Annatto is an orange-red condiment and food coloring derived from the seeds of the achiote tree (Bixa orellana) native to tropical regions from Mexico to Brazil.
It is often used to impart a yellow or orange color to foods, but sometimes also for its flavor and aroma. Its scent is described as "slightly peppery with a hint of nutmeg" and flavor as "slightly nutty, sweet and peppery"
The color of annatto comes from various carotenoid pigments, mainly bixin and norbixin, found in the reddish waxy coating of the seeds. The condiment is typically prepared by grinding the seeds to a powder or paste. Similar effects can be obtained by extracting some of the color and flavor principles from the seeds with hot water, oil, or lard, which are then added to the food.
Ground annatto seeds, often mixed with other seeds or spices, are used in the form of paste or powder for culinary use, especially in Latin American, Jamaican, Belizean, Chamorro, Vietnamese, and Filipino cuisines. In Mexican and Belizean cuisines, it is used to make the spice recado rojo. In Venezuela, annatto is used in the preparation of hallacas, perico, and other traditional dishes.
Annatto and its extracts are now widely used in an artisanal or industrial scale as a coloring agent in many processed food products, such as cheeses, dairy spreads, butter and margarine, custards, cakes and other baked goods, potatoes, snack foods, breakfast cereals, smoked fish, sausages, and more.