Amaranth Market

Market Overview

The global amaranth market size was valued at USD 7.78 billion in 2022. It is projected to reach USD 16.23 billion by 2031, growing with a CAGR of 10.7% during the forecast period (2023–2031).

Amaranth refers to perennial plant species in the Amaranthus family. Amaranth is an ancient grain similar to quinoa. It is a protein-rich, gluten-free pseudo-cereal and a distant relative of chard and spinach. Amaranth seeds can be boiled like rice or oats and used in pilafs or porridges. It is also ground into flour and used in gluten-free baking. Amaranth has a mild, nutty, malty flavor with a long history and was worshipped by the Aztecs and Incas for its supernatural powers. Amaranth comes in various forms, including whole seeds, flour, flakes, processed cereals, and pasta.

Although known for its ornamental value in gardens, it was originally cultivated for its edible leaves and grain-like seeds. Amaranth plants have large, broad, veined leaves and produce single flowers on tall reddish stems that come in burgundy, red, pink, or salmon. Amaranth has been in use for centuries as a vegetable and grain-like seed. Due to its rich nutritional profile, including valuable phenolic compounds, antioxidants, minerals, and vitamins that offer significant health benefits, demand for amaranth is growing. Certain valuable phenolic compounds, antioxidants, minerals, and vitamins are present in these grains and are highly beneficial.

Market Dynamics

Global Amaranth Market Drivers:

Growing Food Processing Industry and Associated Nutritional Benefits

Amaranth has gained significant popularity as a health food due to its impressive nutrient profile and various health benefits. Its adoption in functional food applications is expected to increase as a result. Due to its micronutrient and antioxidant properties, amaranth is also used in skincare products and cosmetics. It is also an ideal food choice for gluten-intolerant people. The absence of gluten means they are ideal for gluten-intolerant people, and the high protein level means they are suitable for dietetic foods and supplements.

In addition to its other health benefits, amaranth has been found to have positive effects on bone and brain health. The surge in consumer interest in natural and organic products that enhance health and well-being is expected to contribute to the widespread acceptance and utilization of amaranth.

Increasing Demand for Vegan Products

Vegetarianism and plant-based diets are on the rise in developed countries. Vegetarians and vegans are a significant population group. Therefore, increasing the market supply of high-quality plant-based proteins is highly desirable. It requires overcoming market barriers and developing new technologies and policies promoting greater plant protein consumption. Amaranth is one of the most promising sources of non-allergenic and almost complete plant proteins.

Additionally, many companies focus on introducing high-quality organic and vegan product variants. They are focusing on increasing productivity and market share through continuous developments. The new businesses focus on developing the best businesses by implementing different approaches to growth. They are integrating their expertise in pharmaceuticals, food and beverages, and personal care and forming strategic alliances with major companies. Such factors drive market growth.

Global Amaranth Market Restraint:

Limited Production and Availability

The production of amaranth is limited to certain countries, and there are still segments of the population unfamiliar with it and its health benefits. The high cost of production of amaranth has resulted in a limited number of producers in the market, which is an obstacle to the growth of amaranth.

Additionally, the yield produced is comparatively lower than the crop grown. It has increased the overall price of amaranth and its derived products. The uncertainty of the climatic conditions is also an important factor contributing to the high amaranth price. Similarly, the presence of low-cost conventional food colors in the market and their easy availability have also hampered the growth of the amaranth market.

Global Amaranth Market Opportunities:

Resiliency in Harsh Climatic Conditions

Amaranth's resilience to diverse climatic conditions is one of the main reasons for its recent revival in modern agriculture. Recent studies have confirmed this ancient wisdom, recognizing the crop's unique ability to thrive in hilly terrain and open plains and its high tolerance to drought, high salinity soils, and frost. This characteristic renders it a highly adaptable crop for mitigating the impacts of escalating seasonal unpredictability, in contrast to numerous other crops that necessitate specific environmental conditions for optimal growth.

Additionally, amaranth possesses the potential to address food insecurity in economically disadvantaged agricultural areas due to its nutrient density, adaptability, high yield potential, and short production cycles. Amaranth can adapt to a wide range of geographical altitudes, making it a popular rotational crop option for farmers in various regions. Amaranth is higher in protein and contains all nine essential amino acids than conventional cereals such as wheat and corn.

Rising Demand for Cosmetics and Personal Care Products

Amaranth oil has many benefits for the skin, such as moisturizing, soothing, and protecting. The amaranth seed oil contains unsaturated fatty acids and squalene, which has anti-aging, anti-inflammatory, and antioxidant properties and is a natural skin-identical chemical readily absorbed by the skin. Due to these properties, amaranth seed oil has many applications in the cosmetic and personal care industry.

Amaranth oil is used in cosmetics, either pure or enriched with tocopherol, and it is stabilized using argon. Amaranth oil is added to skin and hair products such as face creams, shampoos, and balms. The demand for amaranth oil in this industry has been further boosted by the increasing need for cosmetic and personal care products made from natural ingredients.

Regional Analysis

By region, the global Amaranth market has been segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global amaranth market shareholder and is expected to grow at a significant rate over the forecast period. The growth is primarily driven by increased consumer awareness of the advantages of using Amaranth products. The emergence of new product developments within the region also creates substantial market expansion opportunities. Over 40 products contain amaranth grain in one form or another in the U.S. The cultivated plant exhibits a high degree of adaptability to the agricultural regions of the Midwest and Western United States. The plant exhibits a high tolerance to drought conditions and is most optimally cultivated during the late spring season. Due to the diminutive size of amaranth seeds, certain cultivators employ insecticide boxes on their drills or planters to facilitate the planting process. Other individuals utilize a vegetable seeder. Also, the grain is collected through the utilization of a combine harvester. The average amaranth yields vary between 600 and 1,200 pounds per acre.

In addition, Canada is among the richest nations in the world and has one of the largest economies. The escalating prevalence of obesity in Canada has led to a rising trend among individuals to embrace a vegan diet and select healthier products. Such factors propel market growth.

Europe is one of the most important regions in the global amaranth market. In Europe, amaranth is marketed as a healthy food because it is gluten-free and has a high protein content. Grain seeds can be found in a diverse array of supermarkets. At present, the majority of amaranth consumed in Europe is sourced from non-European regions. However, a promising prospect exists for the widespread cultivation of amaranth in Europe. In addition, the establishment of the  RASFF (Rapid Alert System for Food and Feed) by the European Commission serves as a mechanism to promptly notify and inform the Commission about food items that pose potential risks or issues. The issue at hand encompasses malnutrition, obesity, the escalating prevalence of food allergies, and the impact stemming from the proliferation of genetically modified organisms (GMOs). People are more in need of high-quality food, and people are starting to look for new resources, alternative and organic food. As a result, it is anticipated that the market for amaranth will experience growth over the projected period.

The Asian-Pacific region's market growth is attributed to the increasing population, thereby propelling the demand for construction projects. This population growth, coupled with rising purchasing power, is primarily driving the growth of the amaranth market. The industry is also growing due to increased government initiatives to promote health and well-being, particularly in Japan, India, and the Philippines. China is the largest producer of amaranth products, followed by India. In India, Amaranth is widely recognized by its vernacular names, including Rajgira, Seel, or Ramdana. The adoption of amaranth seeds by various Asian countries, including India, China, Nepal, and others, occurred early due to the recognition of their numerous health benefits. In addition, India has been one of the largest producers of Amaranth seeds since ancient times and is one of the leading producing countries worldwide. India is also an amaranth seed manufacturer, supplier, and exporter of high-quality organic amaranth seeds worldwide.

The Latin American countries of Mexico, Argentina, Colombia, and Brazil are recognized as having the most significant market for amaranth products. Amaranth is an indigenous crop of Mexico cultivated since pre-Columbian times, mainly in the country's central states. It is a marginal crop and under-utilized, although the wealth of protein grain ranges around 14-16% and a good balance of amino acids; from the grain is prepared flour, pinole, atole, tamales, muesli, biscuits, and sweets known as Joy.

Countries in the Middle East, especially UAE and Saudi Arabia, are mainly considered central hubs for importing food grains. There is also a huge demand for healthy food products. As a result, amaranth will create an opportunity for the amaranth market during the forecast period. Mexico has demonstrated a keen interest in the exploration of amaranth for its potential utilization in novel applications. The species employed for grain production are Amaranthus cruentus and Amaranthus hypochondriacus, with each species exhibiting a distinct distribution range within the Mexican Republic, spanning from 300 meters to 2600 meters above sea level. In addition, Amaranthus cruentus grows best in warmer climates between 300 meters and 1800 meters, whereas Amaranthus hypochondriacus grows better in temperate climates between 1500 meters and 2600. meters above sea level. Therefore, the market for amaranth will grow significantly during the forecast period.

Segmental Analysis

The global amaranth market is segmented by type, category, application, and distribution channel.

Based on type, the global amaranth market is segmented into amaranth grains, amaranth seeds, amaranth flour, amaranth oil, and amaranth snacks.

The amaranth flour segment is the highest contributor to the market and is expected to grow at a significant rate over the forecast period. Amaranth flour in organic and conventional forms has grown tremendously due to its applications in various bakery recipes. This food item is considered a valuable source of protein and dietary fiber, making it suitable for individuals following vegan or vegetarian diets. This particular flour is highly suitable for individuals adhering to a low-calorie dietary regimen and can serve as a substitute for conventional flour in numerous gluten-free baking formulations. The gluten-free characteristic of amaranth contributes to its increased demand and stimulates market expansion for amaranth-based products.

Based on category, the global amaranth market is segmented into organic and conventional.

The organic segment dominates the global market and is expected to grow significantly over the forecast period. The organic amaranth segment is growing tremendously due to veganism and gluten-free property. Various companies are making organic amaranth products such as amaranth grain, amaranth floor, and amaranth flakes.

Based on application, the global amaranth market is segmented into food and beverage, animal feed, nutraceuticals and supplements, cosmetics, and personal care.

The cosmetic and personal care segment owns the highest market share and is expected to grow at a significant rate over the forecast period. Amaranth is highly utilized in the cosmetics and personal care industry due to the rising trend of personal care among people across the globe. Companies are capitalizing on this phenomenon by manufacturing various amaranth-based products, including amaranth seed oil, creams, and lotions.

Based on distribution channels, the global amaranth market is segmented into online and offline.

The online segment is the highest contributor to the market and is expected to grow significantly over the forecast period. Amaranth is commonly distributed and made available for purchase through various online retail platforms. The surge in online shopping and its convenience, coupled with factors such as competitive pricing, product reviews, and detailed information, have increased Amaranth products' sales through e-commerce platforms.

Recent Developments

• February 2023- TRI-K Industries, Inc., a leading beauty and personal care manufacturer, launched EssentiaTeinTM Protect, a new multi-benefit protein technology designed to protect, hydrate and shine hair. This vegan product uses natural proteins from upcycled rice, baobab, and sustainably sourced amaranth to protect hair from pollution and repair UV damage and oxidative stress.
• January 2023- Russian scientists developed a new deep-processing technology for amaranth that yields 30% more protein than conventional methods.