Carotenoids Market

According to MarketsandMarkets, the Carotenoids Market is projected to reach USD 3.4 billion by 2029 from USD 2.5 billion by 2024, at a CAGR of 6.3% during the forecast period in terms of value. The market is projected to grow steadily due to rising awareness regarding their health benefits and the increasing application of carotenoids in the feed and food industries. In human nutrition, growing demand is witnessed for carotenoids in dietary supplements and functional food & beverages. The market sees an increased demand for sustainable, natural, clean-label, natural carotenoids, leading to market growth. Natural beta-carotene finds application in food-based applications such as ice cream, bakery, soft drinks, and powder beverage mixes. Another factor driving the growth of this market is changing dietary preferences and awareness about health and wellness.

Other key driving factors are health benefits for preventive healthcare, rising usage as food colorants, growth of the end-user industries, and newer innovative technologies developed for carotenoid extraction. There is an increase in the number of companies involved in the extraction of carotenoids from natural sources like algae. This step would help in reducing the overall cost of production and address the growing demand for natural carotenoids.

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Market Dynamics

Driver : Growing trend toward natural and clean-label ingredients

The growing trend towards natural and clean-label ingredients in the food industry has led to an increasing use of natural carotenoids as food colors. Carotenoids are naturally occurring pigments found in fruits, vegetables, and algae that are recognized to be alternatives to synthetic food colors due to their clean-label appeal and their perceived health benefits.

Carotenoids, such as β-carotene, lycopene, and astaxanthin, are known to naturally impart bright coloring while offering antioxidant activity with associated health effects. They generally resonate with consumer preferences for naturally derived, functional ingredients providing health and wellness benefits. According to Sensient US online consumer study 2015-2020, close to one-third of US consumers prefer natural products. In 2020, the number increased to 50%, whereas only 18% were not concerned about colors in the food and beverage. According to a Mintel survey, four in 10 European consumers believe that the most important consideration when looking for healthier ingredients is because they look to avoid artificial ingredients. Color is being incorporated into formulation at an earlier stage due to the growing preference by consumers for naturally derived ingredients and bright-colored foods. The bright-colored foods elicit consumers' ever-increasing trend toward naturalness, with R&D for natural carotenoids continuing to receive massive investments in the manufacturing sector.

The growing use of natural carotenoids as food colors reflects increasing consumer demand for clean-label products and foods that are generally perceived to be healthier. Notably, the market demand for natural carotenoid food colors is increasing amidst the general rise in demand for natural ingredients.

Restraint : Low water solubility and stability

The low water solubility and stability of carotenoids are considered the major restraints to their use in food, feed, and supplement products. Due to this fact, formulating products with consistent carotenoid content and the effect of carotenoids is rendered very challenging. Most of the carotenoids naturally occur in the all-trans form in plant sources, but heat processing transforms them into other isomers, which alters their stability and bioavailability. Carotenoids in food are often bound to proteins within the plant matrix, resulting in low bioavailability. Processing techniques like homogenizing, chopping, and pasteurization break this matrix, thereby enhancing bioavailability. However, variability introduced from these processes disrupts standardization and quality control of carotenoid products.

Low water solubility and instability are the two major concerns that highly hamper carotenoid usage not only for food, feed, and supplement applications but also in terms of effectiveness related to health and nutrition. In this respect, manufacturers have developed innovative techniques and formulations over the years to help solve this problem. It includes encapsulation, emulsion techniques, and formulations with hydrophilic substances that yield better solubility in water. Others include lipid-based formulations for better carotenoid stability. Proper temperature control, reduced oxygen levels, and decreased light exposure are needed for the retention of carotenoids during the processing, storage, and packaging of food products and supplements. The required conditions to be observed for storage purposes of carotenoid concentration are proper temperature and absence of antioxidants.

Opportunity : Expanding the scope of research within the feed industry

Through various comprehensive studies, researchers are investigating the applications of carotenoids in animal feed, which further enhances its market. Several studies were done using lycopene as a feed additive. Researchers focused on observing the effects of such feed on the health, performance, and quality of the product. These studies focus on understanding issues such as the physiological effects of lycopene in livestock, like its antioxidative properties and ability to enhance immune function and reproductive performance. A March 2022 Publication by Informa UK Limited concluded that carotenoid supplementation promoted growth, reduced mortality, and improved antioxidant status in cold-stressed chickens; thus, it indicated its dietary supplementation for counteracting the adverse effects of cold stress in poultry production. Similarly, a USDA study in February 2022 recorded the ameliorating effect of tomato powder supplementation in heat-stressed broilers. It found that all the levels of tomato powder enhanced growth, reduced mortality, and reduced feed expenses without exerting negative effects on blood characteristics, suggesting its potential as a beneficial dietary supplement at 5% inclusion rates for heat-stressed broilers.

