Natural Carotenoids Market Size, Share & Industry Analysis, By Type (Astaxanthin, Beta-Carotene, Lutein, Zeaxanthin, Lycopene, Canthaxanthin, and Others), By Source (Plants and Microorganisms), By Application (Food & Beverages, Dietary Supplements, Personal Care & Cosmetics, Animal Feed, and Pharmaceuticals), and Regional Forecast, 2025-2032

The global natural carotenoids market size was valued at USD 461.42 million in 2024. The market is projected to grow from USD 478.20 million in 2025 to USD 628.96 million by 2032, exhibiting a CAGR of 3.99% during the forecast period. Europe dominated the natural carotenoids market with a market share of 47.18% in 2024.

Natural carotenoids are a group/class of fat-soluble pigments primarily found in photosynthetic bacteria, algae, and plants. These pigments impart red, yellow, and orange hues in various vegetables and fruits. Over 750 carotenoids have been identified, of which astaxanthin, lycopene, and lutein are the most popular. Concerning advantages, these ingredients offer anti-inflammatory and cancer prevention properties. Also, it aids in strengthening cognitive function, skin, and heart health.

Along with the food sector, it is a key ingredient in the animal feed, cosmetics, and supplements sectors. Predominantly, Europe and North America are recognized as the biggest consumers of natural carotenoids. This consumption rate is mainly driven by increased awareness about the health benefits and the expanding use of natural ingredients in processed foods.

A few key players in the market include Cyanotech Corporation, Allied Biotech Corporation, and Fuji Chemicals & Co., Ltd., among others.

MARKET DYNAMICS

Market Drivers

Growing Animal Feed Industry Increases Usage of Natural Pigments

The flourishing animal feed industry is a critical driver for the market's growth. Natural carotenoids are extensively utilized in the animal feed sector, particularly due to their coloring properties. These ingredients are majorly added to feed to strengthen the visual appeal of animal products such as egg yolks, chicken skin, and salmon flesh. Popular carotenoids used in feed include beta-carotene (for poultry), astaxanthin (for salmon), and lutein (for yellow coloration in fish). Besides color, these ingredients enhance the feed's nutritive value and contribute to their overall well-being, fueling the global natural carotenoids market growth.

Market Restraints

Stability and Shelf-Life Challenges and High Extraction Costs Impede Market Growth

One key difficulty carotenoid producers face is the shelf life and stability challenges. Carotenoids are naturally produced and prone to degradation due to light, heat, pH changes, and oxidation, which may hamper their nutritional value, bioavailability, and color. Moreover, a few carotenoids have low water solubility, making them difficult to incorporate into numerous beverages and food items. Additionally, these carotenoids have low bioavailability, which means they are not easily utilized and absorbed by the body. As a result, such factors hinder the market's potential.

Another obstacle in the global market is the high cost of purification and extraction of natural carotenoids. Compared to synthetic extraction, natural extraction of carotenoids is expensive, mainly due to the prices linked with specialized equipment and the degradation potential during processing. Thus, the factors mentioned above impede the global natural carotenoids market share.

Market Opportunities

Advancements in Production Technologies to Create Growth Opportunities

The increasing advancements in manufacturing technologies unlock growth possibilities in the global industry. Natural carotenoid producers should adopt advanced technology to enhance the extraction method. Traditional solvent extraction methods can be supplemented with greener substitutes such as ultrasound-assisted extraction, supercritical fluid extraction, and microwave-assisted extraction for improved extraction. Moreover, biofortification and encapsulation techniques are being developed to preserve carotenoids from degradation during storage and processing. Additionally, the firms can use ionic liquids and deep eutectic solvents as they are efficient and eco-friendly solvents for carotenoid extraction.

Natural Carotenoids Market Trends

Expanding Use of Carotenoids in Cosmetics Sector is a Current Key Trend

Natural carotenoids play a remarkable role in the personal care & cosmetics industry. These ingredients are used as natural colorants, providing a range of shades, and are considered a valuable option to synthetic colors. Such natural ingredients align with the ongoing trend of natural/clean-label products, and lutein and beta carotene are a few common carotenoids that can be utilized in moisturizers and powders. Incorporation of natural carotenoids in cosmetic items protects skin from oxidative damage and minimizes premature aging. Moreover, some carotenoids strengthen skin elasticity and improve skin tone. As a result, the advantages of carotenoids in personal care products bolster their utilization rate.

SEGMENTATION ANALYSIS

By Type

Astaxanthin Dominated Market Due to Its Popularity in Skin and Physical Health

Based on type, the market is distributed into astaxanthin, beta-carotene, lutein, zeaxanthin, lycopene, canthaxanthin, and others.

The astaxanthin segment held the highest market share in 2024. Astaxanthin is one of the most common types and offers a higher antioxidant capacity than other types. Also, this ingredient can be utilized in various functional foods and cosmetics, as it promotes skin and physical health. Also, it can ease recovery after exercise and protect individuals from neurodegenerative diseases. Thus, the benefits mentioned above augment the segment's growth.

Beta-carotene emerged as the fastest-growing segment and is anticipated to soar at the same pace during the forecast period. Likewise, other carotenoids, beta carotene, also act as an antioxidant and are crucial for improved immune function and vision.

By Source

Plants Led Market Due to Their Ample Advantages in Food Edibles

Based on the source, the market is segmented into plants and microorganisms.

Among all, the plants segment dominated the global marketplace and holds the largest market share. Plant-based extraction aids in promoting sustainable practices and is a safer alternative. Compared to other sources, plants are widely available and recognized as a sustainable carotenoid source. These naturally extracted pigment has a strong potential to improve the nutritional profile and color of various food edibles, augmenting the growth.

