Chilli Oil Market - Forecast(2023 - 2028)

Chilli Oil Market Overview

Chilli Oil Market Size is estimated to reach $3.1 billion by 2027. Furthermore, it is poised to grow at a CAGR of 5.7% over the forecast period of 2022-2027. Chilli oil is a condiment usually red in color. It is produced from vegetable oil, soybean oil or sesame oil, although olive oil and hot chilli peppers are used. Chilli oil is a spice produced from vegetable oil that has been imparted with chilli peppers. It is commonly used in Chinese cuisine as a dipping sauce, as well as in East and Southeast Asia and other parts of the world. Chilli oil is made from dried chillies that have been preserved in oil. It gives a great kick to every dish it's used in. It's a terrific oil for any stir fry or sautés and it's frequently used as a finishing oil for risottos, pasta and shellfish. Chilli oil is commonly used as a meat and dim sum dip. Jjamppong, a Korean Chinese noodle soup, also uses it. Chilli oil is sold in glass jars in stores, but it can also be created from scratch at home. On request, it is usually served at Chinese restaurants. There is a rapid increase in the demand for chilli peppers and chilli oils across the world. Chilli oil is known by various names in China and Japan. Chilli oil that has been opened will usually last for around a year.

Chilli oil can be utilized for a wide range of medical diseases owing to its high antioxidant and anti-inflammatory benefits. It is most widely employed in culinary applications, especially in Asian countries and cuisine. Chilli peppers contain the active chemical capsaicin, which has a powerful effect on the human body. This oil also contains trace amounts of vitamin C and A, as well as important antioxidants and healthy fatty acids. Consumer awareness of healthy meals & ingredients is increasing, which is propelling the market forward during the forecast period 2022-2027.

Chilli Oil Market Report Coverage

The report: “Chilli Oil Market Forecast (2022-2027)", by Industry ARC covers an in-depth analysis of the following segments of the Chilli Oil Market.

By Type: Hot Pressed Chilli Oil, Cold-Pressed chilli Oil.
By End Use: Home, Restaurants and Others.
By Distribution Channel: Supermarkets, Hypermarkets, E-commerce websites and Others.
By Geography: North America (U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia and Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia and New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America), and Rest of the World (the Middle East and Africa).

Key Takeaways

• Geographically, Asia Pacific held a dominant market share in the year 2021 to a rise in the demand for chilli Oil in food as a replacement for refined oil. 
• Capsaicin found in chilli is also able to stimulate the immune system and chilli oil is known to have moderate levels of vitamin C. This can aid to increase white blood cell production while also acting as an antioxidant to decrease immune system stress. A small dose of chilli oil helps in cough, cold, or congestion. These certain health benefits trigger consumers to use chilli oil which boosts the Chilli Oil Market over the forecast period. However, fluctuation in prices owing to various factors like imbalance of demand & supply chain and unfavourable climatic conditions will impact the Chilli Oil Market  in the projected forecast period.
• A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Chilli Oil Market Report.

Chilli Oil Market: Market Share (%) by Region, 2021

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Chilli Oil Market Segmentation Analysis - By Type

Chilli Oil Market  based on type can be further segmented into Hot Pressed Chilli Oil and Cold-Pressed chilli Oil. Hot pressed chilli Oil held a dominant share in the year 2021. In the Consumer Goods and other industries, there is a higher demand for high-quality industrial valves. The market for chilli oil is currently being driven by the need to reduce the risk of contamination. Chilli oil contains a variety of nutrients, including vitamins A, E, K, C and iron, which are beneficial to blood clotting, bone health, immunity and antioxidant properties, among other things. The chilli oil market in Consumer Goods is anticipated to grow as people become more concerned about the market and industry.

However, Cold-pressed Chilli Oil is estimated to be the fastest-growing with a CAGR of 6.2% over the forecast period of 2022-2027. Consumers are substituting cold-pressed chilli oil for other hydrogenated oils in household cooking for its health benefits. This factor has contributed significantly to the market's expansion. Furthermore, a recent trend among the general public to consume foods made entirely of natural fruits and flavours has boosted the market growth.

Chilli Oil Market Segmentation Analysis - By End Use

Chilli Oil Market based on product end use can be further segmented into Home and Restaurants Use. Home use chilli Oil held a dominant share in the year 2021. The public's rising awareness of the health benefits of cold-pressed Chilli oils has led to a rise in their use in family cooking. Owing to the previous impact of the Covid restaurant chain has been disrupted, prompting customers to prepare their favourite meals at home. Chilli oil is mostly used in Chinese cookery for its natural spice flavour. Major companies launched their products in several types, such as ready-to-eat and ready-to-cook, in response to market demand; this is also a key element for growth within the home use of the Chilli Oil Market .

