Achiote seed extracts, also known as annatto, are one of the oldest natural dyes known to humans and are widely used in the food industry as a natural food colorant. The market's future development possibilities are projected to come from expanding applications in both the food and non-food industries. Various regional food safety authorities, including the U.S. Food and Drug Administration (FDA), the European Food Safety Authority (EFSA), and others, have recognized the product as a safe condiment and food coloring product.

Market Scope and Structure Analysis

COVID-19 Impact analysis

• The rapid onset of the COVID-19 pandemic has had a devastating influence on practically all industries, forcing workers in various regions of the world to halt operations without competent supervision.
• The disruptions in the product's supply chains caused by manufacturing limits, increased transit rates, and higher delivery prices have had an influence on the total market.
• Furthermore, different countries have imposed temporary bans on international air travel, and several medical councils have encouraged citizens to self-quarantine themselves to prevent the virus from spreading. These issues are expected to impede the market growth.
• The annatto market is being hampered by restrictions on the export and import of non-essential products caused by temporary border closures in some countries.
• Physical distancing and home quarantine orders issued by numerous governments have had a negative impact on the foodservice business, which requires a significant volume of food colorants like annatto.
• Low demand for the goods is also expected as a result of this. Food additive manufacturers, on the other hand, are constantly attempting to re-establish seamless operations and supply chains as a result of the pandemic's chaotic condition. This is predicted to result in a boom in product sales in the near future.

Top Impacting Factors

• The worldwide annatto business is benefiting from a growing understanding of the value of dean-labeling in facilitating informed purchases.
  The desire for natural, identifiable, and pronounceable substances is being driven by the aforementioned reason.
• Ingredient sourcing and ethical notions are credited with propelling clean-label notions to the next level of development.
• Companies are working harder to obtain valid clean-label certifications for their ingredients and additives. Natural food colorants like bixin, will continue to be in high demand due to characteristics like little processing. It's simple to re-formulate, non-GMO certified, and completely safe.

Market Trends

Natural Colorants' Favorable Consumption Patterns to Aid Market Growth

Food makers are putting a lot of emphasis on natural alternatives to artificial colorings and synthetic dyes, which is driving the global market. Given ingredients manufacturers' efforts to capitalize on streamlined, convenient, and customizable products that are highly fit for certain food applications, the product's future growth trajectory looks optimistic. The gradual decrease in the use of artificial colors in new product launches is evidence of favorable consumption pattern of natural colorants.

Increasing the need for natural colorants in the cosmetics industry to spur growth

Buyers' interest in natural ingredients for personal care and cosmetic goods has increased as the natural and plant-based sector has grown. Furthermore, as people are becoming more aware about the different benefits of natural beauty, the demand for natural cosmetics is increasing. As a result, cosmetic manufacturers are beginning to use natural colorants. The growing popularity of chemical-free and natural cosmetics is expected to encourage the use of natural components in the creation of various industry cosmetics, potentially increasing sales.

High costs and a lack of stability are impeding the market's expansion.

When compared to synthetic colorants like Azorubine, Allura Red, and others, annatto has a lesser stability, which is a major limiting factor for market expansion. Another problem impeding the market's rapid expansion is the product's higher cost when compared to its competitors. Furthermore, the product's hypersensitivity to environmental elements such as temperature and light, which causes color degradation, may hamper market expansion throughout the forecast period.

Key Segments Covered

Type

• Oil-soluble Annatto
• Water-soluble Annatto 
• Emulsified and Solvent-extracted Annatto

Application

• Food Industry
• Fabric Industry
• Cosmetic Industry
• Others

Region

• North America 
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Spain
  • Italy
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of Asia-Pacific
• LAMEA
  • Latin America
  • Middle East
  • Africa

Key Benefits of the Report

• This study presents the analytical depiction of the annatto market industry along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the annatto market share.
• The current market is quantitatively analyzed from 2020 to 2028 to highlight the annatto market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
• The report provides a detailed annatto market analysis based on competitive intensity and how the competition will take shape in coming years

Questions answered in the Report

• Who are the leading market players active in the annatto market?
• What current trends will influence the market in the next few years?
• What are the driving factors, restraints, and opportunities in the market?
• What future projections would help in taking further strategic steps?
• What is "Annatto Market" prediction in the future?
• Which will be the niches at which players profiling with recent advancements should set a presence?
• What are the driving factors and opportunities in the market?
• What are the current trends and predicted trends?
• What are the challenges faced in the "Annatto Market"?