Natural Carotenoids Market by Type (Astaxanthin, Beta-carotene, Lutein, Canthaxanthin), Form (Beadlets, Powder, Liquid, Gel), Source (Plant, Microorganisms, Algae), Application (Feed, Food & Beverage, Cosmetics, Pharmaceuticals) - Global Forecast to 2028

This report is executed in collaboration with the European Algae Biomass Association (EABA). Combining Meticulous Research®’ market intelligence services with EABA’s broad expertise in the development of research, technology and industrial capacities in the field of algae, the two organizations have leveraged their research capabilities to come up with the most reliable and accurate market assessments in this field.

The Natural Carotenoids Market is projected to reach $1.9 billion by 2028, at a CAGR of 7.4% during the forecast period 2021–2028. The growth of this market can be attributed to several factors, including the rising demand for natural food colors, increasing awareness regarding clean-label products, rising incidence of eye diseases and cancer, and growing demand for natural skincare products. Moreover, the increasing use of natural carotenoids in aquaculture and emerging economies in Asia-Pacific, Latin America, and the Middle East & Africa provide significant growth opportunities for market players in the coming years.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key strategies adopted by the leading market participants in the natural carotenoids market over the last four years (2018–2021). The key players profiled in the natural carotenoids market are Koninklijke DSM N.V. (Netherlands), Sensient Technologies Corporation (U.S.), Archer Daniels Midland Company (U.S.), Allied Biotech Corporation (Taiwan), FMC Corporation (U.S.), Chenguang Biotechnology Group Co., Ltd. (China), Kemin Industries, Inc. (U.S.), BASF SE (Germany), Döhler GmbH (Germany), Cyanotech Corporation (U.S.), Fuji Chemical Industries Co., Ltd. (Japan), DDW, Inc. (U.S.), Carotec, INC. (U.S.), ExcelVite Sdn. Bhd. (Malaysia), Guangzhou Wisdom Bio-Technology Co., Ltd. (China), Novus International, Inc. (U.S.), Lycored, Ltd. (Israel), Farbest Brands (U.S.), Algatechnologies Ltd. (Israel), Divi's Laboratories Limited (India), and Dynadis SARL (France).

Rising Incidence of Eye Diseases and Cancer to Enhance Natural Carotenoid Consumption

The high prevalence of cancer has created a significant social and economic health burden. According to the International Agency for Research on Cancer (IARC), the global cancer burden rose to 19.3 million cases and 10 million cancer-related deaths in 2020. One in five people develop cancer during their lifetime, and 1 in 8 men and 1 in 11 women die from the disease. In addition, more than 50 million people are living within five years of a past cancer diagnosis. Aging populations and socio-economic risk factors have largely driven this increase. Also, according to the World Health Organization (WHO), in 2019, 2.2 billion people lived with vision impairment, wherein 217 million people suffered from moderate to severe vision impairment, and 36 million were blind.

Moreover, natural carotenoids have been studied for their anti-carcinogenic properties. The consumption of beta-carotene-rich green and yellow vegetables and the possible prevention of lung cancer has been studied extensively. Other carotenoids, such as lycopene and canthaxanthin, are also being studied to prevent prostate cancer, lung cancer, and colon cancer. Xanthophyll (oxygen-containing) carotenoids such as lutein, astaxanthin, and zeaxanthin are being studied to prevent age-related eye diseases. Thus, the increasing use of natural carotenoids to prevent chronic and eye diseases is expected to boost the growth of the natural carotenoids market.

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Key Findings in the Natural Carotenoids Market Study:

In 2021, the Astaxanthin Segment to Dominate the Natural Carotenoids Market by Type

Based on type, the astaxanthin segment is expected to account for the largest share of the natural carotenoids market in 2021. The large share of this segment is mainly attributed to the high demand for nutraceuticals due to their antioxidant properties, rising demand for astaxanthin for the treatment of cancer, increased demand in the aquaculture & animal feed industry, the growing number of health-conscious individuals, and rising adoption of novel technologies to increase the production of astaxanthin.

However, the lutein segment is slated to register the highest CAGR of 7.8% during the forecast period. The growth of this segment is driven by its strong antioxidant properties and rising demand for lutein as a natural colorant in food & beverage applications. Lutein also helps maintain elasticity and moisture levels in the skin. The increased demand for lutein can be attributed to the rising prevalence of health issues due to improper nutrition and unhealthy lifestyles. An increasing number of people are developing conditions such as diabetes, stroke, cardiovascular disease, and obesity, which is a key factor driving the demand for lutein-containing dietary supplements during the forecast period.

In 2021, the Beadlets Segment to Dominate the Natural Carotenoids Market by Form

Based on form, the beadlets segment is expected to account for the largest share of the natural carotenoids market in 2021. Beadlet carotenoids are free-flowing spherical particles developed from spray drying technology. Beadlet carotenoids offer good flow properties for easy handling, good particle size distribution, and high strength during tableting with resistance to pressures up to 10 tonnes/cm². The large share of this segment is mainly attributed to its benefits, such as increased stability, cold water dispersion, high purity, and enhanced shelf life.

The Algae-sourced Natural Carotenoids Segment to Witness Highest Demand in the Natural Carotenoids Market by Source

Based on source, the plant-sourced natural carotenoids segment is expected to account for the largest share of the natural carotenoids market in 2021. However, the algae-sourced natural carotenoids segment is slated to register the highest CAGR of 7.6% during the forecast period. The growth of this segment is driven by its fast and active growth, unique antioxidant and coloring properties, short life cycle, active isoprenoid metabolism precursors for the carotenogenic pathway, and adequate storage capacity, make these ideal cell factories for the production of high-value carotenoids.

The Dietary Supplements Segment to Witness Highest Demand in the Natural Carotenoids Market by Application

Based on application, the feed segment is expected to account for the largest share of the natural carotenoids market in 2021. The large share of this segment is mainly attributed to the rising growth of the aquaculture industry and increased consumption of seafood. These also help increase immunity and improve the health of livestock by enhancing the quality of nutrition, thus making the feed segment the largest in the natural carotenoids market based on application.

However, the dietary supplements segment is slated to register the highest CAGR of 7.7% during the forecast period. The growth of this segment is driven by the rising prevalence of chronic diseases and the shift in consumer preferences towards natural carotenoids due to rising health awareness.

Asia-Pacific: Fastest-growing Regional Market

Based on geography, in 2021, Europe is expected to account for the largest share of the natural carotenoids market, followed by North America, Asia-Pacific, Latin America, and the Middle East & Africa. The large share of this region is primarily attributed to the growing food & beverage industry, rising health and wellness trends, rising meat consumption, and rising feed production. Furthermore, the increase in the aging population in the region has led to a surge in demand for lutein, lycopene, and beta-carotene to treat cataracts and reduce the risk of diabetes, cancer, and other heart-related issues.

However, the Asia-Pacific region is expected to witness rapid growth during the forecast period. The growth of this region is mainly driven by the increasing consumer preference for natural ingredients, rising consumer awareness regarding the negative effects of synthetic carotenoids coupled with the growth in spending abilities of the consumers, strong growth in the food & beverage industry, and increased animal feed demand.

In Asia-Pacific, China is expected to account for the largest share of the natural carotenoids market in 2021. The market growth is due to its large population base and industrialization, increasing expenditure on food, growing feed production, and increasing burden of chronic diseases.

China

China is a major country contributing to the growth of the animal feed industry in Asia and globally. The Chinese animal feed market is growing at a significant rate due to the changing consumption pattern, increasing awareness level amongst feed customers, industrialization of the livestock sector, incidences of counterfeit meat and other products, and the ban on antibiotics as growth promoters. Also, according to the Ministry of Agriculture of China, China planned to increase its animal feed output to 220 million tons in 2020. This significant increase in demand for livestock products requires an increasing amount of feed supplies, sources, and alternatives in China, thereby increasing the demand for natural carotenoids from Chinese animal feed manufacturers.

Also, according to China’s Feed Industry Association, in July 2020, the country’s swine feed production increased 10.3% month over month and 36.8% year over year. Sow feed production witnessed a 77.8% increase year over year. Thus, the growing feed production in China is expected to boost the demand for natural carotenoids in China in the next few years.

China has a massive food processing industry. The demand for food products is mainly associated with the growing population, rising urbanization, and increasing expenditure on food. In China, consumer preference towards functional, processed, and packaged food; meals away from home; and safer food is increasing due to the availability of a variety of food choices. Factors such as rising income, changing lifestyles, changes in tastes and preferences, and better organizations of food production and marketing have led to changes in diets in the country in terms of quantity, quality, and composition.

Additionally, factors such as expanding domestic consumption, rising standard of living, changing eating habits and preferences, and demographic changes accelerate the demand for food ingredients, such as natural carotenoids, to make the products more appetizing, appealing, and informative, enabling consumers to identify products on sight.

Competitive Landscape

Major companies in the natural carotenoids market have implemented various strategies over the years to expand their product offerings & regional footprints and augment their market shares. The key strategies followed by the leading companies in this market were new product launches, acquisitions, and expansions.

New product launches were the most preferred key growth strategies adopted by leading players in this market and accounted for a share of 50.0% of the total strategies adopted by companies in the natural carotenoids market during the period 2018–2021. BASF SE (Germany) and Cyanotech Corporation (U.S.) were the leading companies that adopted this strategy. Acquisitions and expansions were the second-most preferred growth strategies adopted by the leading companies operating in the natural carotenoids market, each accounting for a 25.0% share of all strategic developments between 2018–2021. Sensient Technologies Corporation (U.S.) and Kemin Industries, Inc. (U.S.) were the major companies that adopted these strategies.

Report Summary: