annatto extract has become increasingly popular among chefs and foodies alike. It adds flavor and color to dishes, while also providing numerous health benefits. It's also gaining traction among consumers who want a healthy alternative to processed foods or artificial ingredients that are found in many of today's meals.
North America is a leading market in the world when it comes to annatto extract, making up over 40 percent of the global share. The outlook for North America's market in annatto extract is promising; demand for the natural food dye has increased thanks to its numerous health benefits, such as providing antioxidants and helping regulate blood pressure. This has led to more manufacturers looking into sourcing their ingredients from sustainable sources, which is growing the North American market for annatto extract suppliers.
The development of new products with annatto as an ingredient is also driving sales growth in North America. As consumer preferences continue to move towards plant-based and all-natural foods, brands are increasingly turning to annatto as a natural coloring agent that adds flavor without any artificial additives or preservatives.
Europe is a large exporter of Annatto root extract. Annatto root extract is extracted from the seeds of an Achiote tree and is a natural food coloring and flavor enhancer used in various applications such as cosmetics, food products, and drinks. The increase in European citizens' interest in healthy food and beverages over the past two years has created a sharp rise in Annatto extract exports from there.
The European market for natural annatto additives may expand as awareness of natural color and its potential health benefits grow. As enforcement of synthetic dye restrictions in Europe continues, this will further invigorate the interest in natural annatto extract alternatives. Advances in technology have enabled manufacturers to produce higher-quality extracts with improved performance at lower prices.
The market for annatto extract is on the rise in the Asia Pacific region. As demand for natural food coloring increases all over the world, consumers are turning to annatto extract as an alternative source of color and flavor. Annatto has been used for centuries by people in South America and Asia, but it wasn’t until recently that its popularity began to spread globally.
Today, many food manufacturers and restaurants are using annatto extract as a substitute for synthetic dyes and preservatives. This trend has created a huge opportunity for companies based in the Asia Pacific region to capitalize on this growing demand by producing higher-quality annatto extracts at a competitive price point. With its potential to be used in a variety of products, ranging from beverages to confectionery items, the outlook of Asian Pacific companies in this market looks very promising indeed.
The color industry is experiencing an uptrend due to the increased public familiarity with the consequences of chemical colorants on health. Strict rules and regulations, as well as an increase in production in Europe, will likewise contribute to the annatto extract sector's fascinating future prospects in the coming years.
Japan's launch of new foods and beverages with new tastes and natural ingredients is stimulating the natural food color market, ultimately supporting the annatto extract market. The greatest obstacles hindering the growth of the annatto extract market are high prices, limited stability in comparison to other colors, and degradation of color through external factors.
The more sensitive or allergic a person is to achiote, the less he or she may be compelled to accept this aromatic substance from plant materials. An unforeseen effect of annatto, which plays a role in human and commercial products, is the reduction in demand for the substance by the market.
The color shades produced by annatto extract range from yellow to reddish. To achieve the desired color, bixin, which is present, is dissolved or dispersed in oil. In general, annatto extract is used to color foods with high-fat content, such as dairy products, baked goods, sauces, and cream-based desserts.
The use of water-soluble soluble annatto extract had already increased because it produces powders and diluted solutions that have high pH levels for commercial products. Norbixin is present in water-soluble annatto extract, generally as potassium or compounds containing. Annatto, which is water soluble, is used to color cheese.
Annatto extract can be amphiphilic, facilitating inclusion into oil or water because of its combination with boroxines or norbixin. Annatto extract also provides better acidity stability by using appropriate emulsifiers. Annatto colors are mostly found in ice creams, soups, confectionaries, and dairy products.
The Annatto Extract market is expected to grow at a CAGR of 5.50% during the forecast period of 2022 to 2032. The annatto extract market is experiencing tremendous growth, driven primarily by supermarket and industrial distributors. Annatto extract is derived from the seeds of the achiote tree, which grows in tropical regions. The product has been used for centuries as a natural food colorant and seasoning due to its intense yellow-orange hue. In recent years, it has gained increased attention as an alternative to synthetic dyes and artificial flavors.
Supermarket and industrial distributors are propelling this growth of annatto extract in the market by supplying products that contain the ingredient. This includes ready-to-eat meals, snacks, frozen foods, beverages, baked goods, and confectioneries. Due to its versatility as a natural food colorant and flavor enhancer, annatto extract can be found in many different types of processed food items including cereals, sauces, and dressings.
The competitive landscape of the annatto extract market is rapidly evolving, with a number of companies vying for a share in this growing industry. In recent years, the demand for natural food colorings and flavors has been on the rise due to increasing awareness about synthetic ingredients and their potential side effects. Annatto extract is one such natural product that is gaining attention as an ideal alternative to artificial colors and flavors in various food products. As a result, several manufacturers are entering the annatto extract market to capitalize on its growing popularity among consumers.
The most prominent players in the annatto extract market are BASF SE, GNT Group NV, Sensient Technologies Corporation, Kalsec Inc., Kancor Ingredients Limited, Naturex SA, Dohler Group GmbH & Co., Naturalin Bio-Resources Co., Ltd., Synergy Flavors Inc.
| Attribute | Details |
|---|---|
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2022 |
| Market Analysis | US$ million for Value and Units for Volume |
| Key Regions Covered |
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| Key Countries Covered |
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| Key Segments Covered |
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| Key Companies Profiled |
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| Report Coverage | Market Forecast, Company Share Analysis, Competitive Landscape, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The global Annatto Extract market will reach a valuation of US$ 201.3Mn by the end of 2022.
The global Annatto Extract market is forecasted to surpass US$ 363.8 Mn by the end of 2032.
USA, Germany, Japan, China, India, Australia, UK are the major countries driving demand for Annatto Extract Market.
The USA Annatto Extract Market is contributing 31.50% of the total value share in the global market.
The Germany Annatto Extract Market is contributing 28.50% of total value share in global market.
In Japan Annatto Extract Market is contributing 6.90% of total market share which values in year 2022.
In India Annatto Extract Market is contributing 4.80% of CAGR for latest period.
In China Annatto Extract Market is contributing 5.00% of CAGR for latest period.
In Australia Annatto Extract Market is contributing 3.00% of total value share in global market.
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Annatto Extract Market
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