Annatto Market

Annatto Market: Overview

The annatto market is gaining from expanding applications of annatto in both food and non-food sectors and is predicted to continue to gain over the 2020 – 2030 forecast period. Annatto has been recognized as a safe food coloring product and condiment by various accredited food safety authorities such as European Food Safety Authority, U.S. Food & drug Administration, and others.

When it comes to existence, achiote seed extracts or annatto is one of the oldest natural dyes known to humans and is extensively used by food industries as a natural food grade coloring product.

Key parameters based on which the annatto market is segmented in this report are type, application, and region.

The report provides an exhaustive analysis of trends, opportunities, and regional landscape of the annatto market for the 2020 – 2030 forecast period. Furthermore, it examines the competitive scenario deep-diving into growth strategies of key players, and how new players are leveraging this analysis to formulate winning strategies.

Annatto Market: Competitive Landscape

The annatto market is heading towards a more consolidated vendor landscape as key players in both developed and developing countries strive to strengthen their product portfolio, brand loyalty, and distribution network. Prominent players are focusing on the R&D of existing and new products to re-establish their genuineness in order to be hassle-freely commercially available. Moreover, key players are leaning on collaborations to solidify their foothold in the annatto market.

Key companies operating in the annatto market include Givaudan SA, Chr. Hansen Holding A/S, Kalsec Inc., Dairy Connections Inc., Biocon Colors, Archer Daniels Midland Company, Sensient Technologies Corporaton, Dohler Group, IFC Solutions, and Aarkay Food Products Ltd.

Annatto Market: Key Trends

Thrust upon food industries to use natural alternatives to synthetic food coloring is a key factor fuelling the annatto market. To capitalize on such opportunities, annatto producers are creating convenient, personalized, and optimized offerings that are highly suitable for specific food applications. Besides this, in general, decline in the use of artificial colors for new product launches is a testimony of uptick in demand for natural colorants.

The exponential growth in the natural and plant-based industry to serve changing consumer preferences for personal care products benefits the annatto market as well. Consumers interested in natural and plant-based cosmetic and personal care products have strong inclination for products that contain natural dyes and colorants. Rising preference of consumers for chemical-free and natural cosmetics is making manufacturers use natural ingredients in cosmetics and personal care products, thereby favoring the growth of annatto market.

On the flip side, factors such as low stability of annatto as compared to synthetic colorants such as Allura Red and Azorubine limits the growth of annatto market. High cost of product in comparison to its synthetic counterparts is another factor restraining the growth of annatto market. Moreover, annatto is highly sensitive to environmental factors such as temperature and light which results in loss of brightness to impede its demand.

Annatto Market: Regional Assessment

Europe is a key region in the annatto market and is predicted to remain at the lead over the forecast period. High demand for natural colorants for cosmetics and personal care products is a key factor behind supremacy of the region in the global annatto market.

North America is expected to emerge as a key region in the annatto market. This is attributed to the escalating demand for natural colorants from various end-use industries such as personal care and food & beverages. Furthermore, clean-labeling practices, consumer awareness, and regulatory scenario are some other factors stimulating the annatto market in the region.

However, Asia Pacific is predicted to register the fastest growth in the annatto market in the forthcoming years.