Annatto extract is obtained from red seed casings of Bixa orellana a deciduous shrub that grows to a height of up to 3 metres, found native to Central and South America. Bixa orellana  is widely cultivated in the tropical regions, whose major producers are Peru, Brazil and other Central and South American countries as well as the Philippines and the US. In South America, this pigment has long been used for face and body painting.
The pigment is composed of carotenoids called bixin, norbixin and trace amounts of crocetin. Although used as food coloring, the pigment is not very soluble in water and highly soluble in lipophilic substances. This gave rise to ‘Water-soluble Annatto’, where norbixin salts are incorporated with potassium salts and sodium salts. Alkaline salts of norbixin (potassium or sodium salts) are regarded as alkaline compounds of norbixin; they are hence classified as chemically synthesized compounds. This lead to its designation as a food additive on 8th March 1968. The compositional standard is listed in Japan’s Specifications and Standards for Food Additives, under ‘Water-soluble Annatto’.　In the US and Europe, the annatto extract has long been used for coloring butter and cheese. It was in the 1970’s that saw its widespread use in Japan for processed foods in livestock and marine product industries.