An organic, red-orange pigment that is generally sourced from various plants and fruits is referred to as beta carotene. This pigment is rich in vitamin A and is a powerful antioxidant. It helps eliminate free radicals in the body, thereby mitigating damage to cell membranes, DNA and protein structures. This, in turn, reduces the risk of cancer. Beta carotene is widely used in the food and beverage, pharmaceutical as well as cosmetic industry.
The global beta carotene market was valued at around USD 500 million in 2019. It is expected to witness a compound annual growth rate of more than 4% from 2020 to 2026. At the end of 2026, with a steady growth rate, the market’s valuation is projected to reach around USD 700 million.
On the basis of source, the beta carotene market is segmented into – fruits & vegetables, algae, synthetic, yeast, fungi, bacteria, and others. Among these, the fruits & vegetable segment is anticipated to display a growth rate of over 5% during the forecast timeframe. Rising health concerns and awareness regarding the benefits of naturally procured beta carotene is the major factor affecting the segment’s progress. Furthermore, awareness regarding the benefits of natural ingredients is projected to assist the fruits and vegetables segment’s growth.
The beta carotene market, on the basis of application, is classified into food & beverages, pharmaceuticals, cosmetics, animal feed and dietary supplements. The food & beverage application, alone, is envisaged to maintain the 40% market share throughout the forecast period. The use of beta carotene as a colorant in confectionaries, dairy, packaged foods, beverages, etc. will propel the demand.
Due to its antioxidant properties, beta carotene is rapidly gaining traction in the cosmetic industry. The demand for products, such as aftershave lotions, hair conditioners, sun-tan protectors, and many more, that contain beta carotene is rising exponentially.
Synthetic and natural are the two bifurcations of the beta carotene market on the basis of product type. While the synthetic segment dominated the market in 2019, capturing 95% of the market share, the natural segment is expected to grow at a compound annual growth rate of more than 5% during the forecast period. Consumer awareness is mainly affecting the natural segment’s expansion while consumer-driven movements such as ‘clean label’ is boosting the segment growth.
Powder and liquid are the two types of formulations available in the beta carotene market. The powder segment dominated the market, garnering over 80% in 2019. This can be attributed to the ease in transportation, longer shelf-life capabilities, and numerous storage options. However, the liquid form is estimated to register a significant growth rate due to better stability, solubility, and preferred choice for animal feed and nutraceutical formulations.
North America is projected to dominate the beta carotene market throughout the forecast timeline. Increased awareness coupled with a shifting trend towards consumption of beta carotene is pushing for the development of the market in the region. The prevalence of obesity and other disorders is supporting the expansion of these products in the region. Stringent food and beverage regulations are another factor positively influencing the regional market.
Asia – Pacific is anticipated to grow at an exponential rate from 2020 to 2026. The majority of the demand is estimated to come from Japan and China. Economic stability, rising middle-class income levels, health awareness among consumers, and concerns related to animal health and nutrition will lead to an overall rise in the regional market.
Increasing consumer awareness
Rising demand for nutritious and natural food acts as a trigger for the beta carotene market development. Moreover, the shift in consumer focus towards provitamin A fortified foods is generating a massive demand from the food and beverage industry. This demand is likely to be one of the major contributors to the expansion of the market. Besides this, the soaring need for vitamin A-rich dietary supplements are fueling the market growth.
The upsurge in the inclusion of beta carotene in animal feed, as a color additive and nutrient supplement has improved product proliferation globally. As a result, beta carotene is fast gaining ground due to its widespread applications.
Beta carotene has proven to reduce the effects of oxidative stress, a result of metabolism and aging, due to its antioxidant properties. Furthermore, since it contains a higher concentration of vitamin A, it aids in improving fertility rate and immunity in cattle and other farm animals. These benefits are expected to have a positive impact on the beta carotene market.
Support from Authorities
Supportive regulations issued by regulatory authorities will boost the market expansion. For instance, the nod for the use of beta carotene as an effective therapy for erythropoietic protoporphyria by the U.S. FDA encourages consumers and thereby boosts the market.
The high cost of natural beta carotene products
The cost of setting up as well as procurement of machines and raw materials is an expensive process for many small and medium enterprises. Additionally, the cost of manufacturing products that contain natural beta carotene as against synthetic ones is significantly higher. Therefore, the cost of the final product may hinder the market augmentation.
Harmful effects due to excessive consumption
The negative effects due to excessive consumption develop a sense of fear among consumers. Skepticism regarding these side effects may restrict consumption and thereby affect the overall progress of the beta carotene market.
The key players operating in the Beta Carotene Market are:
The research report analyses the ecosystem of the beta carotene market and categorizes it to forecast the revenues and analyse the trends in each of the following below-mentioned market segments.
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.