Annatto Market Report Scope & Overview:

The Annatto Market size was USD 228.4 million in 2022 and is expected to Reach USD 334.8 million by 2030 and grow at a CAGR of 4.9 % over the forecast period of 2023-2030. 

Achiote seed extracts, commonly known as annatto, are among the oldest natural dyes available to humans and are widely utilized as a natural food colorant in the food business. The market's future growth prospects are expected to be driven by rising applications throughout the food and non-food industries.

Annatto Market Revenue Analysis

Based on Type, the annatto market is segmented into Solvent Extraction, Aqueous Extraction, and Emulsified. Water-soluble and emulsified product types dominate the market due to their wide application spectrum. This segment is frequently utilized in dairy products. With the recent establishment of free-form products in the dairy sector, the use of emulsifier pigments will grow more lucrative and profitable for producers.

The food industry segment dominates the application segment due to the rising demand for natural food colorant ingredients. Annatto is on the list of approved colors for the food industry by the European Union, the Food and Drugs Administration of the US, and the World Health Organization. Annatto seeds are used to produce red-orange to brown colors in the food industry. Annatto’s major coloring component, Bixin, produces a vivid color when dissolved in oil. This ingredient contributes to the consistency and stability of food items by imparting a rich appearance and flavor.



  • Use of Natural Food Colorants in the Processed Food Industry

Natural food colorants are in high demand due to a variety of variables, including the growing awareness of the health hazards posed by synthetic food colorings. Also, Organic and natural foods are becoming increasingly popular. As the demand for natural colorants rises throughout the forecasted period, so will the use of annatto, which naturally produces a distinctive red/orange color. Annatto is a natural colorant that gives margarine, butter, and cheese its yellow color. It's also found in a variety of commercial products, including smoked fish, processed meats, processed meals, beverages, and various packaged foods.

  • Side effects of synthetic colors have triggered the demand for natural color


  • High cost of Annatto

Annatto has lower stability when compared to synthetic colorants such as Allura Red, Azorubine, and others. Furthermore, synthetic colorants are frequently less expensive than natural colorants and can be made in huge quantities. To make and market annatto products, firms must invest a significant amount of money. This makes them more appealing to many producers. The high cost of annatto is a significant barrier to market growth.

  • Lack of knowledge of annatto


  • Increasing consumption in the cosmetics industry

The rapid rise of the organic and plant-based industries has piqued consumer interest in natural components in skincare and cosmetics. Furthermore, consumer awareness of chemical-free and organic products boosts market growth. Annatto is a natural colorant derived from the achiote tree's seeds. It is used to give a yellow to orange-red hue to cosmetics such as lipsticks, lip balms, blushers, and eye shadows.


  • Strict government regulations

Governments frequently impose strict safety criteria for annatto-containing foods and cosmetics. This can make compliance with rules difficult and costly for enterprises, discouraging them from utilizing annatto. The United States has rigorous rules for food colorants due to rising instances of foodborne disease and increased demand for safe food items free of unpleasant food additives.



Russia and Ukraine are the largest producers of annatto. The Russian food sector is expanding following previous crises that left the country heavily reliant on food imports from other countries. Since the commencement of the war, the supply chain of annatto materials has been disrupted which has led to an increase in the price of annatto in the United States has grown by 25% in 2022. This is because the United States imports the majority of its annatto from Russia and Ukraine. The war has led to a price rise of 10% globally.


The recession has impacted the annatto market. The 2022 recession is predicted to decrease in demand for annatto by 5%. This is because manufacturers will probably try to minimize expenses, and using less expensive colorants and look for alternate colorant materials. The US is the largest market for annatto. The majority of the annatto that the United States buys comes from other countries that are also going through a recession. During the recession, the demand for annatto in Brazil is anticipated to fall by 17%. This is because Brazil is a significant annatto consumer, and the recession is anticipated to have an effect on the economy of that country.