However, Restaurant use of chilli oil is estimated to grow by 6.6% in the forecast period of 2022-2027, owing to gaining its popularity by the removal of restrictions on gathering, events & functions. It can be used as a meat and vegetable cooking foundation, a spicy dipping sauce for rolls and dumplings, or drizzled. Also, it is used with pizza. chilli oil is used with the combination of dishes to make it spice which boosts restaurant use of Chilli Oil Market  over the forecast period 2022-2027.

Chilli Oil Market Segmentation Analysis- By Geography

The Chilli Oil Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America and the Rest of the World. The Asia Pacific held a dominant market share of 33% in the year 2021. The Asia Pacific is the leading region of chilli production & consumption. In China, chilli oil is mostly used in traditional Sichuan dishes noodles, pork & sauce. Chilli oil is used in homes & restaurants in various dishes & is popular among consumers and led the market.

Furthermore, North America is estimated to be the fastest-growing over the forecast period 2022-2027, owing to numerous health benefits of chilli oil over refined oil, which is driven by health-conscious consumers. Also, busy lifestyles & increasing consumption of fast food in developed countries also drive the Chilli Oil Market . In urban families, consumption per capita is from 8 to 9 kilogrammes, whereas in rural communities, it ranges from 14 to 17 kilogrammes in the south-south-eastern regions. The use of chilli in frozen foods is key to driving the Chilli Oil Market .

Chilli Oil Market Drivers

Increasing demand for Chilli Sauce is driving the global Chilli Oil industry.

Chilli sauce is becoming increasingly popular. Chilli oil is mostly used in Chinese and Indo-Chinese dishes like fried rice, deep Japanese tempura, Chilli Cheese Toast and other variety of food items. The rise in popularity of Latin American and Asian food can be attributed to this. The United States accounts for over 40% of global imports of Chillies. From October to November 2021, 4,827 tonnes of chilli pepper were imported into the USA, as per SEAIR trade data. Other reasons, such as affordability and a wide range of tastes, contribute to the market's expansion. The introduction of novel sauce flavours with health benefits has boosted demand for chilli sauce.

Accelerating Consumption of Frozen and Fast Foods is driving the market growth.

Demand for chilli oil & chilli sauce is increasing as people consume more frozen and quick foods. In 2021, frozen pizza of about $6.06 billion sold in U.S. Consumption is prevalent in metropolitan and developing countries. Furthermore, the expanding urban population, as well as the upgrading of logistics and storage facilities, would positively affect the Chilli Oil Market over the forecast period. Cultural contacts and the increasing number of immigrants in countries are two factors that will drive market expansion.

Chilli Oil Market Challenges

Fluctuating Prices of Chillies in the market are hindering the Chilli Oil Market Growth.

Arrivals in the market, demand, climatic circumstances, export demand and varietal variances among the marketplaces all impact price fluctuations. In the year 2020-2021 (Apr-Nov), the United States was the largest importer of Chilli Powder, with a share of 21.06%, followed by the United Arab Emirates, which imported Chilli Powder worth 10.78 USD million. The increase in food commodity prices, particularly red chillies and bird's eye chillies, influenced the inflation rate in January 2020, according to the Central Statistics Agency (BPS). Prices were more influenced by acreage adjustments driven by lagged prices, production variation in the country, rainfall distribution, prices of competing crops, export demand and prices of competing for crops when all or some of these factors were active. When all or some of these factors were active, chilli prices exhibited volatility, which impacted by-products such as Chilli Oil Market  price, which in turn influenced the growth of the Chilli Oil Market .

Chilli Oil Industry Outlook

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Chilli Oil Market. The top 10- chilli Oil Market companies are- 

1. Lee Kum Kee
2. Laoganma Special Flavour Foodstuffs Company
3. S&B Foods
4. Mantova Food
5. Hormel Foods
6. Accord Foods
7. Naples Drizzle
8. Huy Fong Foods
9. Bitton
10. Buon Ricordo 

Recent Developments

• In February 2022, Hormel Foods with brand COLUMBUS leading in the United States announced the launch of the largest ingredients marketing campaign ever, ‘Like This’ Campaign, with a new perfect charcuterie bite by COLUMBUS. "Like This" campaign use multiple digital platforms to showcase charcuterie pairings. 
• In March 2021, S&B Japanese company launched new series of S&B Wasabi powder, which is made up of selected horseradish & manufactured with special techniques without any colour or additive. Wasabi powder is used in traditional Japanese dishes such as sushi, Sashimi, Soba & also steak, fish etc. 
• In December 2020, Lee Kum Kee pioneer & leading maker of Asian sauces & condiments announced category expansion & introduction of a new line of ready to eat, gourmet rice & noodle bowls containing 8g to 14 g of protein per bowl for $4.49. 

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