Global Annatto Market Report and Forecast 2024-2032

Global Annatto Market Outlook

The global annatto market stood at a value of more than USD 219.93 million in 2023. The market is further expected to grow at a CAGR of 5.10% in the forecast period of 2024-2032 to attain a value of over USD 344.06 million by 2032.

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Increasing Demand for Organic Products to Aid the Global Annatto Industry

Based on nature, the organic segment accounts for a significant share in the market owing to the increasing inclination of consumers towards organic food products. The organically sourced ingredients involve the use of fewer pesticides and have high nutritional value. Organic annatto based food products boost immunity and possess various medicinal properties. Furthermore, the COVID-19 pandemic has propelled the demand for immunity boosting condiments among consumers, which has been bolstering the demand for organic annatto. This is aiding the growth of the segment.

North America Accounts for a Significant Share in the Annatto Industry

The annatto industry in North America is driven by the rising demand for natural food colourants and condiments in countries like the United States and Canada. The growing demand for processed foods is aiding the product demand, as annatto based colours are mainly used in in food stuffs to provide yellow to orange reddish hues, such as in cheese making. The United States is one of the significant markets for the product globally, thereby propelling the industry growth in North America.

Annatto Market Segmentation

Annatto is defined as a dyestuff obtained from seeds of achiote tree, an American tropical tree which is also known as Bixa Orellana. It is a yellowish-red dyestuff that is often used in food dyes and polishes, mainly in applications including cheese making, fish processing, and confectionery.

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Based on nature, the market can be segmented into:

• Organic
• Conventional

The major forms of the product include:

• Raw
• Processed

Among these, the processed segment is further divided by type into liquid, powder, and extract.

The segmentation of the market, on the basis of product type, includes:

• Annatto- Bixin
• Annatto- Norbixin

The significant end uses of annatto include:

• Food Industry
• Cosmetic
• Retail

By distribution channel, the market is segmented into:

• Direct
• Indirect

Among these, the different types of indirect distribution channels include supermarket/hypermarket, convenience store, speciality store, and e-retailers.

The regional markets for the product include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

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Rising Application of Annatto in the Food and Beverage Sector to Boost the Growth of the Annatto Industry

The global annatto industry is driven by the rising demand for annatto as a condiment as well as colouring agent in the food and beverage industry. Annatto is widely used as a food colourant in various industrialised and semi-industrialised foods such as cheese, ice-cream, bakery products, desserts, fruit fillings, butter, and margarines, among others. In addition to this, the rising application of annatto in the cosmetic industry is likely to propel its demand in the forecast period. Annatto possesses significant antioxidant properties due to the presence of carotenoids, terpenoids, flavonoids, and tocotrienols, which are extremely beneficial for the skin health. Hence, the market is likely to witness a significant growth in the forecast period.

Key Industry Players in the Global Annatto Market

The report gives a detailed analysis of the following key players in the global annatto market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• Aarkay Food Products Ltd.
• Aicacolor S.A.C.
• Amerilure, Inc.
• Biocon Del Peru S.A.
• DDW, Inc.
• Frutarom Natural Solutions Ltd.
• Kalsec, Inc.
• Wild Flavors, Inc.
• Chr. Hansen Holding A/S
• Sensient Technologies Corporation
• Others

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

Key Highlights of the Report