Market Overview
The worldwide carotenoid market is experiencing consistent growth, propelled by escalating demand from various end-user applications and a growing acknowledgment of its health advantages. Consequently, the marketing strategies for carotenoids globally are increasingly emphasizing naturally derived carotenoids. This shift is observing significant momentum, predominantly in North America and Europe. The augmenting requirement for natural colorants stands as a pivotal element fueling the expansion of the market. Nonetheless, burgeoning economies are revealing immense market possibilities.
The carotenoid market is intensely competitive with the existence of multiple contenders. Furthermore, two principal players, DSM and BASF, hold more than half of the market share. These entities are undergoing rigorous competition from carotenoid manufacturers based in India and China. The perception of the brand is crucial within the market, with corporations prioritizing the quality and brand reputation of the products they procure.
The objective of this research study, labeled “Global Carotenoids Market,” is to furnish company leaders, sector investors, and industry contributors with profound understandings to facilitate well-informed strategic decisions concerning the opportunities within the global carotenoids market.
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Key Market Trends and Drivers
The market for carotenoids is significantly shaped by multiple elements, reflecting shifts in consumer predilections and the introduction of groundbreaking technologies. A paramount stimulant for this market is the escalating health awareness amongst global consumers. The burgeoning knowledge of the health advantages linked to carotenoids—such as their capability to thwart eye ailments, fortify immune systems, and serve as antioxidants—has notably amplified their demand.
Additionally, the rising acclaim for natural and organic commodities has instigated heightened interest in carotenoids derived from natural sources, thus offering a considerable opportunity for market amplification. The infusion of carotenoids into cosmetic products is witnessing ascending momentum due to their acclaimed benefits in skin health and anti-aging.
Moreover, innovations in food enrichment and nutritional supplements have paved new pathways for exploiting carotenoids. These developments are bolstered by governmental guidelines and mandates promoting augmented nutritional values in food items.
Consumer propensity to purchase notably escalates when brands accentuate the incorporation of natural hues, resonating with the expanding consumer desire for transparency in food and beverage products. Brands attain more favorable perceptions when the ingredient list discloses the usage of fruit and vegetable juices and concentrates as color additives. Carotenoids, like lycopene in tomatoes and beta-carotene in carrots, render a spectrum of colors, spanning yellow to red. Analogously, anthocyanins found in grape skin extracts attribute the vivid red, blue, and purple tints to fruits and vegetables. The heightened awareness and application of such natural colors derived from foods like tomatoes and carrots are propelling the worldwide carotenoid market forward. This trajectory furnishes market entities with novel avenues to delve into and leverage, underlining the multifaceted potential of carotenoids.
Key Market Challenges
While the carotenoids market holds immense potential, it is also encountering several impediments. A notable obstacle is the elevated costs involved in extracting and processing natural carotenoids. The sophisticated methods essential for maintaining the nutrient integrity of carotenoids may be excessively costly for numerous participants in the market. Additionally, attaining uniform color and stability from natural sources is a persistent challenge, affected by variables such as soil composition and climatic conditions.
Moreover, the excessive intake of synthetic carotenoids can present potential health hazards, which might dissuade consumers and constrict market development. Strict regulations across different regions also present difficulties by compelling manufacturers to guarantee the safety, quality, and effectiveness of their products, imposing additional financial and logistical strains on enterprises.
Finally, the carotenoids market remains vulnerable to the variances in the availability and pricing of raw materials. Any disruptions in the supply chain, whether resulting from political turmoil, environmental circumstances, or other unforeseen events, can have a direct effect on the production and cost structures of carotenoids.
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Segment Analysis
Regarding classification, the carotenoids market is segmented into beta-carotene, lutein, lycopene, astaxanthin, zeaxanthin, canthaxanthin, annatto, capsanthin, Beta-apo-8-carotenal-ester, and Beta-Apo-8-carotenal. The beta-carotene division has been leading the market, a trend anticipated to continue from 2024 to 2028.
The global demand for carotenoids is substantial, with particular interest in beta-carotene, lutein, and astaxanthin. The extensive health advantages in both feed and food have elevated the consumption levels of these carotenoids, a pattern expected to persist for the forthcoming six years. Conversely, Beta-Apo-8-carotenal, succeeded by lutein, is foreseen to be the most rapidly expanding segment, attributed to its escalating end-use applications.
By application
In terms of application type, the animal feed segment has been prevailing in the market, a stance that is predicted to sustain from 2024 to 2028. Carotenoids extend beyond mere coloration; they are also instrumental in enhancing animal performance, rendering them essential nutrients for all farmed animals. Since livestock cannot synthesize carotenoids—substances exclusively found in plants—their dietary intake fulfills the nutrient needs for carotenoids. However, it’s anticipated that this segment will witness a reduction in market share in times to come. The supplements segment is poised to experience the most accelerated growth rate, subsequently followed by the cosmetics segment.
