Carotenoids Market by Type (Annatto, Astaxanthin, Beta-carotene, Canthaxanthin, Lutein, Lycopene, Zeaxanthin, and Others), by Source (Natural and Synthetic), by Application (Animal Feed, Food & Beverages, Dietary Supplements, Cosmetics, and Pharmaceuticals) – Global Opportunity Analysis and Industry Forecast, 2024-2030

Market Definition

The Carotenoids Market size was valued at USD 1.85 billion in 2023 and is predicted to reach USD 2.43 billion by 2030 with a CAGR of 4.0% from 2024-2030.

Carotenoids are natural pigments derived from plants, serving as natural colorants in various food products. They are widely used in dietary supplements and fortified foods, as they are rich in vitamin A and support vision health. Additionally, carotenoids possess antioxidant properties, making them valuable in promoting overall health and well-being. As consumer demand for clean-label and natural ingredients continues to rise, the carotenoids market is experiencing significant growth across diverse industries, including food, beverages, cosmetics, and pharmaceuticals.

Market Dynamics and Trends

The carotenoid market is witnessing substantial growth, driven by evolving consumer preferences towards clean-label and natural alternatives in the food industry. This trend aligns with the rising demand for carotenoids, as they are recognized for their natural origin and health benefits, appealing to health-conscious consumers.

An illustrative example of this trend is evident in the recent development by Divi's Nutraceuticals, a prominent global manufacturer and supplier of carotenoids and vitamins. In September 2021, the company introduced CaroNat, a product derived from concentrated carrot juice and beta-carotene. CaroNat is specifically tailored to meet the increasing demand for clean labels by eliminating the use of silicon dioxide, thereby aligning with the evolving consumer preferences for natural and transparent ingredient lists.

This product is versatile and finds application across various segments including beverages, instant drinks, yogurt, gummy candies, cakes, puddings, and frozen desserts. The introduction of CaroNat underscores the industry's response to consumer demands for clean-label and natural alternatives, further driving the growth and expansion of the carotenoid market.

Furthermore, the increasing incidence of cancer is increasing the demand for carotenoids, such as beta-carotene, lycopene, and lutein. These compounds are renowned for their antioxidant attributes. Additionally, consuming a diet abundant in carotenoid-containing fruits and vegetables has been associated with a potential decrease in the likelihood of specific cancer types, such as lung, breast, prostate, and colorectal cancer.

As awareness about the health benefits of carotenoids grows, consumers are seeking out products fortified with these compounds. This has led to a surge in demand for carotenoid-rich supplements, functional foods, and beverages. Manufacturers in the carotenoid market are capitalizing on this trend by developing innovative products that cater to consumers' health and wellness needs.

Therefore, the rising incidence of cancer serves as a significant driver for the growth of the carotenoids market, as consumers increasingly recognize the role of these compounds in promoting health and reducing disease risk. However, the high production costs of naturally sourced carotenoids compared to synthetic options significantly restrains the market growth. The cost difference restricts the widespread use of naturally derived carotenoids thereby restraining the market.

On the contrary, the advancement in modular engineering for microbial production of carotenoids presents a highly lucrative growth opportunity for the market. The introduction of this method enhances the circular bioeconomy and also provides a sustainable and efficient means of producing carotenoids.

Through modular engineering techniques, greater control and optimization of microbial processes are achieved, leading to increased yields and minimized environmental impact, thereby creating ample opportunities for market expansion in the near future.

Market Segmentations and Scope of the Study

The carotenoids market is segmented on the basis of type, source, application, and region. On the basis of type, the market is segmented into annatto, astaxanthin, beta-carotene, canthaxanthin, lutein, lycopene, zeaxanthin, and others. On the basis of source, the market is bifurcated into natural and synthetic. Based on application, the market is categorised into animal feed, food & beverages, dietary supplements, cosmetics, and pharmaceuticals. Regional breakdown and analysis of each of the aforesaid segments includes regions North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

Europe emerges as the dominant force in the carotenoids market throughout the forecast period, driven by multiple commercial expansions and the active involvement of top market players operating and investing in the region. The continuous commitment and strategic initiatives of these key industry players significantly contribute to the robust growth and overall prominence of the carotenoids market in Europe thereby driving the market growth.

For instance, in July 2022, BASF, a leading chemical company, expanded its ingredient partnership in nutrition, flavour, and fragrance industries in Europe. The primary objective is to enhance and reinforce core product platforms and assets for vitamins and carotenoids within the BASF Verbund, while also expanding the business with feed enzymes.

Moreover, the carotenoid market is growing in Europe, driven by strong presence of e-commerce industry. The well-established online infrastructure makes it easy to distribute and access carotenoid products across the region. Online platforms offer convenience, allowing people to easily choose and buy products, which greatly helps in expanding the market.

As the demand for nutritional supplements increases, more European consumers are opting for online channels to buy carotenoid, thereby boosting the market. Recently, multiple e-commerce analysts highlighted the robust expansion nature of European e-commerce market, with over 15,000 online marketplaces contributing to a revenue of USD 363 billion. The region is projected to maintain a strong annual growth rate of 7.7% in digital commerce by 2025, further emphasizing the role of e-commerce in boosting the carotenoids market.

On the other hand, carotenoids market in Asia-Pacific region is experiencing substantial growth, primarily driven by the presence of a large population in the region. The significant demographic size in Asia-Pacific offers an expansive consumer base for the carotenoids market. The region's growing awareness of the health benefits and application of carotenoid products across various applications, including food, healthcare, and cosmetics, further fuels the market's expansion.

According to the United Nations Population Fund, the Asia-Pacific region is home to 60% of the world's population, encompassing approximately 4.3 billion people. India, with a staggering population of 1.43 billion as of 2023. This demographic prominence positions Asia Pacific as a key driver for the carotenoids market industry, with manufacturers benefiting from the diverse and extensive market opportunities presented by the region's large and dynamic population.

Furthermore, the burgeoning food and beverage industry in the Asia-Pacific region complements the growth of the carotenoid market. As this industry expands, there is an increased demand for natural additives and ingredients, including carotenoids, to meet consumer preferences for clean-label and healthier products. This presents a significant opportunity for carotenoid manufacturers to tap into the growing market in the Asia-Pacific region and cater to the evolving needs of food and beverage companies in this thriving market.

The Australian Food and Grocery Council highlighted the significance of Australia's food and beverage industry, emphasizing its heavy reliance on human capital. With over 270,800 employees and accounting for 32% of Australia's manufacturing turnover, this industry plays a crucial role in the country's economy.

As consumer demand for natural and healthier food options continues to grow, carotenoid manufacturers can strategically position themselves to supply high-quality ingredients to support the innovative product development efforts within Australia's vibrant food and beverage sector.

Competitive Landscape

The top market players operating in the carotenoids market are Koninklijke DSM, BASF SE, Chr. Hansen A/S, Kemin Industries, Lycored Ltd., Fuji Chemical Industry Co Ltd., Dohler Group Se, Allied Biotech Corporation, Farbest Brands, Excelvite Sdn. Bhd. and others. These market players are adopting various strategies such as product launches and collaborations to remain dominant in the market.

For instance, in July 2023 - Dohler Group, acquired SVZ, a Dutch supplier of fruit and vegetable ingredients, from Royal Cosun. The acquisition adds to Dohler's portfolio of natural red fruit and vegetable ingredients and expands its presence in global carotenoid and food suplement market.

Also, in January 2023, BASF and Cargill expanded their partnership to offer high-performance enzyme solutions to animal protein producers. This collaboration aims to provide innovative enzyme-based solutions, generating distinctive value for animal feed customers. The extended partnership includes the development, production, marketing, and sale of customer-centric enzyme products and solutions.

Moreover, in November 2022 DSM announced a new partnership with LBB Specialties to enhance its presence in the North American dietary supplements market. The partnership aims to provide better customer value, expand product development opportunities, and improve customer service levels.

Furthermore, in April 2021 Kemin Industries introduced functional fibre for pet food and an antioxidant solution tailored for the organic livestock production sector. These solutions aim to assist organic livestock producers in preserving the quality and safety of their products, aligning with the increasing consumer demand for organic meat and dairy items.

Key Benefits

• The report provides quantitative analysis and estimations of the carotenoids market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the carotenoids market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the carotenoids market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Key Market Segments

By Type 

• Annatto

• Astaxanthin

• Beta-carotene

• Canthaxanthin

• Lutein

• Lycopene

• Zeaxanthin

• Others

By Source

• Natural

• Synthetic

By Application 

• Animal Feed

• Food & Beverages

• Dietary Supplements

• Cosmetics

• Pharmaceuticals

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

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