New York, United States, Oct. 06, 2022 (GLOBE NEWSWIRE) — Peru is the largest producer and exporter of cochineal extract and holds about 80-83% of the world production share. Cochineal extract is usually found in tropical and subtropical parts of the country; Therefore, it is the main source of income for Peruvians. The Peruvian government is constantly trying to increase the production of the cochineal extract in order to increase the employment rate in the rural part of the country. A government organization, the Instituto de Investigaciecnola Industrial y de Normas Ticas (ITINTEC), and Simon Fraser University have developed a carmine dye extraction process to efficiently produce pure carmine. It is aided by the plentiful availability of cochineal insects and skilled labor in rural areas.
Much of the local cochineal processing plants are built near the agricultural areas to employ the local people. Currently, a cochineal farmer earns more than 10% of the revenue of the cochineal extract market. The consumption of cochineal extract in Peru is dominated by the food and beverage industry as it is considered to be one of the non-toxic natural color additives. Much of the demand in the country comes from a confectionery, as well as confectionery, beverages and dairy products.
Get a free sample copy of this report @ https://straitsresearch.com/report/cochineal-extract-market/request-sample
COVID-19 will negatively impact the global cochineal extract market
Brazil, Mexico, Chile and Peru are among the largest producers of the cochineal extract and the hardest hit countries. Mexico and Brazil top the charts with most COVID-19 cases worldwide. The lockdown in these countries and broader closures have severely impacted the global cochineal extract market supply chain. The border closures have fueled the disruption to carmine supplies. The lack of availability of carmine dyes is expected to lead to the introduction of other substitutes and hamper the growth of the cochineal extracts market.
