Annatto Market Size

Annatto Market Analysis

The annatto market is projected to register a CAGR of 3.72% over the next five years.

• The increasing demand and consumer preference for minimally processed foods and the health-promoting properties of natural colorants are expected to drive the annatto market globally. Wide varieties and applications of annatto in the food and beverage industry make it one of the most required substances for enhancing food products. In addition, increasing uptake of functional foods is also expected to drive its market in developing countries like India and China. The factor above drives the need for natural, recognizable, and pronounceable ingredients.
• The worldwide annatto business is thriving as consumers understand the value of clean labeling. Additionally, it is claimed that ethical and ingredient-sourcing standards would propel clean-label concepts to advanced stages of development. Therefore, companies are actively making more effort to have their ingredients and additives certified as clean-label products. Due to qualities like low processing, efficiency in reformulation, non-GMO certification, and safety, natural food colorants like bixin will continue to be in higher demand.
• The market's expansion is significantly constrained by Annatto's lesser stability when compared to synthetic colors like Azorubine, Allura Red, and others. The product's higher price relative to its alternatives is another factor hindering the market's rapid expansion. Furthermore, the product's extreme sensitivity to environmental factors, including temperature and light, which causes color deterioration, may restrain market expansion during the projected period.