India exported capsicum oleoresin worth US$ 139.77 million in FY2024, recording a CAGR of 26% between 2019 and 2024. The USA, South Korea, Indonesia, and China were the key importing countries, collectively accounting for 56% of India's total capsicum oleoresin exports.
Summary & Insights
India is a key exporter of capsicum oleoresin, a concentrated chili extract used in food, pharmaceuticals, and cosmetics. With strong agricultural resources, competitive pricing, and evolving extraction technologies, India dominates the global market.
Trade Overview
India's exports of capsicum oleoresin have grown steadily, with major destinations including the U.S., Germany, the Netherlands, and Japan. Government support, favorable climatic conditions, and advanced processing techniques drive this growth. The rising global demand for natural additives and sustainable production practices further strengthen India’s market position. ** company exported nearly 28% of capsicum oleoresin in 2023-24, followed other companies ***. USA, South Korea, Indonesia, China, and Thailand were the top 5 importers of capsicum oleoresin from India in 2023-24.
India Significance in Global Capsicum Oleoresin Trade Supply Chain
India plays a crucial role in the global supply of capsicum oleoresin, known for its high capsaicin content. Competitive pricing, cost-effective labor, and adherence to international quality standards enhance its export appeal. Sustainable farming practices and R&D investments further secure India’s leadership.
Capsicum Oleoresins Price Trend (Export)
Capsicum oleoresin prices have fluctuated due to factors like raw material availability and market conditions. Export prices have generally risen, driven by global demand, while domestic wholesale prices vary based on yield and processing costs. Recent supply chain disruptions have impacted pricing, but stability is returning.
India Capsicum Oleoresin Market Growth Factors
§ Rising demand for natural colorants and flavors
§ Expanding pharmaceutical and nutraceutical applications
§ Growth in key export markets (U.S., Europe, Japan)
§ Advancements in extraction technology
§ Government policies supporting spice exports
§ Adoption of organic farming practices
§ Strong exporter network ensuring supply stability
§ Favorable climatic conditions for chili cultivation
§ Increasing use in pain-relief and therapeutic products
§ Compliance with global quality standards
Outlook
India’s capsicum oleoresin exports are set to grow, driven by demand from food, pharmaceutical, and cosmetic industries. Investments in advanced extraction techniques, sustainable farming, and regulatory compliance will boost competitiveness. Emerging markets and evolving global trade dynamics present new opportunities for expansion.
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