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 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.
 

Red Pepper Oleoresin Price Chart

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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 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.