The addition of carotenoids to feed formulations increases the nutritional value of the diet for animals and offers potential welfare and environmental sustainability benefits. This, in turn, is likely to provide further impetus to the demand for carotenoids, hence offering lucrative opportunities to producers and suppliers.

Challenge: Stringent quality standards.

As a major issue, adulterated carotenoids are extremely dangerous for animals, humans, and the environment and can prove fatal if consumed in large amounts. The rate of adulteration of carotenoids in North America is increasing. Synthetic astaxanthin sold in the US is produced from petrochemicals or genetically mutated yeast and is dangerous for human consumption. In order to move away from this, manufacturers are focusing on investing in natural sources for the production of carotenoids, but low penetration of natural carotenoids is projected to have a negative impact on the overall market growth.

The bioaccessibility of carotenoids is affected by the characteristics of the food matrix. This all has an effect on bioavailability, or how well these compounds can be digested and absorbed. Food processing and preparation variability further complicate the matter and generally decrease potential quality control. A further level of complexity is guaranteeing carotenoids meet diverging expectations of the consumer in terms of the quality of the product desired in different markets. Quality assurance measures as strict as possible are then required due to regional differences between consumer preferences and regulatory demands.

CAROTENOIDS MARKET ECOSYSTEM

Key players within the carotenoids market boast extensive industry tenure, offering diversified product portfolios, cutting-edge technologies, and robust global sales and marketing networks. Prominent companies in this market are DSM (Netherlands), BASF SE (Germany), Cyanotech Corporation (US), Givaudan (Switzerland), ADM (US), NHU (China), Divi's Laboratories Limited (India), Allied Biotech Corporation (Taiwan), Lycored (US), Kemin Industries, Inc. (US), Fuji Chemical Industries Co., Ltd. (Japan), EW Nutrition (Germany), Döhler GmbH (Germany), ExcelVite (Malaysia) and Farbest Brands (US).

By source, synthetic carotenoids hold the largest market share.

The synthetic segment is expected to dominate the carotenoids market since they are easy to extract and the manufacturing cost associated with them is low. Synthetic carotenoids offer cost advantages over their natural counterparts, which make them economically attractive for manufacturers. The synthetic production of carotenoids takes place in a laboratory by means of petrochemicals and petrochemical derivatives. Most of the carotenoids, like beta-carotene, lutein, and astaxanthin, are majorly produced through chemical synthesis. Synthetic carotenoids have reproducible characteristics in color and performance and thus establish consistency in formulations. Synthesis offers control over the purity and amount of specific carotenoids, therefore allowing for applications in food, cosmetics, and pharmaceuticals.

By application, the food & beverage segment is expected to grow at the highest CAGR during the forecast period.

Carotenoids are natural pigments. Therefore, they provide various food and beverage products with bright colors, ranging from orange in carrots to red in tomatoes, thus making them attractive to customers. The most common carotenoids found in food sources are beta-carotene, alpha-carotene, lycopene, lutein, and zeaxanthin. Beta-carotene is one of the carotenoids that is highly utilized in the area of food and beverages due to its antioxidant and anticarcinogenic features. The chelates of carotenoids with proteins in the plant matrix ensure much higher bioavailability of food products versus supplements. Various factors are supporting the highest growth rate for the food and beverage segment in the carotenoid market. In beverages, they are used in the processing of appealing colors in juices, sports drinks, and smoothies.

The growth in consumer demand for natural and healthy food additives, new product development, and clean-label product offerings is driving market expansion within this segment and meeting ever-changing consumer needs for natural and healthy food options. DSM is the largest market player in the food & beverages application segment, followed by Givaudan, ADM, Divi's Laboratories, Allied Biotech Corporation, and Lycrored.

The beadlet segment is expected to grow at the highest CAGR during the forecast period.

