Demand for astaxanthin is driving carotenoid market

A NEW report from BCC Research surveys the carotenoid market whose future is influenced by the soaring demand for astaxanthin supplements. According to BCC, the global market value for carotenoids was $1.5 billion in 2014. Four years from now, this will reach close to $1.8 billion, reflecting a five-year compound annual growth rate (CAGR) of 3.9%.

Carotenoids, derived from botanical material or produced by fermentation or chemical synthesis, are coloring for food, feed and some cosmetics. They are used as physiologically active ingredients in nutritional supplements as well.

While there are a few hundred carotenoids, about 10 are commercially marketed: annatto, astaxanthin, beta-carotene, beta-apo-8-carotenal and its ester, canthaxanthin, lutein and its isomer zeaxanthin, lycopene and capsanthin/paprika.

The global market value of beta-carotene – the most prominent of the carotenoids – has dropped to $200 million in 2014, from $260 million in 2010. According to BCC, this was due to declining prices for oil suspensions and high-concentrated powders. But the market will pick up again to reach $247 million by 2019, the research firm said.

Astaxanthin provides the natural color of salmon (Photo © Katsiaryna Belaya | Dreamstime.com)

Astaxanthin is the carotenoid pigment the gives fish like salmon and trout their color. Demand for this product as a natural nutritional supplement is behind the growth of carotenoids. Last year, the astaxanthin market was valued at $369 million. Continuing research in algae-derived astaxanthin will further the product growth. Better production systems have contributed to reasonable prices.

“Market growth rates for natural astaxanthin are so high that production lags behind demand and prices are skyrocketing,” says BCC research analyst Ulrich Marz. “Technological innovations are occurring at an intensity rarely seen during the past decade in the carotenoid sector, ranging from fully controlled tube systems in production to the use of specifically designed microorganisms that can produce astaxanthin in the dark.”

The Global Market for Carotenoids (FOD025E) provides market insight into production technologies, market developments, and market dynamics, with data from 2013, estimates for 2014, and projections of CAGRs through 2019.