Annatto is a natural orange red oil-soluble color extracted from pericarp of seed of Bixa orellana tree. The major coloring pigment in it in the Diapocarotenoid bixin.Two types of commercial Annatto extract of different shades are available: an oil soluble extract containing bixin, and a water soluble extract containing norbixin as major pigment. Applications : It is used in food industry for coloring beverages, bakery Products, dairy products, especially like cheese and butter. It is also used in pharmaceuticals and cosmetic Industries.