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The Annatto Market size was valued at USD 239.59 million in 2023 and is expected to grow to USD 368.51 million by 2032, at a CAGR of 4.9% over the forecast period of 2024-2032.
Achiote seed extracts, commonly known as annatto, are among the oldest natural dyes available to humans and are widely utilized as a natural food colorant in the food business. The market's future growth prospects are expected to be driven by rising applications throughout the food and non-food industries.
Based on Type, the annatto market is segmented into Solvent Extraction, Aqueous Extraction, and Emulsified. Water-soluble and emulsified product types dominate the market due to their wide application spectrum. This segment is frequently utilized in dairy products. With the recent establishment of free-form products in the dairy sector, the use of emulsifier pigments will grow more lucrative and profitable for producers.
The food industry segment dominates the application segment due to the rising demand for natural food colorant ingredients. Annatto is on the list of approved colors for the food industry by the European Union, the Food and Drugs Administration of the US, and the World Health Organization. Annatto seeds are used to produce red-orange to brown colors in the food industry. Annatto’s major coloring component, Bixin, produces a vivid color when dissolved in oil. This ingredient contributes to the consistency and stability of food items by imparting a rich appearance and flavor.
MARKET DYNAMICS
KEY DRIVERS
Use of Natural Food Colorants in the Processed Food Industry
Natural food colorants are in high demand due to a variety of variables, including the growing awareness of the health hazards posed by synthetic food colorings. Also, Organic and natural foods are becoming increasingly popular. As the demand for natural colorants rises throughout the forecasted period, so will the use of annatto, which naturally produces a distinctive red/orange color. Annatto is a natural colorant that gives margarine, butter, and cheese its yellow color. It's also found in a variety of commercial products, including smoked fish, processed meats, processed meals, beverages, and various packaged foods.
Side effects of synthetic colors have triggered the demand for natural color
RESTRAIN
High cost of Annatto
Annatto has lower stability when compared to synthetic colorants such as Allura Red, Azorubine, and others. Furthermore, synthetic colorants are frequently less expensive than natural colorants and can be made in huge quantities. To make and market annatto products, firms must invest a significant amount of money. This makes them more appealing to many producers. The high cost of annatto is a significant barrier to market growth.
Lack of knowledge of annatto
OPPORTUNITY
Increasing consumption in the cosmetics industry
The rapid rise of the organic and plant-based industries has piqued consumer interest in natural components in skincare and cosmetics. Furthermore, consumer awareness of chemical-free and organic products boosts market growth. Annatto is a natural colorant derived from the achiote tree's seeds. It is used to give a yellow to orange-red hue to cosmetics such as lipsticks, lip balms, blushers, and eye shadows.
CHALLENGES
Strict government regulations
Governments frequently impose strict safety criteria for annatto-containing foods and cosmetics. This can make compliance with rules difficult and costly for enterprises, discouraging them from utilizing annatto. The United States has rigorous rules for food colorants due to rising instances of foodborne disease and increased demand for safe food items free of unpleasant food additives.
IMPACT ANALYSIS
IMPACT OF RUSSIA-UKRAINE WAR
Russia and Ukraine are the largest producers of annatto. The Russian food sector is expanding following previous crises that left the country heavily reliant on food imports from other countries. Since the commencement of the war, the supply chain of annatto materials has been disrupted which has led to an increase in the price of annatto in the United States has grown by 25% in 2022. This is because the United States imports the majority of its annatto from Russia and Ukraine. The war has led to a price rise of 10% globally.
IMPACT OF ONGOING RECESSION
The recession has impacted the annatto market. The 2022 recession is predicted to decrease in demand for annatto by 5%. This is because manufacturers will probably try to minimize expenses, and using less expensive colorants and look for alternate colorant materials. The US is the largest market for annatto. The majority of the annatto that the United States buys comes from other countries that are also going through a recession. During the recession, the demand for annatto in Brazil is anticipated to fall by 17%. This is because Brazil is a significant annatto consumer, and the recession is anticipated to have an effect on the economy of that country.
By Type
Solvent Extraction
Aqueous Extraction
Emulsified Annatto
By Application
Food & Beverage
Fabric Industry
Cosmetic Industry
Other
REGIONAL ANALYSIS
North America has the greatest market share for the annatto market. This is attributed to growing government support for the use of natural food colors in a variety of food and beverage applications is likely to drive the annatto market in this region. According to the Food and Agriculture Organization, the United States is the world's largest annatto market, accounting for roughly 42% of global imports. It gets more than 61% of its supplies from Peru and the rest from the Caribbean region.
