North America is the biggest market for Annatto extract
Historically, innovation in the processed foods industry hasn’t been growing as its sales. However, with a higher interest in healthy products, the industry has been witness of great changes.
It’s no surprise that the market for organic and natural products grows by the day. Lead by a naturist way of life, more people take conscience on what they consume, buy and eat. This new wave has opened a big door for natural products, such as colorants and additives in food, which found an opportunity to nurture from it, and nurture their clients, and therefore, the world.
Nowadays, Annatto has a specific use in the market, mainly as a colorant. It has been used for over two centuries in the food industry as an additive for various forms of dairy products, (specifically in cheese), processed snacks and beverages.
The color in food depends in various factors, such as: light, heat, moisture and oxygen exposure. Annatto comes as a great colorant option, since it is very stable to all of this factors, including its pH balance and chemical response to other components.
Acording to Mordor Intelligence Organization, due to the demand of costumers for natural coloring alternatives, Annatto will have a Compound Annual Growth (CAGR) of 3.5% in the US alone. “The market for natural colorants 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”, they add.
The organization also acknowledges that costumers demand premium products that provide a healthier alternative than synthetic colorants, which have been banned in many parts of Europe and Asia. Natural colorants like Annatto, Carmine and Paprika are becoming interesting alternatives and provide FDA and EU Food Safety Commission approval. So, by all means, Annatto production and consumption shows a steady growth.