The carotenoids market size is projected to reach USD 3.4 billion by 2029 from USD 2.5 billion by 2024, at a CAGR of 6.3% during the forecast period in terms of value. Demand for dietary supplements is increasing, leading to higher consumption of natural carotenoids. There is a growing need for sustainable, natural, clean label, natural carotenoids that contribute to market expansion. Changing dietary preferences and the awareness of health and wellness further propel market growth. Overall, these trends highlight the growing significance and adoption of carotenoids.
Carotenoids Market Trends
Here are some of the carotenoids market trends-
- Growing Demand in Food and Beverage Industry: Carotenoids are widely used as natural colorants and nutritional additives in various food and beverage products. The increasing consumer preference for natural ingredients has been driving the demand for carotenoids in this sector.
- Health and Wellness Trends: Carotenoids such as beta-carotene, lycopene, and astaxanthin are renowned for their antioxidant properties and health benefits. With the rising awareness of the importance of nutrition in maintaining health and preventing diseases, the demand for carotenoid-rich supplements and functional foods has been on the rise.
- Expansion in Cosmetics Industry: Carotenoids are also utilized in the cosmetics industry for their skin-enhancing properties. They are incorporated into skincare and beauty products due to their antioxidant and anti-inflammatory characteristics. The trend towards natural and organic cosmetics has further boosted the demand for carotenoids in this sector.
- Technological Advancements in Production: Continuous advancements in biotechnology and extraction techniques have enabled more efficient and sustainable production of carotenoids. This has contributed to an increase in the availability of carotenoid-rich ingredients for various applications.
- Focus on Sustainability and Clean Labeling: Consumers are increasingly concerned about the environmental impact of the products they consume. As a result, there is a growing demand for sustainably sourced carotenoids and products with clean labelling, indicating natural and environmentally friendly ingredients and processes.
- Rising Demand in Emerging Markets: Emerging economies, particularly in Asia-Pacific and Latin America, are witnessing a surge in demand for carotenoids due to changing dietary habits, increasing disposable income, and growing awareness of health and wellness. This presents significant opportunities for market expansion in these regions.
- Research and Development: Ongoing research into the health benefits and potential applications of carotenoids continues to drive innovation in the industry. This includes exploring novel sources of carotenoids, developing new formulations, and discovering additional health-promoting properties, which could further fuel market growth.
Carotenoids Market Driver: Increased use of natural carotenoids as food and beverage colorant.
The shift towards natural and clean label ingredients in the food industry has spurred increased utilization of natural carotenoids as food colorants. Carotenoids, found in fruits, vegetables, and algae, serve as appealing substitutes to synthetic colors due to their perceived health benefits and clean label appeal. Consumers seek products with recognizable, natural ingredients like beta-carotene, lycopene, and astaxanthin, which not only provide vibrant colors but also offer antioxidant properties. With a growing demand for natural ingredients and a preference for brightly colored foods, food manufacturers must prioritize understanding these trends to effectively meet consumer expectations and influence purchasing decisions. Consequently, incorporating natural carotenoid extracts across dairy, bakery, confectionery, beverages, and snacks enables versatile color applications in response to evolve consumer preferences.
In by application segment, food & beverage segment is expected to grow at highest CAGR during the forecast period.
The food and beverage segment in the carotenoid market is witnessing the highest growth rate due to several key drivers. Firstly, increasing consumer demand for natural and healthy food additives drives the incorporation of carotenoids as natural colorants and functional ingredients. Secondly, growing awareness of the health benefits associated with carotenoids, such as antioxidant properties and potential disease prevention, fuels their utilization in a wide range of food and beverage products. Additionally, the rise in innovative product development and the introduction of clean-label products further stimulate market growth in this segment, catering to evolving consumer preferences for natural and nutritious food options.
The key players in the market include BASF SE (Germany), DSM (Netherlands), Cyanotech Corporation (US), Givaudan (Switzerland), ADM (US), NHU (China), Divi's Laboratories Limited (India), Allied Biotech Corporation (Taiwan), Lycored (US), Kemin Industries, Inc. (US), Fuji Chemical Industries Co., Ltd. (Japan), EW Nutrition (Germany), Döhler GmbH (Germany), ExcelVite (Malaysia) and Farbest Brands (US). These market participants are emphasizing the expansion of their footprint via agreements and partnerships. They maintain a robust presence in North America, Asia Pacific, South America, RoW, and Europe, and they are supported by manufacturing facilities and well-established distribution networks spanning these regions.
