Market Overview

The global natural carotenoids market size was valued at USD 461.42 million in 2024. The market is projected to grow from USD 478.20 million in 2025 to USD 628.96 million by 2032, exhibiting a CAGR of 3.99% during the forecast period.

Fortune Business Insights™ has deep-dived into these insights in its latest research report on the natural carotenoids market.
The analysis shows that consumption is mainly driven by increased awareness about the health benefits of carotenoids and the expanding use of natural ingredients in processed foods, animal feed, cosmetics, and supplements. This trend indicates a strong demand for natural carotenoids worldwide.

Major Players Profiled in the Market Report:

·       Fuji Chemical Industries Co., Ltd. (Japan)

·       BASF SE (Germany)

·       Valensa International (U.S.)

·       Cyanotech Corporation (U.S.)

·       Allied Biotech Corporation (Taiwan)

·       Solabia-Algatech Nutrition (Israel)

·       Divi's Nutraceuticals (U.S.)

·       ORYZA OIL & FAT CHEMICAL CO., LTD. (Japan)

·       Algalif (Iceland)

·       RAHN AG (Switzerland)

Segments
Astaxanthin Segment’s Dominance Due to its Popularity in Health and Wellness

Based on type, the market is distributed into astaxanthin, beta-carotene, lutein, zeaxanthin, lycopene, canthaxanthin, and others. The astaxanthin segment held the highest market share owing to its high antioxidant capacity and versatile use in functional foods and cosmetics to promote skin and physical health.
Sustainable and Safer Profile to Drive Plant Source Segment Growth

By source, the market is segmented into plants and microorganisms. The plants segment dominates the market as plant-based extraction is a safer alternative that promotes sustainable practices. Plant sources are widely available and can improve the nutritional profile and color of various food products.
High Usage as Natural Colorants to Propel Food & Beverages Segment

Based on application, the market is distributed into food & beverages, dietary supplements, personal care & cosmetics, animal feed, and pharmaceuticals. The food & beverages segment is leading the market as carotenoids are mainly used as natural colorants and food additives in products such as beverages, dairy items, and edible fats.
Geographically, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Report Coverage

The report offers:

·       Major growth drivers, restraining factors, opportunities, and potential challenges for the market.

·       Comprehensive insights into regional developments.

·       List of major industry players.

·       Key strategies adopted by the market players.

·       The latest industry developments include product launches, partnerships, mergers, and acquisitions.

Source: https://www.fortunebusinessinsights.com/natural-carotenoids-market-113771

Drivers & Restraints

Growing Animal Feed Industry to Propel Market Growth

The flourishing animal feed industry is a critical driver for market growth. Natural carotenoids are extensively used to strengthen the visual appeal of animal products such as egg yolks, chicken skin, and salmon flesh. Besides color, these ingredients enhance the feed's nutritive value and contribute to the overall well-being of animals.

However, the high cost of purification and extraction of natural carotenoids may hamper market growth. Additionally, producers face shelf-life and stability challenges, as carotenoids are prone to degradation from light, heat, and oxidation, which can impact their nutritional value and color.

Regional Insights

Rising Demand for Clean-Label Products in Europe Drives Market Growth

Europe holds the dominant natural carotenoids market share and is projected to experience growth during the forecast period. The region’s growth is attributed to consumers increasingly looking for natural substitutes for artificial additives. This trend, along with innovations in production technology and favorable government policies, escalates the usage of carotenoids.

Asia Pacific is one of the fastest-growing regions in the market. The growth is attributed to the rising health and wellness trend and the thriving organic personal care industry in countries such as China and India.

Natural Carotenoids Market Future Growth:

The natural carotenoids market is experiencing steady growth, fueled by the expanding use of carotenoids in the cosmetics sector and advancements in production technologies. Consumers are increasingly drawn to clean-label personal care products, where natural carotenoids are used as colorants that also protect skin from oxidative damage and premature aging. Additionally, there's growing adoption of advanced, eco-friendly extraction methods like ultrasound-assisted and microwave-assisted extraction. The development of encapsulation and biofortification techniques to improve carotenoid stability and bioavailability is also creating significant growth opportunities.

Competitive Landscape

Strategic Partnerships and Product Innovation to Foster Market Growth

The market features prominent players like Fuji Chemical Industries Co., Ltd., BASF SE, and Cyanotech Corporation. These leading companies are accelerating growth by introducing new natural ingredients for the food & beverage and animal feed sectors. Top producers are also entering into partnerships to improve their product portfolios, which continues to fuel the market’s momentum.

Key Industry Development

March 2024 – Kuenhle AgroSystem, a biotechnology firm in the U.S., secured USD 3 million in funding from S2G Ventures. This funding helped elevate the production of natural microalgae-derived astaxanthin powder to an industrial level.