Carotenoids Market

Carotenoids Market Outlook

The global market for carotenoids is expected to exhibit steady growth of around 5% over the 2021-2031 forecast period.

Sales of carotenoids are likely to surpass US$ 2 Bn by 2031 attributed to the growing emphasis on healthy and natural food along with supplement consumption on account of rising health issues.

Carotenoids Market Consumption Analysis from 2016-2020 vs. Future Market Outlook for 2021-2031

According to Fact.MR- a market research and competitive intelligence provider- the global carotenoids market expanded at a CAGR of 4% during the historic period 2016-2020. The emerging food additives sector along with the cosmetics and personal care industry propelled growth in the aforementioned years.

Owing to bolstering demand for dietary supplements & nutraceutical ingredients, the market is projected to expand nearly 2x by 2031, surpassing US$ 2 Bn. Forecasted CAGR for the 2021-2031 forecast period is around 5%.

According to the latest study by PMC-NCBI, carotenoids are proven to have an inverse relationship with cancer and other health benefits which have surged the global demand for carotenoids in the pharmaceutical sector worldwide.

Which Factors are Influencing Demand for Carotenoids?

According to the report, the dietary supplements market is providing huge traction to the global demand for carotenoids. Synthetic carotenoids such as α-carotene, β-carotene, lycopene, lutein, zeaxanthin, and β-cryptoxanthin are most prevalently used in dietary supplements especially in the North-American region.

However, there is an increasing demand for naturally sourced carotenoids in the pharmaceutical industry and opportunities to expand in the high-growth potential markets is likely to boost the global demand for carotenoids.

A recent survey by NHANES has revealed that more than 40% of the U.S population consume some form of dietary supplement. With the growth in sales of supplements, the market for carotenoids will expand eventually in the forthcoming years 2021-2031.

Which Region Offers the Largest Growth Opportunity for Carotenoids?

As per Fact.MR, Asia is likely to exhibit maximum growth potential for the carotenoids market, expected to expand almost 2x by 2031.

The market continues to build momentum, with the growing demand for carotenoids obtained from natural sources. It is projected to grow at the highest CAGR in the carotenoids market during the forecast period.

Accounting for increasing demand for pork, poultry, and aquaculture products in the APAC region, key manufacturers such as Allied Biotech Corporation, Zhejiang NHU Co. Ltd are focusing on enhancing the appearance with the use of carotenoids.

Key Challenges to Global Carotenoids Market Expansion

Carotenoid production through chemical synthesis or extraction from plants is limited by low yields that result in high production costs. This will impede the market growth of natural carotenoids market in future.

On the other hand, limitations on exports and imports of non-essential products owing to the temporary border closure situations in some countries are further hampering the growth of this market.

Which are Some Lucrative Growth Opportunities for Carotenoids Manufacturers?

The Asia Pacific region offers profitable growth opportunities to manufacturers and suppliers of carotenoids as the processing of carotenoids is cheaper in this region and witnesses a high demand in this region.

Additionally, an exponential increase in demand for supplements and nutritional products among the youth and infants are bolstering growth opportunities for carotenoids. Increasing application in the pharmaceutical sector in protection from diseases like cancer offers lucrative opportunities for global manufacturers.

What are the Key Trends Prevailing in the Market?

With a growing emphasis on dietary supplements and synthetic carotenoids like beta-Carotene in the healthcare sector, the market is gaining high traction among gym enthusiasts.

For instance, in March 2019 Kemin Animal Nutrition and Health announced the addition of Organic KEM GLO™ to its comprehensive line of carotenoids, commonly known as pigments which are likely to boost the demand for natural carotenoids.

Furthermore, increasing concerns among youngsters for social media image spiked the demand for organic cosmetic additives in the beauty and personal care segment. 

The aforementioned trends are likely to direct the market on a positive trajectory over the forecast period due to changing lifestyles and growing concerns for maintaining a healthy body.

Country-wise Insights

Why Carotenoids Market is flourishing in the U.S?

