Annatto Oil Market: Global Industry Analysis and Forecast (2023-2029)

Global Annatto Oil Market reached a value of US$ 308.69 Mn. in 2022. The global market is expected to grow at a CAGR of 5% during the forecast period. The market is expected to reach a value of US$ 434.37 Mn. by 2029.
Annatto Oil Market Overview:
Annatto oil is made from annatto seeds derived from the Achiote tree. It can be used in all kinds of dishes and gives the dish a beautiful deep golden red colour, a hint of peppery flavour and a rustic aroma. It is also known as Achiote oil and Atuete oil which is commonly used as a natural colourant in Asian and Latin American cuisine. Natural colours have become popular with food manufacturers and buyers in recent years due to their numerous uses in the food processing and home industries.

Annatto oil is used as a colourant in the food industry. It is also used to add vitamin-rich foods such as juices and jellies and is often used with chilli flakes at home to produce a fortified flavour as a seasoning. Due to its additional benefits, its use in the cosmetics industry has increased over time. In addition to cosmetic annatto oil, it is also used in pharmacies to treat various illnesses. Annatto oil has a long shelf life and no expiration date.To know about the Research Methodology :- Request Free Sample Report
Annatto Oil Market Dynamics:
Increasing use of natural food dyes in the processed food industry:

Increasing the use of annatto oil in the food and beverage sector is driving the market. The extract is used in many processed foods such as cheese, milk spreads, all kinds of butter, margarine, fruit puddings, cakes, other baked goods, potatoes, snack foods, mulches, smoked and fried fish, sausages, etc. When mixed with other colourants, it makes food more versatile and visually appealing.

Annatto seeds of 10,000 to 11,000 tons are produced annually, mainly in tropical regions such as India, Sri Lanka, Brazil and Peru. Because of this, the market is expected to grow more. The natural dye market is expected to grow during the forecast period, so the use of an annatto will also increase. This is to give it an extraordinary red-orange colour naturally. Annatto is a natural colourant that causes the yellow colour of butter, margarine and cheese. Without it, all of this would be a pale creamy colour. It is also used in many commercial products such as processed meats, smoked fish, beverages and various packaged foods which is fuelling the growth of the market.

Annatto oil has certain side effects which are hampering the growth of the market:

Annatto oil has certain side effects such as itching, hives, low blood pressure and abdominal pain. Some people can develop irritable bowel syndrome. Lactating women are also advised not to use more than the amount contained in the diet which may impede the market growth. Excessive usage of this oil makes headache which is not good for the human body, these major factor is hampering the growth of the market.

The growing popularity of clean label additives represents an important business opportunity:

The market benefits from growing awareness of the importance of clean labelling for wise shopping. For the above reasons, the demand for natural, recognizable and prominent ingredients has increased, and ingredient procurement and ethical concepts have been promoted to obtain clean label certification for ingredients and additives. This key factor creates favourable growth for the Annatto oil market.

High cost and occasional balance are taken into consideration as a hard component for the market:

The stability of annatto is compared to synthetic colourants such as Azorubine, Allura Red, which is lower. The higher cost of the product as compared to its counterparts are creating a challenging factor for the market. Moreover, the hypersensitivity of the product to environmental factors are obstructing the growth of the market.
Annatto Oil Market Segment Analysis:
By Type, the market is segmented into Oil-Soluble Annatto, Water Soluble Annatto, and Emulsified Annatto. The Emulsified Annatto segment is expected to hold 42.4 % of the overall market share in terms of revenue by 2029. Annatto emulsion remains a dominant category due to the nature of foods in which it is commonly used, such as dairy products. This type of product has been long used to the colour of dairy products. The recent trend of free-form products is established in the dairy sector, the use of fat-soluble substances will be more promising and profitable for manufacturers. So due to these key factors, it has created a huge demand for this segment.

However, the Water Soluble Annatto segment is expected to grow at a CAGR of 3.4% during the forecast period. The water-soluble annatto is been used for Annatto seeds, Bixa Orellana, which are the source of the yellow-orange pigment. The water-soluble annatto colouring formula can be used in the beverages industry, bread and other food products. Annatto Colour is extracted from the seeds of the annatto tree called Bixa Orellana. This seed gives two pigments, oil-soluble bixin and water-soluble norbixin.

