Global Annatto Market - Growth, Trends, and Forecasts (2017 - 2022)

  • ID: 4402837
  • Report
  • Region: Global
  • 100 pages
  • Mordor Intelligence
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The global market for annatto was valued at USD XX million in 2016 and is expected to witness a CAGR of 3% during 2017-2022 (forecast period).

Growing Use in the Processed Food Segment, Driving the Market

Annatto is widely used as a coloring agent in artisanal and industrial-scale operations in many processed food products, such as cheeses, butter & margarine, dairy spreads, custards, cakes & other baked goods, snacks, breakfast cereals, smoked fish, sausages, and more. Annatto is a natural alternative to synthetic food colorants. It has many health benefits, which include reducing acid, killing bacteria, fighting free radicals, and lowering blood pressure. Primarily used in Latin and Caribbean cooking, annatto seeds are also used to make achiote oil, which is often used in rice dishes and stews. It is produced in South America, where the local tribes have used achiote seeds for centuries.

The global natural food colors market represented around 55% of the total food color market, in 2015. The market is expected to grow in the coming years, due to which the use of annatto will also increase, as it gives an extraordinary red/orange color, naturally. Consumers are becoming highly conscious of their health and are ready to pay a premium for having natural colorants in their products.

Moreover, the ban on synthetic color products’ trading and its manufacture in selected international markets, such as Japan and all European countries, boosted the demand for natural food color during the past decade. This trend is expected to help the growth of annatto. Moreover, the use of natural food colors over synthetic food colors in novel products, such as crayons and infant toys, organic textile printing, handmade paper, etc., is expected to open growth avenues for the market in the future.

There have been several cases of severe allergic reactions and irritable bowel syndrome-type symptoms on the usage of annatto; this is likely to hamper the market, worldwide.

North America Leading at the Regional Front
The global annatto market is segmented by type into oil-soluble, water-soluble and emulsified. Annatto is used in food & beverage, cosmetic and natural fabric industries. The food & beverages industry is likely to witness a CAGR of over XX%, from 2017 to 2022, mainly on account of the growing demand for juices, soft drinks, processed food and alcoholic drinks. The growth of the food & beverage industry is driven by the economic growth of consumers, primarily in Asia- Pacific, coupled with increasing affinity towards flavored beverages. Growth is expected to remain robust in North America, owing to the rising consumer preference for organic and clean label products. The general “health and wellness” trend will also continue to influence the demand for natural food colors in North America, which accounts for almost 25% of the global annatto market. The increasing government support for the adoption of natural food colors in various food and beverage applications is expected to boost the growth of the annatto market in North America.

Competitive Landscape

The global annatto industry has the presence of some major multinational companies, such as CHR Hansen, DDW, FMC, and Wild Flavors, which are involved in the production, and distribution through well-established distribution network spread across major economies. The companies are involved in R&D activities for the production of advanced products with superior properties, including pH and heat stability. In addition, the companies are integrated across multiple stages of the value chain, from the production of raw materials to distribution of the final product.

Our report on the global annatto market covers the following:

Market, trends & dynamics
Latest News & developments
Porter’s five forces analysis
Investment scope
Deep-dive insights
Note: Product cover images may vary from those shown
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1. Introduction
1.1 Key Deliverables of the Study
1.2 Study Assumptions
1.3 Market Definitions

2. Research Approach and Methodology
2.1 Introduction
2.2 Research Design
2.3 Study Timeline
2.4 Study Phases
2.4.1 Secondary Research
2.4.2 Discussion Guide
2.4.3 Market Engineering & Econometric Modelling
2.4.4 Expert Validation

3. Market Overview
3.1 Market Trends

4. Market Dynamics
4.1 Drivers
4.1.1 Growing Use of Natural Food Colorants in the Processed Food Industry
4.1.2 Ban in Trading of Synthetic Color in Selected International Markets
4.1.3 Many Health Benefits
4.2 Restraints
4.2.1 Annatto Causing Food-Related Allergies
4.3 Opportunities
4.3.1 Growing Demand for Innovations in Natural Colors
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition

5. Market Segmentation
5.1 By Type
5.1.1 Oil-Soluble
5.1.2 Water-Soluble
5.1.3 Emulsified
5.2 By Application
5.2.1 Food and Beverage
5.2.2 Natural Fabric industry
5.2.3 Cosmetic industry
5.3 By Geography
5.3.1 North America United States Canada Mexico Others
5.3.2 Europe Spain United Kingdom France Germany Others
5.3.3 Asia-Pacific China India Japan Australia Others
5.3.4 South America Brazil Argentina Others
5.3.5 Africa South Africa Others

6. Competitive Landscape
6.1 Strategies Adopted by Key players
6.2 Most Active Companies in the Past Five Years
6.3 Market Share Analysis

7. List of Company Profiles
7.1 DDW
7.2 Hansen
7.3 FMC
7.4 WILD Flavors
7.5 Kalsec
7.6 Aarkay Food Products
7.7 Biocon del Peru
7.8 Zhongda Biological
7.9 Guangzhou Qianyi

8. Appendix
8.1 Disclaimer
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  • Royal Dsm N.V.
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Note: Product cover images may vary from those shown