Oleoresins Market Size - By Source (Spices, Herbs, Oleoresin Blends, Ginger, Onion), By Application (Food & Beverages, Pharmaceuticals, Personal Care & Cosmetics) & Forecast, 2023 - 2032

Oleoresins Market Size - By Source (Spices, Herbs, Oleoresin Blends, Ginger, Onion), By Application (Food & Beverages, Pharmaceuticals, Personal Care & Cosmetics) & Forecast, 2023 - 2032

Oleoresins Market size is projected to witness 6.5% CAGR from 2023-2032 driven by the rising consumer preference towards natural and clean-label products. Of late, consumers are increasingly drawn to products that are free from synthetic additives and preservatives. To that end, oleoresins, extracted from spices, herbs, and botanical sources, are widely coveted for their natural flavors, colors, and aromas. They also possess the ability to enhance the sensory attributes of food, beverages, cosmetics, and personal care items to align perfectly with the emerging clean-label and wellness trends.

Furthermore, the rising advances in extraction and processing technologies have made it easier to produce high-quality oleoresins efficiently for meeting the rising demand from various industries. For instance, in May 2023, GNT introduced its new Shade Vivid Orange - OS, the first 100% oil-soluble natural and plant-based color derived from non-GMO paprika in its EXBERRY portfolio.

The overall oleoresins market is categorized based on source, application, and region.

In terms of source, the oleoresins industry value from the oleoresins blends segment is poised to witness high demand through 2032. Oleoresin blends are gaining popularity in the food and beverage industry due to their convenience and ability to impart complex flavors and scents. Additionally, the extensive application of oleoresins in processed foods, snacks, sauces, and seasonings coupled with the rising demand for pre-mixed, flavor-enhancing solutions may fuel the segment growth.

Oleoresins market size from the from the personal care & cosmetics application segment will experience significant growth through 2032. On account of their natural and aromatic properties, oleoresins are increasingly popular ingredients in cosmetics and personal care products. For catering to the higher demand for natural and sustainable beauty solutions, oleoresins also offer fragrances, colors, and active compounds extracted from various botanical sources. The growing consumer inclination to clean and green formulations along with the rising usage of skincare, haircare, and perfumes will further anchor the market expansion.

Regionally, Europe accounted for considerable share of the global oleoresins market in 2022 and is poised to record robust growth through 2032. This is driven by the increasing consumer demand for natural as well as authentic flavors and colors in food, beverages, and personal care products. The rollout of stringent regulations in the region is encouraging the use of natural additives over synthetic ones. The presence of booming food processing industry coupled with the rising popularity of ethnic and exotic cuisines will further push the regional market growth.