On the basis of type, the carotenoids market is classified into beta-carotene, lutein, lycopene, astaxanthin, zeaxanthin, canthaxanthin, annatto, capsanthin, Beta-apo-8-carotenal-ester and Beta-Apo-8-carotenal. The market was dominated by the beta-carotene segment and this trend is projected to remain the same from 2015 to 2023.

There is high demand for carotenoids across the globe, especially for beta-carotene, lutein and astaxanthin. Large health benefits in feed and food has increased the consumption of these carotenoids and is projected to follow the same trend for the next six years. On the other hand, Beta-Apo-8-carotenal followed by lutein is projected to be the fastest-growing market owing to its increasing end-use application.

By application type, market was dominated by the animal feed segment and this trend is projected to remain the same from 2014 to 2023. Carotenoids act more than just being pretty colors and it is also used to improve animal performance. It is vital nutrient for all farmed animals. Carotenoids are only found in plants and cannot be synthesized by livestock; animals’ therefore nutrient requirement of carotenoids is fulfilled by their diet. However, in future this segment is projected to lose out some of its market share.

By application type, market was dominated by the animal feed segment and this trend is projected to remain the same from 2014 to 2023. Carotenoids act more than just being pretty colors and it is also used to improve animal performance. It is vital nutrient for all farmed animals. Carotenoids are only found in plants and cannot be synthesized by livestock; animals’ therefore nutrient requirement of carotenoids is fulfilled by their diet. However, in future this segment is projected to lose out some of its market share. Supplements segment is projected to witness the fastest growth rate followed by the cosmetics segment. With aging population people are becoming more conscious and aware regarding age related problems. Due to urbanization and busy lifestyle, there has been a significant increase in self-directed consumers. Consumers now rely more on the alternative channels to self-diagnose themselves and also take preventive measures to keep them healthy. Such practices are significantly increasing the demand for supplements globally, which in turn has increased the carotenoids consumption as well.

Europe and North America accounted more than half of the market in terms of revenue as well volume. But in future Asia Pacific regions are projected to witness highest growth rate.

Europe is projected to growth with second largest growth rate. Beta-carotene is still the most prominent carotenoid used in foods and supplements, but due to a changing consumer perception, primarily in Europe, all the carotenoids product is suffering from natural replacements. In parallel, the number of producers of synthetic and algae derived carotenoids rose sharply, which added to the imbalance of supply and demand, driving prices down. 

In Asia Pacific, India and China is not only the major consumer of carotenoids but also became major producers due to availability of abundant raw material, cheap labor and capabilities to produce carotenoids meeting the international standard and demand. Asia Pacific companies accounted for than 30% share of the pie in company market share. In addition, the European carotenoids products manufacturers are being threatened by cheaper imports from China and India.

Carotenoid belongs to a class of natural fat soluble pigments responsible for the deep red, orange and yellow color. In nature, more than 500 carotenoids have been acknowledged and characterized, but only up to 50 dietary carotenoids from vegetables and fruits may be absorbed and metabolized by human. There are two types of carotenoids synthetic and natural both have similar molecular structure but differ in health benefit associated with it.

Due to shift in trend and rise in demand for naturally sourced carotenoids there is a need for different sources of natural carotenoids that optionally include natural antioxidants suitable for their stabilization. Natural carotenoids can obtained either by extraction of plant material or by microbial synthesis; but, only a few plants are widely used for commercial carotenoid production and the productivity of carotenoid synthesis in these plants is relatively low. Microbial production of carotenoids is a more attractive production route.

Carotenoids act as antioxidants within the body, protecting against cellular damage, the effects of aging, and even some chronic diseases. Carotenoids cannot be synthesized by animals or humans; therefore, diet is the only way to get them.  As antioxidants, carotenoids are helpful for fighting cellular damage and caring vision. Moreover, different studies have also acknowledged carotenoids as vital supporters for the cardiovascular system and male reproductive health.

Deficiency of carotenoids doesn’t cause any adverse indications but it can contribute to deficiency of vitamin A. Lack of beta carotene or vitamin A can lead to a low red blood cell count or anaemia. Symptoms of which include impaired vision, impaired organ and tissue function. Deficiency of carotenoids for longer period of time may also increase risk of heart disease and cancer. It can also lead to damage of oxidative cell caused by free radicals. Thus, consumption of carotenoids in recommended quantities is very essential for long and healthy life.

Greater access to information and higher levels of education has resulted in an increase in the consumer concern for safety and health consciousness. The same has thus resulted in a rapid growth in the carotenoids market in India, Brazil and China. Moreover, there are no stringent regulations or ban on production and consumption of synthetic carotenoids. This offers huge market potential for manufacturers of synthetic carotenoids.

In the Asia Pacific market, China and India has not only become an important consumer of carotenoids, but also producers due to its ability to supply ingredients and raw materials, cheap labor with international quality at affordable prices to the growing carotenoids market. In RoW, Brazil, Turkey, and Saudi Arabia are some of the emerging economies which have huge market potential.

With the increase in per capita income, the purchasing power of individuals has also increased resulting in the growing demand for premium priced product such as natural functional foods, natural personal care products among others.

DSM and BASF are the two major players in this market accounting for than half of the market. Some of the other major players are Naturex SA, Chr. Hansen, ZMC, ExcelVite Sdn. Bhd, D.D.Williamson & Co., Inc, Cyanotech Corp and Allied Biotech Corp. Ltd among others.