Paprika Oleoresin Price Trends and Forecast

Regional Price Overview

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

Paprika Oleoresin Price Trends for First Half of 2023

The price trends 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 trends. 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 trends.

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 Trends for 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 trendss.

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 Trends  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 trendss 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.