The market is expected to grow at a CAGR of XX% from 2017 to 2022. This market is valued at USD XX million in 2016 and is projected to reach a value of USD XX million by 2022.
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 the carotenoids is more commercially viable now than before. This has led to an increase in the production of carotenoid-based products. The consumers are more informed about health benefits of carotenoid-based supplements and fortified foods. They are inclined to use them as a preventive measure against ailments like arthritis, diabetes, heart disease, obesity, cancer, cataracts, macular degeneration, and skin damage. The growth of functional foods market is expected to boost the market for carotenoids.
Although there are hundreds of carotenoids, only a few are used for commercial purposes. Carotenoids market had 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 drivers that have led to the growth of the carotenoid market are strong growth in the end-use industries like animal feed, food and 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, which include 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, apo-carotenal, apo-ester, canthaxanthin, capsanthin and paprika extracts, 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 and beverages, dietary supplements, cosmetics, pharmaceuticals, and other applications. Carotenoids are used as color enhancers in natural foods like egg yolk, chicken meat or fish. This improves the aesthetic look of the product and therefore, looks more appealing to the customer.
By source, carotenoid market demand are classified into natural or synthetic. They are found naturally in vegetables like spinach, pumpkin, tomato, and carrot. Many carotenoids like beta-carotene, lycopene, lutein, and zeaxanthin, can be synthetically extracted.
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. Change in lifestyle and food consumption among consumers has also led to the growth of carotenoids market in the Asia-Pacific region. South America has also shown significant growth, as there is a rise in the pharmaceutical and energy industries.
Some of the major players capturing the Carotenoids market include –
BASF and DSM dominate the market in beta-carotene, astaxanthin, and canthaxanthin while small players are more active in lutein and lycopene market, which has high growth potential.
Carotenoids have significant growth opportunities as an alternative to antibiotics and as a natural source of supplements to prevent diseases. Despite having a knowhow of various benefits of carotenoids, it was very expensive to extract carotenoids, in the past, especially from natural sources. However, currently, there is a significant advancement in biotechnology and recombinant DNA technology. As per the latest research, linseed oil nano-emulsions act as a means to increase carotenoid’s bioavailability and stability, thus increasing its benefits of more supplements and functional foods. Despite the huge growth potential in carotenoid, new players may face entry barriers due to the lack of technological knowhow. On the consumer's end, the only concern is the increased toxicity due to the high dose of carotenoids, as they are fat-soluble. Therefore manufacturers need to focus on overcoming this drawback.
At present companies are also 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 to grow optimally and boosts their immune systems.
Another significant growth potential for the carotenoid market is in the energy sector. Researchers have found that carotenoids can act as feed stock for biofuel. Microalgae-derived from carotenoids can act as a low-value energy source to make biofuel production economically feasible.
Recent Industry Insight
“DDW buys KleurCraft to expand vertically, globally."
"Study shows 3-carotenoid formula boosts visual performance for non-impaired subjects."
Our report on global carotenoids market covers the following