Microorganisms have a high CAGR and are expected to maintain the same during the forecast period. These organisms have higher stability, yield, and are cost-effective. Also, compared to other sources, using bacteria or algae leads to rapid production.

By Application

Food & Beverages Dominated Market Owing to High Usage of Carotenoids

Based on the application, the market is distributed into food & beverages, dietary supplements, personal care & cosmetics, animal feed, and pharmaceuticals.

The food & beverages segment led the global market in 2024. These pigments are mainly used as food additives and natural colorants in beverages, dairy items, cheese, and edible fats. Moreover, these ingredients can be used for fortification to address Vitamin A deficiency. Thus, the factors mentioned above facilitate the market's potential.

Animal feed emerged as the fastest-growing segment during the forecast period. Adding such ingredients to animal feed assists in fulfiling their daily nutrient intake and improving the quality of their products (eggs and meat).

Natural Carotenoids Market Regional Outlook

Based on region, the market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Europe

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Europe dominated the global market and held the largest market share. Europeans are increasingly looking for natural substitutes for artificial additives in pharmaceuticals, cosmetics, and food & beverages. This trend of clean-label items escalates the usage of carotenoids. Innovations in production and extraction technologies further support the market's growth. Using advanced technology enhances the efficiency of the production of such ingredients. Moreover, favorable government policies and frameworks promote the use of natural components in various applications. Following this, the expanding animal feed sector further stimulates the market's potential. As a result, improved awareness of natural pigments propels the regional growth.

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North America

North America secured the second position in the global industry. The growth is backed by rising awareness of health advantages and the trend of functional food ingredients. Predominantly, in North America, most consumers rely on packaged and convenient food items. To stay healthy, a few individuals gravitate toward ready-to-eat products comprising functional ingredients such as lutein, astaxanthin, and others. Moreover, the increasing emphasis on organic and sustainable sourcing of ingredients fuels the usage of natural pigments. Also, over time, Americans are switching toward plant-centric diets to curb the risk of chronic ailments. Thus, such instances drive the growth of the industry.

The U.S. is the leading country in the region, followed by Canada and Mexico. The rising consumer demand for clean-label ingredients and the growing use of natural components in the cosmetics sector propel market growth in the U.S.  

Asia Pacific

Asia Pacific ranked third in the market and is anticipated to maintain the same growth trajectory in the coming years. Likewise, other developed regions, Asia Pacific, also witness a health & wellness trend where Asians mostly focus on the ingredients used in the end product. The Asian region is highly burdened with numerous health challenges, increasing the necessity of safer solutions. This situation triggers the adoption of natural ingredients in food & beverages. Moreover, the thriving organic personal care industry in Asian countries such as China, India, and others adds to the market's growing momentum.

South America

South America is at its nascent stage and is predicted to grow faster over the forecast period. The growing presence of established regional players and increasing demand for healthy products attract growth opportunities.

Middle East & Africa

The Middle East & Africa region is in its developing stage and is expected to maintain the same pace in the upcoming years. The increasing prevalence of malnutrition and growing awareness of health consciousness collectively enhance the market's growth.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Major Players Are Aiming at Expanding Their Base to Facilitate Market Growth

Dominating players in the market include Cyanotech Corporation, Fuji Chemicals & Co., Ltd., and Valensa Corporation, among others. All the enterprises operating in the market are introducing new natural ingredients for the food & beverage and animal feed sectors. Moreover, top producers of natural carotenoids are entering into partnerships to improve their product portfolio.   

List of Key Natural Carotenoid Companies Profiled

• Fuji Chemical Industries Co., Ltd. (Japan)
• BASF SE (Germany)
• Valensa International (U.S.)
• Cyanotech Corporation (U.S.)
• Allied Biotech Corporation (Taiwan)
• Solabia-Algatech Nutrition (Israel)
• Divi's Nutraceuticals (U.S.)
• ORYZA OIL & FAT CHEMICAL CO., LTD. (Japan)
• Algalif (Iceland)
• RAHN AG (Switzerland)

KEY INDUSTRY DEVELOPMENTS

• March 2024: Kuenhle AgroSystem, a biotechnology firm in the U.S., secured USD 3 million in funding from S2G Ventures, a financial service firm in the U.S. This funding helped elevate the production of natural microalgae-derived astaxanthin powder to an industrial level.
• March 2024: AstaReal, a subsidiary of Fuji Chemical Industries Co., Ltd., a chemicals company in Japan, showcased its latest formulation, which combines two algal-derived ingredients, omega-3 fatty acids and astaxanthin. This item was displayed at Vitafoods, a nutraceutical event held in Europe.
• July 2021: AstaReal AB, a Swedish firm and a subsidiary of the Japanese chemicals company, Fuji Chemical Industries Co., Ltd., introduced natural astaxanthin for the European animal feed and pet food sectors. This ingredient was marketed under Novasta and can be mixed with soft chews, wet and dry food, and extruded snacks. 
• February 2021: Solabia-Algatech Nutrition, an Israeli company, released a new astaxanthin cold water dispersible and microencapsulated powder. This powder contains 2.5% natural astaxanthin, ideal for sports drinks and dietary supplements.
• October 2020: Cyanotech Corporation, a U.S.-based microalgae-centric products manufacturer, announced the launch of natural BioAstin Hawaiian Astaxanthin, a water-dispersible powder. This ingredient is available across the U.S. market and is safe for fruit juices, teas, and ready-to-drink beverages.  

REPORT COVERAGE

The market research report includes quantitative and qualitative insights into the market. It also offers a detailed market analysis of the market size and growth rate for all market segments. Key insights in the global natural carotenoids market report include an overview of related markets, a competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory environment in critical countries, and current global market trends.  

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Report Scope & Segmentation