Annatto Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032
Growth Factors of Annatto Market
The Annatto market size was valued at USD 196.55 million in 2023, and the market is now projected to grow to USD 361.39 million by 2032, exhibiting a CAGR of 4.71% during the forecast period of 2024-2032.
Owing to the COVID-19 effects on supply chains and production restrictions due to labor, the annatto market has suffered in the past couple of years. The market growth was slowed down by a reduced application of natural colorants in food products, cosmetics, and pharmaceuticals because of the factory closures and shut down due to COVID-19 as well as, reduced income of the consumers. Also, where available, transport constraints as influenced by accessibility of the annatto seeds and extracts affected the sector in a negative manner. But, as economies steadily regain confidence and common economic freedom grows the market is gradually re-emerging due to influx of natural ingredient demand and improvement in food production processes.
That way, several trends can be seen that affect the annatto market currently, namely the increasing market trend of natural and plant sources of colors in food due to the clean-label trend. The market is increasing with the growth of awareness of customer requirements of catering in food and beverages sector particularly in dairy products, snacks and processed food products due to rising health conscious population. Last of all the utilization of annatto in cosmetic and pharma sectors is getting high due to its antioxidant along with anti inflammation benefits. There is also an upsurge in the production initiatives towards sustainability as regard annatto organic farming is on the increase making producers aware of the impacts of their food products on the environment hence going out of their way to ensure they minimize harm. Thus, all the above mentioned factors are contributing towards the annatto market growth.
The following are the factors that are some of the factors that are influencing the growth of the annatto market. Higher consumer appreciation for natural and organic food ingredients especially for clean-label products is driving the market. This trend is attributed to Annatto’s classification as a natural color that is safe to use on food and beverages as well as cosmetics and personal care products industries. furthermore, the usability of this compound as an antioxidant, an anti-inflammatory substance is expanding its use in pharmaceutical field. In the same manner, increasing awareness of sourcing on the environment also influences the market since clients and corporations with FR morality seek for corporate and socially responsively sourced annatto.
Comprehensive Analysis Annatto Market
It classifies the global annatto market based on the type of extraction method such as solvent extraction & emulsified aqueous extraction which is quite different from each other. Solvency extraction is most popular for processing concentrated extract of annatto whereas aqueous extraction primarily targets on processing natural soluble extracts. According to the application, the market is segmented into food, natural fabric, cosmetics industry, others. The largest consumers of annatto are the food industry because of its use as a natural colorant and as a flavouring agent. In the cosmetic industry, annatto is used in the production of color and as an antioxidant while the natural fabric industry is used for dyeing; others uses include; pharmaceuticals and other household products.
Currently, the largest consumer of annatto is in the Latin American region because leading producers of annatto seeds include Brazil and Ecuador. There is always available supply of annatto because the region enjoys favorable climatic factor which support its growth. Also, the increasing use of natural colors and ingredients in North America and European food industries fosters exportation from the Latin American countries. This is because the existence of fixed extraction plants and organic farming in the region makes the market stand out as the global leader in the production of annatto.
Key players in this sector include Givaudan SA (Vernier, Switzerland), Archer Daniels Midland Company (Illinois, United States), Chr. Hansen Holding A/S (United States), Sensient Technologies Corporation (Wisconsin, United States), Kalsec Inc. (Michigan, United States), Dohler Group (Darmstadt, Germany), Dairy Connection, Inc. (Madison, Wisconsin), IFC Solutions (United States), Biocon Colors (Bengaluru, India)
According to research, plant based food products, especially plant based substitutes for meat, remains to expand in the year 2024. One trend is the continued improvement of the flavors and textures of these products to fit the market’s palate. Firms are employing high technology like fermentation and extrusion to enhance their product quality. Other drivers which needs attention include sustainability where consumers are inclined towards ingredients that are EK and sustainable. Furthermore, the gradual trend which has grown significantly referring as to the flexitarian diet also broadens the circle of consumers because more and more people reject animal foods, but not completely.
Segmentation Table
ATTRIBUTE DETAILS
Study Period 2016-2027
Base Year 2019
Forecast Period 2020-2027
Historical Period 2016-2018
Unit Value (USD Million)
SegmentationBy Type
Solvent Extraction & Emulsified
Aqueous Extraction
By Application
Food Industry
Natural Fabric Industry
Cosmetic Industry
Others
By Region
North America
By Type
By Application
By Country
U.S.
