The global carotenoid market is projected to reach USD 2,070 million by 2023, registering a CAGR of 4% from 2018 to 2023.
Carotenoids are normally found in microorganisms, algae, and higher plants as well as some animal species. They provide bright yellow, red, and orange color and protect these species from the harmful effects of light, air, and sensitizer pigments. Carotenoids are majorly used as food coloring agents. However, with the advancements in biotechnology and recombinant DNA technology, the extraction of carotenoids is more commercially viable now than before. This has led to an increase in the production of carotenoid-based products. Consumers are more informed about the health benefits of carotenoid-based supplements and fortified foods. They use them as a preventive measure against ailments like arthritis, diabetes, heart disease, obesity, cancer, cataracts, macular degeneration, and skin damage. The growth of the functional foods market is also expected to boost the market for carotenoids. Although there are hundreds of carotenoids, only a few are used for commercial purposes. The carotenoids market has grown significantly in the past few years due to its increasing end-use applications in animal feed, dietary supplements, pharmaceuticals, food and beverages, cosmetics, etc.
The key driver that has led to the growth of the carotenoid market is strong growth in end-use industries like animal feed, food & beverages, dietary supplements, and pharmaceuticals. Other factors include rising health ailments like obesity and nutrient deficiency and changing consumer preferences towards natural nutritional supplements.
There is an increasing demand among consumers for clean and natural products that are made from natural supplements and colors. This has forced manufacturers to work on the extraction of carotenoid via natural means. For example, DSM has launched CaroCare® solutions, which offer a range of natural-sourced beta-carotene formulations.
The carotenoid market is segmented by type, source, and application. By type, carotenoids are further sub-segmented into beta-carotene, astaxanthin, lutein, annatto, canthaxanthin, lycopene, zeaxanthin, and others. Among these, beta-carotene is estimated to have the fastest growth during the forecast period. It is widely used for food coloring and as a natural supplement.
Carotenoids are used in animal feed, food & beverages, dietary supplements, cosmetics, pharmaceuticals, and other applications. Carotenoids are used as color enhancers in natural foods like egg yolk, chicken, meat, and fish. This improves the aesthetic look of the product and therefore, looks more appealing to the customer.
North America and Europe have the largest carotenoid market. Asia-Pacific is an emerging market, as an increasing number of consumers are adopting preventive measures in the form of health supplements to prevent diseases. Changes in lifestyle and food consumption among consumers have also led to the growth of the carotenoid market in the Asia-Pacific region. Owing to a rise in the pharmaceutical and energy industries, South America has also shown significant growth.
Carotenoids have significant growth opportunities as an alternative to antibiotics and as a natural source of supplements to prevent diseases. Despite awareness about the various benefits of carotenoids, it was very expensive to extract carotenoids in the past, especially from natural sources. However, there has been significant advancement in biotechnology and recombinant DNA technology. As per the latest research, linseed oil nano-emulsions increase carotenoid bioavailability and stability, thus increasing its benefits. Despite the huge growth potential in the carotenoid market, new players may face entry barriers due to the lack of technological know-how. On the consumer's end, the only concern is the increased toxicity due to the high dose of carotenoids, as they are fat-soluble. Manufacturers need to focus on overcoming this drawback.
At present, companies are looking at carotenoids as an alternative to antibiotics. Antibiotics are widely used in animal feed, but they are now causing disease resistance in both animals as well as humans. Therefore, companies are presently focusing on carotenoids like beta-carotene, which will not act as a therapeutic alternative to antibiotics, but will help animals grow optimally and boost their immune systems.
Another significant growth potential for the carotenoid market is in the energy sector. Researchers have found that carotenoids can act as feedstock for biofuel. Microalgae derived from carotenoids can act as a low-value energy source to make biofuel production economically feasible.
Major players: BASF SE, Koninklijke DSM NV, Sensient Technologies Corporation, and Novus International, Inc., among others.
BASF and DSM dominate the market in beta-carotene, astaxanthin, and canthaxanthin, while small players are more active in the lutein and lycopene market.
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