Paprika Oleoresin Price Trend and Forecast

Paprika Oleoresin Regional Price Overview

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

Paprika Oleoresin Price Trend for the Second Half of 2024

The prices of Paprika Oleoresin followed a fluctuating trajectory in H2’24, closely aligning with the trends of its primary feedstock, paprika peppers. Extracted from paprika peppers, Paprika Oleoresin imparts a spicy flavor to food and is widely used in culinary and food processing industries. However, the limited availability of high-quality paprika varieties posed challenges for downstream sectors. In India, severe weather conditions and heavy monsoon rains significantly impacted paprika cultivation, necessitating replantation in certain areas. While medium-grade paprika remained readily available, the supply of IPM-grade paprika was constrained.
 

Paprika Oleoresin Price Chart

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Globally, variable production outputs in China affected trade flows to key importers such as Spain and the United States. In Mexico and South Africa, reduced export volumes due to fluctuations in paprika harvests added pressure on global prices. These combined factors contributed to price fluctuations in Paprika Oleoresin, with notable regional variations.

Analyst Insight

According to Procurement Resource, the prices of Paprika Oleoresin are expected to waver in the upcoming months as the demand for spicy foods shows an upward trend in the winter months. However, the limited availability of feedstock and logistical challenges may pose challenges in the production of the Paprika Oleoresin.
 

Paprika oleoresin Price Trend for the First Half of 2024

In the first half of 2024, paprika oleoresin prices showed relative stability, supported by steady raw material availability. India’s paprika production remained largely stable, with over 90% of sowing completed in key regions, though localized replanting efforts were necessary due to weather-related disruptions. The supply of medium-grade paprika was sufficient, but premium-quality IPM paprika remained in limited availability, affecting pricing for high-grade extracts.

In Mexico, lower export volumes tightened supply in international markets, putting mild upward pressure on prices. At the same time, rising import demand from European markets and the food processing sector contributed to a balanced price environment. Global procurement trends were largely driven by the need for consistent color and flavor in processed foods, sustaining steady demand. While price fluctuations were minimal, market participants remained cautious due to evolving supply chain dynamics and regulatory compliance in export markets.

Analyst Insight

According to Procurement Resource, Moderate volatility may persist due to supply constraints and evolving trade conditions.
 

Paprika oleoresin Price Trend for the Second Half of 2023

In the second half of 2023, paprika oleoresin prices exhibited a fluctuating trend, primarily influenced by the supply dynamics of raw paprika. Major producing regions, including India, China, and Mexico, faced varied climatic conditions, impacting overall yield and quality. In India, erratic monsoon patterns affected crop output, leading to occasional supply tightness. Meanwhile, in Mexico, stable production levels helped offset some global shortages, though export volumes remained constrained.

Demand from the food processing and colorant industries remained steady, ensuring a consistent market for paprika oleoresin. Additionally, as global spice extraction industries expanded, procurement of high-quality paprika oleoresin faced increasing competition. While cold storage inventories provided some stability, fluctuating export demand—especially from key consumers in Europe and North America—led to periodic price adjustments. Overall, H2 2023 witnessed a market characterized by moderate volatility, shaped by both supply-side constraints and steady downstream demand.

Analyst Insight

According to Procurement Resource, Prices are expected to remain stable with minor fluctuations driven by supply-demand dynamics.
 

Paprika Oleoresin Price Trend for the First Half of 2023

The price trend of paprika oleoresin surged to new levels in the first and second quarters of 2023. Initially, the inclination in the prices was a result of lower rates of paprika production. In India, the production of paprika fell by around 20 percent as compared to last year, that proved to be a challenge for the traders as the demand for paprika oleoresin-derived products continued to rise.

This reduction in inventories in Asian countries was a direct consequence of extreme weather conditions. Due to these weather conditions, the consumer’s purchasing potential declined, which was much more evident in the second quarter, and thus, the consumption rates in the later phase of this quarter declined, hampering the growth of the paprika oleoresin price trend. But soon enough, the high momentum of paprika oleoresin market caught up with the challenges and supported the rise in the prices of paprika oleoresin.

In addition to this, during the first two quarters, China continued to be a major importer of Indian paprika oleoresin produce, irrespective of its rising prices, which further increased export rates and positively influenced the paprika oleoresin price trend.

Analyst Insight

According to Procurement Resource, the price of Paprika Oleoresin is estimated to incline in the upcoming months as the rates of export of paprika oleoresin and its demand in international markets are showing positive growth potential.
 

Paprika Oleoresin Price Trend for the Second Half of 2022

Food and feed prices skyrocketed as a result of the present economic crisis caused by Russia's invasion of Ukraine. Paprika prices worldwide increased, which had an impact on Paprika Oleoresin price trend.

The zero-tolerance Covid regulations in China, however, had a detrimental effect on logistics amidst rising freight costs. It is challenging for the vendors to sell the items because of transportation, fertilizer, and acreage concerns. Additionally, once the warm weather arrived, paprika's excellent color value declined.

Despite the large amount of paprika grown in the USA, prices increased due to strong demand from the downstream food and beverage sector. Prices for paprika further increased as a result of a poor harvest as compared to the previous planting season. Because of the high cost of inflation and the high cost of transportation, the price of paprika oleoresin remained stable across the board.

Analyst Insight

Given the current market dynamics the prices of Paprika Oleoresin are expected to increase in the coming months. The rise in demand for Paprika Oleoresin in the market is the major driver of the prices.
 

Paprika Oleoresin Price Trend for the First Half of 2022

Owing to the current economic meltdown unleashed by the Russian invasion of Ukraine; food and feed prices shot up drastically. The price of paprika soared worldwide, thereby influencing the price trend for Paprika Oleoresin.

In China, the zero-tolerance covid restrictions negatively impacted the logistics amid the surging transportation costs. With the buyers insisting on origin certificates, making it difficult for the sellers to sell the products considering transportation, fertilizers, and acreage issues.

Also, the good colour value of paprika decreased as the warm weather set in. In the USA, despite the high acreage of paprika, the prices shot up owing to robust demand from the downstream food and beverages industry. The precious cargoes from Peru did not arrive as the country’s stockpiles suffered due to adverse climatic conditions.

A reduction in the acreage by 20% as compared to the previous planting season coupled with a lousy harvest caused the Paprika prices to surge. Hence, with the high-cost inflation and expensive logistics, the price of Paprika oleoresin remained anchored worldwide.

Procurement Resource provides latest prices of Paprika 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.