Annatto is extracted from orange coloured, outer coat that surrounds seeds of shrub Bixa orellana. A native to India, South America, East Africa, Caribbean and Philippines, the colourings in the extract range from yellow to orange hue and are due to presence of bixin and norbixin compounds. These seeds have coating of an oily paste that contains bixin, which is extracted using aqueous alkaline solution & vegetable oil solvent.

Annatto is the seed or extract from the achiote tree, which is indigenous to Latin and South America. Annatto is used heavily in Central and South America as a dye, medicine, and as an ingredient in many foods. Annatto is a naturally intense dye which can range in color from bright yellow to deep orange. Many commercially made food products utilize annatto for its potent color.