Oleoresin Market Size

Oleoresin Market Analysis

The Oleoresin Market size is estimated at USD 1.35 billion in 2024, and is expected to reach USD 1.85 billion by 2029, growing at a CAGR of 6.46% during the forecast period (2024-2029).

Oleoresins are a naturally occurring combination of oil and resins that are heat-stable and easy to store. Since they are unsusceptible to microbiological contamination and have an extended shelf life compared to fresh or dried spices, the demand for oleoresins is increasing across various end-use industries. Moreover, there has been a considerable rise in the trend of natural and clean labeled flavors in processed food products. For instance, according to Ingredion’s study in 2023, around 78% of consumers globally are ready to pay extra for clean labels. Therefore, the demand for oleoresins is anticipated to escalate in the coming years. 

Moreover, the growth of the food and beverage sector, particularly in emerging markets, fuels the demand for oleoresins as ingredients in processed foods, snacks, beverages, and others. Besides this, prominent players in the market focus on product innovation as a critical strategy to expand production and uphold market position. For instance, in 2023, GNT, a supplier of the Exberry line of plant-based food colors, launched a new orange color derived from paprika. The company claims that the Shade Vivid Orange–OS is a 100% oil-soluble, plant-based color made from non-GMO paprika in the firm’s Exberry portfolio. Such factors are likely to influence the demand for oleoresins from different sectors, such as food and beverage and pharmaceutical, during the study period.