Increasing Use in Food and Beverages Propelling Global Annatto Market on a High Growth Curve

Annatto seeds are widely in demand owing to a major shift to natural food colors from synthetic ones. Used as source of color for a number of items in the food industry – such as breakfast cereals, butter, and baked goods, Annatto is set to ride the wave of rising health awareness. But, food and beverages is not the only industry it is used in.

It is also used in healthcare as the parts of the tree such as root, leaf, and seeds have numerous medicinal properties. Some of the healthcare issue that it is used to treat are diarrhea, fluid retention, constipation, malaria, vomiting, high cholesterol, and fever.

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It is also worth noting here that the demand for natural is not restricted to food and beverages industry, and actually comes in huge quantities from textiles industries, paints market, and for use in art supplies such as crayons. Also, it finds use as a colorant in cosmetics. For instance, use of seeds from India’s Maredumilli forest in the Southern region is noted in red lipsticks. As harmful effects of using chemical based lipsticks catches on with a large number of users, market for annatto would grow considerably.

Region-wise, the prominent position will be held by North America owing to a massive trend towards use of natural products for health and wellness purposes. Besides, countries in the region are witnessing an inclination of governments towards use of natural products, driving the market of annatto forward. The Asia Pacific (APAC) region will also create growth opportunities which players would scurry to make the most of.

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The market is fragmented and some of the notable players that mark the global annatto market are Aarkay Food Products, AICA-COLOR, Amerilure, Inc., Biocon del Peru, DDW, FMC, Hansen, Frutarom Natural Solutions BU, Kalsec, and WILD Flavors, among others.