Market Overview
The beta-carotene market is experiencing robust expansion globally, driven primarily by heightened health consciousness and the recognized significance of beta-carotene intake. Additionally, a trend towards all-natural ingredients is propelling market growth. However, it’s crucial to highlight that overconsumption of beta-carotene may yield adverse effects on the human body; thus, it’s advisable to adhere to recommended dosages. Notwithstanding, burgeoning demand from developing economies and increased preference for algae-based carotene in functional and health foods present substantial opportunities for market expansion. While the market comprises numerous large, medium, and small manufacturers and private label players, only a select few command a significant share of the market. Other notable players in this industry include Allied Biotech Corp. Ltd., Naturex SA, Chr. Hansen, and Zhejiang NHU Co., Ltd., among others.
Beta-carotene is a crucial nutrient for overall health, and it has gained significant attention in recent years due to its numerous benefits. As a result, the beta-carotene market is expected to continue its growth trajectory in the coming years. The increasing prevalence of chronic diseases and aging populations worldwide have led to a surge in demand for beta-carotene as a dietary supplement. Moreover, beta-carotene’s role in promoting healthy vision and skin has also contributed to its rising popularity.
Market Trends and Drivers
Processed Food Industry and Malnutrition:
The global beta-carotene market is driven significantly by the augmented production and consumption of processed food, a $2 trillion industry comprising around 400,000 enterprises, often using beta-carotene as a colorant. The increasing global population experiencing malnutrition and severe food insecurity, estimated by UNICEF to be 11.7% of the world population, is also likely to enhance market growth.
Importance in Vision and Healthcare:
Beta-carotene’s role as a precursor to vitamin A is crucial due to the rising instances of preventable or unaddressed vision impairment affecting approximately 2.2 billion people worldwide, according to the World Health Organization. This role is essential in addressing various health conditions, including vision problems.
Cosmetic Industry Demand:
The growth of the cosmetic industry, where beta-carotene is frequently used in products like aftershave lotions and makeup, is further fueling market demand. For instance, leading makeup brand Sephora reported around $6 billion in sales in the beauty and personal care categories in 2019 and 2020.
Rise in Dietary Supplement Consumption:
There is heightened consumption of beta-carotene-containing dietary supplements, especially during the pandemic, with people aiming to boost their body’s health and immune system. The rising consumer interest in clean-label products, demanding ingredient transparency, is significant in this trend.
Preference for Natural Colorants:
The global consumer concern regarding the impact of synthetic colors on health is spurring a preference for natural colorants like beta-carotene in foods and beverages. The willingness of about 88% of consumers to pay a premium for products with naturally sourced ingredients underlines this trend. For example, BASF SE introduced a 10% beta-carotene powder in 2017 to replace azo dyes in various products, responding to this consumer preference.
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Market Challenges
The metabolic transformation of beta-carotene into vitamin A is a vital process for maintaining key facets of human health, including clear vision, robust immune function, and the integrity of skin and mucous membranes. However, it’s crucial to understand that an excessive intake of vitamin A can lead to adverse health consequences. Despite this, beta-carotene presents a safe avenue for obtaining the necessary amounts of vitamin A. Particularly for smokers, elevated consumption of beta-carotene can pose potential risks. Additionally, the premium pricing and limited availability of natural beta-carotene products present notable challenges in the market. As a result, manufacturers are investing in research and development efforts to improve the extraction and production processes for natural beta-carotene.
Recent industry developments
- GacLife launches the world’s first line of Gac-based wellness products. Gac fruit is a fruit found in some areas of Southeast Asia and consists of high concentrations of carotenoids, antioxidants, and other nutrients. The GacLife products are designed to support vision and skin health.
- DSM acquires Vitatene, a beta-carotene producer, from primary fermentation. This acquisition strengthens DSM’s position as a leading producer of beta-carotene and other carotenoids.
Regional Analysis
Market share and growth in Europe and North America
In 2022, Europe and North America dominated the beta-carotene market, collectively holding over 70% of the total market share in both volume and revenue. Europe is poised for the second-highest growth rate in volume from 2024 to 2028. The United States, the largest global market for beta-carotene, is expected to exhibit a 3.5% annual growth rate in revenue over the next six years. Beta-carotene (95% pure) is approved in the United States for use as a colorant and a pro-vitamin A nutritional supplement under specific regulations. Over 60% of Americans prefer beta-carotene and other carotenoids and vitamins as dietary components. Several ready-to-drink products featuring beta-carotene have been introduced in the beverage manufacturing industry, with Vitatine entering into an exclusive contract with B & D Nutritional Ingredient to supply natural beta-carotene in the United States.
Rapid Market Expansion in Asia Pacific and Untapped Opportunities
The Asia-Pacific region is forecast to experience the fastest growth rate in terms of both volume and revenue. While Japan currently holds the largest market share in this region, India and China are projected to witness the highest growth. Meanwhile, the rest of the world is expected to see moderate growth, with economies like Brazil, Turkey, and Saudi Arabia offering significant untapped market opportunities in the beta-carotene sector.
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Market Segmentations
Diving into the categories of product types, the global beta-carotene market is bifurcated into two segments, namely synthetic and natural beta-carotene. In 2022, the market was largely dominated by the synthetic beta-carotene segment in terms of volume and revenue, owing to its cost-effectiveness and less labor-intensive production compared to its natural counterpart. However, it is anticipated that the natural beta-carotene segment will witness rapid growth. This upsurge is primarily due to increased consumer health consciousness, leading to heightened demand for natural products.
Analyzing the market by application type, the lion’s share of the market, accounting for 40% in terms of volume and revenue in 2021, belonged to the food and beverages segment, which is expected to maintain its leading position throughout the forecast period. The segment projected to experience the highest growth is the supplement sector, with an estimated CAGR of 3.1% in terms of volume during the forecast period. This growth is attributed to escalating health concerns, growing awareness of the health benefits of beta-carotene, and fast-paced lifestyle trends. Additionally, the cosmetics sector is another key application area expected to see significant growth in the coming years.
Based on geography, the global carotenoids market is segmented into the following regions:
- North America
- Europe
- Germany
- France
- Italy
- U.K.
- Russia
- Rest of Europe
- Asia-Pacific
- India
- China
- Japan
- Rest of Asia-Pacific
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East and Africa
- GCC Countries
- South Africa
- Rest of the Middle East and Africz
