Red Pepper Oleoresin Price Trend and Forecast

Red Pepper Oleoresin Regional Price Overview

Get the latest insights on price movement and trend analysis of Red Pepper Oleoresin in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Red Pepper Oleoresin Price Trend for the Second Half of 2024

Since red pepper oleoresin is directly derived from red pepper, any fluctuations in the latter’s price are reflected in the former’s price trend. In the European region, red pepper prices exhibited fluctuations as reduced yields in key growing areas such as Spain, Israel, and Italy were impacted by adverse weather conditions.
 

Red Pepper Oleoresin Price Chart

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Spain experienced heavy rains and floods, while Italy faced extreme heat, leading to a 25-30% yield loss, particularly in Sicilian fields. In contrast, Morocco saw an increase in pepper yields as growers shifted from tomatoes to peppers in response to rising demand in the European market.

In North America, strong demand from end-user industries drove the red pepper oleoresin market. Hurricanes and the holiday season disrupted production, creating short-term supply challenges. These disruptions led to price hikes throughout the period. However, as these challenges were resolved, the market demonstrated resilience and experienced periods of price stabilization.

Analyst Insight

According to Procurement Resource, the prices of red pepper oleoresin are expected to show a mixed trend in the upcoming months. The high demand from the downstream industries, fluctuating harvest conditions, and logistical challenges will have a major impact on the price dynamics of the commodity.
 

Red Pepper Oleoresin Price Trend for the First Half of 2024

Red pepper oleoresin has various applications, from being used as a flavoring agent to being used as a topical analgesic and inflammatory agent. It is directly derived from red peppers, and the prices closely follow the fluctuations in the prices of red peppers. The prices of red pepper showed marginal fluctuations globally. In the European market, the prices of red pepper oleoresin were lower compared to the same period last year, and the price trajectory was relatively flat as the prices were stable. The demand from downstream industries remained weak in the said period.

The dry season in Florida and storms in the Mexico growing areas had slowed down the production. Despite this, the product's supply was more stable without production shortages, and large volumes arrived in the market as the weather conditions normalized. This brought down the prices of red pepper, which eventually influenced the prices of red pepper oleoresin in the United States market.

The exports from India declined somewhat in the second half of the said duration because of the ongoing controversy regarding MDH and Everest spice companies, which could threaten over half of India's spice shipments. This affected export queries for Indian suppliers, and the supply gap in the international markets widened, on the other hand, the oversupply in the Indian markets pressurized the prices of spices downwards domestically. Overall, varying market dynamics were witnessed.

Analyst Insight

According to Procurement Resource, the prices of red pepper oleoresin are expected to vary similarly in the coming months as well depending on the production and yield of Red peppers.
 

Red Pepper Oleoresin Price Trend for the Second Half of 2023

The Red pepper oleoresin market is primarily driven by the production volume and prices of red pepper. Red pepper is a perishable agricultural commodity whose prices fluctuate regionally depending on the weather conditions and logistical challenges. During the said period, red peppers were in limited supply in the European market as different regions faced heat waves. Due to this, the production volumes and quality of the pepper declined. The limited supply of red pepper and logistical challenges influenced the prices of red pepper oleoresin, pressuring the prices upwards.

In the United States market, the prices had gone up marginally due to limited supply. Red pepper crop is harvested in November and December. The prices had gone up slightly in the first half of the given span and then stabilized as the harvested crop was slowly released in the markets. The prices of red pepper oleoresin mirrored the prices of red pepper and showed marginal fluctuations.  Overall, the prices of red pepper oleoresin fluctuated at the higher side of curve for the majority of given period.

Analyst Insight

According to Procurement Resource, the prices of red pepper oleoresin is expected to stabilize and consolidate in the coming months as the anticipated newer supplies are likely to balance the red pepper oleoresin markets.
 

Red Pepper Oleoresin Price Trend for the First Half of 2023

As the Red Pepper Oleoresin is directly extracted from red peppers, the price trend closely follow the red pepper price fluctuations. The growth of downstream industrial demands from the sauces, flavoring, and spice industries raised the market offtakes considerably pushing up the Red Pepper Oleoresin prices in the Asian region.

Whereas, in the Northern American region a constant and substantial decline in Red Pepper production created a shortage in the market, indirectly increasing the Oleoresin price trend since the pepper and oleoresin prices are directly related. The Red Pepper Oleoresin showed an upward movement in the American market as well. Overall, very positive market sentiments were observed throughout the first half of 2023.

Analyst insight

According to Procurement Resource, the Red Pepper Oleoresin prices are expected to rise further since the downstream and end consumer demands are constantly rising, whereas the supply-chains/ production is constrained.
 

Red Pepper Oleoresin Price Trend for the Second Half of 2022

Higher fertilizer costs and a labour shortage are two effects of the Covid-19 epidemic that harmed the production of peppers in 2022. The Kharif season had constant rainfall and thus the subsequent increase in the moisture content caused the decline in the red chilli crop production. Due to the less availability of crops, the farmers’ community at one point saw a shortage in terms of stock availability.

This increased the buying potential of red chilli, positively influencing the price trend of red pepper oleoresin. The traders got less quantity of the feedstock and concerns over the deficiency of the concerned commodity shadowed throughout the third and fourth quarters of 2022.  These elements had a favourable impact on the price trend of red peppers. The rise in demand and in compliance of the manufacturing market to keep up with the demand led to the rise in price trend of red pepper oleoresin.

Additionally, the red peppers' colouring process was impacted by the delayed harvest, which resulted in a less useful extract. So, as a result of the red pepper's increased price, red pepper oleoresin prices increased elsewhere.

Analyst Insight

Given the current market dynamics the prices of red pepper oleoresin are expected to show a mixed trend in the coming months. The high demand from the end-user market industries, fluctuating harvest conditions and the recovery of the market from the COVID-19 pandemic will have a major impact on the price dynamics.
 

Red Pepper Oleoresin Price Trend For the First Half of 2022

According to the US Bureau of Labour and Statistics, this year saw the highest inflation levels since 1981. The high-cost inflation owing to the global supply chain disruptions, logistics and adverse climatic conditions caused the prices of fruits and vegetables to surge globally. In India, around 30% of red pepper crops were affected due to heavy rainfall and pest infestation.

In China, the price of Sanying pepper averaged 22 RMB/kg during the said quarter. The US this year saw a lousy harvest due to drought-like conditions and registered reduced volumes by 24%. Also, the delayed harvest affected the colouring process of red peppers thereby reducing the valuable extract. Hence, owing to the inflated price of red pepper the price trend for red pepper oleoresin surged globally.

Procurement Resource provides latest prices of Red Pepper Oleoresin. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.