Paprika Oleoresin Market

Paprika Oleoresin Market Size By Type (Spices, Oleoresins, and Flavours), and By Application (Food & Beverage, Pharmaceuticals, and Others), Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2024 to 2033

Base Year: 2023 Historical Data: 2020-22
  • Report ID: TBI-14268
  • Published Date: Apr, 2024
  • Pages: 235
  • Category: Food & Beverages
  • Format: PDF
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The global paprika oleoresin market was valued at USD 162.3 million in 2023, growing at a CAGR of 8.2% from 2024 to 2033. The market is expected to reach USD 356.9 million by 2033. The market for paprika oleoresin is expected to rise due to the expanding food and beverage sector and consumers' preference for natural and clean-label ingredients. As the artificial colourants and additives market declines, paprika oleoresin becomes increasingly popular as a natural substitute.

Market Introduction:

An oil-soluble component from capsicum fruits called paprika oleoresin is utilised in food goods as a colouring and flavouring. The market for paprika oleoresin is anticipated to increase quickly due to consumer demand for natural food industry colourants and flavourings. Paprika oleoresin became popular when customers shifted their preferences towards natural and clean-label products. It was considered a safer substitute for artificial colourants. Growing uses of paprika oleoresin's health benefits—especially its antioxidant qualities—are fueling the market's expansion. The paprika oleoresin market offers various types, including water- and oil-soluble varieties, to meet the needs of various industries, including animal feed, cosmetics, food and beverage, and pharmaceuticals. Players in the market are actively investing in R&D, improving production methods, and improving the texture and quality of paprika oleoresin products in response to the increasing demand. For example, Universal Oleoresins has set up a dedicated laboratory and research and development centre. The market for paprika oleoresin is expected to rise due to the expanding food and beverage sector and consumers' preference for natural and clean-label ingredients. As the artificial colourants and additives market declines, paprika oleoresin becomes increasingly popular as a natural substitute. Paprika oleoresin, which comes from dried red bell peppers, is recognised as a clean-label option, making it a desirable option for food producers who want to meet consumer demands for natural ingredients and transparency.

Paprika Oleoresin Market Size

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Recent Development

In 2021, the flavour and fragrance company SH Kelkar and Company Ltd (SHK), based in India, stated that it had acquired a 100% share in a Holland Aromatics BV subsidiary in the Netherlands through its fully owned subsidiary, Keva Europe BV. This will expand the business's operations and serve the new market.

In 2021, New Mexico Chilli Products Inc., a Deming-based dehydrated chilli production plant that prepares capsicums and other speciality chillies for commercial sale to CPG food manufacturers, spice blenders, and food service clients, was acquired by Sensient Natural Ingredients LLC. With this acquisition, the company will be able to grow its sales volume globally. 

In 2020, Givaudan announced that it had acquired Ungerer & Company, a well-known US company specialising in flavour, fragrance, and speciality ingredients. With this transaction, the market for oleoresins will grow as a significant amount of fragrance and essential oil will be produced in response to consumer demand.

Market Dynamics:


Growing demand for natural and clean-label products- The market for paprika oleoresin is expanding due to rising consumer demand for natural and clean-label goods in the food and beverage sector. Because paprika oleoresin has antioxidant qualities that health-conscious customers know, it is used in nutraceuticals and functional foods. Regulations encouraging the use of natural colourants in various industries are helping the paprika oleoresin market. The growing popularity of organic versions and the need for complexion nutrient-enriched goods that disguise salt reduction with paprika oleoresin drive the market expansion.


Price volatility- The high cost of production is one of the main obstacles, which affects paprika oleoresin's pricing and reduces its ability to compete in the market. As paprika is in limited supply, ensuring sustainable sourcing of raw materials presents a significant problem. Because paprika supplies are limited, there is a risk of price volatility and supply chain disruptions when demand for paprika oleoresin rises. The limited availability of raw paprika materials will probably drive up their prices, which will raise the cost of completed goods. For their operations to remain profitable and maintain appropriate pricing, businesses in this industry must look for alternative suppliers and ecosystem partners.