By Type

  • Solvent Extraction

  • Aqueous Extraction

  • Emulsified Annatto

By Application

  • Food & Beverage

  • Fabric Industry

  • Cosmetic Industry

  • Other

Annatto Market Segmentation Analysis


North America has the greatest market share for the annatto market. This is attributed to growing government support for the use of natural food colors in a variety of food and beverage applications is likely to drive the annatto market in this region. According to the Food and Agriculture Organization, the United States is the world's largest annatto market, accounting for roughly 42% of global imports. It gets more than 61% of its supplies from Peru and the rest from the Caribbean region.  

The Asia Pacific market is predicted to grow rapidly at 5.8 % CAGR due to rising consumer knowledge about the usage of natural food flavors and coloring, as well as an increasing number of product launches using natural colors. Furthermore, increased health consciousness, the appeal of clean-label products, favorable food safety requirements, and significant R&D investments are driving the industry forward.

Europe holds a significant market share for the annatto market due to the large consumer demand for natural food coloring in food and beverage items, Additionally, the production of caramel uses annatto in enormous quantities, which fuels the expansion of both regional markets. Stringent rules of Europe on the application of food color in the food industry.


North America

  • US

  • Canada

  • Mexico


  • Eastern Europe

    • Poland

    • Romania

    • Hungary

    • Turkey

    • Rest of Eastern Europe

  • Western Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Netherlands

    • Switzerland

    • Austria

    • Rest of Western Europe

Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Vietnam

  • Singapore

  • Australia

  • Rest of Asia Pacific

Middle East & Africa

  • Middle East

    • UAE

    • Egypt

    • Saudi Arabia

    • Qatar

    • Rest of Middle East

  • Africa

    • Nigeria

    • South Africa

    • Rest of Africa

Latin America

  • Brazil

  • Argentina

  • Colombia

  • Rest of Latin America


The Key Players are Aarkay Food Products, WILD Flavors, Kalsec, Hansen, FMC, DDW, Frutarom Natural Solutions BU, Amerilure Inc, AICA-COLOR, Biocon del Peru, DDW, Chr. Hansen Holding A/S, and other key players.

Aarkay Food Products-Company Financial Analysis


In 2023, Sun Chemicals' SunPrizma color-travel range and glittering silver Reflecks Dimensions Platinum G13CD made their debuts at in-cosmetics Global, where the business also showcased its newly introduced SunPuro Naturals line. SunPURO is a new brand of natural colorants and useful compounds produced by plants. Naturals The collection contains two orange-red items made from ethically obtained annatto, two traceable green chlorophyll ingredients, an upcycled black colorant made from coconut shell waste, and a milky opacifier made from responsibly sourced milk.

In 2022, Sun Chemical expand natural Colorants for Cosmetics and Personal Care in its product portfolio by offering SunPuro Natural Annatto A and SunPuro Natural Annatto O.

In 2022, Sun Chemical introduced Sunfood's natural colorants, a series of naturally sourced colors that may be used in a wide range of food and beverage items. Colors will be accessible throughout Europe, the Americas, the Middle East, and Africa.

Annatto Market Report Scope:

Report Attributes Details
Market Size in 2022  US$ 228.4 Million
Market Size by 2030  US$ 334.8 Million
CAGR   CAGR of 4.9 % From 2023 to 2030
Base Year 2022
Forecast Period  2023-2030
Historical Data  2019-2021
Report Scope & Coverage Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments • By Type (Solvent Extraction, Aqueous Extraction, and Emulsified)
• By Application (Food & Beverage, Natural Fabric Industry, Cosmetic Industry, Other)
Regional Analysis/Coverage North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia Rest of Latin America)
Company Profiles Aarkay Food Products, WILD Flavors, Kalsec, Hansen, FMC, DDW, Frutarom Natural Solutions BU, Amerilure Inc, AICA-COLOR, Biocon del Peru, DDW, Chr. Hansen Holding A/S
Key Drivers • Use of Natural Food Colorants in the Processed Food Industry
Market Restrain • High cost of Annatto


Frequently Asked Questions

Ans:  USD 334.8 million is expected to grow by 2030.

