Global Feed Carotenoids Market - 2023-2030

Overview

Global Feed Carotenoids Market reached US$ 10.2 million in 2022 and is expected to reach US$ 12.6 million by 2030, growing with a CAGR of 3.6% during the forecast period 2023-2030.

The consumption of animal protein is growing globally at a rapid rate. By 2030, per capita consumption is projected to increase annually by 0.3%, reaching 35.4 kg in retail weight equivalent. Carotenoids are pivotal in enhancing the color quality of meat, poultry and egg yolks. Feed manufacturers utilize carotenoids to enhance the visual attractiveness of these products, aligning with consumer preferences.

Similalry, the aquaculture sector has expanded to satisfy rising seafood demand. In 2020, FAO reported a global production of 122.6 million tonnes of aquaculture products, valued at US$ 281.5 billion. Carotenoids are used in aquaculture feeds to enhance the color of fish flesh, particularly in species such as salmon and trout, which are prized for their pink or red pigmentation.

The aquaculture sector commands a substantial one-third of the feed carotenoids market, underlining its role in improving the color and nutritional quality of aquatic animal products. Similarly, the Asia-Pacific region holds another one-third share, driven by the increasing emphasis on the livestock industry across its diverse countries.

Dynamics

Rising Demand for Pigments in Animal Products

In response to consumer demand, producers aim to offer animal products that align with consumer preferences for visually appealing products. Carotenoids enhance the color of meat, egg yolks and fish flesh, allowing producers to market these products as premium offerings. Birds consumed a carotenoid-deficient diet resulting in pigmentation of their egg yolk or pale colored skin.

In July 2021, AstaReal introduced Astaxanthin for the European pet and feed market. AstaReal's astaxanthin is made up of microalgae species Haematococcus pluvialis and is rich in carotenoids, proteins, carbohydrates and essential fatty acids. It can promote the health of the muscles, vision, brain and immune system, which makes it advantageous for both pets and animals used in competitive sports.

Consumer Demand for Animal Protein

The growing global population and increased disposable incomes are leading to a rising demand for animal protein products such as meat, eggs and milk. Consumers now seek animal products that are not only nutritious but visually appealing as well. Carotenoids, natural pigments like astaxanthin and canthaxanthin, enhance the color of animal tissues, making products like egg yolks, chicken skin and farmed fish flesh more visually appealing.

Carotenoids offer attractive red orange and yellow hues that attract consumers, driving demand. Carotenoids also possess antioxidants and serve as vitamin A precursors, benefiting health and nutrition. When animals consume diets rich in carotenoids, their overall well-being improves. Health-conscious consumers perceive these products as more nutritious, further stimulating demand, thereby boosting the market's sales and demand.

High Product Cost

Carotenoids are obtained mainly from plants and algae, but their supply can be restricted due to weather, seasonal changes and location-specific issues, resulting in limitations in availability. The extraction and production of carotenoids can be costly, especially when aiming for high purity and quality. The respective fact can lead to higher prices for carotenoid-based feed additives, potentially limiting their adoption in price-sensitive markets.

Animal feed manufacturers and producers operate in a competitive market and they are often price-sensitive when it comes to choosing feed additives. High production costs for carotenoids can lead to elevated prices for these additives, potentially making them less attractive compared to lower-cost alternatives. Hence, high production costs act as a limiting factor in the feed carotenoids market growth.

Segment Analysis

The global feed carotenoids market is segmented based on type, animal and region.

Growing Aquaculture Sector and Increasing Demand for Seafood

The aquaculture sector has been growing globally to meet the rising demand for seafood. In Europe, aquaculture farming yielded 1.1 million tonnes of aquatic organisms in 2020 which worth 3.5 billion Euros. Aquaculture produces high-value species such as salmon, which are often consumed as premium products. Carotenoids are used in aquaculture feeds to improve the color of fish flesh, particularly species like salmon and trout.

Consumers associate vibrant and appealing colors with freshness and quality, so the aquaculture industry relies on carotenoids to achieve the desired coloration of fish. Achieving the characteristic pink-to-red color of salmon flesh relies on carotenoids, as they are not naturally produced by these fishes in captivity. The demand has driven the adoption of carotenoid-based feed additives to achieve the desired color and quality in fish.

Geographical Penetration

Asia-Pacific's Growing Aquaculture Industry

The Asia-Pacific surging population and expanding middle class have increased higher consumption of meat, eggs and seafood. For instance, according to McKinsey & Company, in China, almost 100 million tons of meat were consumed in 2021 which was 27% of the world's total. The increased demand for animal products is spurring interest in feed additives like carotenoids, which enhance product quality and desirability.

In 2020, Asian countries contributed 70% of the world's fisheries and aquaculture output for aquatic animals, with China leading, followed by Vietnam and Indonesia. As economies in the Asia-Pacific grow, consumer purchasing power increases, leading to a higher demand for premium and visually appealing animal products.

Competitive Landscape

The major global players include: BASF SE, Kemin Industries, Inc., DSM, VievePharm Animal Nutrition B.V., EW Nutrition, Cyanotech Corporation, Allied Biotech Corporation, Divi's Nutraceuticals, Algatech LTD and Impextraco NV

COVID-19 Impact Analysis

The pandemic led to disruptions in global supply chains, affecting the availability of raw materials and production processes. The disruptions in the supply of key ingredients for carotenoid production caused shortages and decreased the overall production of carotenoid-based feed additives. Restaurants, food service and hospitality sectors were affected, due to Lockdowns, travel restrictions and economic uncertainty which reduced the demand for carotenoids used to enhance the color of meat, eggs and seafood.

The COVID-19 pandemic has disrupted the animal feed supply despite steady demand. Lockdowns, travel restrictions and labor shortages disrupted supply chains, impacting the production and distribution of crucial feed additives like feed carotenoids. Such disruptions caused delays, shortages and escalated feed carotenoid costs.

Russia- Ukraine War Impact

The war impacted various industries, including supply chains, trade relationships, market stability and consumer behaviors. The Russia-Ukraine conflict's impact on trade routes, transportation networks and logistics infrastructure has created disruptions in the supply chain for animal feed ingredients like feed carotenoids.

The conflict led to economic instability in the region, affecting purchasing power and demand for premium additives like carotenoids. The disruptions potentially affected animal feed production, animal health and consumer demand for animal products, thereby indirectly impacting the market for feed acidulants.

By Type

• Beta-Carotene
• Lycopene
• Lutein
• Astaxanthin
• Canthaxanthin
• Others

By Animal

• Ruminant
• Poultry
• Swine
• Aquaculture
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• On March 29, 2023, NovoNutrients unveiled carotenoid SCPs that will be the first addition to the new Novoceuticals line, a feed additives line of products.
• In March 2023, NutraMaize received US$ 650,000 from the U.S. Department of Agriculture to scale research on range corn that improves poultry health and egg yolk pigmentation. The grant will prepare NutraMaize Orange Corn rich in antioxidant carotenoids for use in commercial poultry feed
• In February 20221, EW Nutrition acquired the feed quality and pigment business from Novus International Inc.

Why Purchase the Report?

• To visualize the global feed carotenoids market segmentation based on type, animal and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of feed carotenoids market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global feed carotenoids market report would provide approximately 53 tables, 52 figures and 181 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies