Carotenoids Market Analysis

Global Carotenoids Market Overview

Carotenoids Market valued at USD 1.761 billion in 2023. The Carotenoids market industry is projected to grow from USD 1.82 Billion in 2024 to USD 2.337 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.14% during the forecast period (2024 - 2032). Increased awareness about the health benefits of carotenoids and varied applications in industry verticals are the key market drivers enhancing market growth.

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Carotenoids Market Trends

• Increasing demand for natural colorants is driving the market growth

The increasing demand for natural colorants is driving Market CAGR for carotenoids. The demand for natural colorants over synthetic colorants is rising because of the growing consumer awareness concerning organic products, the health hazards of synthetic colorants, and the health benefit of natural colorants. The utilization of artificial ingredients to improve food production has caused various health hazards; hence the rising health concerns and inclination towards environment-friendly products are boosting the demand for natural colorants.

Carotenoids are largely utilized as natural colorants in dairy & bakery products, like margarine, cheese, and confectionery items. Currently, natural carotenoids have obtained traction in the food and beverage industry as a replacement for synthetic carotenoids, which have been found to negatively impact human health upon consumption. There is increasing interest in natural carotenoids in the food & beverage industry because of their preventive effects on chronic diseases. The natural colorants or dyes are largely obtained from plants, animals, fruits, insects, and minerals, which makes them safe to use as a food additive, as they do not have harmful effects. The therapeutic use of natural colorants is also rising due to their non-toxic nature and lesser side effects as compared to synthetic colorants. The government of different countries supports the utilization of natural colorants because of their biodegradability and less pollution caused after disposal. Furthermore, various regulations have been passed to promote the use of natural colorants in many regions.

The demand for organic food is steadily growing, specifically due to the consumers' belief that they are healthier and safer than conventional foods. Organic food is developed without using synthetic fertilizers, pesticides, growth hormones, antibiotics, and genetically modified organisms. Natural colorants are largely utilized in organic foods to make them more attractive. Moreover, the expansion of the food & beverage industry has positively affected the market. Carotenoids are organic pigments that are present in different plants and organisms; the ingredient act as an antioxidant and shields the body against chronic diseases, cellular damage, and the effects of skin maturing. Carotenoids are commercially present in several forms consisting of beta-carotene, lutein, lycopene, astaxanthin, zeaxanthin, annatto, and canthaxanthin; these have substantial usage in human food, animal feed, dietary supplements, pharmaceuticals, and cosmetics as they provide excellent benefits. Thus, driving the Carotenoids market revenue.

Carotenoids Market Segment Insights

Carotenoids Type Insights

The Carotenoids market segmentation, based on type, includes Beta-carotene, Astaxanthin, Zeaxanthin, Lutein, Lycopene, and Others. The astaxanthin segment dominated the market of the carotenoid market because of the rise in the application of astaxanthin as a food colorant. It is a powerful antioxidant and a good source of Vitamin A, which is necessary for the good health of the eye. Increasing awareness about the natural ingredients that are used in cosmetics and personal care is growing the demand for algae-based astaxanthin.

Carotenoids Application Insights

The Carotenoids market segmentation, based on application, includes Food, Supplements, Feeds, pharmaceuticals, and cosmetics. The food segment for carotenoid application is the dominant, owing to the large application of beta-carotene and lycopene as a colorant in cheese spreads, yogurts, soups, sauces, bakery products, sources, and soup. The growing demand for carotenoids in animal feed is owing to the property of enhancing the fertility of cattle, swine, and horses.

Figure 1: Carotenoids Market, by Application, 2022 & 2032 (USD billion)

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Carotenoids Regional Insights

By Region, the study gives market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American weight loss market area will dominate this market, owing to an increase in the number of consumers' awareness about the health benefit and demand for the plant-based colorant in the food segment. The US carotenoids market is the largest contributor to the carotenoid market.

Further, major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: CAROTENOIDS MARKET SHARE BY REGION 2022 (%)

Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review

Europe's Carotenoids market accounts for the second-largest market share due to the large animal feed industry and the increase in demand for health supplements. Further, the UK Carotenoids market held the largest market share in the European region

The Asia-Pacific Carotenoids Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to rising disposable income leading to the rise in consumer awareness regarding the health benefits of dietary supplements. Moreover, China’s Carotenoids market held the largest market share, and Japan's Carotenoids market was the fastest-growing market in the Asia-Pacific region.

Carotenoids Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Carotenoids market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Carotenoids industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Carotenoids industry to benefit clients and increase the market sector. In recent years, the Carotenoids industry has offered some of the most significant advantages to various industry verticals. Major Carotenoid market players include Divi’s Nutraceutical, Royal DSM, Algatech, Kemin Industries, ExcelVite Sdn, and BASF SE. Allied Biotech Corporation, Nutralliance, DDW The Colour House, Vinayak Ingredients India Pvt. Ltd., and others are attempting to increase market demand by investing in research and development operations.

Divi's Nutraceutical is an expert in the manufacturing of carotenoids and stable application forms of fat-soluble Vitamins and Carotenoids. In September 2021, Divi's Nutraceutical launched CaroNat, which is a naturally based food component developed for the dark yellow to the orange color of a number of meals and beverages, including the dairy section. CaoNat is made of concentrated carrot juice that consists of beta-carotene. CaroNat proclaims that it assisted the company by switching to clean labeling by using only components that are of natural origin and manufacturing them without the use of silicon dioxide.

DSM is a purpose-led, science-based company in nutrition, health, and sustainable living. It focuses on economic prosperity, environmental progress, and social advances to create sustainable value for all stakeholders. It provides an innovative business solution for humans, personal care and aroma, medical devices, green products and applications, and new mobility and connectivity. The Royal DSM and Evonik signed an agreement in March 2017 in order to develop omega-3 fatty acid products from natural algae for animal nutrition. Furthermore, in July, DSM and Aerie Pharmaceutical announced a partnership agreement for the delivery of Aerie Compounds that will treat renal diseases. In October 2020, DSM announced the acquisition of Erber Group for the value of 980 Euro million. This acquisition of Erber Group's Biomin strengthened DSM's expertise and reputation as a principal provider of animal health and nutrition solutions that will help farm productivity and sustainability, with the importance of emission deduction, feed consumption efficiency, and proper use of water and land.

Key Companies in the Carotenoids market include

• Divi’s Nutraceutical


• Royal DSM


• Algatech


• Kemin Industries


• ExcelVite Sdn


• BASF SE


• Allied Biotech Corporation


• Nutralliance


• DDW The Colour House


• Vinayak Ingredients India Pvt. Ltd

Carotenoids Industry Developments

May 2019: AstraPure-EyeQ was launched by Algatech, a natural astaxanthin powder that supports eye and brain health. This newly launched product is clinically supported and micro-encapsulated powder that has doubled its bioavailability when compared to standard products present across the market.

March 2019: Organic KEM GLO was launched by Kemin Industries, which is a USDA-certified organic carotenoid that helps organic egg producers to escalate the color of egg yolks. This will help the company to attain a leading place in the feed carotenoid market.

February 2019: To publish a new plant carotenes monograph, ExcelVite Sdn. Bhd. Collaborated with US Pharmacopeia, which was developed based on mixed carotene complex, EVTene. This publication of the monograph will restore the efforts of the company to provide high ingredient standards.

Carotenoids Market Segmentation

Carotenoids Type Outlook

• Beta-carotene


• Astaxanthin


• Zeaxanthin


• Lutein


• Lycopene


• Others

Carotenoids Application Outlook

• Food


• Supplements


• Feeds


• Pharmaceuticals


• cosmetics

Carotenoids Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  

• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America