Increasing demand for natural alternatives to synthetic additives and colorants- The paprika oleoresin market has great potential because of the growing food and beverage sector and consumers' inclination for natural and clean-label ingredients. As the artificial colouring and additives market shrinks, paprika oleoresin's popularity as a natural substitute has increased. Dried red bell peppers are the source of paprika oleoresin, a clean-label option that appeals to food producers who want to satisfy consumers' desires for natural ingredients and transparency.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific emerged as the largest global paprika oleoresin market, with a 39.8% market revenue share in 2023.

Asia Pacific is a prominent participant in the production of spices and processing of paprika oleoresins. India and China account for 31,646 shipments, making them the two largest players in the area. Japan, South Korea, and other Asian nations have grown the market. China's dominant position in the market was apparent, with a production of about 9,000 tonnes and a substantial supply to the European region.

Asia Pacific Region Paprika Oleoresin Market Share in 2023 - 39.8%

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Type Segment Analysis

The type segment is divided into spices, oleoresins, and flavours. The flavours segment dominated the market, with a market share of around 43% in 2023. It provides various modified flavours, from gently sweet to intensely hot. Flavours of paprika, including smoked, sweet, and spicy varieties, support the growing market for paprika oleoresins by satisfying consumer tastes. Flavours are used in condiments, salad dressings, and seasonings to give food items a distinct flavour and scent.

Application Segment Analysis

The application segment is divided into food & beverage, pharmaceuticals, and others. The food & beverage segment dominated the market, with a market share of around 40% in 2023. Paprika oleoresin gives a wide range of culinary products, including sauces, soups, snacks, and processed meats, a bright red colour that improves their aesthetic appeal and consumer acceptance. Paprika oleoresin enhances the sensory experience by contributing a distinct flavour and scent to seasonings, salad dressings, condiments, and prepared foods. Because of its affordability, stability, and simplicity of integration into various food formulas, paprika oleoresin is a preferred option among food manufacturers.

Some of the Key Market Players:
  • Kalsec Inc.
  • Plant Lipids
  • DDW Color
  • AVT Natural Products Ltd
  • Paprika Oleo’s
  • Ambe Group
  • Cymbio Pharma Pvt Ltd
  • Synthite Industries Ltd.
  • Ungerer & Company
  • Akay Group Ltd.
  • Universal Oleoresins
  • Indo World
  • Paras Perfumers
  • Asian Oleoresin Company

Report Description:

Attribute Description
Market Size Revenue (USD Million)
Market size value in 2023 USD 162.3 Million
Market size value in 2033 USD 356.9 Million
CAGR (2024 to 2033) 8.2%
Historical data 2020-2022
Base Year 2023
Forecast 2024-2033
Region The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level.
Segments Type, Application

Frequesntly Asked Questions

As per The Brainy Insights, the size of the paprika oleoresin market was valued at USD 162.3 million in 2023 to USD 356.9 million by 2033.

The global paprika oleoresin market is growing at a CAGR of 8.2% during the forecast period 2024-2033.

Asia Pacific emerged as the largest paprika oleoresin market.

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This study forecasts global, regional, and country revenue from 2020 to 2033. The Brainy Insights has segmented the global paprika oleoresin market based on the below-mentioned segments:

Global Paprika Oleoresin Market By Type:

  • Spices
  • Oleoresins
  • Flavours

Global Paprika Oleoresin Market By Application:                                       

  • Food & Beverage
  • Pharmaceuticals
  • Others

Global Paprika Oleoresin Market By Region:                              

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
  • Asia-Pacific
    • Japan
    • China
    • India
  • South America
    • Brazil
  • Middle East and Africa  
    • UAE
    • South Africa


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