The global carotenoids pigment market is estimated to be worth USD 600 million by 2024 and is projected to reach a value of USD 1,024.8 million by 2034, reflecting a CAGR of 5.5% over the assessment period 2024 to 2034.
The manufacturing companies are going a notch higher as they relabel, upgrade and increase capacity to cover the increasing demand globally. It also leads to lower cost of production thanks to economies of scale and at the same time meets customer needs as they grow.
In order to improve their market relevance, new product portfolios are in the process of gaining more mentions through appealing to consumers’ demand for clean label and organic features. Such acquisitions and affiliations are also emerging as more important tactical alliances; this contributed to enlargement of the distribution networks over the geographical coverage.
Health consciousness among consumers has spread over the recent past and this has triggered a move towards functional food, dietary supplements and nutrient fortified products. This trend has been proved to be putting a considerably higher pressure on the demand for carotenoids which are essential in the human body as antioxidants and for the health of the eyes, heart and the immune system.
Further, use in pharmaceuticals, animal feed, and cosmetics industries is further expanding the industrial uses of these plants. In response, several manufacturers are expanding their product line to accommodate for strongly-tailored solutions that can fit a given industry.
| Attributes | Description |
|---|---|
| Estimated Global Industry Size (2024E) | USD 600 million |
| Projected Global Industry Value (2034F) | USD 1,024.8 million |
| Value-based CAGR (2024 to 2034) | 5.5% |
However, through advancement in technology in the extraction methods, better quality products and high production has enhanced profitability. Legal requirements for operational sustainability and meeting high standards of regulations are also leading firms to go environmentally friendly by adopting plant-derived materials. There is steady development in the innovation of these products and a growing cognizance among consumers of the various health benefits apparently linked to these pigments in the near future.
The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global Carotenoids Pigment market. This analysis reveals crucial shifts in market performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 2023 | 5.0% (2023 to 2033) |
| H2 2023 | 5.3% (2023 to 2033) |
| H1 2024 | 5.2% (2024 to 2034) |
| H2 2024 | 5.7% (2024 to 2034) |
The global industry's predicted compound annual growth rate (CAGR) over a semi-annual period from 2024 to 2034 is shown in the above table. The business is anticipated to grow at a CAGR of 5% in the first half (H1) of 2023 and then slightly faster at 5.3% in the second half (H2) of the same year.
The CAGR is anticipated to stay mild to 5.2% in the first half of 2024 and continue to grow at 5.7% in the second half. The industry saw a decline of 35 basis points in the first half (H1 2024) and an increase of 46 basis points in the second half (H2 2024).
Nutritional and Functional Benefits Drive Demand in Functional Foods
The interest in functional foods and health-promoting ingredients has put carotenoids in the spotlight and among the most promising products. The demand for beta-carotene, one of the provitamin A carotenoid, is high due to its immunomodulatory and skin barrier-strengthening effects; lutein and zeaxanthin are often valued for their antioxidant activity in the macula. In addition to their versatility in providing colourful shades, carotenoids respond to the increasing customer need for multifunctional pigments that are also functional ingredients.
This has fostered development of snacks, beverages, dairy and fortified foods and manufacturers magnify carotenoid content for the new generation consumers. Carotenoids’ antioxidant properties also mean that they can fit into the modern trend toward ingredients that boost the immune system and support cells, proposing carotenoids as highly relevant to the trend of the wellness industry in general, especially for brands that focus on natural products enriched with nutrients.
Growing Popularity of Plant-Based Carotenoids Amid Clean Label Movement
Clean label products are popular especially because consumers are more concerned with transparency and natural products, and therefore; plant-based carotenoids are more sought after within this segment. These pigments isolated from carrots, tomatoes, peppers, and microalgae are better compared to the synthetic dyes used in industry and with the prevailing culture of consumers wanting products through ethical and sustainable means.
Apart from food sectors, sectors like cosmetic and dietary supplements are using plant derived carotenoids due to their non-toxicity which is suitable in the current market pounds from consumers due to their green product effects. Market forces are another cause for this change because most synthetically included ingredients are currently under regulatory pressure and/or have already been banned for use.
This trend enables the manufacturers to make colourful products without containing artificial elements and to help the brands to address the consumers who are conscious with the environment and their health as well as the consumer who looks for authenticity in ingredients.
Expansion of Carotenoids in Animal Feed for Enhanced Productivity
In animal feed these carotenoids have emerged as important feed supplements, as they improve not only nutritional value but also palatability of animal products. Pigments such as astaxanthin and canthaxanthin used to colour farmed fish and poultry affect the consumer in such a way that the quality of a salmon or eggs are determined by the colour thus has a natural feeling. Also, the antioxidant property of carotenoids triggers enhanced animal health by; reducing oxidative stress, enhancing immunity and may lead to enhanced growth and production rates.
More significantly, as the animal agriculture industry is increasingly pushed to become more sustainable and transparent by conscious consumerism, naturally occurring carotenoids can help food manufacturers and suppliers cut on synthetic additive usage and get better products they need to meet changing customer expectations in terms of animal husbandry.
Focus on Eye Health Supplements Boosts Demand for Lutein and Zeaxanthin
Recently, measures concerning the well-being of eyes are more and more often considered as essential in the sphere of healthy lifestyle and consumption, concerning the tendency of the extension of time spent in front of screens and the growth of the concern with AMD and other types of loss of vision. Some carotenoid ingredients such as lutein and zeaxanthin, known to accumulate at high concentrations in the retina, have been associated with lower risks of AMD and cataracts hence their being marketed in supplements and functional foods.
This increase in demand is captured across each of these forms including capsules, beverages and fortified foods all branded for its ability to improve vision and reduce strain from effects of blue light. Today chemical corporations are developing products specifically designed for young working people, gamers and aging citizens, presenting these carotenoids as organic or worthy of inhibitive values.
This trend is an indication of growing consumer awareness regarding their eyes and the eyes looking for the natural ingredients that help in supporting visual health Thus applying carotenoids in a more expanded range of products other than supplements.
Technological Advancements in Carotenoid Extraction and Formulation
The carotenoid manufacturers are now aiming at adopting high technology to facilitate the extraction process in order to maximize output while minimizing impurities. Supercritical CO₂ extraction has become particularly useful in the extraction of carotenoids from natural sources because such a method is more environmentally friendly and less likely to involve the use of chemicals than other conventional solvent methods.
This method not only makes the final product to be of high quality and safe but also suits the clients who are environmental conscious. Furthermore, new entrants in the encapsulation methods are enabling carotenoids to be stable and potent during storage and usage, unlike in the past, when they got easily degraded by heat and light sources.
For instance, microencapsulation allows carotenoids to remain bioactive and brightly pigmented to increase their utility in the food, the beverage, and cosmetic industries. As these technologies develop they allow cheap production of carotenoids that is environmentally friendly meeting consumer demands for clean label natural products with high shelf stability and performance.
Growing Applications in Skincare and Cosmetics for Natural Beauty Solutions
Carotenoids, especially beta carotene and astaxanthin as they are known to have skin improving qualities are gaining popularity in the beauty shop market. Carotenoids that have antioxidant effects and are associated with decreased signs of aging, have recently become one of the most advertised ingredients in anti-aging and sun protection creams.
For example, Beta carotene is transformed to vitamin A, which has an effect of repairing the skin cells, skin firming. In the meantime, benefits of using astaxanthin are attributed to its extraordinary antioxidant properties that helps to diminish such skin features as wrinkles or improve such skin features as capability of moisture retention, as well as protect skin from radiation of UV.
These carotenoids not only go into topical cosmetic preparations but are also marketed in ‘beauty from within’ acoustical that are in high demand nowadays by people whose focus is on improving skin health from within a holistic point of view. With the constantly increasing demand for clean, natural, and organic skincare products, carotenoids provide a dual-purpose ingredient for target customers seeking scientifically proven botanical substances for beautification.
Global Carotenoids Pigment sales increased at a CAGR of 5.2% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that the value will rise at 5.5% CAGR.