By Application, the Annatto Oil Market is segmented into Food Industry, Natural Fabric Industry, Personal Care & Cosmetics and Others. The Food Industry segment is expected to hold 32.4 % of the overall market share in terms of revenue by 2029. The food industry acts as a colourant for a variety of food applications. Due to the increase in the world population, the demand for processed foods is increasing, leading to the use of food additives. It also acts as a colourant and antioxidant. They give ready-to-eat products, long shelf life and high quality. Annatto oil has long been widely used in the food industry and is expected to dominate the market.

However, the Personal Care & Cosmetics segment is expected to grow at a CAGR of 4.8% during the forecast period. Due to its low toxicity, it is a natural unconventional to artificial bleaches which are used in lotions, creams, sunscreens, body washes and bath soaps for personal hygiene. Annatto oil is rich in calcium, magnesium, zinc, copper and manganese, and is primarily used in skincare. It has antibacterial and antifungal properties and is effective for other skin conditions that are expected to grow the segment and overall market in the coming years.
Regional Insights:
The North American region is expected to dominate the market during the forecast period with a 62% market share. Due to the growing population, the demand for ready-to-eat, fresh quality foods such as fish, meat and chicken products is increasing, and annatto oil is widely used in the region. The United States, Canada and Mexico are the largest contributors to the market in the region. The region source more than 60% of annatto oil supply from Peru and the rest from the Caribbean. Increased government support for the introduction of natural food dyes in a variety of food and beverage applications is anticipated to accelerate the growth of the North American Annatto Oil market.

However, the Asia Pacific and Europe is expected to grow at a CAGR of 6.2% & 5.4% during the forecast period. This is due to the increased demand for annatto oils in the food and cosmetics industry and the increased approval rates from various food regulators supporting the launch of new products. With the steady increase in consumption of meat, chicken and other non-vegetarian food applications, the use of the product as colourants and flavours is skyrocketing in the market. India, China and Japan are the most developed markets in the region and contribute significantly to their growth.

The objective of the report is to present a comprehensive analysis of the global market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help in understanding the market dynamics, structure by analyzing the market segments and projecting the market size. Clear representation of competitive analysis of key players by Technology, price, financial position, product portfolio, growth strategies, and regional presence in the global market makes the report investor's guide.
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Annatto Oil  Market


Base Year
2022
Forecast Period
2023-2029


Historical Data
CAGR
Market Size in 2022
Market Size in 2029


2018 to 2022
5%
US$ 308.69 Mn
US$ 434.37 Mn


Segments Covered


by Type
Oil-Soluble Annatto
Water-Soluble Annatto
Emulsified Annatto
by Application
Food Industry
Natural Fabric Industry
Personal Care & Cosmetic Industry
Others


Regions Covered


North America
United States
Canada
Mexico
Europe
UK
France
Germany
Italy
Spain
Sweden
Austria
Rest of Europe
Asia Pacific
China
S Korea
Japan
India
Australia
Indonesia
Malaysia
Vietnam
Taiwan
Bangladesh
Pakistan
Rest of APAC
Middle East and Africa
South Africa
GCC
Egypt
Nigeria
Rest of ME&A
South America
Brazil
Argentina
Rest of South America



Key Players are:
1. Biocon del Peru
2. Zhongda Biological
3. Guangzhou Qianyi
4. The Color House
5. BioconColors
6. La Perla Spice Company Inc.,
7. Solutions LLC,
8. Wesson
9. DW
10.Hansen
11.FMC
12.WILD Flavors
13.Kalsec
14.Vinayak Ingredients
15.Aarkay Food Products
16.AICACOLOR
17.Food Ingredient

Frequently Asked Questions:

1] What segments are covered in the Annatto Oil Market report?
Ans. The segments covered in the Annatto Oil Market report are based on Type and Application.

2] Which region is expected to hold the highest share in the Annatto Oil Market?
Ans. The North American region is expected to hold the highest share in the Annatto Oil Market.

3] What is the market size of the Annatto Oil Market by 2029?
Ans. The market size of the Annatto Oil Market is expected to be 434.37 Mn by 2029.

4] What is the forecast period for the Annatto Oil Market?
Ans. The forecast period for the Annatto Oil Market is 2023-2029.

5] What was the market size of the Annatto Oil Market in 2022?
Ans. The market size of the Annatto Oil Market in 2022 was US$ 308.69 Mn.