Beadlets are projected to account for the largest share in the global carotenoids market because they are used to a greater extent for the improvement of texture and protection of substances from the formulation stress of tablet formation. Their multi-particulate composition provides significant technological benefits compared to traditional solid dosage forms. It offers better stability and is easier to handle; hence, it is preferred for formulation in a number of applications, such as dietary supplements, food, and beverages. They are readily soluble in cold water, making the dissolution easy, and mostly found in food and beverage products and dietary supplements. Beadlets, due to their versatility and convenience, have emerged as the mainstay of innovation that manufacturers look for in the carotenoid market. Lycored has been at the forefront of innovation by providing a strong portfolio of carotenoids that can be regarded as being in beadlet form. Most of its applications are routed to food & beverages and dietary supplements.

The Asia Pacific region is expected to grow at the highest CAGR in the Carotenoids market during the forecast period.

As health awareness and changing dietary preferences toward natural and functional ingredients continue to grow, demand for carotenoids from food, beverages, and dietary supplements remains robust in the Asia-Pacific region. Fast urbanization pace and improving disposable incomes in emerging economies provide impetus to the growth of the food and beverage industry, thereby opening up opportunities for carotenoid manufacturers. Due to the cost advantage and demand found, the region offers a potential opportunity to the carotenoid manufacturers and suppliers. Asia Pacific is led by China in the carotenoids market, followed by Japan and then India..

Key Market Players

The key players in the market include BASF SE (Germany), DSM (Netherlands), Cyanotech Corporation (US), Givaudan (Switzerland), ADM (US), NHU (China), Divi's Laboratories Limited (India), Allied Biotech Corporation (Taiwan), Lycored (US), Kemin Industries, Inc. (US), Fuji Chemical Industries Co., Ltd. (Japan), EW Nutrition (Germany), Döhler GmbH (Germany), ExcelVite (Malaysia) and Farbest Brands (US). These market participants are emphasizing the expansion of their footprint via agreements and partnerships. They maintain a robust presence in North America, Asia Pacific, South America, RoW, and Europe, and they are supported by manufacturing facilities and well-established distribution networks spanning these regions.

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Scope of the Report

This research report categorizes the global carotenoids market based on type, formulation, application, source and region.

Target Audience

• Carotenoids traders, retailers, and distributors.
• Carotenoids manufacturers & suppliers.
• Related government authorities, commercial research & development (R&D) institutions. 
• Regulatory bodies, including government agencies and NGOs.
• Commercial research & development (R&D) institutions and financial institutions.
• Government and research organizations.
• Venture capitalists and investors. 
• Technology providers to Carotenoids and Carotenoids companies.
• Associations and industry bodies.  

Carotenoids Market Report Segmentation:

• By Type
  • Astaxanthin
  • Beta-Carotene
  • Lutein
  • Lycopene
  • Canthaxanthin
  • Zeaxanthin
  • Other Types
• By Formulation
  • Oil Suspension
  • Powder
  • Beadlet
  • Emulsion
• By Application
  • Food & Beverage
  • Feed
  • Pharmaceuticals
  • Dietary Supplement
  • Cosmetics
• By Source
  • Natural
  • Synthetic
• By Region:
  • North America
  • Europe
  • Asia Pacific
  • South America
  • Middle East
  • Africa

Key Developments in Carotenoids Industry

• In November 2023, Allied Biotech Corporation launched a line of clear-color products primarily designed for transparent applications. This new product range includes clear color formulations suitable for energy drinks, transparent candies, jellies, and conventional beverages and foods. Available in powder form, they include Altratene 5% WSC/CC and Altratene 5%WSC-Red/CC, both containing 5% beta carotene, and Apocarotenal 5% WSC/CC containing 5% Apocarotenal.
• In March 2023, ADM (US) entered into a joint venture with Marel (Netherlands), a leading provider of cutting-edge food processing solutions. This partnership aimed to establish an innovation center at the prestigious Wageningen Campus in the Netherlands, renowned as the epicenter of the nation's food valley. Tailored to foster collaboration among food manufacturers, food scientists, extrusion specialists, and culinary professionals, this strategic initiative is poised to bolster ADM's market expansion efforts and facilitate research and development in its carotenoid segments. 
• In May 2023, Kemin Industries, Inc. strengthened its stronghold within Asia with the opening of BITEPod, its center of excellence for its food technologies business in Singapore. The innovative application-and-experience center is equipped with advanced kitchen facilities and a research-and-development (R&D) laboratory, focusing on developing prototypes and improving formulations for the food and beverage industries.

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