With a revelation of the potential applications, the market is expected to gain an absolute dollar opportunity of 424.8 million USD during the forecast period of 2024 to 2034. During the pandemic, the usage of Carotenoids Pigment incorporated with vitamins in fruit based beverages has significantly boosted sales, which helps manufacturers to expand their portfolio as well as production volume.
From 2019 to 2023, several factors influenced the industry. Rising health consciousness and demand for fortified foods and beverages significantly drove growth. The increasing prevalence of lifestyle diseases spurred interest in natural ingredients. Technological advancements in food processing enhanced the stability and efficacy of thickening and binding agents, expanding their applications.
Regulatory support for nutrient fortification in developing regions also played a crucial role. Additionally, the COVID-19 pandemic heightened consumer focus on immunity and overall health, boosting the demand for fortified products. Together, these trends fuelled industry expansion and innovation in customized nutritional solutions.
The industry is characterized by a two-tier structure, which includes both organized and unorganized players. Leading companies include Chr Hansen A/S, Aarkay Food Products, FMC Corporation, BASF SE, Dohler Group, Lycored, Kemin Industries Inc, Cyanotech Corporation, Divis Laboratories, Allied Biotech Corporation, D. Williamson & Co. Inc., Kalsec Inc., BASF SE, Akay Group, Sensient Technology Corporation, WILD Flavors, AVT Natural Products, NATUREX Group and other players dominate the organized segment that accounts for 42% of sales in the industry.
Multinational corporations (MNCs) that have target segment revenue greater than 5 million USD belong to these groupings and they maintain their arena presence in this way because they have large volumes of production capacities, high-tech infrastructure, and various products.
These well-regulated players have strict distribution networks and can be found in every corner of the world thereby; resulting in huge penetration globally. Their modernized research labs on the other hand enhance innovations enabling them to introduce a range of Aqua Feed Additives about changing trends.
On the contrary, local participants with target segment revenue below 5 million USD from the unorganized part contribute up to 58% of total sales within this category. These smaller companies may lack global coverage but are vital for specific areas. Working in a niche community allows them to offer particular goods fitted for diverse domestic preferences. In many cases, these entities adjust quickly according to fads in tastes which results in a unique product mix.
This makes sure that there is dynamism as well as competitiveness within the industry due to the existence of both big and small firms. This variety brings on board multiple developments along with a wide range of options being made available satisfying different customers across all regions worldwide. This means that the industry has good prospects given its innovative nature coupled with the growing trend towards healthier alternatives.
The following table shows the estimated growth rates of the top three countries. USA, China and Japan are set to exhibit high consumption, and CAGRs of 4.2%, 5.7% and 3.8% respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| USA | 4.2% |
| China | 5.7% |
| Japan | 3.8% |
In the United States, there has been increased pressure from buyers for natural colorants especially carotenoids in processed foods due to clean label ingredients. As such, manufacturers are eliminated artificial colours including those used for synthetically producing colours like red from C- bey. These carotenoids provide natural colour to products thus meeting the consumer demand for more natural and healthy products.
By seeking to lessen regulatory risks while emphasizing transparency of material sourcing, associated guidelines encourage manufacturers to use naturally derived carotenoids. As sectional brands compete to promote their products as free from synthetic additives, carotenoids are gradually gaining acceptance as natural colorants for products labelled in this major market as ‘clean label’.
Evidently, China leading in aquaculture in the world incessantly uses carotenoids like astaxanthin and canthaxanthin for making a better appearance of the farmed fish and seafood. While the fish colours improve the aesthetic pinkish-red hue in fish muscle, especially in salmon consumers would prefer, they also act as a source of antioxidants which are essential in the chain process of enhancing fish health and growth rates.
With a steady increase of demand for quality an enriched seafood in China, carotenoid additives assume importance. This trend corresponds to Chinese consumers’ shift toward the demand of nutritious and appealing value-added foods and governmental policies demanding better aquaculture processes, where carotenoids are crucial for domestic seafood.
In Japan, due to the aging population the demand for eye health supplements with carotenoids such as lutein and zeaxanthin has grown rapidly. These carotenoids are of specific interest to the Japanese consumer, who is increasing health conscious and seeking preventative treatments for degenerative eye diseases like macular degeneration.