With a rising aging population, individuals are becoming more cognizant and knowledgeable about age-related complications. The surge in urbanization and hectic lifestyles has led to a prominent rise in self-informing consumers. The prevalent reliance on alternative channels for self-diagnosis and preventive health measures have exponentially boosted the global demand for supplements, consequently enhancing carotenoid consumption.
In terms of both revenue and volume, Europe and North America collectively hold over half of the market share. However, future projections indicate that the Asia Pacific region will undergo the most substantial growth rate, with Europe following as the second largest. Beta-carotene remains the most utilized carotenoid in foods and supplements, but shifts in consumer perceptions, especially in Europe, have seen all carotenoid products experiencing substitutions with natural equivalents. Concurrently, the emergence of synthetic and algae-derived carotenoid producers has heightened, causing a disparity between supply and demand and resulting in decreased prices.
In the Asia Pacific, particularly in India and China, the role is twofold—not only being the primary consumers of carotenoids but also emerging as significant producers, attributed to the plentiful availability of raw materials, affordable labor, and proficiency in producing carotenoids that meet international standards and demands. Consequently, companies in the Asia Pacific region encompass more than a 30% share in the corporate market. Furthermore, European manufacturers of carotenoid products are facing competitive pressures from the more economically priced imports originating from China and India.
By Source
By Product
- Beta-carotene
- Lutein
- Astaxanthin
- Capsanthin
- Annatto
- Canthaxanthin
- Lycopene
- Beta-Apo-8-carotenal
- Zeaxanthin
- Beta-apo-8-carotenal-ester
By Application
- Food & Beverages
- Supplements
- Animal Feed
- Cosmetics
By Geography
- 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 Middle East and Africa
Key Market Players
The report features a competitive landscape, developed from a thorough analysis of key growth strategies employed by leading participants in the carotenoids market from 2018 to 2028.
Key players profiled in this study include:
- Allied Biotech Corporation (China)
- BASF SE (Germany)
- Chr. Hansen Holding A/S (Denmark)
- Cyanotech Corporation (U.S.)
- DDW, Inc. (U.S.)
- Deinove SA (France)
- Divi’s Laboratories Limited (India)
- Döhler GmbH (Germany)
- ExcelVite Sdn. Bhd. (Malaysia)
- Kemin Industries, Inc. (U.S.)
- Koninklijke DSM N.V. (Netherlands)
- Lycored Corp. (Israel)
- Novus International, Inc. (U.S.)
- Vidya Europe SAS (France)
- Zhejiang NHU Co., Ltd. (China)
Recent Developments and Market News
- May 2019: Algatech launched AstaPure-EyeQ, a groundbreaking natural astaxanthin powder aimed at bolstering eye and brain health. This newly introduced product, supported by clinical research and microencapsulated, offers double the bioavailability compared to the standard products available in the market.
- April 2019: ExcelVite, a renowned producer of palm carotene, partnered with the United States Pharmacopeia (USP) to publish a new monograph on Plant Carotenes.
- November 2022: DSM announced a noteworthy collaboration with LBB Specialties for the distribution of dietary supplements in the North American region. DSM emphasized that this alliance not only augments customer value but also fosters new opportunities for product innovation. Additionally, it strengthens DSM’s standing as a premier supplier of vitamins, lipids, carotenoids, and nutraceuticals in North America.
- August 2023: Divi’s Laboratories showcased its pioneering Novel Application innovations at FI South America 2023. These innovative advancements, conceptualized initially in June 2022, were developed in response to growing consumer demand for products with reduced additives.
- June 2023: At IFT First 2023, Divi’s Nutraceuticals launched its revolutionary product, AstaBead, a development realized through a 2022 collaboration with Algalif. According to Divi’s, the AstaBead beadlets show remarkable efficacy in applications such as nutritional bars and powdered beverages.
Target Audience
- Industry investors
- Raw material suppliers
- Distributors
- Manufacturers
- Retailers
Companies aiming to penetrate the market and those aspiring to broaden their product array would find value in this report.
This document scrutinizes global carotenoids markets, quantifying them in USD million, and classifying them by source types, namely synthetic and natural. It additionally offers a market study focusing on the demand for carotenoids in various applications including food & beverages, cosmetics, supplements, and animal feed, assessing them in terms of revenue. Furthermore, the analysis encompasses various product types such as Beta-carotene, Lutein, Astaxanthin, Capsanthin, Annatto, Canthaxanthin, Lycopene, Beta-Apo-8-carotenal, Zeaxanthin, and Beta-apo-8-carotenal-ester. The study provides individual, detailed analytics for North America, Europe, Asia-Pacific, and the Rest of the World (RoW). It includes annual projections and forecasts from 2024 through 2028, with the market growth rate being determined from 2024 to 2028. The data and analytics integrated in the report are extracted from primary and secondary research. Moreover, the demand side approach of the market has been considered for this study. The competitive analysis predominantly relies on publicly available information, incorporating company URLs and annual reports.
