Carotenoid Market - Forecast(2023 - 2028)

Carotenoid Market Overview

Carotenoid Market size is estimated to be US$1.8 billion in 2027 and is forecasted to grow at a CAGR of 4.1% during 2022-2027. Carotenoids are one of the most popular coloring agents found naturally in plants, algae, and bacteria. Carotenoids help to enhance the overall aesthetics of food products by garnishing them attractively. The wide application of carotenoid products in all food and non-food sectors is expected to provide future market growth opportunities. In addition, the various health benefits associated with the consumption of foods containing tetraterpenoids, beta carotene, lutein, and lycopene are expected to have an impact on product demand.

COVID-19 Impact

The sudden outbreak of the COVID-19 had a devastating effect on almost all industries as it limits the normal operation of the supply chain. Uncertainty has arisen in the supply chain due to production constraints, raw material acquisitions, and high delivery costs that have affected the entire market.

In addition, various governments have announced the temporary closure of airlines and various provincial councils have set aside isolation to prevent the spread of the virus. The above factors have had a negative impact on carotenoid product sales during the pandemic. However, due to the growing demand for food products as they fall under the category of essential commodities, the demand and sale of food and feed ingredients such as tetraterpenoids have revived the market during a period. To address this critical situation, various suppliers of food and beverages have developed policies, and they follow operating rules to ensure continuity in production and delivery. This is expected to continue to facilitate carotenoid Market growth through the re-establishment of the supply chain.

Report Coverage

The report: “Carotenoid Market Report– Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Carotenoid industry.

Key Takeaways

• The carotenoid Market has great growth potential. A major factor in its market growth is the increased application of carotenoids in the food and beverages, cosmetics, and animal feed industry.
• The effect of COVID-19 on the end-user industries has affected the carotenoid Market negatively. Also, increased concerns for the environment coupled with stringent government regulations have hurdled the market in the foreseen period.
• The carotenoid Market is fragmented in nature due to the presence of international and regional players. Local players have undergone several key strategies such as product innovation, launch, mergers, acquisitions, partnerships to capture the better market and capture better is expected to propel the market and pose several opportunities in carotenoid Market

Carotenoid Market Segment Analysis – By source

Carotenoids available from synthetic sources currently have higher demand and they have a large market share of carotenoids due to their low cost and easy availability. However, the demand for pigments sourced from natural resources is growing as consumers tend to consume medicines and other products containing natural pigments. The natural segment is expected to grow with a larger potential during the forecast period as consumer preferences change rapidly and demand for naturally sourced carotenoids is increasing at a rapid pace.

Carotenoid Market Segment Analysis – By Application

The animal feed segment held a share of around 29.5% in the carotenoid market in 2021 and are expected to grow at a CAGR of 4.7% during the forecast period.

Carotenoids are widely used in animal feed products made for poultry, fish, or shrimp by their color properties. Therefore, animal feed is a leading component of the product application. The pigment of, broiler skin, egg yolks, and fish are enhanced by blending the carotenoid in the animal diet. The positive effect of beta-carotene supplementation in increasing the fertility of cattle, pigs, and horses is seen in one study. Carotenoids are also used in the food and beverage sector including processed food products such as bakery, milk, beverages, and others. There has been a steady and significant increase in the need for natural and organic carotenoids as consumers are now showing increasing awareness about the health benefits of foods that contain natural pigments. In addition, significant increases in demand, production, and consumption of active food products and dietary supplements due to its health-promoting properties are among the major factors positively influencing the market segment.

Carotenoid Market Segment Analysis – By Geography

Europe has dominated the market in terms of volume and revenue by 2021. In terms of revenue, the region held the largest share more than 40% in the carotenoid market in 2021, owing to the various players in the region.

Currently, Europe is the largest market is expected to capture the market better further in the forecasted time. The food & beverages and cosmetics industry are among the most popular food coloring agents in European markets. The presence of a large and higher number of food processing plants and a well-established personal care and cosmetics industry in the region is at the forefront of the market growth of carotenoids industry. For an instance, the total revenue for the food industry in Germany was valued to be US$172.32 Billion in 2018 and has reached US$179.63 Billion in 2020. the data depicts that the increasing consumption of food and beverages is expected to be an opportunity for the carotenoid industry in the region. To add on, consumption of tetraterpenoids is increasing due to their protective role in treating Vitamin A deficiency, which is a major public health concern, especially among young children and pregnant women in Europe. Furthermore, the Asia Pacific region is expected to be the fastest-growing region by 2027. Vitamin A deficiency is a major cause of infant mortality in developing countries including India, Japan, China, and others. In addition, the growing interest of international market players in expanding their business across the fast-growing Asian economy is expected to further market growth across the region. In South America, the fast-growing animal industry and the growing demand for specialty feed are expected to accelerate the demand for carotenoids over the years.

