"Market Intelligence that Adds Flavour to Your Success"
The global carotenoids market size was USD 1.44 billion in 2019 and is projected to reach USD 1.84 billion by 2027, exhibiting a CAGR of 3.4% during the forecast period.
Carotenoids are one of the most popular pigments that are naturally sourced from plant, algae, and photosynthetic bacteria. They help in enhancing the overall aesthetics of food products by making them visually appealing.
The versatile application of the product across both food and non-food sectors is expected to provide future growth opportunities to the market. Moreover, various health benefits associated with the consumption of food containing tetraterpenoids is anticipated to contribute to the product’s demand. For instance, the intake of food rich in beta-carotene is recommended by governments and scientific organizations such as the U.S. Department of Agriculture (USDA) and the U.S. National Cancer Institute.
Disruption in the Global Supply Chain due to COVID-19 to Negatively Impact the Market Growth
The sudden outbreak of the COVID-19 pandemic has negatively impacted almost all the industries as it has restricted the regular operations performed by the workforce. The instabilities emerged in the supply chains of the product due to production limitations, complications in raw materials sourcing, and higher delivery costs have impacted the overall market. Moreover, various governments have announced a temporary ban on foreign air travel and various state councils have imposed quarantine to prevent the spread of the virus. These aforementioned factors have impacted the sales of the product negatively in recent months.
The limitations on the export and import of non-essential products owing to the temporary border closure situations in some countries is further hampering the growth of this market. However, due to the rising demand for food and feed products as they come under the ambit of essential commodities, the demand and sales of food and feed ingredients such as tetraterpenoids is expected to revive in the upcoming months. To handle this chaotic situation caused due to the pandemic, various food and feed ingredient suppliers have established protocols, and are following code of practice to ensure continuity in the production and delivery. This is expected to further aid the market growth by re-establishing the disrupted supply chain.
Request a Free sample to learn more about this report.
Growing Demand for Natural Food Products to Favor Growth
The global carotenoids market is primarily driven by the all-natural trend resonating across the globe. The growing stringency towards the application of synthetic feed ingredients and chemicals due to their hazardous impacts on animal health is projected to drive the demand for natural carotenoids in the forthcoming years. In the global food & beverage and cosmetics industries, the consumer inclination towards products with all-natural ingredients over synthetic tetraterpenoids has augmented due to their potential health and beauty benefits. For instance, in August 2020, Peach & Lily, a Korean skincare and beauty products company, launched an eye cream, Pure Peach Retinoic Eye Cream that contains beta-carotene and vitamin A. The product is effective for treating problems such as dark circles, fine lines, and loose skin near eyes.
Increasing Adoption of Nutraceutical Products to Propel Market Growth
The alternative treatment methods apart from allelopathic products for diabetes, eye disorders, and other lifestyle diseases are witnessing robust popularity. Preventive medicine is a buzzword that has encouraged manufacturers and processors to come up with nutraceuticals such as dietary supplements and functional foods that utilize natural ingredients. Geriatric nutrition is one of the vital sectors for carotenes owing to its high antioxidant potential as they provide defense against oxidative stress, primarily attributed to aging processes, pollution, etc. All these factors are collectively contributing to the global sales of this market.
Growing Demand for Natural Skincare Cosmetics to Surge Demand
Along with the rise in health and wellness concerns, the consciousness regarding aesthetics and appearance among consumers has increased remarkably. This has escalated the demand for effective skincare and cosmetics products globally. Carotenoids have been identified as powerful antioxidants that can be used in skincare product formulations for improving skin tone, maintaining skin firmness, and protection against UV light exposure.
The rise in consumer spending on natural skin brightening and anti-aging creams are predictable to bring immense application opportunities for novel tetraterpenoids, which in turn is expected to boost their market growth. For instance, according to Lucas Meyers Cosmetics, an Asian cosmetic ingredient company, naturally occuring colourless carotenoids that are found in tomatoes can be easily used in the production of natural cosmetics products.
High Price of Natural Pigments to Hamper Market Growth
The high price difference of synthetic carotenoids and natural tetraterpenoids is predicted to act as a major restrain in the growth of the market, especially among low-income or developing economies. Moreover, the unregulated and excessive utilization of carotene in the developed markets is associated with health risks. This is expected to be one of the significant challenges in the global market.
Beta-carotene and Astaxanthin are Dominating due to High Utilization across End-Use Industries
At present, beta-carotene and astaxanthin are dominating and their market demand is extremely high. The potential role of the aforementioned pigments in improving immunity, improving heart health, preventing diabetes, and inducing various significant health benefits are the major reasons behind their high popularity.
The global market has ample scope for innovative pigments that are sustainably sourced and provide enhanced functionalities. For instance, Arthrospira and Phycocyanin extracts were approved for adoption in chewing gum, candy, and other types for confection in the U.S. in 2013-2014 by the U.S. Food and Drug Administration. Such regulatory encouragement and enabling policy frameworks are expected to escalate the growth of the market.
Microalga sources for extraction have gained commercial importance in recent years. Additionally, the cost-effective methods to extract the tetraterpenoids from various types of microalga sources are anticipated to offer immense opportunities to the market players operating in the industry.
Natural Segment to Showcase Substantial Growth Attributed to Rising Demand for Organic Products
The availability sourced from synthetic sources is currently high and they hold the major carotenoids market revenue share owing to their low cost and ease of extraction. However, the demand for pigments sourced from natural sources is amplifying as consumers are inclining towards food, cosmetics and pharmaceuticals with other products that are produced by adopting natural ingredients. The segment is projected to grow at a substantial CAGR during the forecast period as consumer’s preferences are changing rapidly and the demand for organic products is rising at a steady pace.
To know how our report can help streamline your business, Speak to Analyst
Dietary Supplements Segment is Projected to Witness the Fastest Growth Owing to Their Intensifying Demand
Carotenoids are extensively used in animal feed products meant for poultry, fish, or shrimp for their coloring properties. Therefore, animal feed is the leading application segment for the product. The pigment of egg yolks, broiler skin, fish, and crustaceans is enhanced and improved by externally incorporating the product in their feed. Additionally, they have the potential to boost fertility and improve the overall health of animals. There has been a positive impact of feeding beta-carotene in enhancing the fertility of cattle, swine, and horses as observed by some field-studies.
The application areas of within the food and beverage segment (food colorants) ranges from processed food products such as bakery, dairy, beverages, etc, to dietary supplements. There has been a steady and notable rise in the demand for organic and natural food offerings as the consumers are now exhibiting increasing awareness about the health benefits of foods that contain natural colors. Additionally, a noticeable rise in the demand, manufacturing, and consumption of functional food products and dietary supplements due to their health aiding properties has further provided a fillip to natural ingredients.
Europe Carotenoids Market Size, 2019 (USD Million)
To get more information on the regional analysis of this market, Request a Free sample
Presence of Established Animal Feed Sector & Cosmetics Industry in Europe to Favor Growth
Europe stood at USD 598.6 million in 2019 and is projected to exhibit a CAGR of 3.20%. The region is the largest market at present and is expected to account for a significant proportion of the market during the forecast period. The existence of a huge animal feed sector and well-established cosmetics industry across the region are the main drivers for the carotenoids market growth. These are also among the most preferred food coloring agents in European markets.
Organic and natural have become top priorities for food processors around the globe, owing to its contribution to food quality, safety, social convenience, and sustainability. Consumers are now conscious of their purchasing habits as food labeling is often checked for ingredients origin, manufacturing practices, and the impact of the supply chain on the overall environment. Such factors are driving the demand for natural tetraterpenoids over GMO and other synthetic counterparts in developed markets of North America.
The consumption of tetraterpenoids is increasing due to their defensive role for curing Vitamin A deficiency, which is a prominent public health concern specifically among young children and pregnant women in low-income countries of Africa and Southeast Asia. Vitamin A deficiency is also a major cause of infant mortality in developing countries. Moreover, the increasing interest of international market players in expanding their business across rapidly growing Asian economies is predicted to further fuel the market growth across the region.
In South America, the rapidly growing animal feed industry and the increasing demand for specialty feed is expected to propel the demand for this product in the region. Moreover, active participation of leading manufacturing companies in countries such as Brazil and Chile is further predicted to aid the market growth.
Special Emphasis on New Product Development by Key Players to Aid Market Growth
The global market remains immensely competitive with the surge of private firms from emerging economies of China, India, and others. The key players in the global market are embarking on industry consolidation using agreements/partnerships as well as acquisitions. Additionally, emphasis on new product development is one of the preferred strategies by the major companies that will drive the growth of the market. The demand-side dynamics are rapidly evolving with end-use sectors demanding not only high specificity but also greater bioavailability of carotenoids-based offering. For instance, Kemin Industries is one of the leaders in the food and feed ingredients industry which is actively capitalizing on research & development as well as the launch of natural and organic ingredients.
In March 2019, Kemin Animal Nutrition and Health, a part of Kemin Industries introduced Organic KEM GLO to its line of carotenoids products. The new carotenoid/pigment is USDA-certified and has potential to harness the usual characteristics of paprika to equally dispense color throughout feed, transporting consistent density, and egg color pigmentation.
An Infographic Representation of Carotenoids Market
To get information on various segments, share your queries with us
The research report provides qualitative and quantitative insights on the market and detailed analysis of market size and growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights provided in the report are the overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in key countries, and key carotenoids industry trends.
Value (USD Billion)
Type, Source, Application, and Region
Fortune Business Insights says that the global market was USD 1.44 billion in 2019 and is projected to reach USD 1.84 billion by 2027.
Growing at a CAGR of 3.4%, the market will exhibit steady growth during the forecast period (2020-2027)
Astaxanthin is expected to be the leading type in the market during the forecast period.
The rising utilization in dietary supplements and geriatric nutrition is predicted to drive the growth of the global market.
Allied Biotech Corporation, BASF SE, Chr. Hansen Holdings A/S, and Kemin Industries Inc. are some of the top players in the market.
Europe is expected to hold the highest market share in the global market.
The animal feed application segment is predicted to hold the dominant market share.
The intensifying demand for all-natural food, feed, and cosmetics ingredients is an emerging trend in the global market.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry