The colorant consists mainly of the carotenoid Bixin, with smaller amounts of the related carotenoid norbixin and some minor amounts of other carotenoids. The structure is shown below:

Bixin is isolated from the seed by washing with a solvent of some type. Common solvents are:
- water
- vegetable oil
- alcohol
- hexane
- acetone
Danisco uses only water and vegetable oil as solvents.
The typical water extraction uses potassium or sodium hydroxide to help dissolve the annatto pigments. At high pH and with applied heat the alkali causes the hydrolysis of bixin to norbixin. This is advantageous because norbixin is a more water-soluble form of annatto colour. This type of annatto preparation is typically referred to as 'water-soluble annatto', and it is commonly used in applications such as the colouring of:
- cheese products
- bakery products
- snack foods
The typical vegetable oil extraction consists of directly washing the annatto seeds with edible oil. The extraction typically produces either of two products, an oil solution of approximately 1-3% w/w of bixin in oil, or a suspension of 4-10% annatto colorant in oil. The applications include:
- snack foods
- bakery items
- processed cheese
- any other application where an oil-based colorant is appropriate
The typical solvent extraction process produces a purified form of bixin, which is covered and used to make annatto colour formulations. Purified bixin is commonly used in processed or emulsion colours where an emulsifier is used for added functionality. These colorant formulations are used in a variety of food formulations where an emulsified colour is necessary. The applications include:
- sauces and gravies
- processed cheese
- snack foods
- coffee creamer
- margarine and butter

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