A number of manufactured products contain lutein and zeaxanthin for their viability in preventing vision damage due to blue light including supplements, cloudy apple juice and energy drinks. Japanese brands’ stress on such benefits in their products make these a selling point and this accompany scientific support to woo the consumers. This pre-emptive trend in the consumption of eye related products is defining the market for carotenoids in Japan as an area of considerable application growth for carotenoids in eye healthy products.
| Segment | Beta carotene (Product Type) |
|---|---|
| Value Share (2024) | 32.8% |
Beta-carotene is considered as the most versatile pigment having multiple applicability anywhere, and it is the most used on industries today. It eases conversion into Vitamin A and therefore, is used in dietary supplement and pharmaceutical industries because of its benefits in vision, immunity as well as the skin.
As it involved in the food and beverage industry, besides using for colouring purpose, it could also be used as a functional material that incorporated with nutritional values to the products. It’s bright orange red shade is widely used in snacks, dairy products and energy drink for making the products more attractive to the consumers. Also, beta-carotene is resistant to different processing factors; therefore, it is a perfect choice for manufacturers in search of long-shelf-life products.
Apart from the food applications the ingredient finds a very important use in cosmetics particularly those used in anti-aging creams and serums because of the antioxidant value. Its versatility coupled with health benefits make this pigment the most extraordinary or the most dominant and valuable segment within the industry.
| Segment | Beverages (Application) |
|---|---|
| Value Share (2024) | 28.6% |
Drinks are perfect for these pigments because they can entail addition of natural compounds such as colours and foods that enhance their nutritious value without effecting their taste. Demand for fortified drinks which include functional juices and wellness beverages, is forcing manufacturers to incorporate these ingredients in their products. This last characteristic brings brands to meet the clean-label tendencies arising from the attention of the clients for natural and vivid colours.
Additionally, carotenoids have antioxidant features which are well suited to the wellness theme and, since the appearance is crucial in the beverages’ market, they remain a popular choice among producers who want to offer functional and aesthetically inviting products.
Key companies hold a significant share of the industry value of unique and potential nutritional products by bringing innovation in their product developments. These players are providing solutions to end user industries, who are actively looking for the potential ingredients to fortify their products. Companies are coming up with new and innovative flavourful formulas like strawberry, infused with organic blended products to enhance the taste and colour of products along with the nutritive values to increase the consumer base.
Astaxanthin and Beta-carotene are the key pigment solutions provided by the manufacturers to fulfil the technological needs of the products. These products are used not only to improve colour and texture of the products but also to give an enjoyable mouth-filling experience to consumers who are actively seeking new product formulations to increase their alimentary intake.
Leading Manufacturers
Key pigments like Astaxanthin, Beta-carotene, Lutein, Lycopene, Canthaxanthin, Zeaxanthin, and Other types (capsanthin, annatto, alpha-carotene, apocarotenal, etc.) are included in the report.
Several applications like Bakery & Confectionery Products, Beverages, Fruit Preparations/ Fillings, Dairy Food Products, Potatoes, Pasta, and Rice, Soups, Sauces, and Dressings, Meat, Poultry, Fish, and Eggs, Seasonings and Others are considered after exhaustive research.
Industry analysis has been carried out in key countries of North America, Latin America, Europe, Middle East and Africa, East Asia, South Asia, and Oceania
Throughout the forecast period, the market is expected to grow at a CAGR of 5.5%.
By 2034, the sales value is expected to be worth USD 1,024.8 billion.
Interest in functional foods and health-promoting ingredients are expected to boost sales.
Asia-Pacific is expected to dominate the global consumption.
Some of the key players in manufacturing include Chr Hansen A/S, Aarkay Food Products, FMC Corporation, BASF SE, Dohler Group, Lycored, Kemin Industries Inc, Cyanotech Corporation, Divis Laboratories, Allied Biotech Corporation, D. Williamson & Co. Inc., Kalsec Inc., BASF SE, Akay Group, Sensient Technology Corporation, WILD Flavors, AVT Natural Products, NATUREX Group and other players.
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Carotenoids Pigment Market
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