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 Drivers: 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 evolving consumer preferences.
Carotenoids Market Opportunities: Increased opportunity for expansion into high-growth potential markets, including developing countries in the Asia Pacific and South America regions
Currently, Europe is poised to lead the carotenoids market, yet the Asia Pacific region anticipates sustained demand growth due to expanding markets for dietary supplements and food and beverages. Increasing awareness of carotenoids’ benefits is expected to fuel demand in Asia Pacific and South America. Additionally, the burgeoning animal feed segment in Asia Pacific is projected to drive market expansion. According to the 2024 Alltech report, Latin America has demonstrated consistent growth over the past decade, driven by robust monogastric exports and expanding aqua and pet markets. With China, India, and Japan among the top feed-producing countries, the region’s accelerating use of carotenoids in animal feed is forecasted to propel overall market growth.
In the 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.
Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=158421566
The Asia Pacific region is expected to grow at the highest CAGR in the Carotenoids Market during the forecast period.
The carotenoid market in the Asia-Pacific region is experiencing the highest growth rate due to several key factors. Firstly, rising consumer awareness of health and wellness, coupled with changing dietary preferences towards natural and functional ingredients, drives the demand for carotenoids in food, beverages, and dietary supplements. Secondly, rapid urbanization and increasing disposable incomes in emerging economies fuel the expansion of the food and beverage industry, creating opportunities for carotenoid manufacturers. Additionally, the growing prevalence of chronic diseases and aging populations amplify the demand for carotenoids, known for their antioxidant properties and health benefits, further propelling market growth in the region.
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.
