Global Carotenoids Market By Product (Astaxanthin, Beta-carotene, Lutein, Lycopene, Canthaxanthin, Zeaxanthin, and Other Product Types), By Source (Synthetic and Natural), By Application (Feed, Food & Beverages, Dietary Supplements, Cosmetics, and Pharmaceuticals), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The global carotenoids market size was valued at USD 1,875 Mn in 2022 and is anticipated to reach USD 3,402 Mn by 2032 at a CAGR of 6.3% during the forecast period.

Carotenoids are orange, yellow, and red organic pigments that are produced by algae and plants, as well as by several bacteria and fungi. Pumpkins, carrots, tomatoes, corn, salmon, flamingos, and other different types of plants and animals derive their characteristic colors from carotenoids. The antioxidant properties of these items shield the body from cellular harm, chronic illnesses, and the signs of aging.

All carotenoids are derivatives of tetraterpenes, which means that they are produced from eight isoprene molecules and contain forty carbon atoms. Carotenoids obtained from the consumption of food are stored in the fatty tissues of animals. In the case of humans, carotenoids are absorbed when consumed with various fats in a meal.

Key Takeaways

• Market Projection: The Carotenoids Market is anticipated to experience a compound annual growth rate of 6.3% between 2022 2032; the projected value in 2032 is estimated at USD 3,402 Million from current levels of USD 1,875 Million
• What Are Carotenoids: Carotenoids are organic pigments with orange, yellow, and red colors that give various plants and animals their characteristic hues – often pumpkins, carrots, tomatoes, and even flamingos are great sources. Carotenoids contain powerful antioxidants that protect our bodies against cell damage caused by chronic diseases or simply as part of natural aging processes.
• Benefits and Awareness: Carotenoids play an essential role in eye, cardiovascular, and cancer prevention. Their immune-enhancing qualities protect healthy cells in the eye while strengthening immunity; increasing awareness about these health benefits will likely drive up demand for carotenoids.
• Natural Colorants: Natural carotenoid-derived colorants have become popular food additives due to their absence of side effects, being found in animals, plants, fruits minerals, and insects sourced as food coloring sources. Their biodegradability has greatly reduced environmental impact leading to an upsurge in worldwide demand.
• Rising Health Concerns: Soaring immune and digestive system health worries have driven an upswing in demand for carotenoid pigments used by both food & beverage and pharmaceutical industries to address various health concerns.
• Price Disparity and Health Risks: Price disparity between natural tetraterpenoids and synthetic carotenoids may impede market expansion in lower-income economies, while unchecked carotene consumption poses health risks that pose additional obstacles to expansion in developed markets.
• Astaxanthin Dominance: Of all carotenoids, astaxanthin accounts for the highest revenue share due to its potential benefits in improving heart health, immunity, and overall well-being.
• Source Analysis: Synthetic sources of carotenoids tend to dominate the market due to their ease of extraction and lower costs; however, as consumer tastes shift towards natural ingredients and natural sources grow increasingly popular among them, consumer interest in natural sources has seen significant gains.
• Application Segments: Feed is one of the highest revenue-generating industries due to rising demands for compound feed products, expanding aquaculture efforts and rising seafood consumption rates. Carotenoids play a pivotal role in improving animal health and immunity.
• Regional Dominance: Europe dominates the carotenoids market with a 40% market share globally. Major cosmetic manufacturers including Henkel, Unilever and L’Oreal contribute significantly to Europe’s success as carotenoids grow their global markets.
• Global Market Players: Key market players in the carotenoids market include BASF SE, Koninklijke DSM NV, Sensient Technologies Corporation, Divi’s Laboratories Ltd., Chenguang Biotech Group Co Ltd, Kemin Industries Inc, Lycored Corp. Fuji Chemical Industries Co Ltd, and other prominent firms.

Driving Factors

Increasing Health Awareness Boosting Carotenoid Markets

Increasing awareness concerning eye health, cardiovascular diseases, and cancer is expected to boost the revenue growth of the global carotenoids market. Carotenoids are beneficial antioxidants that make an immune system strong. The consumption of foods that are rich in carotenoids helps protect healthy cells in the eye and prevents the development of cancerous cells.

Due to these reasons, a greater number of awareness programs are being initiated by various governments and NGOs across both developed and developing nations. This factor is slated to augment future market growth prospects for carotenoids as they can be converted to vitamin A.

Natural colorants or dyes are safe to use as food additives because they are free of dangerous side effects and come mostly from animals, plants, fruits, minerals, and insects. Natural colorants are also being used for therapeutic purposes more and more because they are less harmful and have fewer side effects than artificial colorants.

Additionally, natural colorants are supported by a number of nations’ governments due to their biodegradability and non-polluting disposal. In addition, several regulations encouraging the use of natural colorants have been passed in several regions, which is expected to increase global demand for natural colorants.

Increasing Health Concerns are Also Driving Growth

There has been a significant increase in demand for carotenoid pigments in a variety of regions as a result of the increased health concerns, which are primarily related to the immune system and digestive systems.

Carotenoids are in high demand in the food and beverage and pharmaceutical industries, despite their demonstrated benefits for treating various health issues.

Restraining Factors

Price Disparity Between Natural Tetraterpenoids and Synthetic Carotenoids

It is anticipated that the substantial price disparity between natural tetraterpenoids and synthetic carotenoids will serve as a significant impediment to the expansion of the market, particularly in low-income or developing economies.

In addition, health risks are associated with the excessive and unregulated utilization of carotene in developed markets. In the global market, this is anticipated to be one of the major obstacles.

By Type Analysis

Astaxanthin Accounts for the Highest Revenue Share

The product type segment includes astaxanthin, beta-carotene, lutein, lycopene, canthaxanthin, zeaxanthin, and other product types. Astaxanthin accounts for the highest revenue share among the product type segments.

The primary reasons for their widespread use are the pigments mentioned above’s potential to improve heart health and immunity, prevent diabetes, and produce various significant health benefits.

By Source Analysis

Synthetic Sources Dominating Due to Their Simplicity of Extraction and Low Price

Based on source, the market is divided into synthetic and natural sources. The carotenoids market analysis reveals that in 2022, the majority of the market’s revenue was dominated by synthetic sources due to their ease of extraction and low price. Synthetic sources of carotenoids are broadly available and possess the majority of the market’s revenue.

However, as customers shift their preferences toward foods, cosmetics, and medications made with natural ingredients, the need for colors derived from natural sources is increasing.

As consumer preferences are shifting quickly and the demand for organic products is increasing steadily, the segment is expected to rise at a sizable CAGR throughout the projection period.

Over the forecast period, natural sources are expected to have considerable volume and revenue growth. Fruits, flowers, plant leaves, fish flesh, crustacean shells, and bird feathers are examples of natural supplies. Over the projection period, market demand is anticipated to be supported by rising consumer knowledge of the advantages of natural goods and their positive effects on health.

By Application Analysis

The Feed Segment Accounts for a Significant Share

The application segment includes feed, food & beverages, dietary supplements, cosmetics, and pharmaceuticals. Among the application segments, the feed accounts for a significant share in terms of revenue.

The rising production of compound feed, the expanding aquaculture industry, rising seafood consumption, rising demand for nutritious animal feed, and rising demand for animal protein account for this segment’s substantial Carotenoids Market market share.

The feed market for carotenoids is the largest based on applications because these also boost immunity and improve livestock health through improved nutrition. Among the regional markets, the Europe market is expected to account for a significant revenue share over the forecast period.

Key Market Segments

Based on Type

• Astaxanthin
• Beta-carotene
• Lutein
• Lycopene
• Canthaxanthin
• Zeaxanthin
• Other Product Types

Based on source

• Synthetic
• Natural

Based on Application

• Feed
• Food & Beverages
• Dietary Supplements
• Cosmetics
• Pharmaceuticals

Growth Opportunity

Carotenoid Use in Human Food, Animal Feed, and Cosmetics

Demand for this product will be driven by an increase in its use in dietary supplements as a result of rising health concerns. The carotenoids lycopene, astaxanthin, beta-carotene, lutein, lycopene, astaxanthin, zeaxanthin,  canthaxanthin, and annatto are all commercially accessible forms of carotenoids.

Due to their outstanding health benefits, these items are widely used in human food, animal feed, nutritional supplements, medicines, and cosmetics, which will drive market expansion over the next nine years.

Latest Trends

Growing Demand for Natural Food Products to Favor Growth 

Carotenoids are included in the feed to offer nutrition that supports an animal’s health. They are widely used in animal nutrition products, owing to their coloring properties, and are also incorporated in feed to pigment egg yolks, fish, broiler skin, and crustaceans. These, in turn, help to increase immunity levels and to improve the health of livestock by amplifying the quality of nutrition offered. This is likely to create revenue growth opportunities for this target market.

Regional Analysis

Presence of Major Manufacturers Helping Europe to Dominate

Europe is the largest market for carotenoids, with a 40% share of the global carotenoids market, and It is further expected to expand during the forecast period. Due to the presence of major manufacturers like Henkel, Unilever, L’Oréal, and Beiersdorf, the region’s well-established cosmetics industry is expected to be a major driver of growth.

Due to the growing use of these additives in food, feed, supplement, cosmetic, and pharmaceutical applications, Asia-Pacific is anticipated to experience significant gains. The industry is anticipated to be driven by Industrial expansion, technological advancements, economic expansion, and low production costs in nations like China, Japan, and India are expected to drive the industry.

Food labeling is frequently examined for ingredient origin, manufacturing practices, and the impact of the supply chain on the environment as a whole, so consumers are now aware of their purchasing habits. Natural tetraterpenoids are gaining popularity in North American developed markets over GMOs and other synthetic alternatives due to these factors. The animal feed industry’s rapid expansion and rising demand for specialty feed are expected to drive demand for this product in South America. Additionally, the market expansion is anticipated to be aided by leading manufacturing companies’ active participation in countries like Brazil and Chile.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

With the flow of private companies from developing nations like China, India, and others, the global market remains ferally competitive. The major companies in the international market are pursuing industry consolidation through partnerships and agreements as well as acquisitions. Additionally, one of the chosen methods by the big corporations that will fuel the market’s growth is a focus on new product development.

Desire-side dynamics are quickly changing as end-use industries demand products with higher bioavailability as well as high specificity. For instance, one of the top companies in the market for food and feed ingredients is Kemin Industries, which is actively leveraging R&D as well as the introduction of natural and organic components.

Market Key Players

• BASF SE
• Koninklijke DSM NV
• Sensient Technologies Corporation (Sensient Colors LLC)
• Divi’s Laboratories Ltd. (Divi’s Nutraceuticals)
• Chenguang Biotech Group Co. Ltd.
• Kemin Industries Inc.
• Lycored Corp.
• Fuji Chemical Industries Co. Ltd.
• Cyanotech Corporation
• Allied Biotech Corporation
• Alga Technologies Ltd
• Other Key Players

Recent Developments

• November 2022– DSM announces new partnership with LBB Specialties for North American dietary supplement distribution
• April 2019- for the publication of a new Plant Carotenes Monograph, a reputed palm carotene producer, ExcelVite, allied with United States Pharmacopeia (USP).

Report Scope