Canada
Mexico
Europe
By Type
By Application
By Country
Germany
France
Italy
United Kingdom
Russia
Rest of Europe
Asia Pacific
By Type
By Application
By Country
China
India
Japan
Australia
Korea
Southeast Asia
Rest of Asia Pacific
South America
By Type
By Application
By Country
Brazil
Argentina
Rest of South America
Middle East & Africa
By Type
By Application
By Country
South Africa
Saudi Arabia
Egypt
Rest of Middle East & Africa
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- 1. Introduction
- 1.1. Research Scope
- 1.2. Market Segmentation
- 1.3. Research Methodology
- 1.4. Definitions and Assumptions
- 2. Executive Summary
- 3. Market Dynamics
- 3.1. Market Drivers
- 3.2. Market Restraints
- 3.3. Market Opportunities
- 3.4. Emerging Trends
- 4. Key Insights
- 4.1. Overview of the Parent Market
- 4.2. Industry SWOT Analysis
- 4.3. Supply Chain Analysis
- 4.4. Recent Industry Developments - Policies, Partnerships, New Product Launches, and Mergers & Acquisitions
- 4.5. Qualitative Analysis (in relation to COVID-19)
- 4.5.1. Impact of COVID-19
- 4.5.2. Supply Chain Challenges
- 4.5.3. Potential Opportunities due to COVID-19
- 5. Global Annatto Market Analysis, Insights and Forecast, 2016-2027
- 5.1. Key Findings / Summary
- 5.2. Market Size Estimates and Forecasts
- 5.2.1. By Type (Value)
- 5.2.1.1. Solvent Extraction & Emulsified Annatto
- 5.2.1.2. Aqueous Extraction Annatto
- 5.2.2. By Application (Value)
- 5.2.2.1. Food Industry
- 5.2.2.2. Natural Fabric Industry
- 5.2.2.3. Cosmetic Industry
- 5.2.2.4. Others
- 5.2.3. By Region
- 5.2.3.1. North America
- 5.2.3.2. Europe
- 5.2.3.3. Asia pacific
- 5.2.3.4. South America
- 5.2.3.5. Middle East & Africa
- 6. North America Annatto Market Analysis, Insights and Forecast, 2016-2027
- 6.1. Key Findings / Summary
- 6.2. Market Size Estimates and Forecasts
- 6.2.1. By Type (Value)
- 6.2.1.1. Solvent Extraction & Emulsified Annatto
- 6.2.1.2. Aqueous Extraction Annatto
- 6.2.2. By Application (Value)
- 6.2.2.1. Food Industry
- 6.2.2.2. Natural Fabric Industry
- 6.2.2.3. Cosmetics Industry
- 6.2.2.4. Others
- 6.2.3. By Country (Value)
- 6.2.3.1. U.S.
- 6.2.3.2. Canada
- 6.2.3.3. Mexico
- 7. Europe Annatto Market Analysis, Insights and Forecast, 2016-2027
- 7.1. Key Findings / Summary
- 7.2. Market Size Estimates and Forecasts
- 7.2.1. By Type (Value)
- 7.2.1.1. Solvent Extraction & Emulsified Annatto
- 7.2.1.2. Aqueous Extraction Annatto
- 7.2.2. By Application (Value)
- 7.2.2.1. Food Industry
- 7.2.2.2. Natural Fabric Industry
- 7.2.2.3. Cosmetics Industry
- 7.2.2.4. Others
- 7.2.3. By Region (Value)
- 7.2.3.1. Germany
- 7.2.3.2. France
- 7.2.3.3. Italy
- 7.2.3.4. U.K.
