August 13, 2015

 

Global carotenoid market to grow 4% annually till 2019: report

 

 

The global carotenoid market totalled US$1.5 billion in 2014, and is expected to reach nearly US$1.8 billion in 2019, with a compound annual growth rate (CAGR) of 3.9%, according to the latest report from BCC Research.

 

The report is an update of the BCC research report FOD025D The Global Market for Carotenoids published in 2011. The main categories of carotenoids are still the same, no new types of carotenoids have been introduced in the market, and with the exception of astaxanthin, no radically new manufacturing technology has been introduced.

 

However, the market for carotenoids over the past four years has changed dramatically for some product segments. Prices have risen for a number of products at the expense of others.

 

Beta-carotene is still the most important carotenoid. While consumption has developed organically, products across all types of formulation and origin have seen a huge slump in price due to the influx of Chinese manufacturers with high-quality products. The beta-carotene market is oversupplied. Synthetic beta-carotene continues to dominate the market and hopes that fermentation-derived beta-carotene would gain a larger market share has not been fulfilled, with algae-based beta-carotene almost disappearing from the market.

 

Lycopene, an antioxidant recommended to prevent prostate cancer, obtained permission from the European Commission to be used as a food additive and colouring agent years ago, but hopes that such approval would boost the market have not come true. However, consumption in the traditional supplement segment has increased. Prices have decreased now that many Asian suppliers offer lycopene extracts from tomatoes.

 

Consumption of astaxanthin, the colour of choice for pigmenting fish and shrimp, is expanding together with the growing aquaculture industry. Astaxanthin was valued at US$369 million in 2014 and is expected to reach a market share of 24% with a value of US$423 million in 2019, increasing at a CAGR of 2.3%.

 

In contrast to other algae-derived carotenoids, astaxanthin is booming as an ingredient for food supplements and prices for such products are skyrocketing. Technological innovations are occurring at pace rarely seen during the past decade in the carotenoid sector, ranging from fully controlled tube systems in production to the use of genetically modified microorganisms that can produce astaxanthin in the dark.

 

Canthaxanthin remains the colour of choice for providing a red tone in egg yolks and for the pigmentation of salmonid fishes and shrimp. Expansion of consumption is moderate and market values are shrinking due to decreasing prices.

 

For lutein, the producer landscape has broadened, competition among primary lutein producers is stiff, and prices for the unrefined feed grade product are still low, although they are coming up.

 

Increasing volume sales of isolated zeaxanthin, the stereoisomer to lutein, which obtained approval to be sold in 2012, are causing prices to drop while possibly leading to a significant rise in global market value by 2019.

 

Paprika extracts and capsanthin, a purified colouring component, have for many years provided a red colour shade to poultry feed as an alternative to canthaxanthin. While the spice market is expanding rapidly, growth for the egg colouring market is more modest.

 

Demand for plant-based annatto is growing, driven by consumers' desire for a natural alternative to synthetic colours in pigmenting dairy products with a reddish-orange shade. Due to to the expansion of plantations in Latin America as well as Asia, oversupply has kept prices for crude products low.