Extensive applications across end-use industries such as food and beverage colourants and cosmetics and personal care additives have surged the demand for carotenoids across the U.S. As per Fact.MR, the market in the U.S is slated to grow at a CAGR of around 5% until 2031.

Furthermore, rising internet penetration and smartphone users are positively impacting the e-commerce sector, thereby propelling the online sales of beauty & personal care products. Hence, uptake of carotenoids to manufacture the same is increasing.

Why is China Experiencing Booming Demand for Carotenoids?

In 2020, China was estimated to be the fastest-growing market for carotenoids and is projected to witness steady revenue growth from 2021 to 2031 amid extensive applications in the animal feed industry and rise in demand for health supplements.

Demand for carotenoids in China is forecast to grow at 5% CAGR throughout the forecast period. Moreover, the highly established cosmetics industry owing to the presence of key manufacturers such as  Zhejiang Tianhecheng Biotechnology Shares Co., Ltd, MDPI and Hindawi is anticipated to supplement the growth of the carotenoids market in the region.

Moreover, beta-carotene is the largest segment in the regional market which is experiencing booming demand, especially in the pharmaceutical industry.

Category-wise insights

Why are Synthetic Carotenoids Grabbing Consumer Attention?

Synthetically sourced carotenoids remain most popular, owing to their low cost compared to naturally sourced carotenoids. The segment is projected to account for over 60% demand until 2031.

Recent discoveries of health-related benefits of carotenoids are resulting in increasing use of carotenoids as nutraceuticals for pharmaceuticals and the cosmetics industry. Henceforth, the synthetic source of carotenoids is likely to gain momentum in upcoming years.

Food & Beverage Colorants Consuming High Proportion of Carotenoids

Owing to the wide application of lycopene and beta-carotene in cheese spreads, yoghurts, soups, sauces, bakery products, and  sauce and soup colorants, the global market is anticipated to expand size in upcoming years.

Moreover, consumer awareness of the benefits of carotenoids for eye health, immune function, and cardiovascular health remain a key growth driver. It is expected that demand for carotenoids in this sector will likely expand at a CAGR of 4% in forthcoming years.

Competitive Landscape

In a rapidly changing business and competitive landscape, organizations need to keep up with the ongoing market trends to stay ahead of their industry rivals. To achieve this, global manufacturers of carotenoids are taking bold steps to expand their business reach. They are focusing on adopting innovative marketing strategies, technological developments, and mergers and acquisitions.

• In Aug 2018 BASF Animal Nutrition launched its Lucantin® NXT product line in the EU 28 market. The next generation of carotenoids is stabilized by propyl gallate (PG) and butylhydroxytoluene (BHT) or tocopherol.
• In Oct 2020 Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, today announces the completion of its acquisition of Erber Group for an enterprise value of €980 million.
• The acquisition of Erber Group’s Biomin further strengthens DSM’s expertise and reputation as a leading provider of animal health and nutrition solutions for farm productivity and sustainability, with an emphasis on emissions reduction, feed consumption efficiency, and better use of water and land. 

Scope of the report:

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania MEA
Key Countries Covered	U.S. Canada Germany U.K. France Spain Italy Russia China Japan South Korea India Australia Brazil Mexico Argentina GCC South Africa
Key Market Segments Covered	Product Source End Use Region
Key Companies Profiled	BASF S.E. Koninklijke DSM N.V. Givaudan Group Dr. Reddy's Laboratories Cipla Sun Pharmaceutical GSK, Roche Novo Nordisk
Pricing	Available upon Request

Key Segments Covered:

• Product

  • Beta-Carotene Carotenoids
  • Lutein Carotenoids
  • Astaxanthin Carotenoids
  • Canthaxanthin Carotenoids
  • Lycopene Carotenoids
  • Other Carotenoids

• Source

  • Natural Carotenoids
  • Synthetic Carotenoids

• End Use

  • Carotenoids for Food & Beverage Colorants
  • Carotenoids for Animal Feed Additives
  • Carotenoids for Dietary Supplements & Nutraceutical Ingredients
  • Carotenoids for Pharmaceutical Additives
  • Carotenoids for Cosmetic & Personal Care Additives