The Asia Pacific market is predicted to grow rapidly at 5.8 % CAGR due to rising consumer knowledge about the usage of natural food flavors and coloring, as well as an increasing number of product launches using natural colors. Furthermore, increased health consciousness, the appeal of clean-label products, favorable food safety requirements, and significant R&D investments are driving the industry forward.
Europe holds a significant market share for the annatto market due to the large consumer demand for natural food coloring in food and beverage items, Additionally, the production of caramel uses annatto in enormous quantities, which fuels the expansion of both regional markets. Stringent rules of Europe on the application of food color in the food industry.
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REGIONAL COVERAGE
North America
US
Canada
Mexico
Europe
Eastern Europe
Poland
Romania
Hungary
Turkey
Rest of Eastern Europe
Western Europe
Germany
France
UK
Italy
Spain
Netherlands
Switzerland
Austria
Rest of Western Europe
Asia Pacific
China
India
Japan
South Korea
Vietnam
Singapore
Australia
Rest of Asia Pacific
Middle East & Africa
Middle East
UAE
Egypt
Saudi Arabia
Qatar
Rest of Middle East
Africa
Nigeria
South Africa
Rest of Africa
Latin America
Brazil
Argentina
Colombia
Rest of Latin America
The Key Players are Aarkay Food Products, WILD Flavors, Kalsec, Hansen, FMC, DDW, Frutarom Natural Solutions BU, Amerilure Inc, AICA-COLOR, Biocon del Peru, DDW, Chr. Hansen Holding A/S, and other key players.
In 2023, Sun Chemicals' SunPrizma color-travel range and glittering silver Reflecks Dimensions Platinum G13CD made their debuts at in-cosmetics Global, where the business also showcased its newly introduced SunPuro Naturals line. SunPURO is a new brand of natural colorants and useful compounds produced by plants. Naturals The collection contains two orange-red items made from ethically obtained annatto, two traceable green chlorophyll ingredients, an upcycled black colorant made from coconut shell waste, and a milky opacifier made from responsibly sourced milk.
In 2022, Sun Chemical expand natural Colorants for Cosmetics and Personal Care in its product portfolio by offering SunPuro Natural Annatto A and SunPuro Natural Annatto O.
In 2022, Sun Chemical introduced Sunfood's natural colorants, a series of naturally sourced colors that may be used in a wide range of food and beverage items. Colors will be accessible throughout Europe, the Americas, the Middle East, and Africa.
| Report Attributes | Details |
| Market Size in 2023 | US$ 239.59 Million |
| Market Size by 2032 | US$ 368.51 Million |
| CAGR | CAGR of 4.9% From 2024 to 2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2020-2022 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segments | • By Type (Solvent Extraction, Aqueous Extraction, and Emulsified) • By Application (Food & Beverage, Natural Fabric Industry, Cosmetic Industry, Other) |
| Regional Analysis/Coverage | North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia Rest of Latin America) |
| Company Profiles | Aarkay Food Products, WILD Flavors, Kalsec, Hansen, FMC, DDW, Frutarom Natural Solutions BU, Amerilure Inc, AICA-COLOR, Biocon del Peru, DDW, Chr. Hansen Holding A/S |
| Key Drivers | • Use of Natural Food Colorants in the Processed Food Industry |
| Market Restrain | • High cost of Annatto |
Ans: USD 334.8 million is expected to grow by 2030.
Ans: Annatto Market size was valued at USD 228.4 million in 2022
Ans: Strict government regulation may be a challenge for the annatto market.
Ans: North America is dominating the market.
Ans: Drivers are consumption of Natural Food Colorants in the Processed Food Industry and side effects of synthetic colors have triggered the demand for natural color
TABLE OF CONTENTS
1. Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions
2. Research Methodology
3. Market Dynamics
3.1 Drivers
3.2 Restraints
3.3 Opportunities
3.4 Challenges
4. Impact Analysis
4.1 Impact of Russia-Ukraine War
4.2 Impact of Ongoing Recession
4.3. Introduction
4.3.1 Impact on Major Economies
4.3.1.1 US
4.3.1.2 Canada
4.3.1.3 Germany
4.3.1.4 France
4.3.1.5 United Kingdom
4.3.1.6 China
4.3.1.7 Japan
4.3.1.8 South Korea
4.3.1.9 Rest of the World
5. Value Chain Analysis
6. Porter’s 5 forces model
7. PEST Analysis
8. Annatto Market Segmentation, By Type
8.1 Solvent Extraction
8.2 Aqueous Extraction
8.3 Emulsified Annatto
9. Annatto Market Segmentation, By Application
9.1 Food & Beverage
9.2 Fabric Industry
9.3 Cosmetic Industry
9.4 Other
10. Regional Analysis
10.1 Introduction
10.2 North America
10.2.1 North America Annatto Market by Country
10.2.2 North America Annatto Market by Type
10.2.3 North America Annatto Market by Application
10.2.4 USA
10.2.4.1 USA Annatto Market by Type
10.2.4.2 USA Annatto Market by Application
10.2.5 Canada
10.2.5.1 Canada Annatto Market by Type
10.2.5.2 Canada Annatto Market by Application
10.2.6 Mexico
10.2.6.1 Mexico Annatto Market by Type
10.2.6.2 Mexico Annatto Market by Application
10.3 Europe
10.3.1 Eastern Europe
10.3.1.1 Eastern Europe Annatto Market by Country
10.3.1.2 Eastern Europe Annatto Market by Type
10.3.1.3 Eastern Europe Annatto Market by Application
10.3.1.4 Poland
10.3.1.4.1 Poland Annatto Market by Type
10.3.1.4.2 Poland Annatto Market by Application
10.3.1.5 Romania
10.3.1.5.1 Romania Annatto Market by Type
10.3.1.5.2 Romania Annatto Market by Application
10.3.1.6 Hungary
10.3.1.6.1 Hungary Annatto Market by Type
10.3.1.6.2 Hungary Annatto Market by Application
10.3.1.7 Turkey
10.3.1.7.1 Turkey Annatto Market by Type
10.3.1.7.2 Turkey Annatto Market by Application
10.3.1.8 Rest of Eastern Europe
10.3.1.8.1 Rest of Eastern Europe Annatto Market by Type
10.3.1.8.2 Rest of Eastern Europe Annatto Market by Application
10.3.2 Western Europe
10.3.2.1 Western Europe Annatto Market by Country
10.3.2.2 Western Europe Annatto Market by Type
10.3.2.3 Western Europe Annatto Market by Application
10.3.2.4 Germany
10.3.2.4.1 Germany Annatto Market by Type
10.3.2.4.2 Germany Annatto Market by Application
10.3.2.5 France
10.3.2.5.1 France Annatto Market by Type
10.3.2.5.2 France Annatto Market by Application
10.3.2.6 UK
10.3.2.6.1 UK Annatto Market by Type
10.3.2.6.2 UK Annatto Market by Application
10.3.2.7 Italy
10.3.2.7.1 Italy Annatto Market by Type
10.3.2.7.2 Italy Annatto Market by Application
10.3.2.8 Spain
10.3.2.8.1 Spain Annatto Market by Type
10.3.2.8.2 Spain Annatto Market by Application
10.3.2.9 Netherlands
10.3.2.9.1 Netherlands Annatto Market by Type
10.3.2.9.2 Netherlands Annatto Market by Application
10.3.2.10 Switzerland
10.3.2.10.1 Switzerland Annatto Market by Type
10.3.2.10.2 Switzerland Annatto Market by Application
10.3.2.11 Austria
10.3.2.11.1 Austria Annatto Market by Type
10.3.2.11.2 Austria Annatto Market by Application
10.3.2.12 Rest of Western Europe
10.3.2.12.1 Rest of Western Europe Annatto Market by Type
10.3.2.12.2 Rest of Western Europe Annatto Market by Application
10.4 Asia-Pacific
10.4.1 Asia Pacific Annatto Market by Country
10.4.2 Asia Pacific Annatto Market by Type
10.4.3 Asia Pacific Annatto Market by Application
10.4.4 China
10.4.4.1 China Annatto Market by Type
10.4.4.2 China Annatto Market by Application
10.4.5 India
10.4.5.1 India Annatto Market by Type
10.4.5.2 India Annatto Market by Application
10.4.6 Japan
10.4.6.1 Japan Annatto Market by Type
10.4.6.2 Japan Annatto Market by Application
10.4.7 South Korea
10.4.7.1 South Korea Annatto Market by Type
10.4.7.2 South Korea Annatto Market by Application
10.4.8 Vietnam
10.4.8.1 Vietnam Annatto Market by Type
10.4.8.2 Vietnam Annatto Market by Application
10.4.9 Singapore
10.4.9.1 Singapore Annatto Market by Type
