Carotenoids Market: Growing Demand for Natural Colors in Food, Pharmaceuticals.

Posted by Arslan on February 11th, 2019

Carotenoids market is likely to witness significant growth in the coming years, with demand surpassing 5 million kg in 2018. Growing demand from customers for natural and clean products made from natural colors and supplements remains a key growth driver for carotenoids market. The prevailing health and wellness trend is also driving adoption of carotenoids among food and beverage processors.

The use of beta-carotene and lycopene as colorants in F&B sector continues to grow, according to the study. Beta-carotene is widely used in cheese, spreads, yogurts, soups, sauces, and bakery products, whereas lycopene is gaining increasing demand as a colorant in sauces and soups. Consumer awareness on the benefits of carotenoids for eye health, immune function, and cardiovascular health remains a key growth driver.

Competitive Landscape: Notable Highlights

• BASF entered into a deal with Planet to use satellite imaging and data on European farmers to develop analytics to power field zone metrics and insights for the digital farming platform, named as xarvio™. The partnership is likely to kick-off in early 2019. The company’s Germany unit also revised its forecast for 2018, and the company now expects EBIT to fall by 15-20%. The company blamed its chemical segment, low water levels on the Rhine, and weakness in automotive demand for the revision in forecast.
• Koninklijke DSM NV is focusing on acquisitions globally, with plans to buy assets in India. The company is spending in Greenfield projects in India and also opened second plant in Telangana.
• Chr. Hansen, the Danish Technological Institute (DTI), and University of Copenhagen have received The Danish Innovation fund grant to develop the next-generation microbial solution for sustainable agriculture production.
• Givaudan has acquired Naturex following the delisting of shares of Naturex from Euronext Paris stock exchange. The integration process will continue over the coming months.

Growing Demand for Natural Colors in Food, Pharmaceuticals, and Cosmetics Industries

Natural colorants demand in various industries such as food & beverages, cosmetics, and pharmaceuticals is accelerating owing to its health benefits. Carotenoids are gaining consumer interest due to their unique biological functions promoting human health.

Formulators are exploring natural food colors, influencing consumer perception of the product. Organic certified colors are becoming prominent and new coloring juices are under development process following the National Organic Program (N.O.P) under U.S. Department for Agriculture.

The ban on several synthetic colors in the US is leading to the reformulation of products by EU exporters. This is alleviated by replacing synthetic colors with natural alternatives. Western Europe is likely to be the largest market for natural colors in the near future owing to growing demand for natural coloring by manufacturers. Natural food colors are being commercially produced for pharmaceuticals, due to consumer concerns regarding synthetic coloring.

The color cosmetics market in the US is also gaining popularity with natural and organic brands. FDA has also provided approved list of natural colorants including annatto, caramel, beta-carotene, etc., to be used in cosmetics. 

Browse Full report with TOC

https://www.factmr.com/report/1196/carotenoids-market

Ingredient Compatibility, Storage and Sourcing Perspectives Remain Biggest Challenges

Obtaining vibrant color for various food products using natural colors continues to be a key challenge. Natural colors are incompatible with ‘one-size fits all’ food processing approach. Cold storage to maintain integrity of naturally sourced color is also difficult as opening and closing of storage unit may lead to microbial contamination and product degradation.

Ingredient compatibility poses another challenge for carotenoids. Rise in process variation in the food processing industry is impacting ingredient interaction. Moreover, oil-based naturally sourced colors including carotenoids and paprika can result in permanent stains, creating further challenges for food and beverage processors.