Ans: Annatto Market size was valued at USD 228.4 million in 2022

Ans: Strict government regulation may be a challenge for the annatto market.

Ans: North America is dominating the market.

Ans: Drivers are consumption of Natural Food Colorants in the Processed Food Industry and side effects of synthetic colors have triggered the demand for natural color


1. Introduction
1.1 Market Definition
1.2 Scope
1.3 Research Assumptions

2. Research Methodology

3. Market Dynamics
3.1 Drivers
3.2 Restraints
3.3 Opportunities
3.4 Challenges

4. Impact Analysis
4.1 Impact of Russia-Ukraine War
4.2 Impact of Ongoing Recession
4.3. Introduction
4.3.1 Impact on Major Economies US Canada Germany France United Kingdom China Japan South Korea Rest of the World

5. Value Chain Analysis

6. Porter’s 5 forces model

7. PEST Analysis

8. Annatto Market Segmentation, By Type
8.1 Solvent Extraction
8.2 Aqueous Extraction
8.3 Emulsified Annatto

9. Annatto Market Segmentation, By Application
9.1 Food & Beverage
9.2 Fabric Industry
9.3 Cosmetic Industry
9.4 Other

10. Regional Analysis
10.1 Introduction
10.2 North America
10.2.1 North America Annatto Market by Country
10.2.2 North America Annatto Market by Type
10.2.3 North America Annatto Market by Application
10.2.4 USA USA Annatto Market by Type USA Annatto Market by Application
10.2.5 Canada Canada Annatto Market by Type Canada Annatto Market by Application
10.2.6 Mexico Mexico Annatto Market by Type Mexico Annatto Market by Application
10.3 Europe
10.3.1 Eastern Europe Eastern Europe Annatto Market by Country Eastern Europe Annatto Market by Type Eastern Europe Annatto Market by Application Poland Poland Annatto Market by Type Poland Annatto Market by Application Romania Romania Annatto Market by Type Romania Annatto Market by Application Hungary Hungary Annatto Market by Type Hungary Annatto Market by Application Turkey Turkey Annatto Market by Type Turkey Annatto Market by Application Rest of Eastern Europe Rest of Eastern Europe Annatto Market by Type Rest of Eastern Europe Annatto Market by Application
10.3.2 Western Europe Western Europe Annatto Market by Country Western Europe Annatto Market by Type Western Europe Annatto Market by Application Germany Germany Annatto Market by Type Germany Annatto Market by Application France France Annatto Market by Type France Annatto Market by Application UK UK Annatto Market by Type UK Annatto Market by Application Italy Italy Annatto Market by Type Italy Annatto Market by Application Spain Spain Annatto Market by Type Spain Annatto Market by Application Netherlands Netherlands Annatto Market by Type Netherlands Annatto Market by Application Switzerland Switzerland Annatto Market by Type Switzerland Annatto Market by Application Austria Austria Annatto Market by Type Austria Annatto Market by Application Rest of Western Europe Rest of Western Europe Annatto Market by Type Rest of Western Europe Annatto Market by Application
10.4 Asia-Pacific
10.4.1 Asia Pacific Annatto Market by Country
10.4.2 Asia Pacific Annatto Market by Type
10.4.3 Asia Pacific Annatto Market by Application
10.4.4 China China Annatto Market by Type China Annatto Market by Application
10.4.5 India India Annatto Market by Type India Annatto Market by Application
10.4.6 Japan Japan Annatto Market by Type Japan Annatto Market by Application
10.4.7 South Korea South Korea Annatto Market by Type South Korea Annatto Market by Application
10.4.8 Vietnam Vietnam Annatto Market by Type Vietnam Annatto Market by Application
10.4.9 Singapore Singapore Annatto Market by Type Singapore Annatto Market by Application
10.4.10 Australia Australia Annatto Market by Type Australia Annatto Market by Application
10.4.11 Rest of Asia-Pacific Rest of Asia-Pacific Annatto Market by Type Rest of Asia-Pacific Annatto Market by Application
10.5 Middle East & Africa
10.5.1 Middle East Middle East Annatto Market by Country Middle East Annatto Market by Type Middle East Annatto Market by Application UAE UAE Annatto Market by Type UAE Annatto Market by Application Egypt Egypt Annatto Market by Type Egypt Annatto Market by Application Saudi Arabia Saudi Arabia Annatto Market by Type Saudi Arabia Annatto Market by Application Qatar Qatar Annatto Market by Type Qatar Annatto Market by Application Rest of Middle East Rest of Middle East Annatto Market by Type Rest of Middle East Annatto Market by Application
10.5.2 Africa Africa Annatto Market by Country Africa Annatto Market by Type Africa Annatto Market by Application Nigeria Nigeria Annatto Market by Type Nigeria Annatto Market by Application South Africa South Africa Annatto Market by Type South Africa Annatto Market by Application Rest of Africa Rest of Africa Annatto Market by Type Rest of Africa Annatto Market by Application
10.6 Latin America
10.6.1 Latin America Annatto Market by Country
10.6.2 Latin America Annatto Market by Type
10.6.3 Latin America Annatto Market by Application
10.6.4 Brazil Brazil Annatto Market by Type Brazil Annatto Market by Application
10.6.5 Argentina Argentina Annatto Market by Type Argentina Annatto Market by Application
10.6.6 Colombia Colombia Annatto Market by Type Colombia Annatto Market by Application
10.6.7 Rest of Latin America Rest of Latin America Annatto Market by Type Rest of Latin America Annatto Market by Application

11. Company Profile
11.1 Amerilure Inc
11.1.1 Company Overview
11.1.2 Financials
11.1.3 Product/Services Offered
11.1.4 SWOT Analysis
11.1.5 The SNS View
11.2.1 Company Overview
11.2.2 Financials
11.2.3 Product/Services Offered
11.2.4 SWOT Analysis
11.2.5 The SNS View
11.3 Aarkay Food Products
11.3.1 Company Overview
11.3.2 Financials
11.3.3 Product/Services Offered
11.3.4 SWOT Analysis
11.3.5 The SNS View
11.4 WILD Flavors
11.4 Company Overview
11.4.2 Financials
11.4.3 Product/Services Offered
11.4.4 SWOT Analysis
11.4.5 The SNS View
11.5 Kalsec
11.5.1 Company Overview
11.5.2 Financials
11.5.3 Product/Services Offered
11.5.4 SWOT Analysis
11.5.5 The SNS View
11.6 Biocon del Peru
11.6.1 Company Overview
11.6.2 Financials
11.6.3 Product/Services Offered
11.6.4 SWOT Analysis
11.6.5 The SNS View
11.7 Hansen
11.7.1 Company Overview
11.7.2 Financials
11.7.3 Product/Services Offered
11.7.4 SWOT Analysis
11.7.5 The SNS View
11.8 Frutarom Natural Solutions BU
11.8.1 Company Overview
11.8.2 Financials
11.8.3 Product/Services Offered
11.8.4 SWOT Analysis
11.8.5 The SNS View
11.9 Biocon del Peru
11.9.1 Company Overview
11.9.2 Financials
11.9.3 Product/ Services Offered
11.9.4 SWOT Analysis
11.9.5 The SNS View
11.10 Chr. Hansen Holding A/S
11.10.1 Company Overview
11.10.2 Financials
11.10.3 Product/Services Offered
11.10.4 SWOT Analysis
11.10.5 The SNS View
11.11 DDW
11.11.1 Company Overview
11.11.2 Financials
11.11.3 Product/Services Offered
11.11.4 SWOT Analysis
11.11.5 The SNS View
11.12 FMC
11.12.1 Company Overview
11.12.2 Financials
11.12.3 Product/Services Offered
11.12.4 SWOT Analysis
11.12.5 The SNS View

12. Competitive Landscape
12.1 Competitive Benchmarking
12.2 Market Share Analysis
12.3 Recent Developments
12.3.1 Industry News
12.3.2 Company News
12.3.3 Mergers & Acquisitions

13. USE Cases and Best Practices

14. Conclusion

An accurate research report requires proper strategizing as well as implementation. There are multiple factors involved in the completion of good and accurate research report and selecting the best methodology to compete the research is the toughest part. Since the research reports we provide play a crucial role in any company’s decision-making process, therefore we at SNS Insider always believe that we should choose the best method which gives us results closer to reality. This allows us to reach at a stage wherein we can provide our clients best and accurate investment to output ratio.

Each report that we prepare takes a timeframe of 350-400 business hours for production. Starting from the selection of titles through a couple of in-depth brain storming session to the final QC process before uploading our titles on our website we dedicate around 350 working hours. The titles are selected based on their current market cap and the foreseen CAGR and growth.


The 5 steps process:

Step 1: Secondary Research:

Secondary Research or Desk Research is as the name suggests is a research process wherein, we collect data through the readily available information. In this process we use various paid and unpaid databases which our team has access to and gather data through the same. This includes examining of listed companies’ annual reports, Journals, SEC filling etc. Apart from this our team has access to various associations across the globe across different industries. Lastly, we have exchange relationships with various university as well as individual libraries.

Secondary Research

Step 2: Primary Research

When we talk about primary research, it is a type of study in which the researchers collect relevant data samples directly, rather than relying on previously collected data.  This type of research is focused on gaining content specific facts that can be sued to solve specific problems. Since the collected data is fresh and first hand therefore it makes the study more accurate and genuine.

We at SNS Insider have divided Primary Research into 2 parts.

Part 1 wherein we interview the KOLs of major players as well as the upcoming ones across various geographic regions. This allows us to have their view over the market scenario and acts as an important tool to come closer to the accurate market numbers. As many as 45 paid and unpaid primary interviews are taken from both the demand and supply side of the industry to make sure we land at an accurate judgement and analysis of the market.

This step involves the triangulation of data wherein our team analyses the interview transcripts, online survey responses and observation of on filed participants. The below mentioned chart should give a better understanding of the part 1 of the primary interview.

Primary Research

Part 2: In this part of primary research the data collected via secondary research and the part 1 of the primary research is validated with the interviews from individual consultants and subject matter experts.

Consultants are those set of people who have at least 12 years of experience and expertise within the industry whereas Subject Matter Experts are those with at least 15 years of experience behind their back within the same space. The data with the help of two main processes i.e., FGDs (Focused Group Discussions) and IDs (Individual Discussions). This gives us a 3rd party nonbiased primary view of the market scenario making it a more dependable one while collation of the data pointers.

Step 3: Data Bank Validation

Once all the information is collected via primary and secondary sources, we run that information for data validation. At our intelligence centre our research heads track a lot of information related to the market which includes the quarterly reports, the daily stock prices, and other relevant information. Our data bank server gets updated every fortnight and that is how the information which we collected using our primary and secondary information is revalidated in real time.

Data Bank Validation

Step 4: QA/QC Process

After all the data collection and validation our team does a final level of quality check and quality assurance to get rid of any unwanted or undesired mistakes. This might include but not limited to getting rid of the any typos, duplication of numbers or missing of any important information. The people involved in this process include technical content writers, research heads and graphics people. Once this process is completed the title gets uploader on our platform for our clients to read it.

Step 5: Final QC/QA Process:

This is the last process and comes when the client has ordered the study. In this process a final QA/QC is done before the study is emailed to the client. Since we believe in giving our clients a good experience of our research studies, therefore, to make sure that we do not lack at our end in any way humanly possible we do a final round of quality check and then dispatch the study to the client.

Start a Conversation

Hi! Click one of our member below to chat on Phone