The global carotenoids market is expected to reach $1.2 billion by the year 2015, driven by rising consumer awareness about health benefits offered by various carotenoids and the shift toward healthy and natural food products, according to a report from GIA. The availability of research supporting benefits offered by various ingredients is also fueling demand.

Interest in natural food products and natural colorings is also helping grow the market worldwide. Moreover, rising demand for functional and processed food products is expected to increase carotenoid utilization by the food industry.

The market is also expected to benefit from the discovery of new health benefits for various carotenoids. Natural carotenoids are expected to find increased acceptance among consumers, taking share away from the synthetic carotenoids market, due to the increasing demand for fortified and natural food products. The advent of fermentation process for natural carotenoids is also expected to significantly affect trends in the market. The method is likely to gain popularity in the future.

The U.S. and Europe collectively account for a major share of sales in the global carotenoids market, according to the report. Developing countries are also expected to perform well with stronger growth rates. China, India, Japan and Malaysia are some of the Asian markets expected to post significant sales over the next few years. Asian companies are posing huge threats to European and U.S. manufacturers.

The popularity of beta-carotene, the largest product segment, is attributed to health benefits offered by the pigment and its extensive use as a food-coloring agent. Beta-carotene is extensively used in foods and supplements. The segment, however, is facing tough times owing to the consumer shift toward natural products such as carrot juice, particularly in the European market. Canthaxanthin is expected to make rapid gains in the global carotenoids market, due to the ingredient’s continued usage as a coloring agent for imparting red coloration to egg yolks, and for providing red background color in shrimp and fish.

Animal Feed represents the largest end-use segment for carotenoids, while the food segment is expected to witness robust growth, driven largely by the use of carotenoids as antioxidants. Astaxanthin, lutein and canthaxanthin are expected to garner popularity due to their growing utilization in animal feed and food industries. Over-the-counter (OTC) health supplements are also posting considerable growth for carotenoids due to their antioxidative properties.