Carotenoid Market Drivers

Increasing Adoption of Natural Products

Increased adoption of natural food, cosmetics and pharmaceutical products among the consumers have positively impacted the market growth.

According to Statista Research Department, in 2019, the market share of natural skincare products was about 33.5% of the natural beauty industry. Also, the revenue from organic and natural cosmetics was valued to be US$ 10.8 billion in 2021 and is expected to reach US$ 15.6 billion by 2025. The increased demand for natural products has raised the demand for natural colorants to be used in food, cosmetics, and pharmaceutical products. Also, Also, carotenoids are efficient antioxidants that can be applied in the manufacture of skin care products to improve skin tone, maintain skin firmness, and protect against UV light exposure. Increasing consumer spending on natural skin and anti-ageing creams are expected to provide greater opportunities for applications for tetraterpenoids, which are also expected to boost their market growth.

Expanding Food and Beverage Industry

The food and beverages industry is one of the major consumers of carotenoids. The great demand for food and beverages across the globe is expected to support the market growth for the carotenoids industry.

According to The International Federation of Organic Agriculture Movements, despite the COVID-19 pandemic, the demand for organic food has kept its pace reaching a worldwide sale of US$ 120.65 billion from US$ 106 billion in 2019. The data depicts that the demand for organic food that requires carotenoids has influenced the carotenoid market. Also, the rising consumption of animal feed such as poultry, fishery, cattle feed, and pet foods have accelerated the market value. For an instance, according to Feed Survey, the global feed volume was approximately 1,069.7 million metric tons in 2017, which has further increased to 1,103.4 million metric tons in 2018. The continuous rise in consumption of food and beverages, animal feed is expected to drive the global carotenoid market in the forecasted period.

Carotenoid Market Challenges

High Cost Associated with Carotenoid Pigments

The high cost of carotenoid pigments is one of the market restraints for the carotenoid industry. According to National Library of Medicine, the price of naturally derived carotenoids can reach up to US$7,500 per KG whereas synthetically derives carotenoids will cost nearly half of natural carotenoids making to US$3,000 TO US$3,500 per KG. The major concern for manufacturers is to manufacture natural carotenoids at a competitive price. This is one of the major challenges because the cost of producing natural carotenoids is high. Also, continuous research and development are needed to achieve the more efficient production of bioactive compounds. However, production costs are kept low by several players. This has resulted in the poor quality of the product. Hence, reducing costs and simplifying processes downstream coupled with the rearing of microorganisms that are also a source of rare carotenoids, and alternative products that can be catered with lower prices are expected to be implemented in the forecasted period.

Carotenoid Market Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Carotenoid Market. Carotenoid top 10 companies include

1. Alga Technologies Ltd
2. BASF SE
3. Kemin Industries
4. Lycored Limited
5. Cyanotech Corporation
6. Fuji Chemical Industry Co Ltd.
7. Novus International
8. DDW The Color House
9. Dohler Group
10. Allied Biotech Corporation

Recent Developments

• In March 2021, Lycored Limited has launched an astaxanthin carotenoid product with the launch of an oleoresin as well as a microencapsulated starch beadlet. The cumulative launch is expected to drive the revenue for the company in the foreseen period.
• In May 2019, Alga Technologies Ltd has launched AstaPure-EyeQ, a natural astaxanthin carotenoid powder to support eye and mental health. The newly introduced product is clinically supported with a small powder, with double bioavailability compared to the standard products available on the market.
• In March 2019, Kemin Industries have launched a new product called KEM GLO to its line of the carotenoids product portfolio. KEM GLO is a USDA (United States Department of Agriculture) certified organic carotenoid that helps egg producers to improve the color of egg yolk.

Relevant Reports

Report Code: CMR 25032

 Beta-Carotene Powder Market- Forecast (2022 – 2027)

Report Code: FBR 71003

 Natural Colorant Market- Forecast (2022 – 2027)

Report Code: FBR 51853

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