- 7.2.3.5. Russia
- 7.2.3.6. Rest of Europe
- 8. Asia Pacific Annatto Market Analysis, Insights and Forecast, 2016-2027
- 8.1. Key Findings / Summary
- 8.2. Market Size Estimates and Forecasts
- 8.2.1. By Type (Value)
- 8.2.1.1. Solvent Extraction & Emulsified Annatto
- 8.2.1.2. Aqueous Extraction Annatto
- 8.2.2. By Application (Value)
- 8.2.2.1. Food Industry
- 8.2.2.2. Natural Fabric Industry
- 8.2.2.3. Cosmetics Industry
- 8.2.2.4. Others
- 8.2.3. By Region (Value)
- 8.2.3.1. China
- 8.2.3.2. India
- 8.2.3.3. Japan
- 8.2.3.4. Australia
- 8.2.3.5. Korea
- 8.2.3.6. Southeast Asia
- 8.2.3.7. Rest of Asia Pacific
- 9. South America Annatto Market Analysis, Insights and Forecast, 2016-2027
- 9.1. Key Findings / Summary
- 9.2. Market Size Estimates and Forecasts
- 9.2.1. By Type (Value)
- 9.2.1.1. Solvent Extraction & Emulsified Annatto
- 9.2.1.2. Aqueous Extraction Annatto
- 9.2.2. By Application (Value)
- 9.2.2.1. Food Industry
- 9.2.2.2. Natural Fabric Industry
- 9.2.2.3. Cosmetics Industry
- 9.2.2.4. Others
- 9.2.3. By Region (Value)
- 9.2.3.1. Brazil
- 9.2.3.2. Argentina
- 9.2.3.3. Rest of South America
- 10. Middle East & Africa Annatto Market Analysis, Insights and Forecast, 2016-2027
- 10.1. Key Findings / Summary
- 10.2. Market Size Estimates and Forecasts
- 10.2.1. By Type (Value)
- 10.2.1.1. Solvent Extraction & Emulsified Annatto
- 10.2.1.2. Aqueous Extraction Annatto
- 10.2.2. By Application (Value)
- 10.2.2.1. Food Industry
- 10.2.2.2. Natural Fabric Industry
- 10.2.2.3. Cosmetics Industry
- 10.2.2.4. Others
- 10.2.3. By Region (Value)
- 10.2.3.1. South Africa
- 10.2.3.2. Saudi Arabia
- 10.2.3.3. Egypt
- 10.2.3.4. Rest of Middle East & Africa
- 11. Competitive Matrix
- 11.1. Business Strategies Adopted by Leading Players
- 12. Global Annatto Market Revenue Share Analysis, By Key Manufacturer, 2019
- 13. Company Profiles
- 13.1. Givaudan SA
- 13.1.1. Overview
- 13.1.2. Description
- 13.1.3. Product Portfolio
- 13.1.4. Financials (Data as available in public domain and/or on paid databases)
- 13.1.5. Recent Developments
- 13.2. Archer Daniels Midland Company
- 13.2.1. Overview
- 13.2.2. Description
- 13.2.3. Product Portfolio
- 13.2.4. Financials (Data as available in public domain and/or on paid databases)
- 13.2.5. Recent Developments
- 13.3. Chr. Hansen Holding A/S
- 13.3.1. Overview
- 13.3.2. Description
- 13.3.3. Product Portfolio
- 13.3.4. Financials (Data as available in public domain and/or on paid databases)
- 13.3.5. Recent Developments
- 13.4. Sensient Technologies Corporation
- 13.4.1. Overview
- 13.4.2. Description
- 13.4.3. Product Portfolio
- 13.4.4. Financials (Data as available in public domain and/or on paid databases)
- 13.4.5. Recent Developments
- 13.5. Kalsec Inc.
- 13.5.1. Overview
- 13.5.2. Description
- 13.5.3. Product Portfolio
- 13.5.4. Financials (Data as available in public domain and/or on paid databases)
- 13.5.5. Recent Developments
- 13.6. Dohler Group
- 13.6.1. Overview
- 13.6.2. Description
- 13.6.3. Product Portfolio
- 13.6.4. Financials (Data as available in public domain and/or on paid databases)
- 13.6.5. Recent Developments
- 13.7. Dairy Connection, Inc.
- 13.7.1. Overview
- 13.7.2. Description
- 13.7.3. Product Portfolio
- 13.7.4. Financials (Data as available in public domain and/or on paid databases)
- 13.7.5. Recent Developments
- 13.8. IFC Solutions
- 13.8.1. Overview
- 13.8.2. Description
- 13.8.3. Product Portfolio
- 13.8.4. Financials (Data as available in public domain and/or on paid databases)
- 13.8.5. Recent Developments
- 13.9. Biocon Colors
- 13.9.1. Overview
- 13.9.2. Description
- 13.9.3. Product Portfolio
- 13.9.4. Financials (Data as available in public domain and/or on paid databases)
- 13.9.5. Recent Developments
- 13.10. Aarkay Food Products Ltd.
- 13.10.1. Overview
- 13.10.2. Description
- 13.10.3. Product Portfolio
- 13.10.4. Financials (Data as available in public domain and/or on paid databases)
- 13.10.5. Recent Developments
- 14. Appendix
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