Annatto is generally a food coloring agent sourced from the achiote tree seeds. They impart an orange or yellow color to the food products and are widely adopted across food and beverage industries. The product is usually a safe condiment and food coloring product and has been recognized as a food additive that is safe for consumption by bodies such as the European Food Safety Authority (EFSA), and the U.S. Food & Drug Administration (FDA), among others.
The global annatto market size is expected to gain momentum by reaching USD 281.97 million by 2027 while exhibiting a CAGR of 5.0% between 2020 and 2027. The growth is attributable to the growing demand for clean-labeled food products and the increasing awareness regarding the harmful effects of artificial coloring that is driving the demand for natural ingredients such as annatto globally. Titled, “Annatto Market Size, Share & COVID-19 Impact Analysis, By Type (Solvent Extraction & Emulsified Annatto and Aqueous Extraction Annatto), Application (Food Industry, Natural Fabric Industry, Cosmetic Industry, and Others), and Regional Forecasts, 2020 – 2027.”, mentions that the market stood at USD 196.55 million and is projected to experience considerable growth in the forthcoming years.
What does the Report Include?
The market report includes a detailed assessment of the various market drivers and restraints, opportunities, and challenges that the market will face during the projected horizon. Additionally, the report provides comprehensive research into the regional developments of the market, affecting the market growth during the forecast period. The report includes information sourced from the advice of expert professionals from the industry by our research analyst using several research methodologies for the market. The competitive landscape offers further detailed insights into the strategies such as product launches, partnerships, mergers and acquisitions, and collaborations adopted by the companies to maintain market stronghold between 2019 and 2026.
List of the Companies Profiled in the Global Market:
- Givaudan SA (Vernier, Swizerland)
- Archer Daniels Midland Company (Illinois, United States)
- Hansen Holding A/S (United States)
- Sensient Technologies Corporation (Wisconsin, United States)
- Kalsec Inc. (Michigan, United States)
- Dohler Group (Darmstadt, Germany)
- Dairy Connection, Inc. (Madison, Wisconsin)
- IFC Solutions (United States)
- Biocon Colors (Bengaluru, India)
- Aarkay Food Products Ltd. (Gujrat, India)
Growing Demand for Clean-Labeled Food Products to Promote Growth
Artificial food colors such as Yellow 5, Yellow 6, and Red 40 comprise of toxic compounds such as 4-aminobiphenyl and benzidine that have been linked to causing cancer. Additionally, they result in allergies, irritability, and other ailments in children. The increasing awareness regarding the ill effects of the consumption of artificial food products is propelling the demand for innovative naturally-sourced food products sourced from annatto seeds. The growing demand for the consumption of clean-labeled food products is further expected to drive the global annatto market during the forecast period.
Food Industry Segment Held 71.65% Market Share in 2019
The food industry segment, based o application, held a market share of 71.65% in 2019 and is likely to experience significant growth owing to the increasing preference for natural food additives across the food industry.
Europe to Remain at the Forefront; Increasing Consumption of Natural Food Products to Favor Growth
Among all the regions, the market in Europe is expected to showcase exponential growth during the forecast period. The region generated USD 70.8 million in terms of revenue in 2019 and is expected to hold the highest position in the global market. This is attributable to the increasing consumption of natural food products over artificial food products in countries such as the U.K., Germany, and others in the region.
North America will experience considerable growth owing to the increasing focus on launching food products containing natural colorants sourced from annatto in countries such as the U.S. and Canada between 2020 and 2027.
Major Companies Focus on Product Expansion to Strengthen Their Market Positions
The market comprises several companies that are striving to maintain their presence and gain a competitive edge by focusing on expanding their product portfolios. These companies are developing innovative food products sourced from naturally occurring sources such as annatto. The adoption of strategies such as partnership, merger and acquisition, and collaboration by the major companies are anticipated to favor the growth of the global natural annatto market in the forthcoming years.