10.4.9.2 Singapore Annatto Market by Application
10.4.10 Australia
10.4.10.1 Australia Annatto Market by Type
10.4.10.2 Australia Annatto Market by Application
10.4.11 Rest of Asia-Pacific
10.4.11.1 Rest of Asia-Pacific Annatto Market by Type
10.4.11.2 Rest of Asia-Pacific Annatto Market by Application
10.5 Middle East & Africa
10.5.1 Middle East
10.5.1.1 Middle East Annatto Market by Country
10.5.1.2 Middle East Annatto Market by Type
10.5.1.3 Middle East Annatto Market by Application
10.5.1.4 UAE
10.5.1.4.1 UAE Annatto Market by Type
10.5.1.4.2 UAE Annatto Market by Application
10.5.1.5 Egypt
10.5.1.5.1 Egypt Annatto Market by Type
10.5.1.5.2 Egypt Annatto Market by Application
10.5.1.6 Saudi Arabia
10.5.1.6.1 Saudi Arabia Annatto Market by Type
10.5.1.6.2 Saudi Arabia Annatto Market by Application
10.5.1.7 Qatar
10.5.1.7.1 Qatar Annatto Market by Type
10.5.1.7.2 Qatar Annatto Market by Application
10.5.1.8 Rest of Middle East
10.5.1.8.1 Rest of Middle East Annatto Market by Type
10.5.1.8.2 Rest of Middle East Annatto Market by Application
10.5.2 Africa
10.5.2.1 Africa Annatto Market by Country
10.5.2.2 Africa Annatto Market by Type
10.5.2.3 Africa Annatto Market by Application
10.5.2.4 Nigeria
10.5.2.4.1 Nigeria Annatto Market by Type
10.5.2.4.2 Nigeria Annatto Market by Application
10.5.2.5 South Africa
10.5.2.5.1 South Africa Annatto Market by Type
10.5.2.5.2 South Africa Annatto Market by Application
10.5.2.6 Rest of Africa
10.5.2.6.1 Rest of Africa Annatto Market by Type
10.5.2.6.2 Rest of Africa Annatto Market by Application
10.6 Latin America
10.6.1 Latin America Annatto Market by Country
10.6.2 Latin America Annatto Market by Type
10.6.3 Latin America Annatto Market by Application
10.6.4 Brazil
10.6.4.1 Brazil Annatto Market by Type
10.6.4.2 Brazil Annatto Market by Application
10.6.5 Argentina
10.6.5.1 Argentina Annatto Market by Type
10.6.5.2 Argentina Annatto Market by Application
10.6.6 Colombia
10.6.6.1 Colombia Annatto Market by Type
10.6.6.2 Colombia Annatto Market by Application
10.6.7 Rest of Latin America
10.6.7.1 Rest of Latin America Annatto Market by Type
10.6.7.2 Rest of Latin America Annatto Market by Application
11. Company Profile
11.1 Amerilure Inc
11.1.1 Company Overview
11.1.2 Financials
11.1.3 Product/Services Offered
11.1.4 SWOT Analysis
11.1.5 The SNS View
11.2 AICA-COLOR
11.2.1 Company Overview
11.2.2 Financials
11.2.3 Product/Services Offered
11.2.4 SWOT Analysis
11.2.5 The SNS View
11.3 Aarkay Food Products
11.3.1 Company Overview
11.3.2 Financials
11.3.3 Product/Services Offered
11.3.4 SWOT Analysis
11.3.5 The SNS View
11.4 WILD Flavors
11.4 Company Overview
11.4.2 Financials
11.4.3 Product/Services Offered
11.4.4 SWOT Analysis
11.4.5 The SNS View
11.5 Kalsec
11.5.1 Company Overview
11.5.2 Financials
11.5.3 Product/Services Offered
11.5.4 SWOT Analysis
11.5.5 The SNS View
11.6 Biocon del Peru
11.6.1 Company Overview
11.6.2 Financials
11.6.3 Product/Services Offered
11.6.4 SWOT Analysis
11.6.5 The SNS View
11.7 Hansen
11.7.1 Company Overview
11.7.2 Financials
11.7.3 Product/Services Offered
11.7.4 SWOT Analysis
11.7.5 The SNS View
11.8 Frutarom Natural Solutions BU
11.8.1 Company Overview
11.8.2 Financials
11.8.3 Product/Services Offered
11.8.4 SWOT Analysis
11.8.5 The SNS View
11.9 Biocon del Peru
11.9.1 Company Overview
11.9.2 Financials
11.9.3 Product/ Services Offered
11.9.4 SWOT Analysis
11.9.5 The SNS View
11.10 Chr. Hansen Holding A/S
11.10.1 Company Overview
11.10.2 Financials
11.10.3 Product/Services Offered
11.10.4 SWOT Analysis
11.10.5 The SNS View
11.11 DDW
11.11.1 Company Overview
11.11.2 Financials
11.11.3 Product/Services Offered
11.11.4 SWOT Analysis
11.11.5 The SNS View
11.12 FMC
11.12.1 Company Overview
11.12.2 Financials
11.12.3 Product/Services Offered
11.12.4 SWOT Analysis
11.12.5 The SNS View
12. Competitive Landscape
12.1 Competitive Benchmarking
12.2 Market Share Analysis
12.3 Recent Developments
12.3.1 Industry News
12.3.2 Company News
12.3.3 Mergers & Acquisitions
13. USE Cases and Best Practices
14. Conclusion
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